Chat with us, powered by LiveChat LU Unveiling Consumer Insights Discussion - Uni Pal

Description

Title your post according to your selected      topic. 
Customer loyalty
Global marketing

Marketing research

Branding

In at least 600 words, discuss      your topic by addressing the following items:

Explain the concept of the       marketing management topic selected for your paper (Your textbook is a       good source for this section).

Examine at least 1 practical application/example       for your topic. This must involve the mention of a specific industry or       organization, explained in sufficient detail.1
CHAPTER 8:
PRODUCT STRATEGY
AND NEW-PRODUCT
DEVELOPMENT
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
McGraw-Hill
Education
Part 3: Develop the Value Offering—The Product
Experience
Learning Objectives
2
Understand the essential role of the product experience in
marketing.
Define the characteristics of a product.
Recognize how product strategies evolve from one product to
many products.
Understand the life of a product and how product strategies
change over time.
Recognize the importance of new-product development to longterm success.
Understand the new product development process.
Identify how new products become diffused in a market.
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
Product: The Heart of Marketing
3
The product experience is at the core of delivering
value to the customer.
The customer experience at Starbucks extends
beyond coffee to social interaction and lifestyle.
If the product is wrong, great promotion, pricing, or
distribution can’t save it.
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
What Is a Product?
4
A product is anything that delivers value to
satisfy a need or want and includes physical
merchandise, services, events, people, places,
organizations, information, or ideas.
Product versus product item.
SKU: A stock-keeping unit.
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
Product Characteristics
5
Defining the Product
Essential benefit is the fundamental need met by
the product (getting from point A to point B on an
Southwest Airlines).
• Core product is the physical, tangible elements (e.g.,
one kind of aircraft, low fares, good website).
• Enhanced product includes additional features,
designs, and innovation that exceed expectations (e.g.,
frequent flyer program, fun and entertaining flight
attendants).

©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
CHAPTER 01
EXHIBIT 8.1
DEFINING THE PRODUCT AT SOUTHWEST AIRLINES
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted
without the prior written consent of McGraw-Hill Education.
6
Product Classifications
7
Four Ways to Classify Products
By nature of the products
• Tangibility
• Durability
By who uses the products
• Consumers
• Businesses
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
8
Product Classifications by
Nature of the Product
Tangibility: physical aspects of the product
experience
Durability: product usage
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
Consumer Goods
9
Convenience Goods
Staples, Impulse, Emergency
Shopping Goods
Furniture, Clothes, Appliances
Specialty Goods
Unique characteristics iPhone
Unsought Goods
Insurance
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
Product Classifications
10
Business Goods
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
Product Discrimination: Create a
Point of Differentiation
11
Form
Features
Style
Performance
Quality
Repairability
Conformance
Quality
Reliability
Durability
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
Product Plan: Moving from One
Product to Many Products
12
Product Line: A group of products linked
through usage, customer profile, price
points, and distribution channels or needs
satisfaction
Product Mix: all the products offered by a
company
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
Product Decisions Affect Other
Marketing Mix Elements
13
Pricing
Individual product pricing within the product line
• “good, better, best” product line strategy
• Technology companies face special challenges as newer
models have better features and lower prices

Marketing Communications
Focus on a single product or the brand?
• Allocation of budget: Most popular products? Entire line?
New products?

