Marketing 1 Chapter 7 and 8
Marketing 1 Chapter 7 and 8
Marketing 1 Chapter 7 and 8
MUDIMU
CHAPTER 7 AND 8
Introduction
The marking mx refers to the set of controllable elements that the marketers blends together to
obtain a desired response from the target market. Also referred to as the traditional 4ps, the
elements are product, price, place and promotion.
Defining a product
A product refers to a bundle of benefits that maybe tangible or intangible that are meant to
satisfy needs of a defined target market. A product can also be defined as anything put on the
market to satisfy needs and wants of customers put simply a product is the need-satisfying
offering of a firm.
Product attributes that form part of the offering
a. Product features – these are the functional aspects of a product. A product should be
designed in such a way that it provides solutions to customer problems
b. The quality of the product – product quality refers to the ability of the product to meet
customer requirements. The quality of the product should be at the level required by the
consumer.
c. Product style and design – this refers to the sensory elements that communicate the
aesthetic and human factors of a product/ service. The style and design should meet the
expectations of the consumer. Style also looks at how the product fits in with the lifestyle
of consumers for whom it is intended for.
The product offering or concept
The product concept refers to the broad spectrum of tangible and intangible benefits that the
consumer will gain from purchasing the product. These are:
1. Core Product
This represents the main benefit, or benefits or purpose for which the customer buys the
product. Such benefits should be defined from the customers’ perspectives.
2. Tangible Product
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These are the product attributes deduced from the benefits. Five categories of attributes are
quality level, features or physical characteristics, styling or design, brand name and packaging.
3. Augmented Product
These are additional or extra services given and include delivery, installation, free lessons on
how to use the product.
4. Product Image
The attributes and augmented product give rise to the product image. Other marketing
activities such as promotion also contribute to product image.
Classifications of consumer products
a) Convenience Goods
Goods purchased with a high degree of frequency: consumer do not spend much time in
purchasing them. Convenience goods are further classified as:
(i) Staple Product
These are products purchased on a daily basis for day to day consumption of consumer.
These products are normally distributed in wholesalers and retailers.
(ii) Impulse Products
Products purchased without planning, e.g. chocolates, sweets, biscuits. In retail outlets
these product are normally displayed at point of sale areas,
(iii) Emergency Product
These are products required for the immediate needs of consumers e.g. pharmaceutical
product. These products are normally distributed in outlets that open until late or 24hrs.
b) Shopping products
These are products that consumers make comparisons when buying. Such comparisons
will be based on price, quality, design and features e.g electrical furniture.
c) Specialty products
These are products that satisfy consumers in a unique way. Consumers are willing o spent
more time n searching for such product.
d) Unsought product
These are products that consumers do not normally search for. For example insurance
products.
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Types of brands
a. Manufacturers
These are brands produced and owned by the manufacturers such brands are normally
distributed and promoted by the manufacturer.
b. Retailer/ private/ own label brands
These are brands owned by retailers. In Zimbabwe they include OK’s Pot’o’ Gold, Pick n
Pay’s family favourities.
c. Licenced Brands
These are brands adopted under a licencing agreement where the licence is given the
right to use a famous or popular name Nando’s is a licenced brand.
d. Co-branding
This is when two companies join forces to create a joint or composite brand.
Packaging and labeling
The package refers to the wrapper or container that carries the product i.e. the box, tin, bottle etc.
Innovative packaging provides a competitive advantage and plays an important role in the
marketing of a product and is often referred to as a “Silent Sales person”
a. It identifies the product
b. Conveys descriptive and persuasive information
c. Facilitate product transportation and protection
d. Assist for storage and proper handling of the product
e. Aid product consumption
Labelling
Labels range from simple tags attached to a product to complex graphics that are part of the
package. Labels perform the following functions. a. Identifies the product or brand
b. Describes the product or brand
c. Gives the product manufacturers information
d. Promotes the product or brand
Multiple products
A product line refers to a group of products that are closely related because they function in
the same group or are marketed through the same outlets, or fall within the same price range.
