Marketing

Product is tangible.

Product classifications

• Products are classified based on consumer behavior

• The type of product affects the marketing strategy

• Product type includes:

o Convenience products e.g: Crisps/chewing gum

There is no massive risk, if you don’t like it just trough it up

o Shopping products e.g: more complex: jeans/airline ticketI take more time to choose the product. People see it.

o Speciality products eg: Luxury products

Washing machine, car, house, expensive piece of jewelry

o Unsought products e.g. Infrequent purchase: insurance

Some products are moving from, luxury or shopping product to convenience almost, like low cost tickets, movil, e-mail (time and space areshrinking)

Also you can do it in the othe way, (from convenience to luxury)

How often is it bought
How many people buy it
Information requirement in order tu understand its features and USP (how much information I need to buy it?)
How longer I’m going to use the product (expected usage)
Degree of branding

Managing brands

• Branding is developing for the product or service adistinctive

o Name

o Package, and design
e.g: colour, writing font, music, graphic etc…

• Branding augments the core product with distinctive values that distinguish it from the competition.

Branding plays a key role in building market share

Different perception in your mind because of the brand.


Brand building:

A brand serves to identify a product and clearlydifferentiate it from its competitors

• Developing brand values:

Product features (i.e. Funtional offerings) + Benefits = Augmented Product



Brand types:
Manufacturer: Owned by producer e.g. Nescafé
Own Label: Owned by distributor e.g: aldi Brands, ja, tesco
Fighting brands: Brands from producers yo compete with own label (coca-cola, fanta)

Characteristics ofSuccessful Brands

• Should have a strong image:

o History
Emotion
Short name cannot be mispronounced

• But not resemble anything unless linked to emotion factor above

• Exples of brands: Coca-cola, Mercedes, BMW, Kodak, Nike, etc..

• Needs to be clear and fit with marketing campaign

• One brand only

• Case study exampleamnesty… the don’t have only one image (political human rihts). That confuse the public.

Innovation: New product categories

1. Replacements: improvements, repositioning, cost reductions.

2. Additions to existing line. Eg: new flavor, depth portfolio

3. New product lines, increase in width of portfolio

4. New world products: Innovations



Marketing Services:Additional Ps• Services marketing involves balancing ways of improving productivity without compromising quality

• Service positioning involves the 4Ps plus 3 additional Ps:

o People: Importance of service provider and training

o Physical evidence: ditto (idem) above plus. (uniform, atmosphere of the shop)

o Process: Standards, automation, and trainin are importantThink of a service. Can you give examples for the three points above describing how the service you chose can be marketed and positioned most effectively?

Marketing Serv ices:

Services have special characteristics in comparison with products which require separate consideration. Their characteristics include:

Intangibility: Often difficult to prejudgeInseparability: Simultaneous production and consumption= Importance of service provider and training

Variability: Standards and training are important, use of machines eg: ATM

Perishability (perecedero): Storage is often not possible= differential pricing is often used to smooth demand

Note:

1. The experience in taking part in the consumption is a key element...