product policy.[conspecte.md]

8/13/2019 Product Policy.[Conspecte.md]

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Market segmentation,targeting and positioningn it’s original meaning market is a location where buyers

and sellers meet to exchange goods and services.>To an economist ,a market consist of all the buyers andsellers who transact over some goods or services.>To a marketer, it is the set of all actual and potential buyersof a product.Organiations that sell to consumers and industrial marketsecognie that they cannot appeal to all buyers in the same

way,because there are too numerous and too varied in theirneeds and preferences.!ach company has to identify theparts of the market that it can serve best."ut companieshave not always practiced these philosophies.Market evolution passed 3 stages#$.mass-marketing % the company mass produces,massdistributes and mass promotes one product to all buyers.The

benefit of mass marketing is that it should lead to the lowestcost and price and create the largest potential market.&.product variety % during this stage the company produceswo or more products that have differenteatures,styles,'uality and sies.(roducts were designed to

offer variety to buyers and not appealing different marketsegments.).target marketing % during this stage the companydentifies market segments,selects one or more of them anddevelops products and marketing mixes for eachsegment.Todays companies are moving away from massmarketing and product variety market to targetmarket,because it can better help sellers find their marketingopportunities, develop the right product for each targetmarket and ad*ust their prices, distribution channels andadvertising to reach target market efficiently.

Target Marketing re'uires ) steps#

a+market segmentation dividing a market into differentgroups of buyers who may call for separate products andmarketing mixes, the company identifies different ways tosegment market and develops profile of the resulting marketsegments.b+market targeting % evaluating each segment’sattractiveness and selecting one or more of the marketsegment to cover.c+market positioning %setting the competitive positioningor the product in different consumer segments.

There is no single way to segment a market.- marketer haso try different segmentation variables along and in

combination to find the best way to segment it’s markets.$+geographic variables % includeegion,city,sie,country,density and climate.

&+demographic variables % includeage,gender,income,occupation,education,religion,race,familyand family life cycle. )+ physiographic variables %

nclude life style,personality and social class.

-merican marketers divide modern society into followingsocial classes#a+lower-lowers/01+ % they are usually out of work andhey depend on public help or charity for their income,buy

only primary goods.b+upper lowers>231+ are working but their livingstandarts are *ust above poverty.They perform unskilledwork for very poor payment."uy only primary goodsclothes+.c+ working class >2)&1 + average rate workers thatdepend on their salaries."uy primary goods4someadditionalcars+.d+middle class>2)51+ % average paied consumers thathave better living standarts.They buy products that arepopular to keep up with the trends."uy fashion clothes,havesome savings,travell.e+upper middles>2$&1+ primarily concerned with careerand they include usually independent business persons and

corporate managers.They are the 'uality market forgoods,homes,clothes,cars and furniture.top managers,veryeducated,influenced by brands,have investment funds+.+lower uppers >2&1+ % they have obtained high income

and wealth through their profesional abilities orbusiness.They usually rise from middle class.They includehe new riche who consume products and services thatmpress others.g+upper uppers>$1+ % they are the social elite that havewell known family backgrounds, they give large sums tocharity.They are an attractive market for anti'ues,homes andvacations.high incomes,very educated6 nu exteorieaabogatia6ex.7amilia 8egala din 8omania+.9+Behavioristic variables include#a+purchase occasionregular or special+6b+usage ratelight,medium and heavy user+c+loyalty statusnon,light,medium,and strong user+:discountcards;

d+attitude toward the productpositive,negative orndifferent+e.g. tobacco,fast food...e+readiness stagea consumer may beunaware,aware,interested,desirous and intending tobuy+e.g.reclama de promovare6lapte#servicii turistice.

<arketing segmentation should have the followinge'uirements#

$+Measurability % the degree to which the sie and thepurchasing power of segments can be measured6 e.g.carmanufacturing.

&+Accessibility the degree to which segment can bereached and served6e.g. people who do not hear)+Substantiality % the degree to which are large orprofitable enough6e.g.launch perfumes for different socialclasses e.g.middle class.9+Action ability % the degree to which affective programscan be designed for attracting and serving segments.

