marketing for most module 07 – product strategies ritsumeikan asia pacific university : takamoto,...
TRANSCRIPT
Marketing for MOSTModule 07 – Product Strategies
技術経営コンソーシアム
開発担当者 : Ritsumeikan Asia Pacific University 教授 : Takamoto, Akihiro
更新日 October, 2003
Marketing for MOST: Module 7 – Product Strategies
Product Strategies
1. What is a Product
2. Product Classification
3. Product Strategy
4. Branding
5. Brand / Product Positioning
6. Service
7. Intangible Products
8. Product Life Cycle
9. Innovation
10. Practice
Marketing for MOST: Module 7 – Product Strategies
What is a Product
Reaching a clear understanding
of what a product is,
is essential
to the deep understanding
of
Marketing.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
A Product is more than a tangible thing.
It is not merely manufactured goods.
A Product is more than a simple set of tangible features.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
An automobile is not simply a tangible machine for movement, visibly or
measurably differentiated by design, size, color, options, horsepower, or
miles per gallon.
It is also a complex symbol denoting status, taste, rank, achievement, and aspiration.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
But the customer buys even more than these.
The enormous efforts of the auto companies to cut the time between placement and the delivery of an order and to select,
train, supervise, motivate, and enhance their dealerships suggest that these too are integral parts of “the product” people
buy and are therefore ways by which they may be differentiated.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
In the same way a computer is not simply a machine for data storage, processing,
calculation, or retrieval.
It is also an operating system with special software protocols for use and special
accompanying possibilities for and promises of maintenance and repair.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
People buy products (whether purely tangible products, purely intangible
products, or hybrids of the two)
in order to solve problems.
Products are problem-solving tools.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
A product is, to the potential buyer,
a complex cluster of value satisfactions.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
The ‘product’ is what the product does;
it is
the total package of benefits
the customer receives when he buys
Marketing for MOST: Module 7 – Product Strategies
What is a Product
The dots inside each ring represent specific activities or tangible attributes. For example, inside the “Expected Product” are
delivery conditions, installation services, post-purchase services, maintenance, spare parts, training,
packaging convenience, and the like.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
The “generic product” is
the rudimentary substantive “thing”
without which there is no chance to
play the game of market participation.
– For the steel producer it is the steel itself.
– In the case of a bank, it is loanable finds.
– For a realtor, it is “for sale” properties.
– For a retailer it is a store with a certain mix of vendables.
– For a lawyer it’s having passed the bar exam.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
The previous figure represents the “expected product” as everything inside the smallest circle,
including the “generic product.”
This represents the customer’s minimal expectations.
Though these vary by customers, conditions, industries, and the like, every customer has minimal purchase
conditions that exceed the generic product itself.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
The “augmented product” offers the customer
more than they think they need
or have become accustomed to expect.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
The “potential product” consists of everything potentially feasible to attract and hold
customers.
Whereas the “augmented product” means everything that has been or is being done, the “potential product” refers to what may
remain to be done, that is, what is possible.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
The 3 Levels of Product according to P. Kotler:
Marketing for MOST: Module 7 – Product Strategies
Product Classification
Classification of a Product
Marketing for MOST: Module 7 – Product Strategies
Product Classification
Classification of Goods
Marketing for MOST: Module 7 – Product Strategies
Product Classification
Product Classification by the ratio of
tangible and intangible components.
Examples:Soap
Clothes
Purely
Tangible
Cars
TV’s
Mostly
Tangible
Restaurant
Computer
Half and Half
Air Tickets
Sightseeing Tour
Mostly
Intangible
Medicare
Music Concert
Purely
Intangible
Marketing for MOST: Module 7 – Product Strategies
Product Strategy
Individual product decisions
• Product Attributes – (Product Quality, Product Features, Product Style and Design)
• Branding
• Brand extensions
• Packaging
• Labeling
Marketing for MOST: Module 7 – Product Strategies
Product Strategy
• Product Line Decision
– Product line stretching
– Downward
– Upward
– Both directions
• Product Line Filling
Marketing for MOST: Module 7 – Product Strategies
Product Strategy
High
HighLow
Low
PRICE
PRODUCT BENEFIT
DOWNWARD STRETCHING
Marketing for MOST: Module 7 – Product Strategies
Product Strategy
High
HighLow
Low
PRICE
PRODUCT BENEFIT
UPWARD STRETCHING
Marketing for MOST: Module 7 – Product Strategies
Product Strategy
High
HighLow
Low
PRICE
PRODUCT BENEFIT
TWO-WAY STRETCHING
Marketing for MOST: Module 7 – Product Strategies
Product Strategy
High
HighLow
Low
PRICE
PRODUCT BENEFIT
PRODUCT LINE FILLING
Marketing for MOST: Module 7 – Product Strategies
Product Strategy
WIDTH
PRODUCT MIX DECISIONS
DEPTH
LENGTH
Produ
ct A
Produ
ct B
Produ
ct C
Produ
ct D
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
• A brand is a name, term, design, symbol, or other feature that identifies one seller’s good or service as distinct from those of other sellers.
