ABM 4 - Lesson 6

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PRODUCT STRATEGY

PRODUCT

Product is a package of benefits both physical and


psychological that a marketer wants to present, or
a pack of expectations that consumers desire to
realize. This includes both good and service.
THREE LEVELS OF A PRODUCT

• Core Customer Value- Contains the basic values, the


pure benefits that each product/service brings to
satisfy a certain need of the customer

• Actual Product- Is the physical or tangible product


which a consumer buys to get the CORE benefits
that this product has in offering.
THREE LEVELS OF PRODUCTS

• Augmented Product- An augmented product


has been enhanced by its seller with added
features or services to distinguish it from the
same product offered by its competitors.
TYPES OF PRODUCTS

1. Consumer Products – are those items which are used by ultimate


consumers or households and they can be used without further
commercial and engineering processes.

2. Industrial Products – are used as the inputs by manufacturing


companies for further processes on the products, or manufacturing other
products.

* Some products are both consumer and industrial products.


TYPES OF PRODUCTS: Consumer Products

1. Convenience Products -A consumer product that the customer usually


buys frequently, immediately, and with a minimum of comparison and
buying effort

2. Shopping Products -Are the infrequently purchased consumer goods


that demand time, planning, effort, and resources from customers at the
time of purchase.
TYPES OF PRODUCTS: Consumer Products
3. Durable Products -Are consumer goods that have a life span of over
three years and are used repeatedly over time. Bicycles and refrigerators
are considered durable goods.
4. Non- Durable Products -Are products consumers purchase with the plan
to use for a short period of time. Also referred to as consumable goods,
most non-durable goods are expected to be consumed or used in three
years or less.
5. Specialty Products -Are products with unique characteristics or brand
identification .
TYPES OF PRODUCTS: Consumer Products

6. Unsought Products -An unsought product is a consumer product


that a consumer doesn't know about or does not want to actively
buy even if he is aware of the product.

7. Services - Are intangible, value-added activities that a company


provides to its customers.
TYPES OF PRODUCTS: Industrial Products
1. Materials and parts -These are also called as entering goods.
They include raw materials and manufactured materials and
parts. They enter the manufacturing process basically in their
natural state.

2. Manufactured Materials and Parts -Manufactured materials and


parts include component matters such as iron, yarn, cement, and
wires, and component parts such as small motors, tires, and
casting.
INDUSTRIAL PRODUCT

3. Capital Items -Are physical assets a company uses to


produce goods and services for consumers

4. Supplies and Business Services -Supplies and business


services are short-term goods and services that facilitate
developing or managing the finished product.
PRODUCT MIX

A product mix or product assortment is the total


number of product lines and individual products or
services offered by a company.
PRODUCT MIX: Dimensions

1. Width- The width is all about the number of different product lines the
company carries. Example: Coca-Cola produces soft drinks, juices and
mineral water

2. Length- refers to the total number of items a company carries within the
product lines. Example: If a company has 5 product lines and 10 products
per product line, the length of the mix will be 50
PRODUCT MIX: Dimensions
3. Depth - It refers to the number of versions offered for each product in
the product line. Example: Colgate toothpastes come in several tastes
and variations.

4. Consistency - refers to how closely related the product lines are in


terms of end use, production requirements, distribution channels or any
other way. In Colgate’s case, we can observe a rather strong
consistency, which is based on the fact that all product lines constitute
consumer products and go through the same distribution channels.
PRODUCT LINE
- is the distinctive product a
company offers
- is a group of products that are
closely related to each other by
function, customer group,
market , or price range.
PRODUCT DIFFERENTIATION

-is a marketing strategy of making


product inimitable, distinctive and
uniquely valuable to be noticeable
compared with competitors.
TYPES OF PRODUCT DIFFERENTIATION

Product differentiation is a vital


strategic marketing process. A
differentiation strategy is a
significant input to establishing a
competitive advantage.
Product
A product can be differentiated on
form the basis of product form such as
physical structure, size and shape.