Marketing Targeting strategies#$+ Undierentiated %a firm may decide to ignore marketsegment differences and go after the whole market with onemarket offer.It focuses on what is common in the needs ofconsumers and designs a product and a marketing programthat appeal to the most buyers.It relies on massproduction,mass distribution and mass advertising.It

provides posteconomies.the narrow product line keepsdown production and transportation cost.<ost modernmarketers have strong doubts about this strategy because itis difficult to develop a product or brand that will satisfy allconsumers.&+!ierentiated % using this strategy the company decidesto target several market segments and designees differentoffers for each segment,by offering product and marketingvariations,it hopes for higher sales and a strong opposition

within each market segment.Typicaly this strategy createstotal sales than =ndef.mk. but it also increases the costs ofdoing business because modifying a product to meetdifferent market segment re'uirements, usually involveshigher research and development costs and developingdifferent marketing plans6 for different segments re'uireshigher promotion,distribution,planing and forecasting costs.:the most profitable strategy6competitive advantage6veryexpensive;)+"oncentrated a specially appealing when companys

resources are limited,instead of going after a small share ofa large market,the company covers a large share of one orfew submarketsniches+.Through this strategy the companyachieves a stronger market position in the segments itserves because of its greater reputation it a'uires.Thecompany en*oys many operating economies because ofspecialiation in production,distribution and promotion.If thesegment is chosen well,the firm can obtain a high rate ofreturn on its investments.-t the same time this strategyinvolves few risks# a+the particular market segment canbecome too small6b+larger competitors may decide to enter the same segment.7or these reasons many companies prefer to diversify inseveral market segments.e.g.insulina,aparateauditive.-dv.?economisitor6?cunoscut pepiata?.@isadv.?segmentul trebuie sa fie destul de mare ca saacopere cheltuielele?

Ahoosing <arket Targeting strategy a company shouldconsider the following actors # $+thecompany#s resourceswhen are limited is recommendedconcentrated marketing strategy+.&+product variabilityundifferentiated marketing strategy isrecommended for uniform goods such as vegetables,fruits orraw materials+.(roducts that vary in designs,colors,featuresare more suited to differentiated marketing strategy.)+the products stage in the lie cyclewhen a firmintroduces a new product it is practical to launch only oneversion,so undifferentiated or concentrated marketingstrategies make that most sense6 in the maturity stagedifferentiated marketing strategy is recommended.+9+the marketing variabilityif most buyers have the sametastes,buy the same amounts and react the same way tomarketing efforts undifferentiated marketing strategy isappropriate.+B+competitors marketing strategywhen competitors usesegmentation undifferentiated marketing strategy can not be

used, but when competitors are usingundifferentiated mk str.,a firm may obtain some competitiveadvantages by using differentiated or concentratedmarketing+.Market positioning.Once a company has decided whichsegments of the market it will enter it must decide whatpositions of wants to occupy in these segments. - product’sposition is the way the product is defined by consumers onimportant atributes. The <arket (ositioning refers to theplace the product occupies in consumers minds incomparison with competing products.Aonsumers are overload with information about productsand services. - product position is the set of perceptions,impressions and feelings that consumers hold for theproducts. <arketers influence the product positioning whenthey plan their products competitive advantage and theydevelop marketing mixes to create the planned positioning.- company may use the following positioning strategies #

$% It can position its products on specific product atributessuch as 'uality. (erformance, good pricelow+, safety,etc.&. (roduct can be position on the needs they feel or benefitsthey offer.CashDEo+?the company do not specific anything about price3. (roducts can be position for special occasions.ex.Ahristmas tree,wedding dress'. (roducts can be position for specific classes of users.!x.aparate auditive,pampers,insulina(.(roducts can be position against a competitor numentioneaa numele concurentului+

).(roducts can be position away f rom competitorsex.Feven=p against Aocacola

(ositioning % ce loc ocupa produsul in minteaconsumatorului.

