Slide 9: markeitng process step 3 - construct an ingerated marketing program that delivers superior value

3 levels of products are

• core customer value (1st Level)

• actual product (2nd level)

• augmented product (3rd level)

What is the core customer value (1st level)

and EX

this is the benefit customers seek

ex: entertainment, self-expression,productivity, connectivity

what is Actual product (2nd level) explain using example

• shows on netflix

• chanel lipsticks

• ipad

• iphone

• tiktok videos

what is augmented product (3rd Level) and EX

additional benefits/services

ex: netlfix games, applecare, hyndais car warranty

explain the 3 level of product using virgin airlines.

what is…

1. core customer value?

2. actual product?

3. augmented product?

1. Transportation

2. brand name (virgin airlines), in-flight entertainment , good seats, wifi

3. warranty, customer service, earn points

what is a product?

anything that can be offered to a make for attention, acquisition, use, or consumption that might satisfy a want or a need

products include..

• tangible goods

• services

• events

• persons

• places

• ideas

product classification includes..

• consumer products

• industrial products

• organizations, persons, places and ideas

how to know the distinction between consumer and industrial

bc it is based on purpose for which product is purchased

Pool chlorine for your home pool. consumer or industrial product?

consumer product

Pool chlorine for a commercial pool facility.consumer or industrial product?

industrial

TV in your living room. consumer or industrial product?

consumer product

TV in a conference room. consumer or industrial product?

industrial product

Marketing Considerations for Consumer Products: convenience

explain all these

• buying behavior

• price

• distribution

• promotion

• examples

• buying behavior - frequent purchase, little planning, low involvement

• price - Low

• distribution - widespread distribution, convenient locations

• promotion - mass promotion by the producer

• examples - toothpaste, magazines, laundry detergent

Marketing Considerations for Consumer Products: shopping

explain all these

• buying behavior

• price

• distribution

• promotion

• examples

• buying behavior - less frequent purchase, MUCH planning, comparison of brands on price/quality/style

• price - higher price

• distribution - selective distribution in fewer outlets

• promotion - advertising & personal selling by both the producer & resellers

• examples - major appliances, TV, furnitutre

Marketing Considerations for Consumer Products: speciality

explain all these

• buying behavior

• price

• distribution

• promotion

• examples

• buying behavior - strong brand preference/loyalty, special purchase effort, little comparison of brands, LOW price sensitivity

• price- high Price

• distribution-exclusive distribution in only one or a few outlets per market area

• promotion- more carefully targeted promotion by both the producer and resellers

• examples- luxury goods like a Rolex

Marketing Considerations for Consumer Products: Unsought

explain all these

• buying behavior

• price

• distribution

• promotion

• examples

• buying behavior- little product awareness or knowledge and if aware little or negative interest

• price - varies

• distribution- varies

• promotion- aggressive adervertising and personal selling by the producer and resellers

• examples- life insurance

how would you classify this St. Kitts & Nevis Citizenship-by-Investment ($150,000 minimum contribution)

this is meant to be ambiguous - it could be "specialty" (high price, exclusive) or arguably even "unsought."

individual product decisions steps (5)

1. Product attributes

2. branding

3. packaging

4. labeling

5. product support services

step 1 : product attributes includes..

product quality

(1)what are the 2 dimensions of quality?

1. performance quality - (quality level) ability to perform its functions

2. conformance quality - (quality consistency) freedom from defects

(1)example performance quality using iphone…

the newest means high performance quality to low quality oldest iphone

(1)explain conformance quality using iPhone

newest iphone has a low conformance quality because it wont have defects as opposed to oldest iphone which would be high conformace quality

(1) Product Features means …..and what is feature fatigue

companies should weigh (value of a feature to customer VS its cost to the company)

Fearure Fatigue- is as utility increases with features up to a point then falls (too many features overwhelm the customer ) its a U curve

(1) Product style and Design in this step. what is a larger concept

Design is a larger concept than style

Step 2 - Branding: What is the earliest age a kid can recognize band logos?

18 months

Step 2 - Branding : by age 5 what to children believe about brands

that it says something about the person who buys them

Step 2 - Branding: A kindergarden can identify how many brand logos

300

A Brand is

a name, term, sign ,symbol, design, or combination of these that

1) identifies the maker or seller of a product or service and

2) differentiates them from their competitors

A brand conveys…

meanings

Step 2 - Branding : Brand equity is

how to think about it?

the differential effect that knowing the brand name has on customer response to the product or its marketing

• think about how a generic/unbrand product is viewed VS branded product

Step 2 - Branding: does brand equity affects CLV? how ?

YES

• it increaes both profit margin and retention

• it also affects ease and likelihood of customer acquisition

Step 2 - Branding name selection: what is the Building strong brands order

1. Brand positioning

2. brand name selection

3. brand sponsorship

4. brand development

Building strong brands order (1) Brand positioning includes

• attribute of the product

• benefits to the consumer

• beliefs & values

• personality

Brand personality has 5 dimensions

1. sincerity - down to earth, honest, wholesome

2. excitement - daring, spirited, imaginative, up to date

3. competece- reliable, intelligent, successful

4. sophistication - upper class, charming

5. Ruggedness - outdoorsy, tough

Brand personality…Jeep VS BMW what is their personalitites

Jeep = Ruggedness (outdoorsy, tough)

BMW = competence/ Sophistication (reliable, charming)

what is a Jeeps’

• attributes

• benefits

• values

• personality

• attributes - 4×4, percision steering

• benefits - off road driving, water fording

• values - freedom, adventure

• personality - rugged, unique, exciting

what is a BMWs

• attributes

• benefits

• values

• personality

• attributes - intelligent wipers

• benefits - performance

• values - excitment

• personality - upper class

Building strong brands order (1) Benefits of brands for consumers and sellers

consumers

• simplify shopping

• surrogate for quality info

• satisfy status needs

sellers

• serve as a basis of differentiation

• help foster customer relationships and loyalty

• can reduce amount of promotion required

• represent a valuable intangible

brand value is

total financial value of a brand

Building strong brands order (3) brand sponsorship options : includes

• manufacturers brand

• private brand

• licensing

• co-branding

Manufacturer’s brand ( definition + ex )

you put your OWN name/brand on the product

ex= sunkist orange juice which was named after the orange growers themselves

Private brand / store brand ( definition )

you sell to resellers who put their brand name on the product

Brand Sponsorship: Licensing (definition + ex )

you pay to put someone else’s brand on your product

ex= tshirts with the word FORD on them

Brand Sponsorship: Co-branding (definition + why + ex)

Putting BOTH ur brand AND someone elses brand on one product

is used when both brands add value giving broader consumer appeal + greater brand equity

ex: moschino x H&M

Last branding step is

Brand development

Brand development strategies are (4) uses the matrix box HINT

• Line extensions

• brand extensions

• multibrands

• new brands

Line extension def + ex

extending an exisitng brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category

ex=cheerios making fruity cheerios

brand extension def + ex

extending an existing brand name to new product categories

ex= cheerios making gronola bars

mutibrands def + ex

offering many different brands in each product category

ex: general Mills sells both cheeriors and berry cereal

New Brands def +ex

creating a new brand name for a new product category

ex: general mills creating a completely new brand for a new product like BLUE dog food