Instructor: Safaa S. Y. Dalloul

E-MarketingUnit 6

Product Strategy

Elements of Lecture

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Product Strategy

Product Characteristics and Classifications

Components of Market OfferingProduct LevelsProduct ClassificationsDifferentiationProduct SystemBrandPackaging and Labeling

Components of Market Offering

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Components of Market Offering

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Many people think that a product is a tangible offering, but a product can

be more than that.

 A product is anything that can be offered to a market to satisfy a want or

need. Products that are marketed include physical goods, services,

experiences, events, persons, places, properties, organizations,

information, and ideas.

Components of Market Offering

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Marketing planning begins with formulating and offering to meet target

customer’s needs or wants.

Components of Market Offering

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Product Levels

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Product Levels

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Product Levels

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Fundamental level : Core benefits

Basic Product

Expected Product

Augmented Product

Potential Product

Product Levels

Fundamental Basic Product Expected Augmented Potential

Hotel Rest and Sleep Bed, Bathroom Clean Bed Internet Access ATM Machine

Car Leisure Chairs and Windows

Radio, Air Condition

GIS (E-Map) Robot

Examples of Product Level

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Product Classifications

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Product Classifications

Durability and Tangibility

Durable: Many uses such as refrigerators

Non-durable: Normally consumed such as soap

Services: intangible such as legal advice

Consumer Goods Classification

Industrial Goods Classification

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Durability and Tangibility

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Durability and Tangibility

Durable Goods

Non-Durable Goods

Services

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Customer Goods Classifications

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Industrial Goods Classifications

Material and Parts

Capital Items

Supplies and Business Services

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Differentiation

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Differentiation

Differentiation: process of adding a set of meaningful and

valued differences to distinguish the company’s offering form

competitor’s offering

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Differentiation

Product form

Features

Performance quality

Conformance Quality

DurabilityReliability

Reparability

Style

Design

Product Design

Parameters

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Differentiation

Ordering ease

Delivery

Installation

Customer Training

Customer Consulting

Maintenance & Repair

ServiceDesign

Parameters

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Product System

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Product System

Product System: A group of diverse but related items that function in a

compatible manner, eg, cellular phone with earphone, battery, radio and

cameras.

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Product System

Product MixProductLine 4

ProductLine 3

ProductLine 2

ProductLine 1

Sweets Snakes Soft Drinks Coffee

Mars Pizza In Tang Nescafe

kinder Burger Coca Cola Bream

Twix KFC Meranda Sanca

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Brand

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Brand

Brand: A name, term, sign, symbol, or design, or a combination of these,

intended to identify the goods or services of one seller or group of sellers

and to differentiate them from the competition.

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Brand

Brand Levels

Attributes: A brand brings to mind certain attributes.

Benefits: Attributes must be translated in to functional & emotional

benefits

Values: The brand say something about the product (Mercedes-

Safety)

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Brand

Brand Levels

Culture: It may represent a certain culture (Mercedes- German)

Personality: It project a certain personality

User: It suggests the kind of consumer who buys or use the product.

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Packaging, Labeling, Warranties

and Guarantees

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Packaging, Labeling, Warranties and Guarantees

Packaging: is all activities of designing and producing the container

for a product.

Primary Package

Secondary Package

Shipping Package

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Packaging, Labeling, Warranties and Guarantees

Function: create convenience and promotional value, a styling

weapon, attracting consumers.

Self-Service: providing info and attracting customers.

Consumer affluence: consumers’ willingness to pay more.

Company and brand image: instant recognition of the brand

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Packaging, Labeling, Warranties and Guarantees

Innovation opportunity

Innovative packaging can bring large benefits to consumers and

profits to producers.

Companies are incorporating unique materials and features such

as resalable spouts and openings.

Fragrance bottle design and soft drinks.

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Packaging, Labeling, Warranties and Guarantees

Package design

Establishing the packaging concept: deciding what should be or do

for the package

Designing the package: size, shape, materials, color, text, brand

mark

Packaging test: engineering tests, visual tests, dealer test and

consumer test

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Packaging, Labeling, Warranties and Guarantees

Labeling

Sellers must label products. The label may be a simple tag attached

to the product or an elaborately designed graphic that is part of the

package. The label might carry only the brand name or a great deal

of information.

Labels eventually become outmoded and need freshening up.

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Packaging, Labeling, Warranties and Guarantees

Functions

Identification,

Grading

Description, producer, instruction, expiry date,…

Promotion: through graphic or color on the label

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Packaging, Labeling, Warranties and Guarantees

Warranties

All sellers are legally responsible for fulfilling a buyer's normal or

reasonable expectations.

Warranties are formal statements of expected product

performance by the manufacturer.

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Packaging, Labeling, Warranties and Guarantees

Warranties

Products under warranty can be returned to the manufacturer or

designated repair center for repair, replacement, or refund.

Warranties, whether expressed or implied, are legally enforceable.

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Packaging, Labeling, Warranties and Guarantees

Guarantee

many sellers offer

Reduce the buyer’s perceived risks

Suggesting that the product is high quality and that the company

and its service performance are dependable

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Packaging, Labeling, Warranties and Guarantees

Guarantee

Effective when:

The company or the product is not well-known

The product’s quality is superior to the competition

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Packaging, Labeling, Warranties and Guarantees

Warranties Guarantees

A warranty attracts charges as the insurance policy.

A guarantee is always free

If product is found defective then the product will be repaired within given time period of the warranty.

If product is found defective then the product will be replace with new one within given time period by the guarantor.

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