"onsumer buying behavior

<any different factors affect consumer buying behaviorcharacteristics have to be careful in analying consumerbehavior. Aonsumer buying behavior refers to the buyingbehavior of final consumers. Aonsumers make many buyingdecisions everyday. <ost large companies researchconsumer buying decisions in great details because they

want to answer 'uestions about what consumers buy wherethey buy, how much they buy, why they buy. The central'uestion for marketers is how do consumers respond todifferent marketing efforts the company might useG Thecompany that really understands how consumers respond todifferent product features, prices and advertising has a greatadvantage over its competitor.That’s why companies have research the relationshipbetween the marketing stimulus and consumer responses. *actors that aect consumer behaviorAonsumers behavior is affected by 9 groups of factors #

$%"ultural actors + culture is the set of basic values,perceptions, wants and behaviors that are learned fromfamily and other social institutions. <arketers are alwaystrying to identify cultural shifts in order to discover newproducts that might be wanted.Aultural factors include subcultures# nationality, ratio groups,religions and geographic regions.<any subcultures make up important market segments andmarketers offer design products and marketers offer designproducts and marketing programs for each subculture.Aultural factors also include social class. Focial class is arelatively permanent division in a society whose membersshare similar values, interests and behaviors. Focial class isnot determined by a single factor such as income, but it ismeasured as a combination of occupation, education, lifeexperience, wealth and other variables.&%Social actors + a consumer’s behavior is influenced bythe following social factors#$%roups H a group consists from two or more people whointent to accomplish some common goals. - person’sbehavior is influenced by many small groups,such as#$+ <embership groups H have direct influence on theconsumer behavior and the person belongs to this group.e.g.!<8!I &3B,&3/+

&+8eferent group H serves as direct points of comparison informing a person’s attitudes and behavior.(eople or persondo not belong to referent group. e.g.8!I &3),&39+)+-spiration groups % are the groups at which a person

wishes to belong. e.g.clasele sociale+& *amily % family members can strongly influence buyerbehavior. The family is the most important consumer buyerorganiation in society.<arketers are interested in the roles and influence of thehouse,wife and children on the purchase of differentproducts and services.). oles and status- person belongs to many groups such as family,organiations etc. The person’s position in each group definein terms of role and status. - role consists of theactivities,people are expected to perform according to theperson’s around them. !ach role carries a status that is thegeneral esteem given to it by society. ex.membri aisindicatelor+3%.ersonal actors it includes#$.age and family life cycle stage&.!conomic situation).Occupation9.ife style persoane active si pasive+B.(ersonality and selfconcept'% .sychological actors it includes #$.Motivation H a reason is a need that is sufficientprecissing the person to seek for the satisfaction of theneed.(sychologists can develop theories of humanmotivation.Two of the most popular are the theories ofFigmund 7raid and -braham <aslow piramida nevoilor+&%.erception % the process by which people select,organieand interpret information to form a picture of the world. It isinfluenced by ) processes#a/Selective attention % is the tendency for people screenout most of the information to which they are exposed,thismeans that marketers have to work especially hard to attract

the consumer attention.billboards+b/Selective distortion % describes the tendency of peopleto interpret information in a way that will support what theyalready believe.That means that marketers must try tounderstand the mind of consumers and how these will affectinterpretations of advertising and sales informationc/ Selective retention % means that consumers tend toretain information that supports the attitudes and believes.3%0earning % describes changes in an individual’s behaviorarising from experienceex.info despre cantinele -F!<+'%Believes and Attitudes



1 – core

level

2 – Actual

product level

3 – Augmented

level

A believe is a discriptive thought that a person has aboutsomething.These believes may be based on realknowledge,opinion or faith.<arketers are interested in thebelieves that people carry in their minds about specificproducts and brands -F!<+ % short period of timeAn attitude describes a person’s constraint evolutioneelings and tendencies toward an ob*ect or idea.-ttitudes

are very difficult to change.high education -F!<+b u y e r b e h a v i o u r - d e c i s i o n - m a k i n gp r o c e s s1ow do customers buy28esearch suggests that customers go through a fivestagedecisionmaking process in any purchase. This issummarised in the diagram below#

This model is important for anyone making marketingdecisions. It forces the marketer to consider the wholebuying process rather than *ust the purchase decisionwhen it may be too late for a business to influence the

choiceJ+The model implies that customers pass through all stagesn every purchase. Kowever, in more routine purchases,customers often skip or reverse some of the stages.7or example, a student buying a favourite hamburgerwould recognise the need hunger+ and go right to thepurchase decision, skipping information search andevaluation. Kowever, the model is very useful when itcomes to understanding any purchase that re'uires somehought and deliberation.