©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
Building the Product Experience
14
Product Life Cycle
• Sales revenue and profitability
• Timeline
• Caveats
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
CHAPTER 01
EXHIBIT 8.6
THE PRODUCT LIFE CYCLE
Reprinted from Roger Kerin, Steven Hartley and William Rudelius, Marketing, 9th edition, 2009.
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted
without the prior written consent of McGraw-Hill Education.
PLC
16
Intro
Growth
Maturity
Decline
Objective
• Build
awareness
• Trial purchase
• Differentiate
• Transition
• Determine
product from
product from
future of the
competitors
high growth to
product
Promote rapid
sales stability
expansion
Profitability
• Low sales,
typically high
failure rate
• High
marketing and
product costs
• Sales grow at
• Sales increase • Long-run drop
increasing rate
at a decreasing
in sales
• Profits are
rate
• Profit margins
healthier as
• Cost
dramatically
operations are
minimization
reduced
streamlined
has reached
full extent
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
PLC: Market Conditions
17
Intro
Growth
Maturity
Decline
Market Segment
Nonexistent
New segment now Market
established
approaching
saturation
Changing tastes
and substitute
products erode
share
Targeted
Consumers
Innovators and
Early Adopters
Early Adopters to
Majority
Majority
Laggards
Competitive
Environment
Little competition
Many competitors
Marginal
competitors drop
out
Falling demand
forces many out of
market
Competitor
Reaction
Followers release
Large companies
similar products to acquire small ones
pioneer
Models emphasize
style over function
Remaining firms
focus on specialty
products
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
PLC: Introduction Phase
18
Product: High-quality, innovative design providing new
benefit to consumers. Features well-received and
understood by target consumers.
Price: Price skimming or penetration.
Communications: Inform and educate target audience
about the product’s features and benefits. Promotion
focused on product awareness and to stimulate primary
demand.
Distribution: Wide distribution network with limited
product availability.
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
PLC: Growth Phase
19
Product: More features and better design. Diversification of product
and release of complementary products/services.
Price Penetration: New and improved models sold at high price
points.
Price Skimming: Existing models or earlier generations move down in
price.
Promotion: Link the brand with key product features and highlight
differentiation between competitors. Promotion emphasizes brand
advertising and comparative ads.
Distribution: Broaden distribution networks to keep up with
expanding market demand.
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
PLC: Maturity Phase
20
Product: Product lines are widened or extended.
Price Penetration: Target high-end market, higher
price.
Price skimming: Lower price due to competitive
pressures if product is not well-differentiated.
Promotion: Decide between short-term sales
promotion or investing more in the brand.
Distribution: Has reached maximum distribution.
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
PLC: Decline Phase
21
Product: Consider product expense in terms of ROI.
Price Penetration: Low price to stimulate demand.
Price skimming: Pressure from competitors and
consumers.
Promotion: Cost not justified by conditions.
Distribution: Reduce channels.
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
22
New Products Defined:
Company Perpsective
Company Perspective:
• New-to-the-world
Disruptive innovation are so innovative they create a fundamental
change in the marketplace (e.g., connected clothing).
• Sustaining innovations are newer, better faster versions of existing
products or additions to existing product lines (e.g., Diet Coke,
Coke Zero)

• Reposition existing products

Add new market segments (e.g., cell phones from business usage
to adults to teens).
• Cost reduction

Introduce lower-cost products with fewer features or scaled-back
warranty or service
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
23
New Products Defined:
Customer’s Perspective
Customer’s Perspective
• The customer’s perspective is much more
narrow and self directed.
• The customer is most interested in an answer to
the fundamental question: Is this new product
new to me?
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
Why Do Products Fail?
24
Company
Customers
Competitors
• Inadequate value • Change in
proposition.
purchase
• Poor marketing
priorities.
communications. • Higher
• Product does
expectations.
not meet
customer
expectations.
• Failure to fully
develop product.
• Aggressively
attack new
competition.
Environment
• Changes in
government
regulation of
legislation.
• Changes in
societal
demands.
• Economic
changes.
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
New Product
Development Process
25
The three major activities in new
product development are:
Identify product opportunities.
2. Define the product opportunity.
3. Develop the product opportunity.
1.
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
Identify Product Opportunities:
Generate New Ideas
26
Generate new ideas.
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
27
Identify Product Opportunities:
Evaluate Ideas
Screen and evaluate ideas.
• Go-to-market mistake: Firm fails to
keep a bad product idea from moving into
product development
• Stop-to-market mistake: A good idea is
eliminated prematurely
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
Identify Product Opportunities:
Prioritize Ideas
28
Prioritize ideas that pass initial screening and
evaluation.
• Time to market (how long will it take to develop
and get the product to market).
• ROI (what is the expected return for the dollars
invested in the project).
• New product fit with overall company
product portfolio.
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
Define the Product Opportunity
29
Define the product opportunity.
Define and test the product concept.
• Create a marketing strategy.
• Analyze the product’s business case.

©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
Define and Test the Product
Concept
30
Define and test the product concept.
• Product definition objectives:
• Define the value proposition.
• Identify the target market and purchase
frequency.
• Delineate the product characteristics: Look, feel,
physical characteristics, features
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
Create the Market Strategy
31
Create the Marketing Strategy
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
Conduct Business Case Analysis
32
Conduct Business Case Analysis
• Total Demand
• New purchases
• Repeat purchases
• Replacement purchases
• Profitability Analysis
• Long- and short-term analysis
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
Develop the Product
33
Develop the Product
• Product testing: alpha and beta
• Test the market
• Consumer product market tests
• Business product market tests
• Product launch
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
Consumer Adoption and
Diffusion Process
34
Consumer Product Adoption Process
Innovation diffusion process is how long it takes a
product to move from first purchase to last purchase
(the last set of users to adopt the product).
• An individual moves through five stages before
adopting a product.

©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.
The Diffusion of Innovations
35
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution
permitted without the prior written consent of McGraw-Hill Education.

Purchase answer to see full
attachment

error: Content is protected !!