Mktg 08

Product is the actually offeringProduct is the actually offering by the company to its by the company to its targeted customers which also includes value added stuff. targeted customers which also includes value added stuff. Product may be tangible (goods) or intangible (services).Product may be tangible (goods) or intangible (services).

For many a product is simply the tangible, physical entity For many a product is simply the tangible, physical entity that they may be buying or selling.that they may be buying or selling.

While formulating the marketing strategy, While formulating the marketing strategy, product product decisionsdecisions include: include:

What to offer?What to offer? Brand nameBrand name PackagingPackaging QualityQuality AppearanceAppearance FunctionalityFunctionality AccessoriesAccessories InstallationInstallation After sale servicesAfter sale services WarrantyWarranty

ProductProduct

The The CORECORE product is NOT the tangible, physical product. You product is NOT the tangible, physical product. You can't touch it. That's because the core product is the BENEFIT can't touch it. That's because the core product is the BENEFIT of the product that makes it valuable to you. So with the car of the product that makes it valuable to you. So with the car example, the benefit is convenience i.e. the ease way at which example, the benefit is convenience i.e. the ease way at which you can go where you like, when you want to. Another core you can go where you like, when you want to. Another core benefit is speed since you can travel around relatively quickly.benefit is speed since you can travel around relatively quickly.

The The ACTUALACTUAL product is the tangible, physical product. You product is the tangible, physical product. You can get some use out of it. Again with the car example, it is can get some use out of it. Again with the car example, it is the vehicle that you test drive, buy and then collect.the vehicle that you test drive, buy and then collect.

The Product Life Cycle (PLC)The Product Life Cycle (PLC) is based upon the biological is based upon the biological life cycle. For example, a seed is planted (introduction); it life cycle. For example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline). an adult the plant begins to shrink and die out (decline).

Price includes the pricing strategyPrice includes the pricing strategy of the company for of the company for its products. How much customer should pay for a its products. How much customer should pay for a product? Pricing strategy is not only related to the profit product? Pricing strategy is not only related to the profit margins but also helps in finding target customers. Pricing margins but also helps in finding target customers. Pricing decision also influence the choice of marketing channels. decision also influence the choice of marketing channels.

Price decisionsPrice decisions include: include:

Pricing Strategy (Penetration, Skim, etc)Pricing Strategy (Penetration, Skim, etc) List PriceList Price Payment periodPayment period DiscountsDiscounts FinancingFinancing Credit termsCredit terms

Using price as a weapon for rivals is as old as mankind, Using price as a weapon for rivals is as old as mankind, but it’s risky too. Consumers are often sensitive for price, but it’s risky too. Consumers are often sensitive for price, discounts and additional offers. Another aspect of pricing discounts and additional offers. Another aspect of pricing is that expensive products are considered of good quality.is that expensive products are considered of good quality.

PricePrice Price is one of the most complex marketing decisions. Price is one of the most complex marketing decisions.

It plays a number of roles in most marketing strategies: it It plays a number of roles in most marketing strategies: it can be a key component in product image (quality); a can be a key component in product image (quality); a powerful sales promotion tool; or a versatile element in powerful sales promotion tool; or a versatile element in competition.competition.

Determining pricing strategy is a delicate task.Determining pricing strategy is a delicate task.It requires that you assess customer demand and analyze It requires that you assess customer demand and analyze cost in order to choose a price that will create customer cost in order to choose a price that will create customer satisfaction and yield a satisfactory level of profit.satisfaction and yield a satisfactory level of profit.

Pricing is related to the goals and objectives of your Pricing is related to the goals and objectives of your organization. organization. What are the objectives for your library? Are What are the objectives for your library? Are you a profit making institution or is cost recovery your you a profit making institution or is cost recovery your goal? One thing is clear, nothing is free anymore, especially goal? One thing is clear, nothing is free anymore, especially information.information.

When thinking about pricing, you must consider all When thinking about pricing, you must consider all costs associated with any given product.costs associated with any given product.

The final price is a marketing decision.The final price is a marketing decision.

It not only includes the place It not only includes the place where the product is placedwhere the product is placed,  ,  all those activities performed by the company to ensure the all those activities performed by the company to ensure the availability of the product tot he targeted customers. availability of the product tot he targeted customers. Availability of the product at the right place, at the right time Availability of the product at the right place, at the right time and in the right quantity is crucial in placement decisions.and in the right quantity is crucial in placement decisions.

Placement decisionsPlacement decisions include: include: PlacementPlacement Distribution channelsDistribution channels LogisticsLogistics InventoryInventory Order processingOrder processing Market coverageMarket coverage selection of channel membersselection of channel members

There are many types of intermediaries such as wholesalers, There are many types of intermediaries such as wholesalers, agents, retailers, the Internet, overseas distributors, direct agents, retailers, the Internet, overseas distributors, direct marketing (from manufacturer to user without an marketing (from manufacturer to user without an intermediary), and many others.intermediary), and many others.