Marketing Instruments product

Marketing Mix (1) Definition

The set of tactical marketing tools - product, price, place, promotion - that the firm blends to produce the response it wants to achieve in the target market

Key questions and tools for the 4Ps

Hierarchy of goals and objectives

Company goals

Marketing goals

Marketing mix goals

Tool objectives

Marketing mix Ziele der 4Ps mit Beispiel

4Ps goals

Production goals: Exclusiveness

Price goals: Price increase

Place goals: Concentration of sales channels

Promotion goals: Awareness

4Ps seller‘s vs. buyers view

Product -acceptability

Price - affordability

Place - accessibility

Promotion - awareness

Product Definition

A product is anything that can be offered to a market for atterition, acquisition, use of consumption and is suitable to serve needs and desires. It includes physical objects, services, personalities, places, organizations or ideas.

Product dimensions Schaubild

Unterteilung product types

Products oder services.

Either consumer goods/ consumptive services, or industry goods / buisness services

Hybrid Goods

Goods on the range between tangible and intangible (engraved jewelry)

ENDE VL 1

Buyers market

The buyer decides what to buy from which customer. Options.

3 parts of an attractive market offer

Product, service, brand

Product differentiation Schaubild (2-3 Wissen)

Services Definition

Services are intangible benefits from a supplier to the customer, without any transfer of ownership of an item. The creation may be associated with tangible goods.

The four service characteristics

Intangibility: Can’t be seen, felt usw.

Variability: Quality depends on who, when, where and how.

Inseparability: Services cannot be separated from providers.

Perishabilty: Services cannot be stored and sold later.

Service Profit chain

The chain that links service firm profits with employee and customer satisfaction

Five links of service profit chain

Internal service quality (Good employees, train them etc)

Satisfied and productive service employees

Great service value

Satisfied and loyal customer

Healthy service profits and growth

3 types of services marketing Schaubild

Management of service quality

Quality of a service is based on the difference between expectations and the actual service.

Service recovery is so important, it generates more customers than without recovery

Common attributes of successful service providers

Customer orientation

Monitoring

Customer feedback

Complaint management

Perceived service quality Schaubild

Services in differentiation. Risks and options

Risks: More difficult to compare service than product

Threat of price competition

Innovations in the service sector can be copied

Options: Employees, Processes, physical facilities

Fundamentals in brand management

Brand positioning

Brand name selection

Brand sponsorship

Brand development

Three level of Brand positioning

Product attributes

Benefits

Beliefs and values

Brand name selection

Should:… suggest sth. about the products

Easy to pronounce and recognize

Easy to translate

Brand sponsorship

Manufacturers brand (BMW)

Store brand (Ja!)

Licensing: Brand use for fee (Joop!, Löwenbräu in USA)

Co-Branding (GucciXAdidas)

Brand development strategies Schaubild

ENDE VL 2

Ansoff Matrix Schaubild

Product portfolio Beispiel Schaubild

Portfolio Design options

Strategic portfolio design Optimization of product lines

Operational portfolio design: Optimization within the product line

Portfolio management decisions

1. New product (increasing product depth and width)

2. Modification of existing products

3. Elimination of existing products

Consistency of the product mix…

Refers to how closely related product lines are in production, use, distribution channels etc.

Product Similarities

Shared production. Shared materials

Shared reason. Coffe, beans, etc

Shared sales. ATU car things

Product line definition

A group of products that are closely related because they function in a similiar manner. (Consistency)

Analysis tool: product landscape

Analysis of product line: competitive landscape. Schaubild (Verstehen)

Extent of the product line Schaubild

Company goals impact product length

Possible objectives like: upwelling, crossselling, risk diversification

Options for extending a product line: expanding the line, filling up the product line

Reasons why products fail

Market size overestimated

Wrong market research

Poor design

Overpriced

Departements that may create a new product

Departments for existing product

Departments for new market offerings

Innovation centers

Venture teams

Stage gate approach

Idea generation

Direction: top-down / bottom-up

Sources: internal / external

Uncover unfulfilled customer wishes (Explorative market research)

Going into details (can we/our partner even fulfill the wishes)

Validations

Explorative market research (part of idea generation)

employee survey

Customer observation

Customer survey

Expert survey competitor analysis

Concept development

Product concept leads to prototype

Then, Alpha and Beta testing

Then, concept validation (technological feasibility and attractiveness for customer)

Business modelling

Identification of target market

Formulating the value proposition

Description of the most important features of the market offer

Is there value for, target customer, partners, company ?

Business model validation

Analysis of ability to generate market value through:

Attractiveness: desirable for customer?

Feasibilty: Able to offer all functions desired by customer?

Economic viability: Can it generate value?

Forecasting: forecasting the fundamental demand

Forecasting the demand

What consumers say

What consumers do

What consumers have done

Product development, 2 phases

Developing core resources. Having everything you need, can be generated in-house or with partners

Design a concrete market offer. Transforming the prototype into a real product. Real product or test product.

Two decisions for commercialization

When? Dependent on economic, competitive situation

Where? Locations and scale of roll-outs