Académique Documents
Professionnel Documents
Culture Documents
Chapters 10 - 12
What is a Product?
Anything that can be offered to a market to satisfy a want or need. It is usually judged on (1) product features (2) services mix & quality and (3) price appropriateness Core benefit, Basic product, Expected product, Augmented product, Potential product
Augmented Product
Features
AfterSale Service
Design
Warranty
Product Classifications
PRODUCTS
Consumer Products
Business Products
Convenience Products
Shopping Products
Specialty Products
Unsought Products
Toiletries
Series Adorn Toni Right Guard Silkience Soft and Dri Foamy Dry Look Dry Idea Brush Plus
Writing instruments
Paper Mate Flair
Lighters
Cricket S.T. Dupont
Category Sales
Dollars
Time
Introduction Stage
High failure rates Little competition Frequent product modification Limited distribution High marketing and production costs Negative profits Promotion focuses on awareness and information Intensive personal selling to channels
Growth Stage
Increasing rate of sales Entrance of competitors Market consolidation Initial healthy profits Promotion emphasizes brand ads Goal is wider distribution Prices normally fall Development costs are recovered
Maturity Stage
Declining sales growth Saturated markets Extending product line Stylistic product changes Heavy promotions to dealers and consumers Marginal competitors drop out Prices and profits fall Niche marketers emerge
Decline Stage
Long-run drop in sales Large inventories of unsold items Elimination of all nonessential marketing expenses Options for Deleting Products:
Maintaining Deletion Harvesting Contracting
Product Strategy
Large number Eliminate of models. unprofitable models Extensive. Margins drop. Shelf space Phase out unprofitable outlets Phase out promotion Prices stabilize at low level.
Distribution Strategy
Awareness. Aggressive ads. Advertise. Stimulate Stimulate Promote heavily demand.Sampling demand Higher/recoup Fall as result of Prices fall competition & development (usually). efficient produccosts tion.
Laggards 16%
Time
Sales
Innovators
Laggards
Diffusion curve
What is a Service?
Any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything Medical, utilities, entertainment, professional (law, medical), transportation, financial
Characteristics of Services
Intangibility cannot be touched, seen, tasted, heard or felt in the same manner as goods. Inseparability services are produced and consumed simultaneously Heterogeneity services are less standardized and uniform than goods. Perishability services cannot be stored, warehoused or inventoried.
Managing Services
Managing differentiation
Cant live by price alone Reliability, innovativeness and resilience
Managing productivity
Seven approaches