MKM 05 When we classify the vast array of consumer
goods on the basis of shopping habits, we
Setting Product Strategy
distinguish among convenience, shopping,
- Anything that can be offered to a market to specialty, and unsought goods.
satisfy a want or need, including physical
Consumer goods are divided into several
goods, services, experiences, events, types:
persons, places, properties, organizations,
information, and ideas Convenience Goods – Bought frequently with
little effort.
• Product is the first and most important
Shopping Goods – Compared based on quality,
element of the marketing mix
price, or style.
• Product strategy involves decisions on
product mixes, lines, brands, packaging, and Specialty Goods – Unique products with brand
labeling. loyalty
FIVE LEVELS of PRODUCT Unsought Goods – Products not actively sought
until needed
1. Core Benefit – The fundamental service or
benefit , Communication and connectivity Industrial goods are used in the production of
(the ability to call, text, and access the other goods or services.
internet).
2. Basic Product - The actual item or service , Materials and Parts – Inputs for production.
physical smartphone itself (with hardware, Capital Items – Long-lasting goods that support
software, screen, battery, etc.). production.
3. Expected Product – attributes buyers
normally expect , Features buyers expect, Supplies and Business Services – Short-term
such as a high-resolution camera, long goods and services for daily
battery life, and fast internet connection.
4. Augmented Product –exceeds customers
expectations , Added services that exceed Product Differentiation
expectations, like free cloud storage,
warranty, or exclusive apps. • Form: The size, shape, or physical
5. Potential Product – future augmentation structure of a product.
,Future innovations such as AI-powered • Features: can identify and select
features, holographic display, or a fully appropriate new features by surveying
foldable screen. recent buyers and then calculating
customer value versus company cost for
each potential feature and should avoid
feature fatigue.
Products can be classified into three main types:
• Performance Quality: is the level at
Nondurable Goods – items consumed quickly which the product’s primary
and purchased frequently characteristics operate: low, average,
high, or superior.
Durable Goods – items that last for years and
• Conformance Quality : the degree to
require more thought before buying
which all produced units are identical
Services – intangible activities or benefits that and meet promised specifications
satisfy needs • Durability : measures of the
product’expected operating life under
natural or stressful condition is a valued handling and storage, better
attribute for vehicles, kitchen appliances packaging, and better
and other durable goods transportation and forward logistics
• Reliability: a measure of the probability by the seller or its supply chain
that a product will not malfunction or fail partners.
within a specified time period, and high ▪ Uncontrollable returns result from
reliability can garner a price premium. the need for customers to actually
• Repairability: Ease of fixing a product see, try, or experience products in
when it malfunctions or fails. person to determine suitability. The
• Style: the product’s look and feel to the company can’t eliminate them in the
buyer and creates distinctiveness that is short run.
hard to copy.
• Customization: customized products
and marketing allow firms to be highly Design as Differentiator
relevant and differentiating by finding
Design
out exactly what a person wants
and doesn’t want and delivering on that. • affects how a product looks, feels, and
functions.
• Combines aesthetics and functionality.
• Builds emotional connection with
Services Differentiation
consumers.
• Ordering Ease: Describes how easy it is for
Luxury Products
the customer to place an order with the
company. • Characteristics: High quality, uniqueness,
• Delivery : Refers to how well the product or craftsmanship, authenticity.
service is brought to the customer, including • Guidelines: Maintain premium image, create
speed, accuracy, and care throughout the aspirational associations, control all
process. marketing elements.
• Installation: Refers to the work done to
make a product operational in its planned Environmental Issues
location. • Eco-friendly design and packaging.
• Customer Training: helps the customer to • Reduce environmental impact.
use the vendor’s equipment properly and • Encourage sustainability across product life
efficiently. cycles.
• Customer Consulting: Includes data,
information systems, and advice services Co-Branding and Ingredient Branding
that the seller offers to buyers.
• Co-Branding: Joint marketing between
• Maintenance and Repair: Programs help
brands (e.g., Nike x Apple)
customers keep purchased products in good
• Ingredient Branding: Highlighting product
working order, critical in business-to-
components (e.g., Intel Inside).
business settings
• Returns Packaging and Labeling
▪ Controllable returns result from
problems or errors made by the • Packaging: Identifies, protects, and
seller or customer. They can be promotes the product.
mostly eliminated through improved
• Labeling: Provides identification, BLOGS AND SOCIAL NETWORKS
description, and safety information.
• Blogs serve as outlets for reviews and
Warranties and Guarantees discussion
• Companies monitor an manage brand
• Warranties: Formal product performance
reputation
statements.
• Networks provide opportunities for
• Guarantees: Reduce buyer risk, build trust,
engagement and feedback
and signal quality Great brands begin with
great products. Leadership requires superior WORD OF MOUTH MARKETING
quality, customer value, and innovation.
• Powerful driver of brand success
Managing Digital Communication : • Mostly offline but also include viral online
ONLINE, SOCIAL MEDIA AND MOBILE sharing
• Create buzz by engaging influeancers and
providing shareable content
Online Marketing :
CREATING POSITIVE BUZZ
ADVANTAGES
• Identify and engage influential customers
• Offers tailored and engaging communication • Provide samples and incentives
• Easily track user interactions and • Craft emotionally engaging and entertaining
conversions
• Enables contextual ad placement for MOBILE MARKETING OVERVIEW
relevance • Mobile devices allow personalized,
DISADVANTAGES immediate interaction
• Mobile apps and coupons increase
• Consumers can filter out unwanted ads customers convenience
• Click fraud can distort metrics • Tracking across screens anhances ad
• Online messages can be altered or hacked relevance
ONLINE MARKETINF COMMUNICATIONS OPTION DEVELOPING EFFECTIVE MOBILE CAMPAIGNS
• Websites :must be fast, attractiveness, and • Design simple and clear users experiences
user-friendly • Keep messages short and visually engaging
• Search Ads: pay-per-click and SEO to • Optimize ads for small screens and fast load
increase visibility times
• Display Ads: banners and interstitials for
brand visibility MOBILE MARKETING ACROSS MARKETS
• Email: cost-effective, targeted, and • Asia leads in mobile marketing
measurable innovations
Social Media Overview • High smartphone penetration
drives adoption worldwide
• Enables consumers to share and • Globa; insights help marketers
interact with brands refine strategies
• Builds brand presence and encourages
engagement
• Types: communities, blogs, social
networks (facebook, twitter, YouTube)