DEMONSTRATE AND UNDERSTANDING OF PRODUCT POSITIONING
UNIT 6: DEMONSTRATE AND UNDERSTANDING OF PRODUCT POSITIONING
INTRODUCTION
=product offering at heart of marketing effort
=starting point of marketing mix = example
=good product can result in good marketing mix
1. WHAT IS A PRODUCT
=any favourable or unfavourable thing in exchange for money
=can be tangible, a service, or an idea (examples ?)
=marketing process for each is the same
2. PRODUCT LEVELS
=5 levels = each level adds more customer value
=constitutes the customer value hierarchy
1st level = core benefit
=satisfies the most basic need
=e.g. car = private transport, red bull = energy, clothing = ??
=2nd level = basic tangible product (physical)
=car = wheels, windows, doors, engine, etc.
=3rd level = expected product
=everything works, e.g. engine starts, doos open, etc.
=4th level = augmented product
=additional features that accompany the product
=e.g. delivery, warranty, financing, gift wrapping, etc.
=5th level = potential product
=future improvements in product
=e.g. gps in cars, self-navigating
e.g. cell-phones ??
3. PRODUCT CLASSIFICATION
=durable vs non-durable
=example ??
=consumer vs industrial products
=examples ??
=N.B. consumer product for one can be industrial product for another
4. TYPES OF CONSUMER PRODUCTS
=different kinds of consumer products need different marketing mixes
=e.g. pricing, promotion, distribution, etc..
=4 types = convenience, shopping, speciality, and unsort
=classification is determined by the effort one spends
CONVENIENCE PRODUCTS
=inexpensive and takes minimal effort
=e.g. milk, eggs, sugar, bread, etc.
=little pre-purchase planning, information, and comparison
=but are familiar with various brands, e.g. coca-cola, samba
=require good branding, regular advertising, and mass distribution
=3 types = staples, impulse, and emergency
=staples are routinely = bread, cheese, meat, etc
=manufacturers must develop trust and confidence in consumers
=impulse products = are
INTRODUCTION
=product offering at heart of marketing effort
=starting point of marketing mix = example
=good product can result in good marketing mix
1. WHAT IS A PRODUCT
=any favourable or unfavourable thing in exchange for money
=can be tangible, a service, or an idea (examples ?)
=marketing process for each is the same
2. PRODUCT LEVELS
=5 levels = each level adds more customer value
=constitutes the customer value hierarchy
1st level = core benefit
=satisfies the most basic need
=e.g. car = private transport, red bull = energy, clothing = ??
=2nd level = basic tangible product (physical)
=car = wheels, windows, doors, engine, etc.
=3rd level = expected product
=everything works, e.g. engine starts, doos open, etc.
=4th level = augmented product
=additional features that accompany the product
=e.g. delivery, warranty, financing, gift wrapping, etc.
=5th level = potential product
=future improvements in product
=e.g. gps in cars, self-navigating
e.g. cell-phones ??
3. PRODUCT CLASSIFICATION
=durable vs non-durable
=example ??
=consumer vs industrial products
=examples ??
=N.B. consumer product for one can be industrial product for another
4. TYPES OF CONSUMER PRODUCTS
=different kinds of consumer products need different marketing mixes
=e.g. pricing, promotion, distribution, etc..
=4 types = convenience, shopping, speciality, and unsort
=classification is determined by the effort one spends
CONVENIENCE PRODUCTS
=inexpensive and takes minimal effort
=e.g. milk, eggs, sugar, bread, etc.
=little pre-purchase planning, information, and comparison
=but are familiar with various brands, e.g. coca-cola, samba
=require good branding, regular advertising, and mass distribution
=3 types = staples, impulse, and emergency
=staples are routinely = bread, cheese, meat, etc
=manufacturers must develop trust and confidence in consumers
=impulse products = are