Product Strategies

Product Strategies

Instructor: Safaa S. Y. Dalloul

Principles of MarketingUnit 6

Elements of Lecturehttp://safaadalloul.wordpress.com

Product Strategy

Product Characteristics and Classifications

Components of Market Offering

•Product Levels

Components of Market

Offering

http://safaadalloul.wordpress.com

Components of Market Offeringhttp://safaadalloul.wordpress.com

Product Levels


Product Levelshttp://safaadalloul.wordpress.com


Fundamental level : Core benefits

Basic Product

Expected Product

Augmented Product

Potential Product


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

Product Classifications


Product Classificationshttp://safaadalloul.wordpress.com

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

Customer Goods Classificationshttp://safaadalloul.wordpress.com

Industrial Goods Classificationshttp://safaadalloul.wordpress.com

Material and Parts

Capital Items

Supplies and Business Services

Differentiation


Differentiation: process of adding a set of meaningful

and valued differences to distinguish the company’s

offering form competitor’s offering


Differentiation

Differentiationhttp://safaadalloul.wordpress.com

Product form

Features

Performance quality

Conformance Quality

DurabilityReliability

Reparability

Style

Design

Product Design

Parameters

Differentiationhttp://safaadalloul.wordpress.com

Ordering ease

Delivery

Installation

Customer Training

Customer Consulting

Maintenance & Repair

ServiceDesign

Parameters

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.


Product System

Product Mix


Product System

ProductLine 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

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.


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)


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.


Brand

Packaging, Labeling,

Warranties and Guarantees


Packaging: is all activities of designing and producing the

container for a product.

Primary Package

Secondary Package

Shipping Package


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



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.



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



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.



Functions

Identification,

Grading

Description, producer, instruction, expiry date,…

Promotion: through graphic or color on the label



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.



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.



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



Guarantee

Effective when:

The company or the product is not well-known

The product’s quality is superior to the competition




Documents

Product Strategies