Transcript Data Communication

MGT301
Principles of Marketing
Lecture-21
Summary
of
Lecture-20
Individual Product Decisions
Product Attributes
Branding
Packaging
Labeling
Product Support Services
Quality
Features
Design
Branding
Brand Development
Four Brand Strategies
Product Category
Existing
Brand Name
Existing
New
New
Line Extension
Brand Extension
Multibrands
New Brands
Today’s Topics
Product (cont..)
A Good
Brand Name
Is...
•
•
•
•
•
Short and simple
Suggestive of product benefits
Legally available
No negative imagery
Easy to spell, read, and
pronounce
• Adaptable for international
markets
• Adaptable to packaging/labeling
needs
• Adaptable to any advertising
medium
Generic name: A brand name that has become a generally
descriptive term for a class of products.
– If this occurs, the original owner loses exclusive right to the
brand name (which is very bad for marketers).
– Examples: nylon, aspirin, escalator, kerosene, etc.
Packaging
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Activity of designing and
producing the container or
wrapper for a product.
Packaging used to just contain
and protect the product.
Goals of Packaging
Protection against damage, spoilage,
tampering etc.
Assistance in marketing the product
Cost effectiveness (and good for the
environment)
Labeling
Printed information appearing on or with the package.
Performs several functions:
– Identifies product or brand
– Describes several things about the product
– Promotes the product through attractive graphics.
Universal Product Code (UPC)
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
A bar code on a product’s package that provides information
read by optical scanners.
UPC codes provide several advantages: labor saving,
improve inventory control, and help with marketing research.
79400 80740
Competitive
Advantages
Sales
Tasks
Identifies
Packaging
Labeling
Describes
Product
Safety
Promotes
Product - Support Services
Companies should design its support services to profitably
meet the needs of target customers and gain competitive
advantage.
How?
Step 1
Survey customers to assess the value of current services and to
obtain ideas for new services.
Step 2
Assess costs of providing desired services.
Step 3
Develop a package of services to delight customers and yield
profits to the company.
Product Line Strategies
Product Line Extensions
Stretching
Filling
Adding new
items to line
Adding sizes or
styles
Downward
Upward
Two-way
Contracting a
Product Line
Dropping items
New Product Development
The development of original products, product improvements,
product modifications, and new brands through the firm’s
own R&D efforts.
Major Stages in New-Product
Development
Marketing
Strategy
Concept
Development
and Testing
Idea
Screening
Idea
Generation
Business
Analysis
Product
Development
Test
Marketing
Commercializatio
n
Stage 1: Idea Generation
– Internal idea sources:
R
&D
 Sales
force
– External idea sources:
 Customers,
competitors, distributors, suppliers
Sources of New-Product Ideas






Employees
Customers
Resellers
Suppliers/ vendors
Competitors
Advertising agencies



Marketing research firms
Other manufacturers
International
Stage 2: Idea Screening
– Product development costs increase substantially in later
stages.
– Ideas are evaluated against criteria; most are eliminated.
Stage 3:
Concept Development and Testing
– Product concepts provide detailed versions of new
product ideas.
– Concept tests ask target consumers to evaluate product
concepts.
Stage 4:
Marketing Strategy Development
– Strategy statements describe:
– The target market, product positioning, and sales,
share, and profit goals for the first few years.
– Product price, distribution, and marketing budget for
the first year.
– Long-run sales and profit goals and the marketing mix
strategy.
Stage 5: Business Analysis
– Sales, cost, and profit projections
Stage 6: Product Development
– Prototype development and testing
Stage 7: Test Marketing
Standard test markets
Controlled test markets
Simulated test markets
Standard
Test Market
Controlled
Test Market
Full marketing campaign
in a small number of
representative cities.
A few stores that have
agreed to carry new
products for a fee.
Simulated
Test Market
Test in a simulated
shopping environment
to a sample of
consumers.
Stage 8
Commercialization
New-Product Development Management
Top Level
Support
Authority
Key
Issues
Market-Guided
R&D
Integration &
Coordination
Enough for today. . .
Summary
Packaging
Labeling
Product - Support Services
Companies should design its support services to profitably
meet the needs of target customers and gain competitive
advantage.
Product Line Strategies
New Product Development
Marketing
Strategy
Concept
Development
and Testing
Idea
Screening
Idea
Generation
Business
Analysis
Product
Development
Test
Marketing
Commercializatio
n
Next….
– New Product Development (cont..)
– Product Life Cycle (PLC)
MGT301
Principles of Marketing
Lecture-21