MARKETING MANAGEMENT Chapter 12 – Setting Product Strategy
Md Afnan Hossain – Lecturer SouthEast University Course Code: Mkt 3123 (D,E)
Contents Source: Kotlar, Keller, Koshy, Jha (2014) Marketing Management. Forbes, The Economist, Wall Street Journal, Financial Times, Business Week, CNN Business
Product
A good, service or idea including all the tangible and intangible attributes that individuals or organizations regard as so necessary, worthwhile or satisfying, that they are prepared to exchange money, patronage or some other unit of value to acquire it.
Consumer Goods Classification Staples Convenience Products Products Convenience
Impulse Products Emergency Products
Shopping Products
Homogeneous Shopping Products Heterogeneous Shopping Products
Specialty Products Unsought Products
New Unsought Products Regular Unsought Products
Product Differentiation
Product form—size, shape, or physical structure Features—supplement basic functions Customization–individual versus mass Performance—level at which the product’s primary characteristics operate Conformance—degree to which all the produced units are identical and meet the promised specifications Durability—product’s operating life Reliability—probability that a product will not malfunction or fail Repairability—the ease of fixing a product when it malfunction or fails Style—product’s look and feel to the buyer.
Service Differentiation
Ordering ease—how easy to place an order Delivery—how well (e.g., speed, accuracy, and care) product or service is brought to the customer Installation—work done to make a product operational Customer training—training the customer’s employees to operate the vendor’s equipment properly and efficiently Customer consulting—data, information, systems, and advice that the seller offers to buyers Maintenance and repair—service programs for helping customers keep purchased products in good working order Returns
Product-Mix Pricing
Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing
Product Line Pricing
Optional-feature pricing Many companies offer optional products, features and services along with their main product.
Captive-product pricing Some products require the use of ancillary products, or captive products.
Two-part pricing Consisting of a fixed fee plus a variable usage fee.
If you talk beyond the plan then you have to pay the extra usage fee.
By-product pricing production of certain goods often result in by-products; meat. Any income earned on the by-products will make it easier for the company to charge at lower price on its main product if competition forces it to do so.
Product-bundling pricing Sellers often bundle products and features.
Co-branding Co-branding, also called brand partnership, is when two companies form an alliance to work together, creating marketing synergy.
Ingredient Branding It is a marketing strategy where a component or an ingredient of a product or service is pulled into the spotlight and given it’s own identity. Everyone is familiar with the now famous “Intel Inside”, and it’s corresponding success. But why does it work? It works because, in general, consumers will pay more for a branded product. Consumers trust established brands.
Warranty & Guarantee Warranty is a document that is issued to protect a consumers’ right. The warranty is basically a promise ensuring the customer specific conditions, facts, or products are true. A guarantee is a document that also protects the right of a consumer. A guarantee promises that something that is sold is of the quality that is promised.
The End
– Digital Marketing – E-Commerce – M-Commerce
E-commerce
E-commerce (or electric commerce) refers to the buying and selling of goods and services via electronic channels, primarily the Internet. Online retail is decidedly convenient due to its 24-hours availability, global reach and generally efficient customer service.
In 2012, B2C (Business to Customer) ecommerce sales grew 21.1% to top $1 trillion for the first time.
M-commerce/Shopping
