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

2. Elements of Lecture Product Strategy
Product Characteristics and Classifications
Components of Market Offering
Product Levels
Product Classifications
Differentiation
Product System
Brand
Packaging and Labeling

3. Components of Market Offering
Components of Market Offering

4. Components of Market Offering
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.

5. Components of Market Offering
Marketing planning begins with formulating and offering to meet target customer’s needs or wants.

6. Components of Market Offering

7.
Product Levels

8. Product Levels

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

10. 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

11. Product Classifications
Product Classifications

12. 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

13. Durability and Tangibility

14. Durability and Tangibility
Durable Goods
Non-Durable Goods
Services

15. Customer Goods Classifications

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

17.
Differentiation

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

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

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

21.
Product System

22. 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.

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

24.
Brand

25. 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.

26. 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)

27. 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.

28. Packaging, Labeling, Warranties and Guarantees
Packaging, Labeling, Warranties and Guarantees

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

30. 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

31. 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.

32. 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

33. 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.

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

35. 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.

36. 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.

37. 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

38. 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

39. 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.