Class 13 - Products I (student slides).pptx

Marketing power point regarding products.

1. MKTG 201: Class 13 February 15, 2022 Marketing-201-A Winter Quarter 2021-2022 Dr. Jillian Hmurovic

2. WEEK DATE MODE TOPIC(S) DEADLINES (*must be submitted by @11:59 PM EST on day assignment is due) Part I: Marketing Analysis and Strategy   1 1/4 Remote (synchronous) Course Introduction; What is Marketing   1 1/6 Remote (synchronous) Marketing Plan   2 1/11 Remote (synchronous) Consumer Behavior I About You Survey Due 2 1/13 Remote (synchronous) Consumer Behavior II   3 1/18 Remote (synchronous) Guest Speaker; Marketing Environment   3 1/20 Face-to-Face Marketing Research   4 1/25 Face-to-Face STP I   4 1/27 Face-to-Face STP II   5 2/1 Face-to-Face Part I Overview   5 2/3 Face-to-Face EXAM 1 Connect Quiz 1, 2, 3, and 4 Due Part II: Marketing Tactics and Implementation 6 2/8 Face-to-Face Pricing I   6 2/10 Face-to-Face Pricing II   7 2/15 Face-to-Face Products I   7 2/17 Face-to-Face Products II   8 2/22 Face-to-Face Promotion I   8 2/24 Face-to-Face Promotion II   9 3/1 Remote (synchronous) Guest Speaker; Place I   9 3/3 Face-to-Face Place II   10 3/8 Face-to-Face Part II Overview   10 3/10 Face-to-Face EXAM 2 Connect Quiz 5, 6, 7, and 8 Due Last Day to Submit Extra Credit You are here.

3. 01 Updates 02 Review Poll 03 Product Types, Lines, and Packaging 04 Services 05 Reminders AGENDA

4. Updates Extra Credit: Lebow Behavioral Lab up to 2 percentage points added to final grade One (1) study credit = 0.25 percentage points added to final grade (up to 2 pp max.) Full extra credit: earn 8 study credits = 2 percentage points added to final grade Issues? Contact [email protected] McGraw-Hill Connect Confirm Quiz 1-4 grades correctly displaying in Blackboard Quiz 5-8 now available

5. Products I Chapter 11 & 13 Marketing 201: Introduction to Marketing Management ©2022 Hmurovic

6. Product Complexity

7. Core Product = Core Value Core Customer Value : basic problem-solving benefits consumers are seeking Beware of Marketing Myopia “People don’t want to buy a quarter-inch drill. They want a quarter-inch hole!” -Theodore Levitt Marketing is about supplying benefits, not products!

8. Actual Product Marketers convert core customer value into actual product Actual Product : the physical good or delivered service that supplies the core benefit (e.g., product, appearance, styling, packaging, and brand) Ability to make a hole of a specific size vs. Plastic and metal apparatus with a motor

9. Augmented Product Augmented Product : nonphysical aspects and associated services of the product (e.g., warranty, credit, delivery, installation, repair, financing)

10. Product Complexity: Mini Cooper

11. Product Complexity: Mini Cooper

12. Product Complexity: Mini Cooper

13. Product Complexity: Mini Cooper

14. Product Complexity: Flyers Core Product: Entertainment Actual Product: Hockey game Fan Experience Wells Fargo Center Augmented Product: Payment plans (season ticket holders) Customer service Information (web, programs)

15. Product Types

16. Classifying Products By how they are used Personal Use Industrial Use

17. Classifying Products Consumer Products By how they are purchased Specialty Shopping Convenience Unsought By how they are used Personal Use Industrial Use

18. Specialty Products Specialty Products : have unique characteristics or brand for which consumers express a strong preference and are willing to expend considerable effort to obtain Consumers will not accept substitutes!! Brand name tends to be very important Examples: designer apparel, gourmet foods/restaurants, luxury brands, medical specialists

19. Shopping Products Shopping Products : those for which consumers will spend a fair amount of time comparing alternatives prior to purchase marketers usually distribute to outlets but provide deeper sales support to help customers in their comparison efforts Examples: furniture, apparel, fragrances, appliances, travel

20. Convenience Products Convenience Products : those for which consumer is unwilling to expend effort to evaluate alternatives prior to purchase Items that are purchased relatively frequently, and with little thought or minimum effort/comparison Generally lower priced and widely available

21. Unsought Products Unsought Products : those for which consumers have little awareness or interest All brand new products start as unsought products Require a good deal of advertising or personal selling Examples: insurance, retirement investing, funeral services