Product Any extra features being given


features besides the product become a bonus
point for the customer.
Performance BMW is very much expensive than
quality of the other cars, because it has superior
product
performance.
In the strong and cutthroat laptop
Product
market, there are some laptops
durability
which are noticeable.

This is for the reason that here the product


differentiation is on the basis of reliability, one of
Product
the most valued assets a brand can have.
reliability Product style – Product styles of Harley
Davidson, Gucci, Tommy Hilfiger, Lamborghini,
and ferrari exactly reveal quality.
Product Product styles of Harley Davidson,
Style Gucci, Tommy Hilfiger, Lamborghini,
and Ferrari exactly reveal quality.

This is chiefly made through the use of


Service people, physical evidence and the
process used in a service
organization.
PRODUCT AND BRAND
A product is a physical item or a service that is offered
for sale to customers. It can be tangible, like a smartphone or a
car, or intangible, like a software application or a consulting
service.
A brand, on the other hand, is the overall identity and
perception that customers have about a particular company,
product, or service. It's not just about the logo or the name; it
encompasses the values, reputation, customer experience,
and emotions associated with that entity.
BRAND LOYALTY
-refers to the strong and unwavering commitment of a
consumer to repeatedly choose and purchase a specific
brand's products or services over an extended period of time.
It goes beyond mere preference and involves a deep emotional
connection and trust between the consumer and the brand.
BRAND PERSONALITY
• Brand personality refers to the human-like traits,
characteristics, and emotions that a brand is associated with,
creating a distinct identity that consumers can relate to on a
personal level.
• Just as people have unique personalities that influence how
they're perceived, brands can also be characterized by specific
personality traits. These traits help shape consumer
perceptions, preferences, and connections with the brand.
BRANDING STRATEGIES

- A brand strategy has the possibility to


make any company grow significantly and
get into its target market.
BRANDING STRATEGIES
1. Product line extension- 2. Multi brand- running a
launching a new product that several brand strategies within
is comparable to what the an identical market. It involves
company already offers and having more than one brand
targeting a current market by competing in the same
using the existing brand name. product category.
BRANDING STRATEGIES
3.Brand extension- broadening 4. New brand- This happens
the market’s understanding of when the company is increasing
the brand by offering more its offering by means of
products of different categories developing a new product line
under the current brand name. that previously was not offered.
PACKAGING, LABELLING,
GUARANTEES AND WARRANTIES
- Most tangible products have to be boxed up and
labeled.

- Most marketers regard packaging and labeling as a


component of product strategy.

- Warranties and guarantees can also be essential


elements of the product strategy, which are often
shown on the package.
PACKAGING
- Consists of all the activities of designing and
producing the container for a product.
- Packages when well-made can produce convenience
and promotional value.
- A very important element of the marketing process
as companies really spend a substantial quantity of
money and time as well for planning and designing it.
SOME BENEFITS OF PACKAGING