• The legal term for brand is trademark.
• A brand may identify one item, a family of items, or all items of that seller.
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
• A product is something that is made in a factory;
• A brand is something that is bought by a customer.
• A product can be copied by a competitor;
• A brand is unique.
• A product can be quickly outdated;
• A successful brand is timeless. Stephen King/WPP Group, London
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
The Six dimensions of a brand according to Philip Kotler:
Values
Uses
Culture
Personality
Attributes
Benefits(functional and emotional)
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
• Brand Equity
– A set of brand assets and liabilities linked to a brand,its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firms customers.
– (David Aarker)
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
(David Aarker)
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
The Value of Brand Loyalty (David Aarker)
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
Creating and Maintaining Brand Loyalty (David Aarker)
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
The Brand Awareness Pyramid (David Aarker)
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
The Value of Brand Awareness (David Aarker)
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
(David Aarker)
Marketing for MOST: Module 7 – Product Strategies
Brand/Product Positioning
• General Motors:
– “We make a car for every ‘person, purse, and personality’ ”
• Chrysler:
– “Advantage: Chrysler”
• Ford:
– “Quality is job one”
• Mazda:
– “Just feels right”
Marketing for MOST: Module 7 – Product Strategies
Brand/Product Positioning
• Jaguar:
– “A blending of art and machine”
• Saab:
– “The most intelligent car ever built”
• Lincoln Town Car:
– “What a luxury car should be”
• Bentley:
– “The closest a car can come to having wings”
Marketing for MOST: Module 7 – Product Strategies
Brand/Product Positioning
• Mercedes:
– “Engineered like no other car in the world”
• BMW:
– The ultimate driving machine
– “Our cars are not made to offer something to everyone but something more to some.”
Marketing for MOST: Module 7 – Product Strategies
Brand/Product Positioning
Marketing for MOST: Module 7 – Product Strategies
Brand/Product Positioning
Marketing for MOST: Module 7 – Product Strategies
Brand/Product Positioning
Marketing for MOST: Module 7 – Product Strategies
Brand/Product Positioning
Marketing for MOST: Module 7 – Product Strategies
Brand/Product PositioningAffluent Market Perceptions:
Marketing for MOST: Module 7 – Product Strategies
Brand/Product Positioning
Marketing for MOST: Module 7 – Product Strategies
Service
What is a Service?
• A service is any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.
Marketing for MOST: Module 7 – Product Strategies
Service
4 Characteristics of Service:
Variable
InseperablePerishable
Intangible
SERVICE
Marketing for MOST: Module 7 – Product Strategies
Service
Service intangibility:
• A major characteristic of services—they cannot be seen, tasted, felt, heard, or smelled before they are bought.
Marketing for MOST: Module 7 – Product Strategies
Service
Service inseparability:
• A major characteristic of services—they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines.
Marketing for MOST: Module 7 – Product Strategies
Service
Service variability:
• A major characteristic of service—their quality may vary greatly, depending on who provides them and when, where, and how.
Marketing for MOST: Module 7 – Product Strategies
Service
Service perishability:
• A major characteristic of services—they cannot be stored for later sale or use.
Marketing for MOST: Module 7 – Product Strategies
Service
Three Levels of Service:
Proactive
Reactive
Primary
Marketing for MOST: Module 7 – Product Strategies
Intangible Products
• People
• Organisation
• Place
• Nation
• University
• Orchestra
There is nothing to
which the principles
of Marketing cannot be applied!