22. Types of Consumer Products Wedding Gown Antiques Canned Goods Shampoo Television Washing Machine Fire Extinguisher Renter’s Insurance

23. Product Mix & Product Lines

24. Soft Drinks Juice Drinks Water Drinks Product Mix & Product Lines Product Lines : groups of associated items that consumers tend to use together or think of as part of a group of similar products or services

25. Soft Drinks Juice Drinks Water Drinks Product Mix & Product Lines Product Mix : complete set of products and services offered by a firm; has various product lines

26. Product Mix Breadth # of product lines Depth # of categories within a product line Product Line Product Line Product Line Product Line

27. Product Mix Breadth # of product lines Depth # of categories within a product line Product Line Product Line Product Line Product Line

28. Changes to Product Mix Depth Increase Depth Band-Aid now has over 40 products to heal cuts. Decrease Depth McCormick spices eliminates dozens of products each year.

29. Changes to Product Mix Breadth Increase Breadth True Religion Jeans now are a lifestyle brand with apparel, belts, swimwear and fragrances Decrease Breadth Due to competitive changes, TCBY is now focusing on Yogurt

30. How is this changing the product mix? Is this increasing breadth or depth?

31. Packaging

32. Although often overlooked as a marketing tool, packaging influences consumer behavior and can reinforce the brand’s image – thereby helping to determine the success of a product.

33. Packaging Types Primary Package : what consumer uses Secondary Package : wrapper/exterior carton that contains primary package and has the UPC scanner label Offers additional info (sometimes mandated) Facilitates convenience

34. Packaging Purpose Attracts consumers’ attention Allows for differentiation from competitors ( inc. innovation) Offers promotional opportunity (e.g., “Improved!”) Can appeal to different segments (e.g., travel sizes)

35. Packaging is a Brand Element Important brand element , particularly because it is tangible In some cases, the package has become synonymous with the brand itself

36. Why to Firms Make Packaging Changes? To subtly reposition product/brand To increase recognizability of product To increase convenience of storage and shipment To save costs when production $$ increase

37. Trend Watch: Sustainable Packaging

38. Services Chapter 13 Marketing 201: Introduction to Marketing Management ©2022 Hmurovic

39. What is a service? A service is any intangible offering that involves a deed, performance, or effort that cannot be physically possessed

40. Service-Product Continuum Most offerings lie somewhere in the middle Service-Dominant Apparel Store Product-Dominant Restaurant Dry Cleaners Grocery Store Surgery Hotel

41. Service-Product Continuum Offering service with product (e.g., customer support, cause marketing)

42. Economic Importance of Services Production cheaper in other countries High value o n convenience and leisure Increasingly specialized services desired Developed economies are increasingly service-oriented

43. Products vs. Services

44. What Distinguishes Services from Goods?

45. What Distinguishes Services from Goods? Services are non-physical , and can’t be directly touched (like a product)

46. What Distinguishes Services from Goods? Services are non-physical , and can’t be directly touched (like a product) Makes it challenging for marketers to convey benefits through description! Images, symbols, and cues are used to convey benefit/value of service

47. What Distinguishes Services from Goods? Services are produced and consumed at the same time

48. What Distinguishes Services from Goods? Services are produced and consumed at the same time Rarely can “try it before you buy it” Limited opportunity for pre-use testing Firms can lower risk by offering guarantees or warranties C an’t return service after performed

49. What Distinguishes Services from Goods? Services have greater variability , especially w/humans (e.g., food preparation, haircuts, friendliness?)

50. What Distinguishes Services from Goods? Services have greater variability , especially w/humans (e.g., food preparation, haircuts, friendliness?) Firms attempt to reduce variability , with goal of delivering consistent service (e.g., ATM, self-checkout kiosk)

51. What Distinguishes Services from Goods? Services can’t be stored for future use Some services are irreversible and “disappear” once rendered Service many only be available during a specific time period

52. What Distinguishes Services from Goods? Services can’t be stored for future use Some services are irreversible and “disappear” once rendered Service many only be available during a specific time period Potential for large loss of revenue (e.g., unsold seats, empty rooms)

53. What makes these services perishable?

54. Example: Airline Flight

55. Airline Flight

56. Airline Flight

57. Airline Flight

58. Airline Flight Can’t be stored Irreversible; disappear once rendered May only be available at certain times

59. Reminders Next Class: In-Person Products II (Branding)

60. Thank you