contemporary marketing wired, 9th edition© 1998 the dryden press chapter 11 product strategy
TRANSCRIPT
Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Chapter 11
Product Strategy
Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
A bundle of physical, service, and symbolic attributes designed to enhance buyers want satisfaction.
Product
Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Figure 11.2 Classification of Consumer Products
UnsoughtProductsLife Insurance, Self-Improvement Courses Cemetery Plots
Shopping ProductsHomogeneous: WashingMachine, Portable FanHeterogeneous:Physical FitnessTraining
Specialty ProductsLuxury Cars,Designer Clothing,Health Foods
ConvenienceProductsImpulse Items: Magazines Staples: Gas, Bread Emergency Items: Bandages, Candles
Consumer
Products
Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Comparison of price and quality Very little Considerable Very little
Importance of convenient location
Purchase frequency
Planning time involved in purchase
Critical Important Unimportant
Frequent
Very little
Less frequent
Considerable
Infrequent
Extensive
CONSUMER FACTORS
FactorConvenience
ProductsShopping Products
Specialty Products
Table 11.1aMarketing Impact of the Consumer Products Classification System
Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Importance of store image Unimportant Very important Important
Number of retail outletsMany Few
Very few; often one per market
area
Distribution channel length
Promotion
Price
Long Relatively short Very short
Advertising and promotion by
producer
Low
Personal selling and advertising
by both producer and retailer
Relatively high
Personal selling and advertising by producer and
retailer
High
MARKETING MIX FACTORS
FactorConvenience
ProductsShopping Products
Specialty Products
Table 11.1bMarketing Impact of the Consumer Products Classification System
Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Figure 11.5 Classification of Business Products
InstallationsPlant: Factories
Major Equipment:Mining
Equipment BusinessServicesAdvertising,GroundsMaintenance,Workshops
Raw MaterialsEggs, Cotton,
Leather, Bauxite,Wheat
MRO SuppliesFloor CleaningCompounds, Pens,Staples
ComponentsComputer Chips,Lawn Mower Motors,Auto Stereos
AccessoryEquipmentAdvertising,Drill Presses,Desks, DeliveryTrucks
Business
Products
Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Comparison of price and quality
Purchase frequency
Planning time involved in purchase
Quality very important
Infrequent
Extensive
Quality and price
important
More frequent
Less extensive
Quality important
Frequent
Less extensive
Quality important
Infrequent
Varies
Price importan
t
Frequent
Very little
Varies
Varies
Varies
ORGANIZATIONAL FACTORS
Factor InstallationsAccessory Equipment
Component Parts &
Materials
Raw Materials
Supplies
Table 11.2a Marketing Impact of the Business Products Classification System
Business Services
Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Distribution channel length
Promotion method
Price
Very short
Personal selling by producer
High
Relatively short
Advertising
Relatively high
Short
Personal selling
Low to high
Short
Personal selling
Low to high
Long
Advertis-ing by
producer
Low
Varies
Varies
Varies
MARKETING MIX FACTORS
Factor InstallationsAccessory Equipment
Component Parts &
Materials
Raw Materials
Supplies
Table 11.2b Marketing Impact of the Business Products Classification System
Business Services
Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
A series of related products.
Product Line
Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
The four basic stages through which a successful product progresses-introduction, growth, maturity, and decline.
Product Life Cycle
Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Figure 11.8 Stages in the Product Life Cycle
Introduction Growth Maturity Decline
Time
Sal
es a
nd P
rofit
s
IndustrySales
IndustryProfits
NetworkComputers
CellularPhones
FoodProcessors
CassetteTapes
Hint: This WILL be on the test
Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Figure 11.10 Overlapping Life Cycles for Two Products
Introduction Growth Maturity Decline
Time
Indu
stry
Sal
es
Product A
Product B
Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
• Increasing Frequency of Use
• Increasing the Number of Users
• Finding New Uses
• Changing Package Sizes, Labels, or Product Quality
Extending the Product Life Cycle
Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
A company’s assortment of product lines and individual offerings.
*width, length, and depth
Product Mix
Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Introduction of a new product that is closely related to other products in the firm’s existing line.
Line Extension