The buying process starts with need recognition. -t thisstage, the buyer recognises a problem or need e.g. I amhungry, we need a new sofa, I have a headache+ oresponds to a marketing stimulus e.g. you pass Ftarbucks

and are attracted by the aroma of coffee and chocolatemuffins+.-n LarousedM customer then needs to decide how muchnformation if any+ is re'uired. If the need is strong and

here is a product or service that meets the need close tohand, then a purchase decision is likely to be made thereand then. If not, then the process of information searchbegins.

- customer can obtain information from several sources#(ersonal sources# family, friends, neighbours etcAommercial sources# advertising6 salespeople6 retailers6

dealers6 packaging6 pointofsale displays(ublic sources# newspapers, radio, television, consumer

organisations6 specialist magaines!xperiential sources# handling, examining, using the

productThe usefulness and influence of these sources of informationwill vary by product and by customer. 8esearch suggestshat customers value and respect personal sources morehan commercial sources the influence of Lword of mouthM+.

The challenge for the marketing team is to identify whichnformation sources are most influential in their target

markets.n the evaluation stage, the customer must choose betweenhe alternative brands, products and services.

1ow does the customer use the inormation obtained2-n important determinant of the extent of evaluation iswhether the customer feels LinvolvedM in the product. "ynvolvement, we mean the degree of perceived relevanceand personal importance that accompanies the choice.Chere a purchase is Lhighly involvingM, the customer is likelyo carry out extensive evaluation.

1igh-involvement purchases include those involving highexpenditure or personal risk % for example buying a house, acar or making investments.0ow involvement purchases e.g. buying a soft drink,choosing some breakfast cereals in the supermarket+ havevery simple evaluation processes.hy should a marketer need to understand thecustomer evaluation process2

The answer lies in the kind of information that the marketingeam needs to provide customers in different buyingsituations.n highinvolvement decisions, the marketer needs to provide

a good deal of information about the positive conse'uencesof buying. The sales force may need to stress the importantattributes of the product, the advantages compared with thecompetition6 and maybe even encourage LtrialM or LsamplingMof the product in the hope of securing the sale..ost-purchase evaluation - "ognitive !issonanceThe final stage is the postpurchase evaluation of thedecision. It is common for customers to experience concerns

after making a purchase decision. This arises from a conceptthat is known as Lcognitive dissonanceM. The customer,having bought a product, may feel that an alternative wouldhave been preferable. In these circumstances that customer

will not repurchase immediately, but is likely to switch brandsnext time.To manage the postpurchase stage, it is the *ob of themarketing team to persuade the potential customer that theproduct will satisfy his or her needs. Then after having madea purchase, the customer should be encouraged that he orshe has made the right decision.

Tema /# (roduct policy$. <arketing concept of the product and product

classification&. individual product decisions

). (roduct line and mix decisions9. (roduct l ife cycle stages

H$H- product is anything that can be offered to

a market for attention, ac'uisition, use or consumption thatmight satisfy a want or need. It includes physical ob*ects,services, persons places, organiations and ideas. (roduct

planners need to think about the product on ) levels#$. Aore level % It addresses the 'uestion

what is the buyer really buying. It consists of the problemsolving services or benefits the consumer obtains when hebuys the product. It answers to the 'uestion whyG&. -ctual product level % It may have B characteristics#

a+ uality level,b+ 7eatures,c+ Ftyle,d+ "rand name,

e+ (ackaging). -ugmented level % This level offers additional consumerservices and benefits such as#

a+ -fter sale serviceb+ @eliveryc+ Carrantyd+ Aredit selling

This level is optional.(roduct classifications#

(roducts can be classified into ) groups accordingto the durability or tangibility.

$+ Pon durable goods % goods that are tangibleand are normally consumed in one or a fewuses.

&+ @urable goods % tangible goods that normallysurvive many uses.masa, scaun+

)+ Fervices % activities, benefits or satisfactionsthat are offered for sale. They are not tangible.

-ccording to the final users products can be#$+ Aonsumer goods % are goods bought by final

consumers for personal consumption. Aonsumergoods include#

a+ Aonvenience goods % consumer goods that thecustomer buys fre'uently, immediately and with aminimum of buying effort. Aonvenience goodsinclude#a.$.+ Ftaple goods % that are purchased on aregular basis.a.&.+ Impulse goods % are purchased with littleplanning and search effort. These goods arenormally placed next to checkout counters.a.).+ !mergency goods % are purchased when theneed is urgent

b+ Fhopping goods % consumer goods that thecustomer, in the process of selection and purchase

usually compares on such basis as# uality, (rice,Ftyle and suitability. Fhopping goods can be#b.$+ =niform % similar in 'uality but different in priceb.&+ Pon uniform goods % similar price but differentfeatures.

c+ Fpecialty goods % goods that have uni'uecharacteristics or brand identification

d+=nsought goods % goods that the consumer doesnot know about or knows about but does not thinkof buying.

