MKTG100

• Date: Subject
• Define product


  Understand various dimensions
• 4P's of marketing


  • Product
  • Price
  • Target consumers
  • Promotion
  • Place
• Product


  Should meet customer needs/wants as a solution to a problem, provides value
• Types of product needs

  • Utilitarian practical needs i.e. food
  • Hedonic pleasure need i.e. watching Netflix
• Note: Customers buy want satisfaction in the form of product benefits
• Definition of product


  Anything that can be offered to a market for attention, use or consumption that might satisfy a need or want
• Types of products


  • Goods (physical, tangible offering)
  • Services (intangible offering that does not involve ownership i.e. haircut, lecture)
  • Industrial products (materials, services)
  • Experiences (sporting event, festival)
  • Ideas (concept, issue or philosophy)
  • Person, place, organisation (profit, non-profit organisation, place, tourist destination, people, politicians)
• 3 levels of products

  • Core product (the key benefit they want from a product)
  • Actual product (ability to consistently perform function, blend of form/function, attractive yet easy/safe to use, includes durability, reliability, ease for repair, packaging)
  • Augmented product (typical aspects of what goes into Augmented products, e.g. after-sale services)
• Cautions: Anything you add has additional costs, is it worth it?
• Product line


  A set of closely related products
• Product mix


  All product lines and items that a company offers for sale
• Types of products based on consumer behaviour

  • Convenience products (willing to spend minimal time/effort, inexpensive, frequently purchased, widely available)
  • Shopping products (purchased rarely, brought once a year, buyer doesn't know much about product i.e. furniture, clothes, iphone)
  • Specialty products (willing to make a special effort to get product like when traveling overseas)
  • Unsought products (unaware of needing the product i.e. mechanic, plumber)
• Product line


  A set of closely related product items i.e. coke, vanilla coke, coke no sugar
• Product mix


  All product lines and items that a company offers (width, length, depth, consistency)
• Extend mix by adding a new line
• Explain the value of branding and brand management
• Brand image


  Set of beliefs that a consumer has regarding a particular brand, consumers' perception of the brand
• Businesses try to influence brand image as much as they can but can't control it
• Brand identity


  What businesses can control i.e. "we will change the world"
• Brand name


  Needs to be distinctive, relevant, able to change and develop
• Brand marks


  Symbols or designs
• Trademark


  Brand name, mark that is legally registered so others can't use it
• Benefits of brands to organisations

  • Making a promise to customer in hopes of customer loyalty
  • Company value, building brand equity
  • Barrier to competition
  • High profits
  • Coordinate channel behaviour
• Brand equity


  Strong brands build a strong emotional connection with consumer, creates customer loyalty, quality and establishes clear positioning
• Brands stay relevant, is consistent, positioned, build equity, has a logical brand portfolio
• Roles of packaging


  • Designed to attract the consumer's attention and to physically protect the product
  • Provides easy brand recognition
  • May provide additional benefits and helps communicate product benefits
  • May help augment the product with information, recipes, warranties
  • Competition helps support the brand and attracts attention in a competitive environment
  • Protects what it sells and sells what it protects
  • Using captivating words brings consumers to the product
• Packaging used with branding, used with Promotion
• Product life cycle (PLC)


  A product's sales and profits during its lifetime

  
• Stages of PLC


  • Product development (no sales, no profit, but high investment costs)
  • Introduction (slow sales growth but with no existing profits)
  • Growth (there is market acceptance and increasing profits)
  • Maturity (slow down in sales growth, promotion used to remind customers, brand loyalty)
  • Decline (sales and profits drop, need to be able to rejuvenate products)
• Strategies for PLC


  • Market modifications (current customers consume more, market penetration, find new customers, foreign customers)
  • Product modifications (Features, quality, style)
• Week 8 Recap - Price
• Role of price


  Characteristics of price and non-price competition, number of factors that affect pricing

  
• Perspectives on price


  Measure of value to buyers and sellers, amount of money charged for a product or service, seller's notation of value

  
• Price communicates a lot for products, companies often have a short-term view of pricing
• Creating vs capturing value

  Product, promotion and place create marketplace value, price captures value via profits
• Example of overpricing: Concert Band is in their 20s, segmented buying like cheap pre-sale tickets
• What is price


  Amount of money charged for product/services, sum of all values consumers exchange for the benefits
• 5C's of pricing


  • Company objectives
  • Competition
  • Costs
  • Customers
  • Channel members
• Steps in establishing price

  • Developing pricing objectives
  • Target market's evaluation of price
  • Price elasticity
  • Competitors' prices
  • Bases used for setting price (cost-based, customer value-driven, competition-based)