【市場營銷英文版】13Product Strategy

1、Product StrategyProduct StrategyDefinition: ProductA product is anything that can be offered to a market to satisfy a want or need. This can include: physical goods, services, experiences, events, places, properties, organizations, information, and ideas.Product StrategyCustomers usually judge produ

2、cts on three criteria: Product features and quality Services mix and quality Price appropriatenessProduct StrategyCustomer Value Hierarchy:When products are developed, five levels of value often are considered:1. Core benefit2. Basic product3. Expected product4. Augmented product5. Potential product

3、Product StrategyCore benefit: products fundamental service or benefit offered.Basic product: product derived from the core benefit.Expected product: product with all of its attributes and conditions expected by customers.Augmented product: product with all of its attributes and conditions that excee

4、d customer expectations.Potential product: product during and after all of the augmentations and transformations that might occur in the future.Product StrategyProduct Classifications:Marketers usually classify products on the basis of three characteristics: Durability Tangibility Consumer/industria

5、l useProduct StrategyDurability: products useful life.Tangibility: a products degree of substantive-nessConsumer/Industrial use: who uses it, consumers or businessesProduct StrategyOther important marketing considerations include: Packaging Labeling Warranties and guaranteesProduct StrategyPackaging

6、:Several factors have helped packaging become important to marketers. They include: Self-service natural of most retail stores Consumer affluence and the willingness to pay a little more The importance of company brands and images Opportunity to innovateProduct StrategyPackaging must achieve a numbe

7、r of objectives, including: Identify the brand Communicate descriptive and persuasive info Facilitate product transportation and protection Assist in home storage Aid in product consumptionProduct StrategyAll packaging elements must fit product pricing, advertising, and other marketing activities. T

8、esting packaging elements before making the product available for sale has become a normal and necessary activity for businesses.Product StrategyLabeling:All packaged products require labels. Labels perform several important functions: Identify the product and/or brand Describe the product Promote t

9、he productProduct StrategyLabels usually are not eternal. As generations pass and societies change, labels often need to changed or updated in order to continue attracting customers.Product StrategyWarranties and guarantees:A warranty is a formal statement of expected product performance by the manu

10、facturer. They are legally enforceable.A guarantee is a promise to reduce perceived risk and provide assurance that the product is dependable.Product StrategyOffering warranties and guarantees can help market a product. If extra or extended warranties are offered in exchange for a small fee, they ca

11、n be profitable too.However, be careful. Overpromising and under delivering through warranties and guarantees can be a big money loser. Product StrategyNew ProductsWhat is a new product for a company?It is a product that has been acquired from another company or developed by the company itself.Produ

12、ct StrategyNew Products: Six Categories New-to-the-world products New product lines Additions to existing product lines Improvements and revisions to existing products Re-positioning Cost reductionsProduct StrategyMost new products fail. Reasons: Market/marketing failure (small size of the potential

13、 market, no clear product differentiation, poor positioning, misunderstanding of customer needs) Financial failure (low investment return) Timing failure (too late or too early) Technical failure (product did not work, bad design) Organizational failure (did not fit well with organizational culture,

14、 lack of support) Environmental failure (government regulations, macroeconomic factors)Product StrategyNew product development, stages:1. Idea generation2. Idea screening3. Concept development and testing4. Marketing strategy development5. Business analysis6. Product development7. Market testing8. C

15、ommercializationProduct StrategyMost products have life spans, meaning they can be marketable for weeks or decades, but at a certain point in time in the future consumers will no longer be interested in the product and buy it. These life spans often are referred to as the product life cycle.How a co

16、mpany positions and differentiates a product during this life span should change over time, depending at which life cycle stage the product has entered.Product StrategyProduct Life Cycle Stages:1. Introduction stage2. Growth stage3. Maturity stage4. Decline stageProduct StrategyA products life cycle

17、 stage often will help determine what would be the best marketing objectives and strategies to follow.The following tables give information and suggestions about products at each life cycle stage.Product StrategyCharacteristicsIntroductionGrowthMaturityDeclineSalesLow salesRapidly rising salesPeak s

18、alesDeclining salesCostsHigh cost per customerAverage cost per customerLow cost per customerLow cost customerProfitsNegativeRising profitsHigh profitsDeclining profitsCustomersInnovatorsEarly adoptersMiddle majorityLaggardsCompetitorsFewGrowing numberStable number beginning to declineDeclining numbe

19、rProduct StrategyMarketing ObjectivesIntroductionGrowthMaturityDeclineCreate product awareness and trialMaximize market sizeMaximize profit while defending market shareReduce expenditure and milk the brandProduct StrategyStrategiesIntroductionGrowthMaturityDeclineProductOffer basic productOffer product extensi