MARKETING

• Product


  Tangible objects that a company sells to customers for their use or consumption
• Services


  Intangible offerings sold by a company to a set of customers, directly delivered by the company's employees
• E. Jerome McCarthy


  Introduced the 4Ps of marketing
• 4Ps of marketing


  • Product
  • Price
  • Placement
  • Promotion
• Core Product


  • Benefit that a consumer can gain from using a product
• Actual Product


  • Tangible characteristics of the product, including its features and packaging
• Augmented Product


  • Service-based add-ons that customers are entitled to upon purchasing the product
• Packaging


  Serves to contain and protect and sometimes identify and promote the product
• Labeling


  Display of information about a product on its container, packaging or on the product itself
• Consumer Goods


  Products and services purchased by customers for their own use and are thus frequently purchased
• Industrial Goods


  Purchased by businesses and are used in the creation of new product which shall be eventually sold to others
• New Product Development (NPD)

  Process that involves the conceptualization and creation of innovative products that will catch the attention of customers and ensure their loyalty to a particular brand
• Rationale behind NPD


  • To defend its market share
  • To position ahead of competition in a market segment
  • To establish a foothold in a future market in the future
  • To take advantage of strengths in product distribution
• New Product Development Process

  1. Idea generation

  2. Idea screening

  3. Concept development and screening

  4. Market and business planning

  5. Product Development

  6. Test marketing

  7. Commercialization
• Product Line


  Group of similar products offered by the same company under the same brand
• Product Life Cycle Stages

  • Introduction
  • Growth
  • Maturity
  • Decline
• Price


  Answers the question "how much?" - the amount of money the customer must pay to get the products or services they want
• Pricing Strategy


  The method of pricing that an entrepreneur uses to determine how much to sell their products or services
• Pricing Strategies


  • Market Penetration Pricing
  • Market Skimming Pricing
  • Competitive Pricing
  • Premium Pricing
  • Cost Based Pricing
  • Psychological Pricing
  • Bundling
  • Value Based Pricing
  • Product Line Pricing
• Place/Channel of Distribution


  The third P in marketing mix - establishing an excellent channel of distribution ensures the product will reach the target customers