Marketing for MOST: Module 7 – Product Strategies
Intangible Products
• “Everyone is living by selling something.Life is selling; Selling is Life”
• If that is true, why don’t you master marketing that is far more powerful than selling?
– (Aki Takamoto)
Marketing for MOST: Module 7 – Product Strategies
Intangible Products
• Ogilvy on Jamaica
Marketing for MOST: Module 7 – Product Strategies
Product Lifecycle
– Sales and Profits (Paul Kotler)
Marketing for MOST: Module 7 – Product Strategies
Product Lifecycle
– (Paul Kotler)
Marketing for MOST: Module 7 – Product Strategies
Product Lifecycle
Varying Wave-lengths of Product Life Cycle
Sales
Time
Marketing for MOST: Module 7 – Product Strategies
Product Lifecycle
Product Life-cycles of Typing Machines
Sales
TimeManual TypewriterElectric TypewriterWord ProcessorPersonal Computer
Marketing for MOST: Module 7 – Product Strategies
Product Lifecycle
Various Product Life-cycles patterns
Sales
Time
Marketing for MOST: Module 7 – Product Strategies
Product Lifecycle
• Question:
– Find examples corresponding to various P.L.C lifecycles.
– Show some other patterns of P.L.C.
Marketing for MOST: Module 7 – Product Strategies
Innovation
• Innovation Defined:
– According to Webster:
• A new idea, method or device a novelty
– According to Kuczmarski
• A mindset, a pervasive attitude
• Or a way of thinking focused beyond the present into the future.
•Source: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
Marketing for MOST: Module 7 – Product Strategies
Innovation
•Source: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
Marketing for MOST: Module 7 – Product Strategies
Innovation
•Source: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
Marketing for MOST: Module 7 – Product Strategies
Innovation
•Source: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
Marketing for MOST: Module 7 – Product Strategies
Innovation
•Source: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
Marketing for MOST: Module 7 – Product Strategies
Financial Screens
•Size of Opportunity•Impact on existing business•Return Potential
Consumer Screens
•Need Intensity•Uniqueness / Differentiation
Innovation
• Innovation Evaluation and Screening Questions according to T.D. Kuczmarski
•Source: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
Strategic Screens
•Fit with Strategic Objectives•Exploits Internal Strategies•Source of Competitive Advantage
Marketing for MOST: Module 7 – Product Strategies
Strategic Screens
•Fit with Strategic Objectives•Exploits Internal Strategies•Source of Competitive Advantage
Innovation
• Innovation Evaluation and Screening Questions according to T.D. Kuczmarski
•Source: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
Financial Screens
•Size of Opportunity•Impact on existing business•Return Potential
Consumer Screens
•Need Intensity•Uniqueness / Differentiation
Marketing for MOST: Module 7 – Product Strategies
Strategic Screens
•Fit with Strategic Objectives•Exploits Internal Strategies•Source of Competitive Advantage
Innovation
• Innovation Evaluation and Screening Questions according to T.D. Kuczmarski
•Source: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
Consumer Screens
•Need Intensity•Uniqueness / Differentiation
Financial Screens
•Size of Opportunity•Impact on existing business•Return Potential
Marketing for MOST: Module 7 – Product Strategies
Innovation
Marketing for MOST: Module 7 – Product Strategies
Innovation
• Discipline of Innovation– (Peter Drucker)
• Entrepreneurship refers to a certain type of activity:
– INNOVATION
• Innovation – the effort to create a purposeful focused change.
Marketing for MOST: Module 7 – Product Strategies
Innovation
• Innovation Opportunities within a company
– Unexpected occurrences – Rogaine, heart medicine
– Incongruities – growth of e-business & no profits (consulting)
– Process needs – efficiency;
– Industry and Market changes
• Further Innovation Opportunities
– Demographic Changes – baby boomers, retirement homes etc.
– Changes in Perception – 4 wheel drive, perception is now that many people need it, previously few people felt the need.
– New Knowledge – superstars, but a small % of new business.
– Peter Drucker
Marketing for MOST: Module 7 – Product Strategies
Practice
• Read the comments made by APU Students on Brand, Product and Service and discuss them
• What are your comments in relation to the contents of this module?