Advance Topics in Marketing

Prof. ritu srivastavaAfp 172014Advance Topics in MarketingWhat is a product?

What is Marketing?

What can be marketed?

What is a Product?A product is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.3Goods V/s services

Services are different from goodsIntangiblePerishable InseparableVariable

Customer value hierarchy product levels

Core benefit the primary benefit Basic product a generic tangible product Expected product set of attributes normally expected Augmented product the additions the seller adds to the product to make it attractive Potential Product all possible augmentations a product might undergo in the futureProduct Levels - Bicycle??

???AugmentedPotentialBasicExpectedCoreBICYCLELEVELS7Product Levels - BicycleLight frame, gears, collapsible, serviceOpen to creativity, endless possibilities.Strong frame, two wheels, pedal, brakes seatBell, carrier, chain guard, tool kitCheap self poweredtransportationAugmentedPotentialBasicExpectedCoreBICYCLELEVELS8Customer needs change10Top five New Products of all timesWheelPaperComputer

ElectricityAntisepticRadio

Electric MotorVaccineTelephoneSteam EngineCommercial acceptance?Technological novelty?Impact on civilization

11Criteria?

InnovationsCREATIVITY: Bringing into existence an idea that is new to you.

INNOVATION: The practical application of creative ideas.

? ?

?Why are they almost redundant?Technology innovationHas the functionality changed?Gillete What are the reasons for Gillete to have picked up?

Has there been a change in the marketing approach?

Where did Gillete innovate?

Marketing related innovations?

New means whatNew to the market?New to the company / country?Reverse engineering?Is newness defined from the technology point of view or impact on consumers way of life point of view?Incremental New Product?Radical New Product?

17New Product Development Stages - DetailedIdea generationConcept developmentFeasibility screeningConcept testingProduct developmentProduct testingMarket testingGo-no-go decisionLaunch Plan10. Monitoring & feedbackPlanning and Creating ServicesA service product comprises all elements of service performance, both tangible and intangible, that create value for customersThe service concept is represented by:A core productAccompanied by supplementary services

18Core Products and Supplementary ServicesIn mature industries, core products often become commoditiesSupplementary services help to differentiate core products and create competitive advantage by:Facilitating use of core product (a service or a good)Enhancing the value and appeal of the core product

19Key Tangible Elements Intangible ElementsAugmenting the Core ProductDistributionPre- & Postflight ServiceService FrequencyIn-flight ServiceFood & DrinkVehicleTransportPriceSource: Shostack20Augmenting the Core ProductAre supplementary services needed to facilitate use of core product or simply to add extra appeal?Should customers be charged separately for each service element?Or should all elements be bundled at a single price?

21Designing a Service ConceptCore ProductCentral component that supplies the principal, problem-solving benefits customers seekSupplementary ServicesAugment the core product, facilitating its use and enhancing its value and appealDelivery ProcessesUsed to deliver both the core product and each of the supplementary services22