Professional Documents
Culture Documents
Marketers as
mixers of ingredients
Figure1.5
Communication
(c) N Wellman 2011
Undifferentiated Mix
Differentiated Mixes
Concentrated Mix
PRODUCT
The 4Cs marketing mix
Customer benefits
Product dimensions
INTANGIBLE
CONSUMER GOODS
Durables/Semi-Durables
Convenience goods
Shopping goods
SERVICE
TANGIBLE
ATTRIBUTES
Speciality goods
Unsought goods
Kotler
INDUSTRIAL GOODS
Raw materials
Installations
Equipment
Components
Consumables
Services
Energy/Utilities
SERVICE
Pre/after-sales, delivery, servicing,
repairs, HP & finance, warranty,
TANGIBLES
Physical aspects of size,
seats, colour, styling, mpg,
performance etc
(c) N Wellman 2011
Product dimensions
POTENTIAL
INTANGIBLE
ACTUAL PRODUCT
Quality
Brand
Credit
Economy
Warranty
Auto-steer
Dibb et al
CORE
BENEFIT
Travel
Speed
Specn
Styling
Servicing
Trade-in
Staff
Delivery
Self repairing
Water fuel
(c) N Wellman 2011
which
that
Advantages:
whatmeans
this does
ADVANTAGE it secures you in a crash
which
that
Benefits: how
themeans
customer
gains
BENEFIT. you dont get injured
(c) N Wellman 2011
Product features
But what benefits
will they deliver?
100% pure cotton
Tasty and filling
Authentic recipes
Pure ingredients
Easy to prepare
Oven, grill or microwave
Full meal in a box
(c) N Wellman 2011
Hard-wearing
Range of fittings
Easy-care
Range of colours
Classic design
Citroen:
Technology as it should be: 100% useful..
Olympus cameras:
All the features of a professional camera
but without the fuss..
(c) N Wellman 2011
Product lifecycle
Traditional plc
Break-even
M A T U R I T Y
EARLY
LATE
DECLINE
SENILITY
GROWTH
LAUNCH
PROFIT
DEATH
NPD
COSTS
(c) N Wellman 2011
GROWTH
market acceptance gained
sales and profits rise
achieve break even
danger of copy-cats
Product lifecycle
LAUNCH-INTRODUCTION
Traditional plc
aim to get try and buy
can cost lot in promotion
risk of failure- 80% fail
low sales- loss making
MATURITY
sales stabilise- lower margins
competitive- fight for share
shake-out of less competitive
may extend via plc extension
DEVELOPMENT- R&D
product concept cheap
R&D costs may be high
need to keep secret
abort if unviable
DECLINE
sales and profits fall
often overcapacity
highly competitive
exit mktor milk
Digital
music centre
solid state Hi-Fi
valve Hi-Fi
Analogue
mini
centre
valve radiogram
Pianola
Music
box
Mechanical recording
Product lifecycle
Portfolio plc (cp BCG)
PROFIT
A
F
B
E
C
D
(c) N Wellman 2011
GROWTH
MATURITY
DECLINE/SENILITY
GAIN SHARE
build custr base
DEFEND SHARE
keep share/profits
REDUCE COSTS
milk then exit
Sales
Low
Rapid increase
Peakingstable
Falling
High
Average
Low
Low
Profits
Negative
Increasing
High low/unit
Declining
Early adopters
Majority
Laggards
Competitors
Increasing- copies
High shakeout
Few.. Shakeout
Few
May revitalise
cost cut exit
GROWTH
MATURITY
DECLINE/SENILITY
GAIN SHARE
build custr base
DEFEND SHARE
keep share/profits
Product
Basic- untested
Develop range
Price
Low or high?
Low- penetration
Competitive
Reduce.. or milk?
Place/Distbn
Selective limited
Intensive
Intensive
Selective
Promotion
Heavy.. awareness
Moderate.. high
Aim to differentiate
Limited
Sales promo
Hi brand switch
Planning
timeframe
Sort-medium term
Medium range
Short term
Long range
REDUCE COSTS
milk then exit
maintenance
10
PLC: problems
Where
are you
on the
plc?
Incremental
growth
Re-vitalisation
Hump.. phases
to create
then settling
S curve
classic curve
Cyclical
revivals in
Short-life
popularity
low sales Tail
Slow take-up
11
Your plc
Strong competition
with competitive products
and marketing
Your
plc
Product Portfolio:Dimensions
Product Portfolio
LINES
12
Product Portfolio:Dimensions
Workwear
Standard
Fashion
LINE DEPTH
FASHION
Flares
LINE ITEMS
Hipsters defined by:
Colour
Baggies
Waist
Embroidered Leg
Faded
Bondage
Cut-off
LINE LENGTH
(c) N Wellman 2011
Product Portfolio:Dimensions
Tex-Mex
Chinese
Italian
Line Depth:
Beef Madras
Rogan Gosh
Chicken Tikka
Beef Vindaloo
VegeKorma
Line items
Single
portion
Family
pack
Lunch
Pot
Brand Portfolio
Hi quality/status
low
high
Viable segments
Lo quality/status
(c) N Wellman 2011
13
BRANDS
Brand Portfolio
Extra
Superstore
60,000+ sq ft
20,000-50,000 sq ft
Express
Metro
up to 3,000 sq ft
7,000-15,000 sq ft
Non
Tesco 527 ONE-STOPS
Direct
online
BRANDS
Brand Portfolio
TECHNIKA
41
(c) N Wellman 2011
BRANDS
14
43
Technology Timeline:
OR a downturn of
innovation and invention
since the 1800s?
bio/nano
age
silicon
age
stone
age
age of
steam
enlightenment age
plastic
age
15
Take up:
technology transfer
microchips
Military
Aerospace
Science
Specialist
Luxury
General
ubiquitous
COST SAVING
finding cheaper way
to do things
NEW
TECHNOLOGY
new products
SOURCES OF
INNOVATIVE
PRODUCTS
MKT RESEARCH
identify new and
changing needs
SEGMENTATION
identify new marketmicro/niches
TECHNOLOGY
TRANSFERANCE
new uses
TECHNOLOGY
IMPROVEMENT
incremental
(c) N Wellman 2011
16
New Product
Development
NPD Process:
NPD
Cost
CUT
YOUR
Business case LOSSES
Screening
Development
Test market
Launch
Commercialisation
(profit)
Risk of failure:
success
PROFIT
LOSS
technical
success
death
valley
failure
launch
breakeven
17
CLUSTER 1
Improvements over
existing but no synergy
with Cos tech/mkts
CLUSTER 4
Truly new to the
world product with
unique technology
CLUSTER 7
A me to copy with no
extra benefits but with
some synergy with Co
CLUSTER 2
Technical development
but no real advantage
over current products
CLUSTER 5
A me to copy with no
extra benefits and no
synergy with Co
CLUSTER 8
Truly innovative and
improvements but no
synergy with Co
CLUSTER 3
A me to copy of a
competitor's product
with no extra benefits
CLUSTER 6
A me to copy with no
extra benefits but made
to be cheaper in mkt
CLUSTER 9
Line extension offering
minor improvements on
Cos current range
(c) N Wellman 2011
Product adoption
13.5%
Early
adopters
34%
Early majority
34%
Late majority
16%
Laggards
18