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PRODUCT AND SERVICES STRATEGY

PRODUCT AND SERVICES STRATEGY

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PRODUCT AND SERVICES STRATEGY

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  1. PRODUCT AND SERVICES STRATEGY www.AssignmentPoint.com

  2. WHAT IS A PRODUCT? • Product and Service # Pure tangible goods # Pure services # Tangible goods with accompanying services # Hybrid offer # Service with accompanying minor goods • Experiences * Experiences are memorable * Experiences are personal and take places in the consumer’s mind www.AssignmentPoint.com

  3. Levels of products Installation Augmented product Packaging Actual product Brand name Core benefit or service Feature Core product After- sale service Delivery and credit Quality level Design Warranty www.AssignmentPoint.com

  4. PRODUCT CLASSIFICATIONS Based on the types of consumers – Product Consumer product Industrial product www.AssignmentPoint.com

  5. Consumer products • Consumer products are those bought by final consumers for final consumption. Convenience product Shopping product Specialty product Unsought product www.AssignmentPoint.com

  6. 1. Convenience product Marketing considerations Customer buying behavior Frequent purchase, little planning, little comparison or shopping effort, low customer involvement Price Low price Distribution Widespread distribution, convenient location Promotion Mass promotion by the producer www.AssignmentPoint.com

  7. 2. Shopping product Marketing considerations Customer buying behavior Less frequent purchase, much planning and shopping effort, comparisons of brands on different attributes Price Higher price Distribution Selective distribution in fewer outlets Promotion Advertising and personal selling by producers and resellers www.AssignmentPoint.com

  8. 3. Specialty product Marketing considerations Customer buying behavior Strong brand preference and loyalty, special purchase effort, little comparisons of brands, low price sensitivity Price High price Distribution Exclusive distribution in only one or a few outlets per market area Promotion More carefully targeted promotion by both producers and resellers www.AssignmentPoint.com

  9. 4. Unsought product Marketing considerations Customer buying behavior Little product awareness, knowledge (or, if aware, little or even negative interests) Price Varies Distribution Varies Promotion Aggressive advertising and personal selling by producers and resellers www.AssignmentPoint.com

  10. Industrial products Industrial products are those purchased for further processing or for use in conducting a business. Materials and parts Capital items Supplies and services www.AssignmentPoint.com

  11. Materials and parts • Raw materials (Farm products and Natural products) • Manufactured materials and parts (component materials and component parts) • Capital items • Installations (Building and equipments) • Accessory equipments (factory equipment and office equipment) www.AssignmentPoint.com

  12. 3. Supplies and services • Supplies – • Operating supplies (paper, pencils) • Repair and maintenance items (paint) • Business Services -- • Maintenance and repair services (computer repair) • Business advisory services (legal, advertising, management consulting) www.AssignmentPoint.com

  13. Other marketable entities • Organization marketing – To create, maintain or change the attitudes and behavior of target consumers toward an organization. • Person marketing -- To create, maintain or change the attitudes and behavior of target consumers toward particular person. • Place marketing -- To create, maintain or change the attitudes and behavior of target consumers toward particular places. • Idea marketing/Social marketing – To increase the acceptability of a social idea, cause or practice within targeted groups. www.AssignmentPoint.com

  14. INDIVIDUAL PRODUCT DECISIONS Product attributes Branding Packaging Labeling Product support services www.AssignmentPoint.com

  15. Product Attributes • Product quality – Two dimensions Quality level/Performance quality Quality consistency/Conformance quality • Product features • Product style and design www.AssignmentPoint.com

  16. Branding A brand is a name, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service. Brand equity is the value of a brand, based on the extent to which it has – • High brand loyalty • Name awareness • Perceived quality • Strong brand associations • Other assets such as patents, trademarks and channel relationships www.AssignmentPoint.com

  17. Major branding decisions Brand name selection Brand sponsor Brand strategy Selection Protection Manufacturer’s brand Private brand Licensing Co-branding Line extensions Brand extensions Multibrands New brands www.AssignmentPoint.com

  18. Brand name selection Desirable qualities for a brand name – • It should suggest something about the product’s benefit and qualities. • It should be easy to pronounce, recognize and remember. • It should be distinctive. • It should translate easily into foreign languages. • It should be capable of registration and legal protection. www.AssignmentPoint.com

  19. Brand sponsor • Manufacturer’s brand (national brands) • Private brand (store brand/distributor brand) • Licensing (many companies license names or symbols created by other manufactures, names of celebrities and others) • Co-branding (using the established brand names of two different companies on the same products) www.AssignmentPoint.com

  20. Brand strategy Product category Existing New Line extension Brand extension Existing Brand name Multibrands New brands New www.AssignmentPoint.com

  21. Packaging Packaging involves designing and producing the container or wrapper for a product. The package may include – • Primary container: The tube of toothpaste. • Secondary package: The cardboard box containing the tube of toothpaste. • Shipping package: The box carrying six dozen tubes of toothpaste. www.AssignmentPoint.com

  22. Labeling Labels may range from simple tags attached to products to complex graphics that are part of the package. The functions – • Identify the product or brand • Describe several things about the product • Promote the product through attractive graphics • Product support services www.AssignmentPoint.com

  23. PRODUCT MIX DECISIONS A product mix/product assortment consists of all the product lines and items that a particular seller offers for sale. Four important dimensions – • Width- The number of different product lines the company carries. • Length- The total number of items the companies carries within its product lines. • Depth- The number of versions offered to each product in the line. • Consistency- How closely related the various product lines are in end use, production, channels or some other way. www.AssignmentPoint.com

  24. Example: P & G www.AssignmentPoint.com

  25. SERVICE MARKETING • Services by Governments: Hospitals, military services, police & fire departments, postal services, schools. • Services by Private nonprofit organizations: Museums, charities, colleges, hospitals. • Services by business organizations: Airlines, banks, hotels, real estate firms, advertising agencies. www.AssignmentPoint.com

  26. Nature and characteristics of a service Intangibility Services cannot be seen, tasted, felt, heard or smelled before purchase Inseparability Services cannot be separated from their providers Services Perishability Services cannot be stored for later sale or use Variability Quality of services depends on who provides them and when where and how www.AssignmentPoint.com