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
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Components of Market Offeringhttp://safaadalloul.wordpress.com
Product Levels
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Product Levelshttp://safaadalloul.wordpress.com
Product Levelshttp://safaadalloul.wordpress.com
Fundamental level : Core benefits
Basic Product
Expected Product
Augmented Product
Potential Product
Product Levelshttp://safaadalloul.wordpress.com
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
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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
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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
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
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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 Mix
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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
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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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Brand
Packaging, Labeling,
Warranties and Guarantees
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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
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