this is for educational purposes only not for commercial presentation.

2.  Anything that can be offered to a
market for attention, acquisition, use, or
consumption that might satisfy a want or
need.
 Services are also a form of product.
These maybe an activity, benefit, or
satisfaction offered for sale that is
essentially intangible and does not result
in the ownership of anything

3.  Products are key element in overall market
offering
 In extreme, products can be pure tangible
products or pure services
 Products and services are being
commoditized.
 What do you think differentiate products and
services from one another to attract more
customers?

4.  Core customer value-what is the
customer really buying?
 Actual product-the product designed
according to the core customer value
 Augmented product- additional
consumer services and benefits that will
add more value and more customer
satisfaction

5. MARKETING
CONSIDERAT
IONS
CONVENIENCE SHOPPING SPECIALTY UNSOUGHT
Customer
buying
behavior
Frequent
purchase; little
planning, little
comparison or
shopping
effort; low
customer
involvement
Less frequent
purchase;
much planning
and shopping
effort;
comparison of
brands on
price, quality,
and style
Strong brand
preference
and loyalty;
special
purchase
effort; little
comparison of
brands; low
price sensitivity
Little product
awareness;
knowledge or
if aware little
or no interest
Price
distributio
Low price Higher price High price Varies

6. MARKETING
CONSIDERAT
IONS
CONVENIENCE SHOPPING SPECIALTY UNSOUGHT
Distribution Widespread
distribution;
convenient
locations
Selective
distribution if
fewer outlets
Exclusive
distribution in
only one or
few outlets per
market area
Vaies
Promotion Mass
promotion by
the producer
Advertising and
personal selling
by both the
producer and
resellers
More carefully
targeted
promotes by
both the
producer and
resellers
Aggressive
advertising
and personal
selling by the
producer and
resellers
Examples Toothpaste,
detergent,
dishwashing
liquids,
magazines
Major
appliances, TVs,
furniture, and
clothing
Luxury goods,
designer
goods
Life insurance
and red cross
blood
donations

7.  Materials and parts (raw materials (natural
and farm products) and manufactured parts)
 Capital Items (installations and accessory
equipment)
 Supplies and services

8.  Sell the organization, person, or place itself
 Organization marketing
 Person marketing
 Place marketing
 Social marketing (Ideas) – to bring about
change using marketing concepts and tool

9.  3 Levels of of marketing decisions for
products and services
› Individual product decision
› Product line decisions
› Product mix decisions

10.  Product and Service attributes
› Product Quality
› Product Features
› Product Style and Design
 Branding
 Packaging
 Labeling
 Product Support Services
› These items should create core customer value

11.  A group of products closely related because
they function in a similar manner, are sold to the
same customer groups, are marketed through
the same types of outlets, or fall within given
price ranges.
› Product Line Length
› Expansion of product lines can be done by Line Filling
or Line Stretching. The direction can be going up the
market or going down.
 The goal of product lines is to increase profit by
covering more market share and satisfy the
needs of the customers (upgrading)

12.  The set of all product lines and items that a
particular seller offers for sale.
› Width – number of different product lines a
company carries
› Length-number of products within a product line
› Depth- refers to the number of versions offered for
each product
› Consistency-how closely related the various
product lines

13.  Service industry is growing fast. It is
estimated that 4 out of 5 jobs are in the
service industry.
 Services industries vary greatly.
Government services, banking,
healthcare, insurance, security, real-state,
telecommunications, legal, and
more.

15.  Service Profit Chain
› Internal Service Quality
› Satisfied and productive service employees
› Greater service value
› Satisfied and loyal customers
› Healthy service profits and growth
 Internal Marketing
 Interactive Marketing

16.  How can you manage the quality of your
services? What steps can you do as
manager?
 JD Powers and Associate
 Newsweek
 Time Magazine

17.  As a marketer or leader of your
organization, what are the ways you
can increase productivity?
 Workforce management
 Industrialize the service

18.  Brand Equity
› What’s the advantage of KFC, McDonalds,
Google, Apple, and Coca Cola vs not so
popular brands like Pop Cola, Bing,
Chikboy?

19. Brand Positioning Brand Name
Selection
Brand
Sponsorship
Brand
Development
Attributes ,
Benefits, and
values
Selection
Protection
Manufacturer’s
brand, private
brand, licensing,
co-branding
Line extensions,
brand extensions,
multibrands, new
brands

20.  Creat brad awareness through
advertising and build preference and
loyalty
 BRAND EXPERIENCE

21. Idea Generation Idea Screening Concept
development
and testing
Marketing
strategy and
development
Business analysis Product
Development
Test Marketing Commercialization

22.  Internal Idea sources (Tradition research
and development)
 External Idea sources
› Customers
› Competitors
› Employees
 Crowd sourcing

23.  Is it Real?
 Can we Win?
 Is it worth Doing?

24.  Product Concept-a detailed version of
the new product idea stated in a
meaningful consumer term.
 Concept Testing-testing the new product
concept with a group of target
consumers to find out if the concepts
have strong consumer appeal

25.  Description of the target Market
 Outline the product’s planned price,
distribution, and marketing budget for
the first year
 Description of the planned long-run
sales, profit goals, and marketing mix
strategies

26.  Review of the sales, costs, and profit
projections for a new product to find out
whether these factors satisfy the company’s
objective. This can be done by comparing
the history of a similar product.

27.  Developing the product concept into a
physical product to ensure that the
product idea can be turned into a
workable market offering.
 Creation of a prototype that will attract
potential consumers
 Product testing by the company or
outsourced group

28.  The stage of the new-product development
in which the product and its proposed
marketing program are tested in realistic
market settings.
 Data is collected by introducing products in a
controlled manner or in a laboratory (i.e.
online shops, a single store, beta versions)

29.  Formal introduction of a new product to
the market.
 Advertising –increasing public awareness
 Meeting demands that may require
additional facilities to produce the
product to meet demands
 TIMING AND WHERE TO INTRODUCE
(MARKET ROLL OUT) IS VERY CRITICAL

30.  Latest trend in developing new products
 Tends to be more successful that traditional
R&D
 Satisfies the needs of the consumers , more
consumer value propositions, and solved
major problems (P&G Strategy)
 Involvement of consumers are a priority

31.  Product development
 Introduction
 Growth
 Maturity
 Decline

32.  Laws and regulations to follow
 How will it affect the environment
 Is it sustainable
 Is our product safe for use? Did we do
enough testing?
 Are we following ethical standards?
 How will it affect our consumers?

33.  There’s a lot to be considered when going
international
 Companies must understand cultures and the
demand of a local market over costs and
standardization of image (for example
flavoring, meat inclusion, colors, packaging)
 Example are Nestle, KFC, McDonalds, and
Toyota

34.  Principles of Marketing by Philip Kotler
and Gary Armstrong, 14th Edition