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35 Cards in this Set
- Front
- Back
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levers we can pull (4 Ps)
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• Product
– e.g., Change quality, design, packaging, sizes, warranties, return policy • Price – e.g., Change list price, discounts, repayment period, financing terms • Promotion – e.g., Change size of sales force, advertising campaign • Place – e.g., Change where we’re available, number of intermediaries |
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Products definition (and 4 things it can be)
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a produce is anything that can be offered to a market to satisfy a warn or a need
physical goods, services, experiences, events physical goods constitute the bulk of most countries' production, marketing efforts |
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Products overview
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products too often conceptualized as a bundle of features (like airbags)
they should be conceptualized as a budle of benefits, value transfer mechanism, and essential brand building tool ...think in terms of customers and benefits |
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3 common assumptions about products
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Products have a limited life
– Product sales pass through distinct stages, each posing different challenges, opportunities, problems – Products require different marketing, financial, manufacturing strategies in each life‐cycle stage |
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PLC
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The graph we use for the entire product category..rule model
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Introduction stage of product
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Objective
• Quickly identify and remedy defects • Develop awareness • Gain trial by “early adopters” Outlook on Competition • Competition are rarely attracted in this early stage (usually unprofitable) Product • Limited number of models, designed to minimize learning to appeal to most receptive segments • Utmost attention to quality control and rapid response to market-revealed defects. |
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Growth stage of product
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Objective
• Establish brand loyalty by market and distribution partners. • Often forced to clarify positioning relative to entering competition. Outlook on Competition • Competitors enter aggressively • Competition may aid in growing the market. • Comparative or attack advertising is common. Product • Variations may be called for as segments emerge. • Improvements may be necessary to respond to competition. |
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Maturity stage of product
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Objective
• Defend market position. • Identify new markets and/or new uses for product to maintain growth. Outlook on Competition • Stabilized, with few or no new entrants and semi-fixed market shares • Price competition & distribution competition are common as competitors fight to maintain / steal market share. Product • “Tighten” product line to eliminate offerings with small market share. • Focus on new product platforms to re-introduce growth. |
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Decline stage of product
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Objective
• Reduce costs • Focus on profits rather than revenue or share Outlook on Competition • Competition declining or dropping out because of decrease in consumer interest. Product • Constant pruning of line to eliminate any items not turning a profit. • Reduce marketing budget to lower fixed costs. |
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Other common patterns
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Other common patterns listed on slides
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3 shortcomings of PLC analyses
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Stages can be self‐fulfilling prophecy
• Easy to retrospectively assess stages, but hard to know where you are in real‐time • Treats products too literally – As a set of features, rather than as a set of benefits |
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5 stages of bull's eye model
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core benefit, generic product, expected product, augmented product, potential product
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2 important risks consumers face when buy a product
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Functional risk of loss
– What happens if the product does not meet expectations? – Even if it does work as promised, does it pose a threat to the well‐being of the user? • Ego‐involved risk of loss – Might the product reflect poorly on me as a person? • As either risk increases, involvement increases |
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3 shortcomings of PLC analyses
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Stages can be self‐fulfilling prophecy
• Easy to retrospectively assess stages, but hard to know where you are in real‐time • Treats products too literally – As a set of features, rather than as a set of benefits |
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5 stages of bull's eye model
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core benefit, generic product, expected product, augmented product, potential product
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3 different attributes that could be emphasized with consumption
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• Search attributes
– Can be evaluated prior to consumption • Experience attributes – Can only be evaluated after consumption • Credence attributes – Cannot be evaluated, even after consumption |
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3 common search attributes
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• Price
• MPG • Appearance (e.g., color) |
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2 important risks consumers face when buy a product
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Functional risk of loss
– What happens if the product does not meet expectations? – Even if it does work as promised, does it pose a threat to the well‐being of the user? • Ego‐involved risk of loss – Might the product reflect poorly on me as a person? • As either risk increases, involvement increases |
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3 products high in experience attributes
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• Food
• Cruises/vacation packages • Potential spouses • Companies will often be motivated to make experience attributes more tangible – e.g., Free samples – e.g., Scatch‐and‐sniff ads – e.g., commercials filmed from actor’s perspective |
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3 different attributes that could be emphasized with consumption
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• Search attributes
– Can be evaluated prior to consumption • Experience attributes – Can only be evaluated after consumption • Credence attributes – Cannot be evaluated, even after consumption |
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product high in credence attributes
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tylenol
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3 common search attributes
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• Price
• MPG • Appearance (e.g., color) |
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emphasizing credence attributes generally more effective when MO =
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retention
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3 products high in experience attributes
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• Food
• Cruises/vacation packages • Potential spouses • Companies will often be motivated to make experience attributes more tangible – e.g., Free samples – e.g., Scatch‐and‐sniff ads – e.g., commercials filmed from actor’s perspective |
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product high in credence attributes
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tylenol
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emphasizing search attributes generally more necessary when MO=
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acquisition
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emphasizing credence attributes generally more effective when MO =
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retention
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brands serve at least 4 functions
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memory aid (helps to remember, like logo), surrogate for quality information (find it difficult to evaluate product without the "intel inside" logo), basis for differentiation (brands from e/o, brand name important), locus of emotion (logo becoming fuzzier)
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emphasizing search attributes generally more necessary when MO=
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acquisition
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brands serve at least 4 functions
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memory aid (helps to remember, like logo), surrogate for quality information (find it difficult to evaluate product without the "intel inside" logo), basis for differentiation (brands from e/o, brand name important), locus of emotion (logo becoming fuzzier)
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brand value =
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the total financial value of the brand
a way to quantify the related but more intangible "brand equity" concept |
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brand equity =
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value added to products and services by the brand
reflected in the way consumers think, feel, and act with respect to brand, as well as in the prices, market share, and profitability brand commands for the firm |
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Packaging levers to pull (kind of like the 5th P)
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• Packaging often referred to as “the last five seconds
of marketing” – Some refer to packaging as “the fifth P” • Colors convey information – Blue is cool and serene • e.g., JetBlue, Bluefly, Blue Martini – Red is active and lively – Purple suggests the product is a “funky alternative” • Betty Crocker’s once purple background considered “anti‐Betty” |
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packaging can be
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a source of differentiation (coke), a source of info (water watch), make the packaging warmer (car smiling), and is very critical for book...packaging can also influence perceived product heaviness (location of cookie logo)
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packaging and size
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bigger containers, people eat more
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