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- 1. Principles of Marketing NICK C. SATUR JR. BATAS-NSJ
2. What is a Product?
- Aproductis anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.
- Physical Objects
3. Five Product Levels 4. Product Hierarchy
- Product needthe core need that underlies the existence of a product family. To satisfy a need e.g. feet protection
- Product classa family of products having similar function e.g. all shoes
- Product linea group of products with closely related functions e.g. sports shoes
- Product typeproducts within a line having similar form e.g. basket-ball shoes
- Branda name representing a product or line e.g. Nike
- Item (Stock Keeping Unit)a unit item e.g. one pair of Nike basket-ball shoe
5. Product Classification Durability Use Tangibility 6. Durability and Tangibility Nondurable goods Services Durable goods 7.
- Durable goods
- Are tangible goods that normally survive many uses. Durables have long intervals of repeat purchase.
- Non Durables
- - Repeat purchase is usually strong.These are tangible goods normally consumed in one or few uses
- - Are intangible,inseperable variable, and perishable products that do not result to the ownership of anything.
9. Consumer Goods Classification
- The vast array of goods consumers buy can be classified on the basis of shopping habits.
10. Convenience Goods
- Are those that customer ussually purchases frequently, immediately and with a minimum of effort.
- Lowest risk, lowest effort
- Ex. Soap, tobacco
11. Shopping Goods
- Are goods that the customer, in the process of selection and purchase, characteristically compares on such basis as suitability,price, quality and style.
- Ex. Clothings, used cars, furnitures
12. Specialty Goods
- Goods that have a unique characteristics or brand identification for which a sufficient number of buyers is willing to make a special purchasing effort.
- Ex Mercedes, paintings by known artists,
13. Unsought Goods
- Those that the consumer does not know about or does not normally think of buying.
14. Consumer Goods Classification Convenience Unsought Shopping Specialty 15. USE
- Industrial Goods Classification
- These goods can be classified by how they enter the production process and their relative costliness.
- Materials & Parts
- Capital Items
- Supplies and Business Services
16. 2 Classes of Materials & Parts
- Raw Materials
- Natural Products
- Farm Products
- Manufactured material parts
- Component Parts-Enter the finished product with no further change in form
- Component Materials-fabricated Further ex iron
17. Supplies and Business Services
- Are short-lasting goods and services that facilitate, developing or managing the finished product.
- Maintenance & Repair Items
- Operating Supplies
19. Business Service
- Maintenance & Repair Services
- Business Advisory Services
20. Definition of New Products
- 1. Products new to the world; usually revolutionary products resulting from product innovation e.g
- When Creative Technology first introduced the Sound-blaster
- When disposable cameras were first introduced
- When Seiko introduced the Seiko Kinetic Relay, a watch that can go into suspended animation
- 2. New Product Lines
- 3. Improvements to existing products e.g.
- In 1960Kaointroduced shampoo liquid and in 1970 introducedKao Meritshampoo (anti-dandruff)
- 4. Additions to existing lines e.g.
- In 1965Kaointroduced theKao Tenderhair conditioner
- 5. Costs reductions
- 6. re-positionings
22. Product Mix
- Product Assortment
- Set of all products and Items that a particular seller offers for sale.
23. Marketing Mix 24. 25. New Product Development Process Idea Generation Concept Development and Testing Marketing Strategy Development Idea Screening Business Analysis Product Development Market Testing Commercialization 26. Step 1.Idea Generation Idea Generation is the Systematic Search for New Product Ideas Obtained Internally From Employees and Also From: Customers Competitors Distributors Suppliers 27. Idea Screening
- Process to spot good ideas and drop poor ones as soon as possible.
- Many companies have systems for rating and screening ideas which estimate:
- Market Size
- Product Price
- Development Time & Costs
- Unit Costs
- Rate of Return
- Then, the idea is evaluated against a set of general company criteria.
28. New Product Development Process Step 3.Concept Development 1.Develop NewProduct Ideasinto Alternative Detailed Product Concepts 2.Concept Testing- Test the New Product Concepts withGroups of Target Customers 3.Choose the One That Has the Strongest Appeal to TargetCustomers 29. Step 4. Marketing Strategy Part Three Describes Long-Term: Sales & Profit Goals Marketing Mix Strategy Part Two Describes First-Year: Products Planned Price Distribution Marketing Budget Part One Describes Overall: Target Market Planned Product Positioning Sales & Profit Goals Market Share 30. Step 5. Business Analysis Step 6.Product Development If No, EliminateProduct Concept Business Analysis Review of Product Sales, Costs,and Profits Projections to See ifThey Meet Company Objectives If Yes, Move toProduct Development 31. Step 7. Test Marketing Test Marketing is the Stage Where the Product and Marketing Program are Introduced into More Realistic Market Settings. Elements that May be Test Marketed by a Company Advertising Atmosphere Product Budget Levels PositioningLocation Pricing Branding 32. Step 8. Commercialization Commercialization is the Introduction of the New Product into the Marketplace.Whenis theRight Time to Introduce Product? WheretoLaunch a NewProduct? 33.