Chapter 11 Product Concepts
Objectives
What Is A Product?
The Total Product
Product Characteristics
Classifying Products
Convenience Products
Convenience Product Strategy Implications
Shopping Products
Shopping Product Marketing Implications
Specialty Products
Specialty Product Marketing Implications
Unsought Products
Unsought Products Marketing Implications
Business Products
Product Line And Product Mix
Product Width/Depth Of Proctor & Gamble
Product Life Cycle
Introduction Stage
Introductory Stage
Growth Stage
Growth Stage
Growth Stage Marketing Strategy
Maturity Stage
Maturity Stage Marketing Strategy
Maturity Stage Objectives
Managing Products In The Maturity Stage
Decline Stage
Decline Stage Marketing Strategy
Product Adoption Process
Stages Of Product Adoption Process
Most New Ideas Have Their Skeptics
Adopter Categories
Product Adopter Categories
Why Some Products Fail/Succeed
Product Successes And Failures
5.40M
Категория: МаркетингМаркетинг

Product decisions

1.

2.

Part Five
Product Decisions
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3. Chapter 11 Product Concepts

4. Objectives

• Understand the concept of a product
• Explain how to classify products
• Examine concepts of product: item, line,
and mix and how they are connected
• Understand product life cycle and impact
on marketing strategies
• Describe product adoption process
• Understand why products fail/succeed
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5. What Is A Product?

• Good- Tangible physical entity
• Service- Intangible result of the application
of human and mechanical efforts to people
or objects
• Idea- Concept, philosophy, image, or issue
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6. The Total Product

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7. Product Characteristics

• Fundamental utility
• Supplemental features




Installation
Delivery
Training
Financing
• Symbolic meaning
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8. Classifying Products

• Consumer- products purchased to satisfy
personal and family needs
• Business- products brought to use in an
organization’s operations, to resell, or to
make other products
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9. Convenience Products

Relatively inexpensive, frequently purchased
items for which buyers exert only minimal
purchasing effort
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10. Convenience Product Strategy Implications


Retail outlets
Low per-unit gross margins
Little promotion effort
Packaging important
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11. Shopping Products

Items for which buyers are willing to
expend considerable effort in planning
and making purchases
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12. Shopping Product Marketing Implications

• No brand loyalty
• Fewer retail outlets than convenience
• Lower inventory turnover
• Higher gross margins
• Personal selling
• Channel member cooperation
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13. Specialty Products

Items with unique characteristics that
buyers are willing to expend considerable
effort to obtain.
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14. Specialty Product Marketing Implications

• Limited retail outlets
• Lower inventory turnover
• High gross margins
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15. Unsought Products

Products purchased to solve a sudden
problem, products of which customers
are unaware, and products that people
do no necessarily think of buying.
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16. Unsought Products Marketing Implications

Build trust with consumer by:
• Recognizable brand
• Superior performance
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17. Business Products


Installations- facilities & nonportable equipment
Accessory equipment- not part of final product
Raw materials- natural materials part of product
Component parts- finished items ready for
assembly or need little processing
• Process materials-used in production but not
identifiable
• MRO supplies-maintenance, repair, and
operating items not part of final product
• Services-intangible products in operations
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18. Product Line And Product Mix

• Item- specific version of product
• Line- closely related items viewed as a unit
• Mix- total group of products
• Width of mix- number to lines
• Depth of mix- number of different products
in line
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19. Product Width/Depth Of Proctor & Gamble

Product Width/Depth
Of Proctor & Gamble
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20. Product Life Cycle

The progression of a product through
four stages: introduction, growth,
maturity, and decline.
Windows Product Life Cycle Policy
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21. Introduction Stage

The initial stage of a product’s life cycle; its
first appearance in the marketplace when
sales start at zero and profits are negative.
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22. Introductory Stage

• Risk of failure high
• Buyers must be made aware of:
– Features
– Uses
– Advantages
• Sellers lack
– Resources
– Technological knowledge
– Marketing know-how
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23. Growth Stage

The product life cycle stage when sales
rise rapidly and profits reach a peak, then
start to decline.
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24. Growth Stage

• Sales rise rapidly
• Profits peak
• Starts to decline
• Competitors react
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25. Growth Stage Marketing Strategy

• Encourage brand loyalty- stress
brand benefits
• Strengthen market share
• Emphasize product’s benefits
• Aggressive pricing
• Analyze production position
• Efficient distribution system
• Promotion costs drop as % of sales
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26. Maturity Stage

The stage of a product’s life cycle when the
sales curve peaks and starts to decline, and
profits continue to fall.
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27. Maturity Stage Marketing Strategy

• Intense competition
• Emphasize improvements and differences
• Advertising and dealer-oriented promotion
• Global expansion
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28. Maturity Stage Objectives

1. Generate Cash Flow
2. Maintain Share of Market
3. Increase Share of Customer
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29. Managing Products In The Maturity Stage

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30. Decline Stage

The stage of a product’s life cycle when
sales fall rapidly.
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31. Decline Stage Marketing Strategy


Eliminate/reposition items
Cut promotion
Eliminate marginal distributors
Plan for phase out
Approaches
– Harvesting
– Divesting
Nike Product Life Cycle
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32. Product Adoption Process

The five-stage process of buyer acceptance
of a product: awareness, interest, evaluation,
trial, and adoption.
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33. Stages Of Product Adoption Process

1.
2.
3.
4.
5.
Awareness
Interest
Evaluation
Trial
Adoption
Diffusion
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34. Most New Ideas Have Their Skeptics

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35. Adopter Categories

Innovators- first adopters
Early Adopters- careful choosers
Early Majority- deliberate and cautious
Late Majority- skeptics who only adopt
when necessary
Laggards- distrust new products
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36. Product Adopter Categories

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37. Why Some Products Fail/Succeed


Failure to match product to needs
Failure to send right message
Technical/design problems
Poor timing
Overestimate market
Ineffective promotion
Insufficient distribution
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38. Product Successes And Failures

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