Transcript Document

Ben Potter, Andy Benesh,
Austin Richardson, Jason
Klein, Krishna Venkata
Products can be goods, services, or ideas, such
as intellectual property.
Products can be tangible or intangible.
Products can also be classified by use, by
brand, or by other classifications as well.
Merchandise
Finished Goods
Project Deliverables
Product Forms
Goods
•
Services
•
•
Ideas
Tangible Product
Intangible Product
Insulated wire as a product



Core – What the customer needs/wants
Actual – What the customer gets
Augmented – services or secondary
products for the actual product
Augmented
Product
Actual
Product
Core
Product



Core – the desired benefit
Actual – quality, color, style, branding
Augmented – warranty, install, deliver,
finance, service
Augmented
Product
Actual
Product
Core
Product

In the class we discussed the three product
levels, Philip Kotler defined 5
83, marketing guru
Potential
(future improvements)
Augmented
(differentiators)
Expected
(performance)
Generic
(properties)
Core
(basic function)


Many depictions of development
with varying emphasis and detail
Example from a company
Search for
“Prior Art”
New
Idea
Quantify
Demand &
Develop
Strategy
Patent
Application
Customer
Requirements
Design &
Test
Product
Governmental
Approval
Manufacture
Commercialize

Services are:
◦
◦
◦
◦
Intangible
Perishable
Produced and consumed simultaneously
Experienced, not possessed



Service businesses are more numerous than
good businesses
Most companies are both a good and service
Service is important, even for businesses who
sell products

Where service takes place
◦ Important for goods businesses too
 Websites

Where service takes place
◦ Important for goods businesses too
 Storefronts

Gaining importance in global business
environment
◦ Search – more information about companies and
products available
◦ Experience – access to more good and service
companies
◦ Credence – more options make credibility more
important

Disney’s QSCV
◦ Quality, Service, Cleanliness, Value

Clayson’s keys to service
◦
◦
◦
◦
◦
◦
Quality
Reliability
Responsiveness
Assurance
Employees
Management

Why the Four P’s of Marketing are Dead
◦ Linkedin, 12/10/2014

Don Tapscott
◦ CEO of Tapscott Group
◦ Author of fifteen books

Business is changing
◦ Technology is interactive
◦ ‘Digital natives’ better diagnose product value
◦ Increased availability of information creates
transparency

Companies must:
◦ Engage customers, not just listen to them
◦ Realize ‘brand’ is a relationship

Four P’s are now ABCDE
◦
◦
◦
◦
◦
Place > Any place
Brand is a relationship
Promotion > Collaboration
Price > Discovery of price
Product > Experience





Awareness
Loyalty
Connection
Price
Product


“Top of mind” awareness
Aided awareness
◦ consumer is aided with a
list of company names and
he recognizes the company

Strategic awareness
◦ When asked about a
product category, the
consumers are asked to list
brands they know without
any cues





Brief
Positive Image
Visual Appeal
Consistent
Unique
◦ Marion Michael Morrison


Xerox (good or bad?)
Panasonic
◦ “Touch Woody – the Internet Pecker”

Ford/Firestone – 2000 Ford Explorer


Definition: is a marketing technique
intended to present products in the best
possible light to different target audiences
“WHO is our TARGET MARKET?”


Products must be differentiated from other
like products
“WHY should anyone buy your product over
your competitors?”

Product differentiation based on QUALITY

“Nothing runs like a Deere”

Product differentiation based on SERVICE

“Where there’s a helpful smile in every
aisle”
•
1.
2.
Requirements:
Reliability  Quality Control
Conformance  Defects should NOT occur
•
Performance  “the action or process of
carrying out or accomplishing
an action, task, or function”
- Example: Audi cars
• Durability  “the ability to withstand wear, pressure, or
damage”
- Example: Cal Ripken Jr. – Baltimore Orioles Shortstop
(1981 – 2001)
- 17-year streak of 2,632 consecutive games
played broke Lou Gehrig’s record
•
Features  “a distinctive attribute or aspect of
•
Serviceability  “the capacity for being useful
something”
-Examples: Dual air bags or remotestart for a car
for some purpose”
•
Appearance  “the way that someone or
•
something looks”
Example: Patrick Dempsey vs. Jabba the
Hutt
•
Reputation  “the beliefs or opinions that
are generally held about someone or
something”

Service Reliability:
1. Accessibility
- Service is available when
desired (when the customer wants to use it).
2. Continuity - Customer has uninterrupted
service over desired duration.
3. Performance - Meets the customers'
expectations.

Service Assurance  “ensures that services
offered meet a pre-defined service quality
level for an optimal customer experience”
•
Drivers Require:
-
Performance & Responsiveness
•
Enhancers Require:
-
Extended Services & Customer Empathy
•
Aesthetics Require:
- