1、Chapter 6:Product Planning for Goods and Services,Main Points,What is a product? Product classes Branding, packaging and warranties PLC(product life cycle) New product,1. What “Product” really means,Product(p255): the need-satisfying offering of a firm (goods, services, experiences, events, persons,
2、 places, properties, organizations, information and ideas.) A product - total satisfaction (the right service, a physical good with the right features, instructions on use, convenient packaging, warranties, and the like.(p256),Strategic Planning for Product,Place,Product,Price,Promotion,Target Marke
3、t,EXHIBIT 9-1 P256,The Product Levels,Core benefit,Corebenefit,Augmented product delivery, installment maintaining, consultant, training, financing, etc.,Tangible product quality, appearance, style, brand, packing, design, features,etc.,Hotel,Core benefit,Rest andsleep,Surprise and delight: TV, Inte
4、rnet; flowers; Fast and good service; Fast checkout; waking-up Service; good dinner; etc.,Basic expectation: Clean bed; new towels; Clean and working washing Room; quiet environment, etc.,Quality (P256),Quality: a products ability to satisfy a customers needs or requirements. Quality focuses on the
5、customer feelings. Differentiate “technical quality” and “perceived quality”.,Goods and Services (P257),A product may be a physical good or a service or a blend of both. A good is a tangible, physical item that can be seen and touched. A service is a deed performed by one party for another. Differen
6、ce b/w goods and services. Time of production; supply and demand balance; economies of scale,2. Product Lines (p260),Product assortment/mix: the set of all product lines and individual products that a firm sells. Product line: a set of individual products that are closely related. ( be produced or o
7、perated in a similar way; sold to the same target market; sold to the same types of outlets; priced at about the same level.) Individual product: a particular product within a product line.( differentiated by brand, level of service offered, price, or some other characteristic),P&G公司的产品组合,产品组合的宽度(wi
8、dth) ：5 条产品线 产品组合的长度(length) ：总长度为25个品种，平均每条产品线5个品种 产品组合的深度(depth) ：佳洁士品牌有3个规格，每个规格有两种口味则佳洁士品牌的深度是6。,3. Product Classes (p260),Consumer products(p261): products meant for the final consumers. Business products(p261): products meant for use in producing other products. Basis - type of customer,Exhibi
9、t 9-3 P260,3.1 Consumer Product Classes,Based on how customers think about and shop for products,3.1.1 Convenience Products purchased quickly (p262),Convenience products: products a consumer needs but isnt willing to spend much time or effort shopping for. Staples: bought often, routinely, and witho
10、ut much thought, toothpaste. Impulse goods: bought quickly as unplanned purchases because of a strongly felt need. Emergency goods: purchased immediately when the need is great, such as umbrellas during a rainstorm.,3.1.2 Shopping Products are compared (p262),Shopping products: products that a custo
11、mer feels are worth the time and effort to compare with competing products. Homogeneous shopping products: shopping products the customers sees as basically the same and wants at the lowest price. Heterogeneous shopping products: shopping products that the customer sees as different and wants to ins
12、pect for quality and suitability.,3.1.3 Specialty Products(p262) - no substitutes, please!,Specialty products: consumer products that the customer really wants and makes a special effort to find. Cars, stereo components, photographic equipment, mens suits, etc. Any branded product that consumers ins
13、ist on by name is a specialty product.,3.1.4 Unsought Products need promotion (p263),Unsought products: that potential customers dont yet want or know they can buy. new unsought products: offering really new ideas that potential customers dont know about yet. Regularly unsought products: not normall
14、y thinking of buying. Life insurance, gravestones, encyclopedias, etc.,One product may be seen several ways,Assignment,The buying behaviour of several customers or potential customers is described below for Kodak digital cameras. Assume in each situation that the customer being described is represen
15、tative of a particular group of customers-all possessing the same needs and exhibiting similar buying behaviour. Then (a) indicate in which consumer product class the product should be placed based on the characteristics of each group of customers, and (b) state why you placed the product in this cl
16、ass.,1.Mary Wang, a college student, wished to purchase a camera as a birthday gift for her boy friend. Although Mary could afford to spend less than $500, she wanted a digital camera of reasonably good quality-but also one that would be easy to operate. Knowing very little about cameras, Mary asked
17、 a salesperson at the Campus Camera Shop for his advice. He recommended that she buy the new Kodak digital camera because of its low price and many convenient features.,2.While deep-sea fishing off the coast of Hawaii, Vic Shaw caught a large swordfish. He decided that his friends back home would ne
18、ver believe his“ fish story“ if he didnt have pictures. But he did not have a camera. As soon as the boat got back to the dock, Vic went to a nearby tourist shop. He was pleased to see a display of Kodak digital cameras, but was sorry to see a much higher price than the same camera sold for in his h
19、ometown. He bought one anyway, because he wanted to take some pictures right away before the fish was taken away to the fish market. He also liked the idea of being able to e-mail pictures to his friends and family.,3.Maury Schmidt walked into a Wal-Mart store and told the clerk at the camera counte
20、r that he wanted to buy a digital camera. The clerk said the store carried several such cameras, including the Kodak digital camera. “Ill take the one with the lowest price,“ Maury told the clerk.,4. Bob Goff teaches high school science courses. He spends most of his leisure time with amateur photog
21、raphy. In fact, he enjoys photography so much that for several years he has volunteered to teach the advanced photography workshop offered by the city recreation department. He has won several awards for his photographs of mountain landscapes. Bob has even earned extra cash by selling some of his ph
22、otos to companies that print postcards. Several of his friends have encouraged him to turn professional, but he prefers using his talents mainly as a hobby.,5. While Mrs. Lotz was shopping in her local mall, she came upon a special display of Kodak digital cameras. At first, she doubted the product
23、quality because they were priced quite low compared to her friends Sony camera. But remembering all the Kodak advertisements she had seen on television and in magazines, she decided to buy one to take photographs of her grandchildren who were visiting for the week.,6. Ellen Pierce was at her cousins
24、 house and saw some photographs that her cousin had taken with a Kodak digital camera. She was so impressed by the quality of the pictures that she decided to purchase the same camera. The next day she went to a nearby camera store and found that the store did not have the camera in stock-although i
25、t did have other digital camera in stock in the same price range. The salesperson in the store assured her that the others were just as good. But Ellen ignored this advice and tried two other stores that were also out of stock. Getting frustrated, Ellen was ready to drive downtown to a large camera
26、store when she came upon a display of Kodak digital cameras in a nearby department store. She quickly bought one-even though she felt the price would probably be lower at the camera store.,3.2 Business Products (p264-267),Based on how buyers think about products and how they will be used.,Expense it
27、em And Capital item,4. Branding 4.1 What is a brand?(p269),Branding: the use of a name, term, symbol, or design - or a combination of these - to identify a product. Brand name: a word, letter, or a group of words or letters. Trademark: those words, symbols, or marks that are legally registered for u
28、se by a single company. Service mark: those words, symbols, or marks that are legally registered for use by a single company to refer to a service offering.,4.2 the Meaning and Advantages of a Brand,Identify the seller or maker promise to the buyers a warranty of quality make shopping easier reduces
29、 selling time and effort improve the companys image speed up acceptance of new products Brand equity(p271): the value of a brands overall strength in the market. A brand can be a real asset to a company. It must be protected. The Trademarks Act (p273).,4.3 Five Levels of Brand Familiarity,Brand fami
30、liarity: how well customers recognize and accept a companys brand. Brand rejection: potential customers wont buy a brand unless its image changed. Brand nonrecognition: final customers dont recognize a brand at all. Brand recognition: customers remember the brand. Brand preference: target customers
31、usually choose the band over other brands, perhaps because of habit or favorable past experience. Brand insistence: customers insist on a firms branded product and are willing to search for it.,Branding,4.4 Characteristics of a Good Brand Name (P271),Easy to pronounce, recognize and remember. E.g. T
32、ide, Crest, Puffs. Suggesting benefits: Beauty-rest Suggesting qualities: firebird Distinctive: Kodak, Exxon Not carry poor meanings in other countries and languages: Nova is a poor name for a car to be sold in Spanish-speaking countries; it means “star” but sounds the same as the Spanish words for
33、“no go”.,4.5 Branding Decisions,To brand or not to brand Generic products: products that have no brand at all. Branded products Brand sponsor decision Manufacturer brands (national brand, NB, own brand): brands created by producers. Dealer brands (distribution brand, private brands, PB): brands crea
34、ted by intermediaries. Brand name decision Family brand: a brand name that is used for several products. Licensed brand: a well-known brand that sellers pay a fee to use. Individual brands: separate brand names used for each product.,Dealer brand,OEM,Family Brand/Umbrella Brand,案例：典型的家族品牌 夏士莲：有夏士莲洗发
35、护发产品系列、有夏士莲美容护肤产品系列（雪花膏、洁面乳、润肤霜、润白霜/露等）、有夏士莲个人洁肤产品香皂，形成一个产品层面的家族品牌。 力 士：有力士洗发护发产品系列、个人洁肤产品系列（浴露、香皂），形成一个产品层面的家族品牌。 娃哈哈：是纯净水、矿泉水、茶饮料、瓜子、儿童口服液、童装等产品的家族品牌（大家族品牌），同时是非常可乐的软背书品牌。 Sony, Philips, Kraft, Coca-cola,Licensed Brand,Individual Brand,Procter & Gambles brands,What Kind of Brand to Use?,Generic,Fa
36、mily brand,Individual brand,Brand Choices,Manufacturer,Dealer,?,?,?,?,?,?,?,Packaging: promoting and protecting the product.,5. Packaging,The Importance of Packaging,A well-designed package can make the product easier to use; Prevent spoilage or damage; Save pace and easier to handle and display; Id
37、entify and promote the brand; Be green(degradable and recycled).,A warranty says the company stands behind the product. Consumers often feel more comfortable with products they know come with assurances.,Warranty,6. Using Warranties to Improve the Marketing Mix,Warranty: what the seller promises abo
38、utits product (repair, refunds, replacement etc).,7. Product Life Cycles,7.1 PLC: the stages a new product idea goes through from beginning to end. Customers attitudes and needs; Target markets; Nature of competition; Total sales and profits Four main stages of the PLC: Introduction Growth Maturity
39、decline,The Product Life Cycle Sales and profits do not move together over time.,Introduction:a period of low sales volume as the product is first introduced,Growth:a time of fast sales growth and rising industryprofits but thenstart falling,Maturity: a period whensales level offand competitionincre
40、ases.,Decline: a time whennew productsreplace the old.,max,max,Introduction,Sales are low. Customers do not know about the product; Informative promotion is needed. Most companies experience losses.,Growth,Sales grow fast. Profits rise and then start falling. Competition increases.,Maturity,Sales le
41、vel off. Competition gets tougher. Profits go down. Less efficient firms cant compete and drop out of the market. Persuasive promotion becomes more important.,Decline,New products replace the old. Price competition increases. Firms with strong brands may make profits until the end.,7.2 Planning for
42、Different Stages of PLC,Current Examples at Different Stages,Introduction: third generation mobile phones, e-conferencing, iris-based personal identity cards; Growth: portable DVD players, email, smart cards; Maturity: personal computers, faxes, credit cards; Decline: typewriters, handwritten letter
43、s, cheque books.,Assignment,Read the following five cases carefully and for each one: a. Decide which stage of the product life cycle best describes the situation in the case - considering the relevant product-market. b. Briefly explain your answer, including such factors as profitability, number of
44、 competitors, place, promotion, and pricing.,1. One of the largest food manufacturers is testing a new product for the large soft-drink market a patented paper cup coated with a secret formula. All the consumer has to do is add water and it becomes a carbonated beverage! It is no longer necessary to
45、 carry home six-packs or eight-packs. There are no empty bottles or cans to return, and less storage space is needed. The product can also be distributed through normal wholesale channels rather than requiring the special distribution networks now used by the bottling industry. Therefore, the produc
46、t offers economy as well as convenience.,2. Altos Stereo Systems is just entering the fast-growing, but increasingly competitive market for “home theatre“ sound systems. Like other available systems, the Altos line creates excellent “surround sound“ that is like what you hear in a movie theatre. The
47、 Altos marketing manager is confident that he can capture a profitable share of the market because his firm s system has an integrated control unit that automatically coordinates the settings for various components - say, the TV, the stereo system, a cable box, and a VCR 一 -even if they are from dif
48、ferent manufacturers. All the user has to do is press the “on“ button on the remote control and set the volume. Well-known competitors like Pioneer and Sony still dont have anything to match the ease-of-use of the Altos model. In addition, to attract support from traditional retailers of home electr
49、onics products, Altos is offering a very low wholesale price. Even at the very low suggested retail price, this will make the Altos receiver very profitable for the retailers. Altoss marketing manager says that this very aggressive pricing will pay off. He predicts that in the next decade home theatre systems will replace standard stereo receiver systems-and that already prices of the surround sound systems are dropping rapidly. He says that this will stimulate even faster growth in the home theatre market.,
