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At the heart of a great brand is a great product

At the heart of a great brand is a great product. 12- 2. What is a Product?. A product is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.

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At the heart of a great brand is a great product

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  1. At the heart of a great brand is a great product 12-2

  2. What is a Product? A product is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas. 12-3

  3. 5 Product Levels

  4. Five Product Levels Core benefit —service or benefit (e.g., hotel guest is buying “rest and sleep”) Basic product —turn core benefit into basic product (e.g., hotel room includes a bed, bathroom, towels, desk, dresser, and closet) Expected product – set of attributes and conditions buyers normally expect (e.g., clean bed, fresh towels, working lamps) Augmented product—exceeds customer expectations (e.g., free health spa) Potential product—all the possible augmentations and transformations (e.g., free internet connections and use)

  5. An automobile offers personal transportation (core product), has many different features and attributes (actual product), and may include a manufacturer's warranty or dealer's discounted service contract (augmented product).

  6. Product Differentiation Product form—size, shape, or physical structure Features—supplement basic functions Customization–individual versus mass Performance—level at which the product’s primary characteristics operate Conformance—degree to which all the produced units are identical and meet the promised specifications Durability—product’s operating life Reliability—probability that a product will not malfunction or fail Repairability—the ease of fixing a product when it malfunction or fails Style—product’s look and feel to the buyer.

  7. Service Differentiation Ordering ease—how easy to place an order Delivery—how well (e.g., speed, accuracy, and care) product or service is brought to the customer Installation—work done to make a product operational Customer training—training the customer’s employees to operate the vendor’s equipment properly and efficiently Customer consulting—data, information, systems, and advice that the seller offers to buyers Maintenance and repair—service programs for helping customers keep purchased products in good working order Returns

  8. Dunkin’ Donuts’ Differentiation 12-11

  9. Design Differentiation 12-12

  10. Maintenance and Repair 12-13

  11. "Engineered like no other car in the world" Mercedes buyers value safety, high performance, and prestige.   Consumers might visualize a Mercedes as being a wealthy, middle-aged business executive.

  12. The Product Life Cycle • Innovators - venturesome; they are willing to try new ideas at some risk. • Early Adopters - guided by respect; they are opinion leaders and adopt new ideas early but carefully. • Early Majority - deliberate; they adopt new ideas before the average person, although they rarely are leaders. • Late Majority - skeptical; they adopt an innovation only after a majority of people have tried it. • Laggards - adopt the innovation only when it takes on a measure of tradition itself.

  13. Boston Consulting Group Growth-Share Matrix • Question Marks • Businesses that operate in high growth markets (above 10%) but have relative low market shares • Most businesses start out as question marks • They require a lot of cash because the company has to spend money on plants, equipment, and personnel • The company must decide whether to continue pouring money into the business • Stars • A successful question mark becomes a star business • Market leaders in a high-growth market • The company must spend substantial funds to keep up with the high growth and fight off the competitor’s attacks

  14. Boston Consulting Group • Cash Cow • A star becomes a cash cow when the annual growth rate falls below 10% and still leads the market • The business provides a lot of cash for the company • Company uses cash cow revenues to pay bills and support other businesses • May become a dog, if it loses market share •  Dogs • Businesses that have market share in low-growth markets • Generate low profits or losses • These businesses consume more management time than they are worth and need to be phased down or out.

  15. How Will Your Business Position Your Products Prestigious – luxury seats vs bleacher seats Better Bargain – season tickets vs single game tickets Equal in Quality concessions, giveaways, merchandise

  16. Product Positioning Chart

  17. What is the Fifth P? Packaging, sometimes called the 5th P, is all the activities of designing and producing the container for a product. 12-25

  18. Factors Contributing to the Emphasis on Packaging Self-service Consumer affluence Company/brand image Innovation opportunity 12-26

  19. Packaging Objectives Identify the brand Convey descriptive and persuasive information Facilitate product transportation and protection Assist at-home storage Aid product consumption

  20. Functions of Labels Identifies Grades Describes Promotes 12-28

  21. Innovations in Packaging 12-29

  22. Warranties and Guarantees 12-30

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