Lectures Marketing management: Chapter 12 - ThS. Nguyễn Tiến Dũng

 Lectures "Marketing management - Chapter 12: Product strategy" provides students with the knowledge: Product characteristics and classifications; product and service differentiation; product and brand relationship; packaging, labeling, warranties and guarantees. Invite you to refer to the disclosures.

CHAPTER 12 PRODUCT STRATEGY Nguyen Tien Dung, MBA Email: dung.nguyentien3@hust.edu.vn Chapter Questions What are the characteristics of products, and how marketers classify products? How can companies differentiate products? Why is product design important and what factors affect a good design? How can a company build and manage its product mix and product lines? How can companies combine products to create strong co-brands or ingredient brands? How can companies use packaging, labeling, warranties, and guarantees as marketing tools? Main Contents Product Characteristics and Classifications Product and Service Differentiation Product and Brand Relationship Packaging, Labeling, Warranties and Guarantees 1 Product Characteristics and Classifications What is a product? ● anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas Components of the Market Offering ● Value based prices ● Product features and quality ● Services mix and quality Five Product Levels ● Based on customer expectation and reality of usage ● Group discussion: ● A physical product: a mobile phone (Table and 2) ● A service: business education (SIE education services) – Table 3, and A mobile phone: ● Core benefit: communication ● Basic product: screen, keyboard, adapters / battery, speakers ● Expected product: entertainment, checking mail ● Augmented product: after-sales services ● Potential product: 3D image, health-checking A business education ● Core benefit: degree, knowledge ● Basic: lectures, lecturers, facilities (auditoria) ● Expected: modern equipment, foreign language usage, scholarship ● Augmented: foreign (original) textbook, elearning courses / / ● Potential: training courses with foreign students, career support after graduation, satellite – robot services ? // school-wide free wifi connection Product Classification Schemes ● Durability ● Tangibility ● Use Durability and Tangibility ● Nondurable goods ● Durable goods ● Services 10 Product and Brand Relationship © Nguyễn Tiến Dũng 20 The Product Hierarchy Item Product type Product line Product class Product family Need family 21 Product Systems and Mixes ● Product system ● Product mix ● Product assortment ● Depth ● Length ● Width ● Consistency 22 23 ● Michelin has three and somewhat related product lines © Nguyễn Tiến Dũng 24 Product Line Analysis ● Core product ● Staples ● Specialties ● Convenience items 25 Line Stretching ● Down-market stretch ● Up-market stretch ● Two-way stretch 26 Product-Mix Pricing ● Product-line pricing ● Optional-feature pricing ● Captive-product pricing ● Two-part pricing ● By-product pricing ● Product-bundling pricing 27 Packaging, Labeling,Warranties and Guarantees ● Packaging ● Labels ● Warranties and Guarantees © Nguyễn Tiến Dũng 28 What is the Fifth P? Packaging, sometimes called the 5th P, is all the activities of designing and producing the container for a product 29 Factors Contributing to the Emphasis on Packaging ● Self-service ● Consumer affluence ● Company/brand image ● Innovation opportunity 30 Packaging Objectives ● Identify the brand ● Convey descriptive and persuasive information ● Facilitate product transportation and protection ● Assist at-home storage ● Aid product consumption 31 32 Functions of Labels ● Identifies ● Grades ● Describes ● Promotes 33 Warranties and Guarantees © Nguyễn Tiến Dũng 34 ... Nguyễn Tiến Dũng 24 Product Line Analysis ● Core product ● Staples ● Specialties ● Convenience items 25 Line Stretching ● Down-market stretch ● Up-market stretch ● Two-way stretch 26 Product-Mix... stretch 26 Product-Mix Pricing ● Product-line pricing ● Optional-feature pricing ● Captive-product pricing ● Two-part pricing ● By-product pricing ● Product-bundling pricing 27 Packaging, Labeling,Warranties... checking mail ● Augmented product: after-sales services ● Potential product: 3D image, health-checking A business education ● Core benefit: degree, knowledge ● Basic: lectures, lecturers, facilities