Depth - refers to the variations of a product a company has to offer (sizes and flavours)
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width refers to the different product lines on offer. There are four possible product line
decisions and these are:-
a. Line extensions – where new flavours or size is added to the current market offering
b. Line pruning – where certain flavours or sizes are removed from the product line.
c. Brand leveraging / extension – where a new product carrying an existing name is put on
the market, to leverage on a strong brand name.
d. Line retrenchment – where an entire product is removed from the product line.
Developing new products
There are different types of new products that can be put on the market and these are
a. New to the world.
These are new inventions which provide a solution to new needs in the market
b. New to the category
This refers to a new addition to a range being offered by the manufacturer
c. Line extension
Where a new flavor or size is added to a line and thereby lengthening a product line.
d. Repositioned products
Where an organization takes an existing product and repositions it in the market.
Consider the repositioning of Ecolife to Ecosure by Econet wireless.
e. Improved product
This refers to the introduction of a better version of the current product on the market.
New product development process
Step 1: Idea Generation
An understanding of customer needs and competitor actions lead to opportunities for a new
product. However research is needed to identify new product ideas. Internal sources such as
Marketing managers, researchers, sales personnel, engineers can be used to generate new ideas.
External sources such as customers, competitors, advertising agencies, management consultants
and private research originations can be used to generate new ideas.
Step 2: Screening ideas
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This involve assessing whether the new ideas match organizational objectives and resources and
then making a choice on the best ideas. There is also need to weigh each idea in the context of
the needs and wants of the consumers
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provides an opportunity to competitors to invalidate test results. Competitors can also copy the
product in the test marketing stage and they move swiftly to produce their own.
Step 8: Commercialization
This is the process of refining and setting plans for full scale manufacturing and marketing. After
fine- tuning the offering, based on the results of test marketing, the new product s rolled out on
the market.
Types of product life cycles
a. Traditional – this is the standard and involves the product going through the
introduction, growth maturity and decline.
b. Classic – where the sales will increase and then level out as a result of sales stagnating
due to lack of new users.
c. Fashion fad – where a product is quickly accepted in the market and then sales quickly
decline as well.
d. Extended fashion fad – where a product is quickly accepted in the market, but its
decrease does not happen so quickly.
e. Seasonal – where the product sells well during a particular season, and does not sell
during the other season.
f. Revival – where a product that will have gone through all its stages and then regain its
popularity. For example old fashioned products, coming back again.
g. Fiasco – where the product will have failed from the onset and does not go beyond the
introduction.
Consumer Adoption Process
There are the stages that consumers go through n accepting a new product. The stages are
1. Awareness – where the consumer becomes aware of the new product in the market
2. Interest – the buyer become interested and seeks out more information so as to learn
more about the product/ service
3. Evaluation – where the buyer goes through a mental evaluation of the product to
determine how t may benefit them
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4. Trial – where the buyer examines, tests, and uses the product on a small scale so as to
determine its usefulness in relation to competing products
5. Adoption/ rejection – where the buyer accepts regular use of the new products or reject t
if goes not meet their expectations.
These are the different groups of buyers that purchase the new product as it goes through its
life cycle
Early majority
Innovators Laggards
a. Innovation – these constitute 2.5% of the market and are the risk takers, venturesome
consumers who are willing to try the new product.
b. Early adopters – the second group of users and constitute 13.5% of the market. They are
opinion leaders who command a lot of respect in their communities. They carefully adopt
new ideas.
c. Early majority – they constitute 34% and are the third group. They adopt the new
product before the average user.
d. Late majority – they constitute 34% of the market. They are skeptical and adopt a new
idea after the majority have used it.
e. Laggards – the last group to use the product. They constitute 16% of the market and are
traditional and suspicious of change.
Important issues to ensure the success of new product development
a. Defining and understanding needs of customers so as to address them
b. Making use of knowledge and resources that already exist to develop the new product
c. Effective screening and concept testing before any investments are made
d. Effective coordination of research, development and marketing departments
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e. Linking new product development to goals of the organization
f. Ensuring the environment is conducive enough for entrepreneurship and risk taking
END
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