1. Instructor: Safaa S. Y. Dalloul
Principles of Marketing
Unit 6
Instructor: Safaa S. Y. Dalloul
Product Strategies

2. Elements of Lecture Product Strategy
Product Strategy
Product Characteristics and Classifications
Components of Market Offering
Product Levels

3. Components of Market Offering
Components of Market Offering

4. Components of Market Offering

5.
Product Levels

6. Product Levels

7. Product Levels Fundamental level : Core benefits Basic Product
Fundamental level : Core benefits
Basic Product
Expected Product
Augmented Product
Potential Product

8. Product Levels Examples of Product Level Fundamental Basic Product
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

9. Product Classifications
Product Classifications

10. 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

11. Customer Goods Classifications

12. Industrial Goods Classifications
Material and Parts
Capital Items
Supplies and Business Services

13.
Differentiation

14. Differentiation
Differentiation: process of adding a set of meaningful and valued differences to distinguish the company’s offering form competitor’s offering

15. Product Design Parameters
Differentiation
Product form
Features
Performance quality
Conformance Quality
Durability
Reliability
Reparability
Style
Design
Product Design Parameters

16. Differentiation Service Design Parameters Ordering ease
Ordering ease
Delivery
Installation
Customer Training
Customer Consulting
Maintenance & Repair
Service
Design Parameters

17.
Product System

18. 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.

19. Product System Product Mix Product Line 4 Line 3 Line 2 Line 1 Sweets
Product Mix
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

20.
Brand

21. 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.

22. 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)

23. 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.

24. Packaging, Labeling, Warranties and Guarantees
Packaging, Labeling, Warranties and Guarantees

25. Packaging, Labeling, Warranties and Guarantees
Packaging: is all activities of designing and producing the container for a product.
Primary Package
Secondary Package
Shipping Package

26. 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

27. 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.

28. 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

29. Packaging, Labeling, Warranties and Guarantees
Labeling
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.

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

31. Packaging, Labeling, Warranties and Guarantees
Warranties
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.

32. Packaging, Labeling, Warranties and Guarantees
Warranties
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.

33. Packaging, Labeling, Warranties and Guarantees
Guarantee
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

34. Packaging, Labeling, Warranties and Guarantees
Guarantee
Effective when:
The company or the product is not well-known
The product’s quality is superior to the competition