busi 141: products part 1

Marketing Mix: ProductsPrinciples of Marketing BUSI-141Professor Conrad

What we will cover this

week

Defining Product

Classification of Products

New Product Development

Product or Brand Management

Product Quality

Product Life Cycle (PLC)

Branding

Packaging2

Defining Product (223-225)

Good ServiceIdea

T

TangibleIntangible

3

Augmented Product

4

Actual Product

Core Product

Classification of Products: Convenience

Nondurable

Frequently purchased

Low priced

Easily obtainable

Widely available

Minimal purchase effort

Alternative brands acceptable5

Classification of Products: Shopping

Spends more time researchingPrice

Product attributes

Product quality

Compares alternatives

Prices are higher

Advertising stresses features6

Classification of Products: Specialty

Unique characteristics

Premium product

Premium price

Consumer knows a lot about product

Requires a lot of effort

7

Classification of Products: Unsought

Little awareness or interest

Not considered until needed

Heavy advertising

Personal selling used

Creative pricing

8

New Product Development

NPD(231 - 237)

Idea Generation

Product Concept Development and Screening

Marketing Strategy Development

Business Analysis

Technical Development

Test Marketing

Commercialization9

NPD: Phases 1 - 2

Idea Generation = brainstorming & listeningCustomers

Salespersons

Service providers

Qualitative research (focus groups)

Product Concept Development and ScreeningMarketers manage process

Take ideas from Phase 1 to create product concept

Describes features and benefits (core product)

Screen for technical and commercial value

Failure occures more often than success in this phase

10

NPD: Phases 3 - 5Marketing Strategy Development - Introduction to Market

Identify target audience and size

Product positioning

Develop Marketing Mix

Business AnalysisAssis if product will be profitable

Potential demand

Available resources

Technical DevelopmentMarketers and engineers refine design and production process

Prototypes to understand consumer reactions and usage

Secure patents

11

NPD: Phases 6 - 7

Test MarketingTest complete marketing plan on small scale

Extremely expensive

Competition becomes aware of new product

Can evaluate and improve marketing plan

May indicate product failure

CommercializationFormal launch of product

Full-scale production, distribution, and promotions

Very expensive

Crowdfunding helps

12