MARKETING MANAGEMENT

Chapter 12 Setting Product Strategy

Md Afnan Hossain Lecturer

SouthEast University
Course Code: Mkt 3123 (D,E)

Contents Source: Kotlar, Keller, Koshy, Jha (2014) Marketing Management.

Forbes, The Economist, Wall Street Journal, Financial Times, Business Week, CNN Business

Product

A good, service or idea including all the tangible and

intangible attributes that individuals or organizations
regard as so necessary, worthwhile or satisfying,
that they are prepared to exchange money, patronage
or some other unit of value to acquire it.

Consumer Goods Classification

Staples
Convenience Products
Products
Convenience

Impulse Products
Emergency Products

Shopping Products

Homogeneous
Shopping Products
Heterogeneous
Shopping Products

Specialty Products
Unsought Products

New Unsought
Products
Regular Unsought
Products

Product Differentiation

Product formsize, shape, or physical structure

Featuressupplement basic functions
Customizationindividual versus mass
Performancelevel at which the products primary
characteristics operate
Conformancedegree to which all the produced units are
identical and meet the promised specifications
Durabilityproducts operating life
Reliabilityprobability that a product will not malfunction or
fail
Repairabilitythe ease of fixing a product when it malfunction
or fails
Styleproducts look and feel to the buyer.

Service Differentiation

Ordering easehow easy to place an order

Deliveryhow well (e.g., speed, accuracy, and care) product
or service is brought to the customer
Installationwork done to make a product operational
Customer trainingtraining the customers employees to
operate the vendors equipment properly and efficiently
Customer consultingdata, information, systems, and
advice that the seller offers to buyers
Maintenance and repairservice programs for helping
customers keep purchased products in good working order
Returns

Product-Mix Pricing

Product-line pricing
Optional-feature pricing
Captive-product pricing
Two-part pricing
By-product pricing
Product-bundling pricing

Product Line Pricing

Optional-feature pricing
Many companies offer optional products, features and services
along with their main product.

Captive-product pricing
Some products require the use of ancillary products, or captive products.

Two-part pricing
Consisting of a fixed fee plus a variable usage fee.

If you talk beyond the plan then you have to pay the extra usage fee.

By-product pricing
production of certain goods often result in by-products; meat.
Any income earned on the by-products will make it easier for the
company to charge at lower price on its main product if competition
forces it to do so.

Product-bundling pricing
Sellers often bundle products and features.

Co-branding
Co-branding, also called brand partnership, is when two companies
form an alliance to work together, creating marketing synergy.

Ingredient Branding
It is a marketing strategy where a component or an ingredient of a product or
service is pulled into the spotlight and given its own identity. Everyone is
familiar with the now famous Intel Inside, and its corresponding success. But
why does it work?
It works because, in general, consumers will pay more for a branded product.
Consumers trust established brands.

Warranty & Guarantee

Warranty is a document that is issued to protect a consumers
right. The warranty is basically a promise ensuring the customer
specific conditions, facts, or products are true. A guarantee is a
document that also protects the right of a consumer. A guarantee
promises that something that is sold is of the quality that is
promised.

The End

 Digital Marketing
E-Commerce
M-Commerce

E-commerce

E-commerce (or electric commerce) refers to the

buying and selling of goods and services via electronic
channels, primarily the Internet. Online retail is
decidedly convenient due to its 24-hours availability,
global reach and generally efficient customer service.

In 2012, B2C (Business to Customer) ecommerce sales

grew 21.1% to top $1 trillion for the first time.

M-commerce/Shopping