&+ Industrial goods % those goods bought by individualsand organiations for use in conducting a business.Industrial goods include#

a+ <aterials and parts % Industrial goods that enter themanufacturer’s product completely.

b+ Aapital items % industrial goods that enter the finishedproduct partially. They include# Installations andaccessory e'uipment.

c+ Fupplies and services % goods that do not enter thefinished product at all

Individual product decisions@eveloping a product involves defining the benefits that theproduct will offer. These benefits are communicated anddelivered by tangible product attributes such as# uality,design, brand, labeling and packaging.

$+ uality is one of the marketer’s positioning tools for the'uality tends for the ability of a product to perform it’sfunctions. The 'uality can be analyed from & points of view#a+ -ctual 'uality % includes the products durability, ease ofuse and repair, precision and reliability.b+ (erceived 'uality % how well the product satisfies theneeds of consumers. The perceived 'uality is measured insatisfaction.

&+ @esign % considers the appearance of the product butalso creates products that are easy, safe, inexpensive to useand service and simple in to produce and distribute.

)+ "randing % - brand is a name, term, sign, symbol ordesign used to identify the goods or services of one producerfrom those of competitors. - brand consists of#

a+ "rand name % part of a brand that can be vocaliedb+ "rand mark % part of a brand which can be recogniedsuch as# color, symbol, sign, lettering but that is notvocalied.c+ Trademark % part of a brand that is given legalprotection.There are several branding strategies#$+ The company may decide to produce a genericproductno brand, low cost product+ or a branding product.&+ - company may use manufacturer’s brand or privatebranda brand name owned by wholesalers or retailers)+ The company may use individual brand using differentbrands for different products. <arketing several differentproducts under the same brand.

9+ (ackaging % includes the activities of designing andproducing the container or a product. The package mayinclude#a+ The product’s immediate containerb+ Fecondary packageusually thrown away when the

product is about to be used+c+ Fhipping packagedeseori consumatorul nul vede+ thatis necessary for storing and shipping the product(ackaging has the following functions#-+ Aontaining and protecting products"+ (romoting productsA+ 7acilitating storage, use and convenience@+ 7acilitating receiving and reducing the environmentaldamage.

B+ abeling % The label is a part of any packaging.abeling takes & parts#a+ persuasive labeling that focuses on promotional % in thiscase consumer information is secondaryb+ Informational labeling % Is designed to help consumersmake product selections and offers such information as# Theinstruction, Kow to use a product, the durability of a product,construction of, components ingredients and otherinformation.- product item is a specific version of a product that can bedesigned as a distinct that is offered among anorganiation’s product.- product line is a group of closely related product items.(roduct mix % includes all the products that an organiationsells. The product mix decisions are#$+ The length of the product mix refers to the total numberof items the company produces&+ The depth of the product mix refers to how manyversions are offered of each product in the line.)+ The product bread refers to how many product lines theorganiation offers.

(roduct life cycle(roduct life cycle is a concept that provides a way to tracethe stages of a product’s acceptance. The product life cyclehas 9 stages#$+ Introduction stage % The launch of the new product into a

market place. The marketing costs in the introductionstage are high because of intense distribution, advertisingand production costs.

&+Erowth stage % in this stage sales typically grow at alincreasing rate. <any competitors enter the same marketand some large companies may start to ac'uire smallparts. (rofits rise 'uickly on the growth stage and reachtheir peak. @istribution becomes very important during thisstage and also and aggressive advertising isrecommended.



)+<aturity stage is a period during which sales increase at adecreasing rate. This stage is normally the longest stageof the life cycle. (rices and profits continue to fall. Keavyconsumer promotion is re'uired to maintain the marketshare.

9+@ecline stage is a long run , drop in sales. The companyhas to decide when is the moment to delete the productfrom product line. It reduces all promotional costs

product policy.[conspecte.md]

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