1. Protect products- packaging makes certain that


the product is safe when transported to stores and
shipped to customers.
2. Attract consumers- visually attractive product
packaging magnetizes consumers and influences them
to pick and try it.
SOME BENEFITS OF PACKAGING
3. Provide information- information about the
product could be communicated by means of product
packaging including the ingredients used, how to use
the product, its features, and benefits.
- In order to contact those manufacturing
companies for feedback and queries, customer service
information may also be shown on the packaging.
SOME BENEFITS OF PACKAGING
4. Reinforce branding and logo- brand elements such as
logos, product characters, and tag lines are also contained
on product packaging.
- These brand elements that companies worked
hard to achieve help for easy brand recognition of
consumers when placed on store shelves and when
advertised.
LABELLING
A label can be in the form of a simple tag that
is fastened to the product. Or it can be a more richly
designed graphic that is placed as a component of
the product package.
Labels must be eye-catching to be more
noticeable and easily identified.
THE SEVEN UNIQUE TYPES OF LABEL ARE
COMMONLY FOUND IN THE MARKET PLACE
1. Dry peels labels- a type of label that can be peeled away and
removed from the product container or package.
2. Fold-out labels (Booklet labels)- labels that fold out to provide
additional content. They are constructed of a single substrate that is
then folded and stacked.
3. Reseal labels- a label that is able to reseal the packaging or
container it comes on. This usually takes place when an opening to the
package or container is placed under the reseal label.
THE SEVEN UNIQUE TYPES OF LABEL ARE
COMMONLY FOUND IN THE MARKET PLACE
4. Expandable reseal booklet- a bit of a combination of two labels we
already discussed—fold-out and reseal.
- labels that expand out for more content but can also adhere
back to the container for later reference.
5. Specialty die-cut labels- labels that have a unique shape or outline to
them
6. Tag and board packaging- more of a package than a label, but it's worth
noting that this type of packaging can often be printed in a similar way as a
label.
THE SEVEN UNIQUE TYPES OF LABEL ARE
COMMONLY FOUND IN THE MARKET PLACE

7. Prime labels- refer to the primary label on a


container or packaging. This usually consists of
the label that has the branding or product at the
front and center.
GUARANTEES AND WARRANTIES
Warranties and guarantees are assurances
of good quality products given by manufacturers
to protect the interests of customers. These also
serve as competitive uniqueness for the
consumer as well as brand image enhancers.
GUARANTEES AND WARRANTIES
Warranty- an assurance of a manufacturer that the
product it produces is defect-free and functions
optimally within the warranty period.
Guarantee- a commitment given by a manufacturer to
its customers that the product it produces is of high-
caliber and will last for a longer period of time.
GUARANTEES AND WARRANTIES
Two forms of Warranty:
1. Implied warranty- offers the assurance that the
products customers buy shall function based on
expected product performance.
2. Express warranty- offers openly the promise that if
defects happen; the manufacturer is willing to repair
and remedy such defects and makes necessary free
replacement if the situation calls for it.
SERVICE AS A PRODUCT
Service is the performance of a vital intangible
benefit, either in its own right or as a major ingredient of
a tangible product, using some form of exchange that
satisfies a need. A service is intangible because a
customer experience does not hold or preserve.
Four distinctive service characteristics that greatly affect
the design of marketing programs:
1. Intangibility- Unlike physical products, services cannot be
seen, tasted, felt, heard, or smelled before they are bought.
2. Inseparability- Services are typically produced and consumed
simultaneously.
3. Variability- Services are highly variable because the quality
depends on who provides them, when and where, and to whom.
4. Perishability- Services cannot be stored, so their perishability
can be a problem when demand fluctuates.
Five types of service offerings are:
1. Pure tangible good- a tangible good with no associated services.
2. Tangible goods with accompanying services- a tangible good that
comes with one or more services.
3. Hybrid- an offering with equal parts of goods and services.
4. Major service with accompanying minor goods and services- a
major service with additional services or supporting goods like
beverages.
5. Pure service- it is principally an intangible service
SERVICE DIFFERENTIATION

The key to competitive success may be in the


form of added-value services and improved quality
when the tangible product cannot be distinguished
easily.
HERE ARE SOME DIFFERENTIATORS OF SERVICE:

1. Ordering Ease- how simple it is for the customer to make an


order with the company.
2. Delivery- how sound the product or service is brought to
the customer.
3. Installation- the work made to create a product operational
in its designed location.
HERE ARE SOME DIFFERENTIATORS OF SERVICE:

4. Customer Training- refers to training the employees’ use of


the vendor’s equipment correctly and proficiently.
5. Customer consulting- refers to data, information systems,
and advice services that the seller provides to buyers.
6. Maintenance and Repair- describes the service program
extended to customers to keep purchased products in good
working order.

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