Unit 1 Marketing The Marketing Mix Product 1022020

Unit 1: Marketing The Marketing Mix - Product 10/2/2020 1

PRODUCT DEFINITION § “a product is a physical good, service, idea, person or place that is capable of offering tangible and intangible attributes that individuals or organisations regard as so necessary, worthwhile or satisfying that they are prepared to exchange money, patronage or some other unit of value in order to acquire it. ” (Brassington & Pettitt/ Principles of Marketing) 10/2/2020 2

Tangible/intangible attributes § Tangible: availability and delivery; performance; price; design § Intangible: image; perceived value 10/2/2020 3

The product mix for competitive advantage § § § § Within the product element of the marketing mix, a marketer must consider strategies within the product mix which include the following: FAB USP The product life cycle Product range and portfolio Branding The BCG matrix (Boston Consulting Group) Ansoff Growth Matrix 10/2/2020 4

FEATURES, ADVANTAGES AND BENEFITS (FAB) § Q: What is the difference between a ‘feature’ and a ‘benefit? ’ Product A table Feature Plastic Advantage Benefit Easier to clean Lighter Cheaper Time-saving Portable Economical Pine Sturdier Low replacement frequency Status/image More fashionable Steel 10/2/2020 More stain resistant Holds heavier loads Time-saving Low maintenance costs 5

FEATURES, ADVANTAGES AND BENEFITS (FAB) § As a result of identifying the benefits, key promotional messages regarding the product can be devised: ‘Longer lasting!’ 10/2/2020 6

UNIQUE SELLING PROPOSITION (USP) § An area of the product that distinguishes from others § E. g. Coca-cola (brand), Last minute. com (cheap internet bookings), Low frills airlines § The USP can be an aspect of the product/service, the organisation itself, the quality – whatever makes it stand out! 10/2/2020 7

PRODUCT LIFE CYCLE § “A product life cycle is an attempt to recognise distinct stages in a product’s sales history” § See separate handout 10/2/2020 8

Exercise 1 Where do you consider the following products or services to be in their product life cycle? § § § § 10/2/2020 CD’s Video recorders Walkers crisps Organic produce Mars bars Low frills airlines New generation phones 9

PRODUCT RANGE AND PORTFOLIO The number or scale of choice of the products or services offered by a supplier EXAMPLE: CAR MANUFACTURERS 10/2/2020 10

BRANDING § The power of the brand image/name § Brand leadership – consistently holding the largest market share when measured by brand sales (Coca Cola!) 10/2/2020 11

BCG MATRIX § Classifies products (or businesses) on the basis of their market share and the rate of growth in the market § See separate handout 10/2/2020 12

BCG Matrix HIGH Market growth rate STAR PROBLEM CHILD Cash Cow Dog LOW 10/2/2020 HIGH LOW Market Share 13

ANSOFF GROWTH MATRIX § The Ansoff Matrix is one of the most well known and well used strategic frameworks for considering how to achieve growth. § In order to grow, companies may use various combinations of product and market positions § See separate handout 10/2/2020 14

ANSOFF GROWTH MATRIX PRODUCTS Existing New MARKET PENETRATION PRODUCT DEVELOPMENT MARKET DEVELOPMENT DIVERSIFICATION MARKETS New 10/2/2020 15

Further reading/research § Textbook chapters 7 and 8 on product and new product development § Further reading and resources can be found on Learnet in outcome 3, session 10 10/2/2020 16