Instructor: Safaa S. Y. Dalloul E-Marketing Unit 6 Product Strategy Instructor: Safaa S. Y. Dalloul

Elements of Lecture Product Strategy http://safaadalloul.wordpress.com Product Characteristics and Classifications Components of Market Offering Product Levels Product Classifications Differentiation Product System Brand Packaging and Labeling

Components of Market Offering http://safaadalloul.wordpress.com Components of Market Offering

Components of Market Offering http://safaadalloul.wordpress.com Many people think that a product is a tangible offering, but a product can be more than that.  A product is anything that can be offered to a market to satisfy a want or need. Products that are marketed include physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.

Components of Market Offering http://safaadalloul.wordpress.com Marketing planning begins with formulating and offering to meet target customer’s needs or wants.

Components of Market Offering http://safaadalloul.wordpress.com

http://safaadalloul.wordpress.com Product Levels

Product Levels http://safaadalloul.wordpress.com

Product Levels Fundamental level : Core benefits Basic Product http://safaadalloul.wordpress.com Fundamental level : Core benefits Basic Product Expected Product Augmented Product Potential Product

Product Levels Examples of Product Level Fundamental Basic Product http://safaadalloul.wordpress.com Examples of Product Level Fundamental Basic Product Expected Augmented Potential Hotel Rest and Sleep Bed, Bathroom Clean Bed Internet Access ATM Machine Car Leisure Chairs and Windows Radio, Air Condition GIS (E-Map) Robot

Product Classifications http://safaadalloul.wordpress.com Product Classifications

Product Classifications Durability and Tangibility Durable: Many uses such as refrigerators Non-durable: Normally consumed such as soap Services: intangible such as legal advice Consumer Goods Classification Industrial Goods Classification http://safaadalloul.wordpress.com

Durability and Tangibility http://safaadalloul.wordpress.com

Durability and Tangibility Durable Goods Non-Durable Goods Services http://safaadalloul.wordpress.com

Customer Goods Classifications http://safaadalloul.wordpress.com

Industrial Goods Classifications Material and Parts Capital Items Supplies and Business Services http://safaadalloul.wordpress.com

http://safaadalloul.wordpress.com Differentiation

Differentiation Differentiation: process of adding a set of meaningful and valued differences to distinguish the company’s offering form competitor’s offering http://safaadalloul.wordpress.com

Product Design Parameters Differentiation Product form Features Performance quality Conformance Quality Durability Reliability Reparability Style Design http://safaadalloul.wordpress.com Product Design Parameters

Differentiation Service Design Parameters Ordering ease Delivery Installation Customer Training Customer Consulting Maintenance & Repair http://safaadalloul.wordpress.com Service Design Parameters

http://safaadalloul.wordpress.com Product System

Product System Product System: A group of diverse but related items that function in a compatible manner, eg, cellular phone with earphone, battery, radio and cameras. http://safaadalloul.wordpress.com

Product System Product Mix Product Line 4 Line 3 Line 2 Line 1 Sweets http://safaadalloul.wordpress.com Product Line 4 Line 3 Line 2 Line 1 Sweets Snakes Soft Drinks Coffee Mars Pizza In Tang Nescafe kinder Burger Coca Cola Bream Twix KFC Meranda Sanca

http://safaadalloul.wordpress.com Brand

Brand Brand: A name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from the competition. http://safaadalloul.wordpress.com

Brand Brand Levels Attributes: A brand brings to mind certain attributes. Benefits: Attributes must be translated in to functional & emotional benefits Values: The brand say something about the product (Mercedes-Safety)   http://safaadalloul.wordpress.com

Brand Brand Levels Culture: It may represent a certain culture (Mercedes- German) Personality: It project a certain personality User: It suggests the kind of consumer who buys or use the product.   http://safaadalloul.wordpress.com

Packaging, Labeling, Warranties and Guarantees http://safaadalloul.wordpress.com Packaging, Labeling, Warranties and Guarantees

Packaging, Labeling, Warranties and Guarantees Packaging: is all activities of designing and producing the container for a product. Primary Package Secondary Package Shipping Package   http://safaadalloul.wordpress.com

Packaging, Labeling, Warranties and Guarantees Function: create convenience and promotional value, a styling weapon, attracting consumers. Self-Service: providing info and attracting customers. Consumer affluence: consumers’ willingness to pay more. Company and brand image: instant recognition of the brand http://safaadalloul.wordpress.com

Packaging, Labeling, Warranties and Guarantees Innovation opportunity Innovative packaging can bring large benefits to consumers and profits to producers. Companies are incorporating unique materials and features such as resalable spouts and openings. Fragrance bottle design and soft drinks. http://safaadalloul.wordpress.com

Packaging, Labeling, Warranties and Guarantees Package design Establishing the packaging concept: deciding what should be or do for the package Designing the package: size, shape, materials, color, text, brand mark Packaging test: engineering tests, visual tests, dealer test and consumer test http://safaadalloul.wordpress.com

Packaging, Labeling, Warranties and Guarantees Sellers must label products. The label may be a simple tag attached to the product or an elaborately designed graphic that is part of the package. The label might carry only the brand name or a great deal of information. Labels eventually become outmoded and need freshening up. http://safaadalloul.wordpress.com

Packaging, Labeling, Warranties and Guarantees Functions Identification, Grading Description, producer, instruction, expiry date,… Promotion: through graphic or color on the label http://safaadalloul.wordpress.com

Packaging, Labeling, Warranties and Guarantees All sellers are legally responsible for fulfilling a buyer's normal or reasonable expectations. Warranties are formal statements of expected product performance by the manufacturer. http://safaadalloul.wordpress.com

Packaging, Labeling, Warranties and Guarantees Products under warranty can be returned to the manufacturer or designated repair center for repair, replacement, or refund. Warranties, whether expressed or implied, are legally enforceable. http://safaadalloul.wordpress.com

Packaging, Labeling, Warranties and Guarantees many sellers offer Reduce the buyer’s perceived risks Suggesting that the product is high quality and that the company and its service performance are dependable http://safaadalloul.wordpress.com

Packaging, Labeling, Warranties and Guarantees Effective when: The company or the product is not well-known The product’s quality is superior to the competition http://safaadalloul.wordpress.com

Packaging, Labeling, Warranties and Guarantees A warranty attracts charges as the insurance policy. A guarantee is always free If product is found defective then the product will be repaired within given time period of the warranty. If product is found defective then the product will be replace with new one within given time period by the guarantor. http://safaadalloul.wordpress.com

http://safaadalloul.wordpress.com