Principles of marketing: Lecture 23 provide students with knowledge about: product; value-driven marketing; market segmentation; market targeting; market positioning; the marketing mix; levels of products; product classifications;... Please refer to this lesson for details!
MGT301 Principles of Marketing Lecture23 Summary of Lecture22 Consumer Adoption Process Awareness Awareness Strategy Communicate CommunicateAvailability Availability Interest Interest Strategy Communicate CommunicateBenefits Benefits Evaluation Evaluation Strategy Emphasize EmphasizeAdvantages Advantages Trial Trial Strategy Motivate MotivateConsumers Consumers Adoption Adoption Strategy Ensure EnsureSatisfaction Satisfaction Product LifeCycle (PLC) Sales and Profits ($) Sales Profits Time Product Development Stage Introduction Growth Maturity Decline Sales and Profits Over the Product’s Life From Inception to Demise Today’s Topics Product ValueDriven Marketing Value – A customer’s subjective assessment of benefits relative to the costs in determining the worth of a product Customer value = customer benefits – customer costs – Customer benefits Anything desired by the customer that is received in an exchange – Customer costs Anything a customer gives up in an exchange for benefits –Monetary price of the benefit –Search costs (time and effort) to locate the product –Risks associated with the exchange Benefits Consumers don’t buy products; they buy benefits Functional benefits: relating to the practical purpose a product serves Psychological benefits: relating to how a product makes one feel Segmentation Market Segmentation Identify segmentation variables and segment the market Develop profiles of resulting segments Market Targeting Evaluate attractiveness of each segment Select the target segment(s) Market Positioning Identify possible positioning concepts for each target segment Select, develop, and communicate the chosen positioning concept Question: Why do you buy a product? Sales Sales Low Low sales sales Costs Costs High High cost cost per per customer customer Profits Profits Negative Negative Marketing Marketing Objectives Objectives Create Create product product awareness awareness and and trial trial Product Product Offer Offer aa basic basic product product Price Price Use Use cost-plus cost-plus Distribution Distribution Build Build selective selective distribution distribution Advertising Advertising Build Build product product awareness awareness among among early early adopters and dealers adopters and dealers Growth Stage Sales and Profits ($) Sales Profits Time Product Development Stage Introduction Growth Maturity Decline Sales and Profits Over the Product’s Life From Inception to Demise Sales Sales Rapidly Rapidly rising rising sales sales Costs Costs Average Average cost cost per per customer customer Profits Profits Rising Rising profits profits Marketing Marketing Objectives Objectives Maximize Maximize market market share share Product Product Offer Offer product product extensions, extensions, service, service, warranty warranty Price Price Price Price to to penetrate penetrate market market Distribution Distribution Build Build intensive intensive distribution distribution Advertising Advertising Build Build awareness awareness and and interest interest in in the the mass mass market market Maturity Stage Sales and Profits ($) Sales Profits Time Product Development Stage Introduction Growth Maturity Decline Sales and Profits Over the Product’s Life From Inception to Demise Sales Sales Peak Peak sales sales Costs Costs Low Low cost cost per per customer customer Profits Profits High High profits profits Marketing Marketing Objectives Objectives Maximize Maximize profit profit while while defending defending market share market share Product Product Diversify Diversify brand brand and and models models Price Price Distribution Distribution Advertising Advertising Price Price to to match match or or best best competitors competitors Build Build more more intensive intensive distribution distribution Stress Stress brand brand differences differences and and benefits benefits Decline Stage Sales and Profits ($) Sales Profits Time Product Development Stage Introduction Growth Maturity Decline Sales and Profits Over the Product’s Life From Inception to Demise Sales Sales Declining Decliningsales sales Costs Costs Low Lowcost costper percustomer customer Profits Profits Declining Decliningprofits profits Marketing MarketingObjectives Objectives Product Product Price Price Distribution Distribution Advertising Advertising Reduce Reduceexpenditure expenditureand andmilk milkthe thebrand brand Phase Phase out outweak weak items items Cut Cutprice price Go Goselective: selective:phase phaseout outunprofitable unprofitable outlets outlets Reduce Reduceto tolevel levelneeded neededto toretain retain hard-core hard-coreloyal loyalcustomers customers Extending the Product Life Cycle To prevent the product going into decline you modify the product Adding new features, variations, model varieties will change the consumer reaction create more demand therefore you attract more users Enough for today. . Summary Product Next… 4P’s price MGT301 Principles of Marketing Lecture23 ... Investment costs are high Profits are negative Introduction Stage Sales and Profits ($) Sales Profits Time Product Development Stage Introduction Growth Maturity Decline Sales and Profits Over the Product’s... customer customer Profits Profits Negative Negative Marketing Marketing Objectives Objectives Create Create product product awareness awareness and and trial trial Product Product Offer Offer aa basic... that it Will Offer Quality Quality Features Features Design Design Branding Brand A name, term, sign, symbol, or design, or a combination? ?of? ? these, intended to identify the goods or services? ?of? ?one