MKTG350

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MKTG350

• Product

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The Marketing Mix

• Product
• Place
• Promotion
• Price

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What is a Product?

• A Product is anything that can be offered to a
  market for attention, acquisition, use, or
  consumption and that might satisfy a want or need.

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What is the product?
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What is a Service?

• A Service is a form of product that consist of
  activities, benefits, or satisfactions offered
  for sale that are essentially intangible and do
  not result in the ownership of anything.

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Products, Services, and Experiences
Service With Accompanying Minor Goods
Tangible Good With Accompanying Services
Pure Tangible Good
Pure Service
Hybrid Offer
The Product-Service Continuum
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Nature and Characteristic of a Service
Intangibility
Inseparability
Variability
Perishability
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Individual Product Decisions (Fig. 8.2)
Product Attributes
Branding
Labeling
Packaging
Product Support Services
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Product Attributes
Developing a Product or Service Involves Defining
the Benefits that it Will Offer Such as
Product Quality
Product Features
Product Style Design
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Branding

• What?
• Why?
• Brand equity

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Branding Decisions

• Brand Strategy
• Brand Management

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Product Life Cycle
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New Product Development
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New-Product DevelopmentStrategies
Original Products
Acquired Companies
Product Improvements
Acquired Patents
Product Modifications
Acquired Licenses
New Brands
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New Product Development ProcessNew Product
Development Process Step 1. Idea Generation
Idea Generation is the Systematic Search for New
Product Ideas Obtained Internally From Employees
and Also From
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New Product Development Process Step 2. Idea
Screening

• Process to spot good ideas and drop poor ones as
  soon as possible.
• Many companies have systems for rating and
  screening ideas which estimate
• Then, the idea is evaluated against a set of
  general company criteria.

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New Product Development Process Step 3. Concept
Development
1. Develop New Product Ideas into Alternative
Detailed Product Concepts
2. Concept Testing - Test the New Product
Concepts with Groups of Target Customers
3. Choose the One That Has the Strongest Appeal
to Target Customers
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New Product Development Process Step 4. Marketing
Strategy
Part One Describes Overall Target
Market Planned Product Positioning Sales Profit
Goals Market Share
Part Two Describes First-Year Products Planned
Price Distribution Marketing Budget
Part Three Describes Long-Term Sales Profit
Goals Marketing Mix Strategy
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Step 5. Business AnalysisStep 6. Product
Development
Business Analysis Review of Product Sales,
Costs, and Profits Projections to See if They
Meet Company Objectives
If No, Eliminate Product Concept
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New Product Development ProcessStep
7. Test Marketing
Test Marketing is the Stage Where the Product and
Marketing Program are Introduced into More
Realistic Market Settings.
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New Product Development Process Step 7. Test
Marketing
Standard Test Market Full marketing campaign in
a small number of representative cities.
Controlled Test Market A few stores that have
agreed to carry new products for a fee.
Simulated Test Market Test in a simulated
shopping environment to a sample of consumers.
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New Product Development Process Step 8.
Commercialization
Commercialization is the Introduction of the New
Product into the Marketplace.
When is the Right Time to Introduce Product?
Where to Launch a New Product?