Transcript TITLE 7 alkharj latest

Chapter 7
Product Decisions ‫قرار‬
Marketing Management
Dr. K Elan
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PRODUCT DECISIONS
• What is a product?
• Product mix decisions
• Product line decisions
• Brand decisions
• Brand-strategy decisions
• Brand equity
• Packaging and labeling
Marketing Management
Dr. K Elan
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Product
“ is anything ‫ أي شيء‬that can be offered ‫ العرض‬to a market
to satisfy a need or a want ”.
[ Products may be – Physical goods, services ‫ الخدمات‬, experiences,
Events ‫ األحداث‬, persons, places ‫ مكان‬, properties ‫ الملكية‬, organizations,
information and ideas ‫] فكرة‬
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Product levels ‫المستوى‬: [customer value hierarchy]
“Each level adds more customer value ‫” صالح‬
Level 1 : Core ‫ األساسية‬benefit [Ex: Hotel ‫ فندق‬, Rest and sleep]
2 : Basic ‫ األساسية‬product [bed, bath room, towels etc.,]
3 : Expected ‫المتوقع‬
4 : Augmented ‫زيادة‬
product [ clean bed, fresh towels, working lamps etc.,]
product
5 : Potential ‫ المحتملة‬product [all possible augmentation and transformation]
“Today’s competition essentially takes place at the augmentation
level”
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Product classifications ‫ تصنيف‬:
[ on the basis of characteristics like durability ‫ متانة‬, tangibility ‫ملموسية‬
and use ]
Durability and Tangibility :
•
Non durable goods ‫غير المعمرة‬
• Durable goods
• Services ‫الخدمات‬
[ intangible ‫] غير الملموسة‬
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Consumer goods classification:
[ classification on the basis of shopping habits ]
• Convenience goods [purchased frequently,
immediately, with minimum efforts]
• Shopping goods [compares on suitability, quality,
price & style. Ex: Furniture, appliances]
• Specialty goods [unique characteristics, brand
identification, special purchasing efforts – Ex: computer ]
• Unsought goods [not normally thought of for purchase
– [Ex: funeral ‫ دفن‬services, Marriage services]
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Social ‫ المجتمع‬marketing –
– is defined as the use of commercial marketing
concepts and tools in programs ‫ برامج‬designed to
influence ‫ التأثير‬individuals’ behavior to improve ‫تحسين‬
their well-being ‫ الرفاه‬and that of society.
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Product Mix:
The set of all product lines and items that a
particular seller offers for sale to buyers.
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Product Lines:
A group of products that are closely
related ‫ ذات صلة‬because they perform the same
function ‫وظيفة‬
Example: Unilever – Shampoos, Washing powder etc.,
Coke & Pepsi – soft drinks
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Product-Mix Decisions
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Dr. K Elan
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Product Line Decisions
Product Line Length ‫طول‬
[long or short]
[product line can be lengthened in two ways] -
• Line Stretching ‫تمتد‬
– Down market Stretch [lower price line]
– Up market Stretch [ into higher ends of the market]
– Two Way Stretch
• Line Filling ‫( تعبئة‬A Just Noticeable Difference)
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 Line Modernization ‫تحديث‬
 Line Featuring [featuring a
few items from time to time]
 Line Pruning
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Brand Decisions
Branding:
A name, term ‫ مصطلح‬, sign ‫ قم‬, symbol ‫ رمز‬, or design ‫ تصميم‬,
or combination of them intended to identify ‫تهدف إلى تحديد‬
the goods or services of one seller or group of seller and to
differentiate them from those of competitors.
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Brand Decisions
– Convey six levels of meaning
– Attributes ‫[ السمة‬expensive, Well built …]
– Benefits [durability, fuel efficient …]
– Values ‫[ القيم‬high performance, safety …]
– Culture [German – organized, efficient, high quality]
– Personality [no nonsense boss, reigning lion …]
– User [55 year old top executive]
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Brand Name Strategies / Decision
– Individual Brand Names
– Blanket Family Name for All Products
 SONY , Almarai
– Separate Family Names for All Products
 MATSUSHITA
– Company Trade Name with Individual Product
Names
 Yeo’s Soya Bean Drink, Yeo’s Chrysantemum Tea Drink
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Brand Strategies [ cont …]
• Line Extensions: introducing additional item in same
category & same brand name
• Brand Extensions: Same brand name to launch a product
in a new category
• Multi brands: Additional brands in the same category
• New Brands: New brand in new category
• Co brands: two or more brands coming together and
making an offer
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Brand equity
The asset (or liability) value of a brand that adds (or deducts)
value in a marketplace
Elements:
– Brand awareness
– Perceived quality
– Brand loyalty
– Brand associations
– Other proprietary brand assets
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Challenges in Branding decisions :
• To brand or not to brand
• Brand sponsor decision
– Manufacturer’s Brands Vs Store Brands
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Packaging
The activities of designing and producing the container or
wrapper for a product
Importance of packaging:
–
Self-service
–
Consumer affluence
–
Company and brand image
–
Innovation opportunity
–
Protecting intellectual property rights
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Labeling
A subset of packaging
Functions:
 Identification
 Grading
 Description
 Promote
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