PRODUCT PLANNING Marketing Management Session 7 and 8 October 13 and 27, 1999

SESSION OUTLINE Positioning: review of concepts and perceptual maps Video case: « Creating Bread » Brief review Theoretical concepts of product management Managerial concepts Video: « Marketing a Product Range »

POSITIONING Part of the marketing strategy which allows to give the product/service its own identity Positioning is a competitive tool Positioning can be operated at the physical level or at the perceptual level A strong position in buyers’ minds gives the product a competitive advantage

PERCEPTUAL MAPS Indicate where a product stands in buyers’ minds relative to its direct and indirect competitors Horizontal and vertical axes are perceived relevant dimensions of the product category Distances between two brands are perceived competitive distances Ideal tool for positioning strategies

POSITIONING STRATEGIES Move brand closer to ideal point Move ideal point closer to brand Change relevance of dimensions Introduce a new brand close to ideal point

REVIEW Planning the marketing strategy involves: –Situation analysis and setting objectives –Market segmentation –Selecting target market(s) –Defining a positioning strategy –Developing the marketing mix

MARKETING MIX Controllable variables: –Product –Price –Promotion –Place

MARKETING MIX Promotion Place Price Product Controllable Variables

MARKETING MIX Promotion Place Price Product Engineering Accounting/ Finance Sales Operations

THEORETICAL CONCEPTS Definition of a product Product classifications Product life cycle

DEFINITION OF A PRODUCT Central product Tangible product Augmented product

INTANGIBLE GOODS Simultaneous consumption and production Wide variations in demand over short periods of time Many different types of services: –continuous services (electricity, telephone) –produced by a person (banking) –produced to a person (doctor, hairdresser)

MANAGERIAL DECISIONS Elements of the product: –product attributes –brand name and logo –packaging and colours –format –labelling –product-support services

MANAGERIAL DECISIONS Managing an existing product line Developing and introducing new products Organizing the marketing department

NEXT SESSION Chapter 9 Product life cycle New product introductions Case presentations: The launch of mbanx, teams 3, 4, 9, and 10 Video case: Profiting from the net

Office hours for mid-term Please see Prof. Mark A. Tomiuk, room 4.756, tel Tuesday, Oct. 20, 10 a.m.-12 p.m. Wednesday, Oct. 21, 10 a.m.-12 p.m. Thursday, Oct. 22, 10 a.m.-12 p.m.

Mid-term exam Saturday, October 23 1:30 p.m. - 3:30 p.m. Material covered: –chapters 1, 2, 4, 5, 6, and 20 –video cases (Race to Market, Looneyspoons, Tough to Reach, Creating Bread) –cases (Fottle and Omega Paw)

Format of Mid-term 10 True-false questions with short justification (15 points) 2 short answer questions - you choose among 3 questions (10 points) read the instructions carefully read the question answer the question good answer + wrong question = 0