Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides prepared by Joe Rosagrata Product Strategy The Marketing Mix Chapter 6

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides prepared by Joe Rosagrata What is a product  A product is a set of tangible and intangible attributes including packaging, colour, price, quality and brand, plus the services and reputation of the seller. 6-1

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides prepared by Joe Rosagrata Seller’s services Product quality Physical characteristics of goods Price Brand Design Packaging Product warranty Seller’s reputation Colour What are the benefits of this product? 6-2

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides prepared by Joe Rosagrata Classification of products  Two product categories:  Consumer products Intended for household consumer, non-business use.  Business products Intended primarily for producing other products or providing services in a business. 6-3

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides prepared by Joe Rosagrata Services  A clear definition is difficult although, services are invariably marketed together with physical goods. Canned foods Ready- made clothes Auto- mobiles Draperies, Carpets Restaurant meals Repairs: auto, house, landscaping Air travel Insurance, Consulting, Teaching MOSTLY GOODS MOSTLY SERVICES The goods and services continuum MOSTLY SERVICES 6-4

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides prepared by Joe Rosagrata New product processes  A six-step approach to developing new products.  1. generating new product ideas.  2. screening & evaluating ideas.  3. business analysis.  4. prototype development.  5. test marketing.  6. commercialisation. 6-5

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides prepared by Joe Rosagrata New product adoption and diffusion  Adoption process: A set of successive decisions an individual or organisation makes before accepting an innovation.  Stages in Adoption Process: Awareness Interest Evaluation Trial Adoption Post-adoption confirmation.  Diffusion: the process by which an innovation is spread through a social system over time. 6-6

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides prepared by Joe Rosagrata The product life-cycle Dollars Time in yearsLoss 0 Profit Sales Volume INTRODUCTIONGROWTHMATURITYDECLINE 6-7

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides prepared by Joe Rosagrata Product mix and product line  A product mix is the full set of products offered for sale by a company.  A product mix has dimensions of both breath and depth. Breadth—the number of product lines. Depth—variety of sizes, colours and models. Product line—a broad group of products intended for similar use with similar characteristics. 6-8

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides prepared by Joe Rosagrata Branding  A brand name is a term, sign, and/or special design that is intended to identify the goods or services of one seller and distinguish it from all others. 6-9

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides prepared by Joe Rosagrata Benefits of using a brand  Brand name—words, letters and numbers that can be vocalised. E.g. Nike.  Brand mark—a recognisable symbol, design, letter or colouring that is visual. E.g Nike’s swoosh.  Trademark—a term for a brand that is given legal protection in its totality. E.g. Nike’s swoosh and positioning statement ‘Just do it.’ 6-10

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides prepared by Joe Rosagrata Packaging  Defined as all the activities of designing and producing the container or wrapping for a product.  Packaging is also a way of creating appeal for goods and services. It also creates the perception of value and value adding. (JR). 6-11

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides prepared by Joe Rosagrata Packaging strategies  Family packaging  Family resemblance.  Changing the packaging  Re-design of package.  Re-use packaging  Glass jars re-used as a glass.  Refill containers.  Re-usable envelopes. 6-12

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides prepared by Joe Rosagrata Packaging strategies (cont.)  Multiple packaging:  The practice of placing several units in one container.  Used to increase consumer’s consumption of products (e.g. toilet roll six pack). 6-13

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides prepared by Joe Rosagrata Labelling  A label is the part of a product that carries information about the product itself or about the seller. It is used to communicate useful information to customers. 6-14

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides prepared by Joe Rosagrata Design  Design benefits:  Improves marketability.  Significantly differentiates product.  Promotional appeal.  Can be protected under designs act.  E.g. furniture or prestige pen. 6-15

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides prepared by Joe Rosagrata  Services have a number of distinctive characteristics that create special challenges and opportunities Services are intangible so it is impossible for customers to sample a service. Intangibility is reduced using:  Visualisation  Association  Physical representation  Documentation Service 6-16

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides prepared by Joe Rosagrata  The service and the creator-seller of the service are often inseparable.  Services are heterogeneous.  Services are highly perishable, cannot be stored, and the demand for services fluctuates. Service (cont.) 6-17