Transcript Product Mix
Chapter 13 Dimensions of Marketing Strategy Asst. Prof. Dr. Serdar AYAN 1 12-1 12-2 The Marketing Mix Key to developing marketing strategy •Maintain right mix •satisfy target market •Long-term customer relations Competitive Advantage Dimension of value surpassing all others: •Wal-Mart – price •Procter & Gamble – top consumer brands •Domino’s Pizza – distribution via home delivery 12-3 Product Strategy Developing New Products – Multi-step process •Idea development •Screening of new ideas •Business analysis •Product development •Test marketing •Commercialization 12-4 Product Development Test marketing – a trial mini-launch of a new product in limited areas that represent the potential market. Commercialization – The full introduction of a complete marketing strategy and the launch of the product for commercial success. 12-5 Classifying Products Consumer Products •Convenience products •Shopping products •Specialty products Business Products •Raw materials •Major equipment •Accessory equipment •Component parts •Processed materials •Industrial services 12-6 Marketing Mix Product line– Group of closely related products that are treated as a unit because of a similar marketing strategy, production, or end-use Product Mix – All the products offered by the company 12-7 Product Life-Cycle The Life Cycle of a Product 12-8 Product Life Cycle 45 years of strong sales – Mattel’s Barbie doll’s life cycle is waning. Today, edgier dolls like Bratz dolls give Barbie a run for her money. 12-9 Identifying Products Branding Rank Brand Brand Value ($ billions) Brand Value Change 1 Google 86.1 30% 2 GE (General Electric) 71.4 15% 3 Microsoft 70.9 29% 4 Coca-Cola 58.2 17% 5 China Mobile 57.2 39% The Most Valuable Brands in the World 12-10 Brands Manufacturer brands – initiated and owned by the manufacturer to identify products from production to point of purchase. Private distributor brands – cost less than manufacturer brands; owned and controlled by wholesaler or retailer Generic brands – no brand name often come in simple packages and carry their generic name. 12-11 Packaging External container holds & describes the product: •Protection •Economy •Convenience •Promotion 12-12 Product Quality Product quality -Degree to which a good, service, or idea meets the demands and requirements of customers 12-13 Pricing Strategies New Product Pricing Price skimming Penetration pricing Psychological Pricing Odd/Even Prestige pricing Price Discounting Quantity discounts Seasonal discount Promotional discounts 12-14 Distribution Strategies Marketing Channels •Retailers (Wal-Mart, Sears) •Wholesalers (food brokers to restaurants) •E-tailers (Amazon.com) Physical distribution -- includes all the activities necessary to move products from producers to customers. –Inventory control –Transportation –Warehousing –Materials handling 12-15 Retailers 12-16 Promotion Strategy Promotion mix •Advertising •Personal selling •Publicity •Sales promotion Integrated marketing communications The process of coordinating the promotion mix elements and synchronizing promotion as a unified effort 12-17 Personal Selling Direct, two-way communication with sellers & potential buyers •Prospecting •Approaching •Presenting •Handling objections •Closing – asking for the order •Following up 12-18 Promotion Strategies: To Push or Pull 12-19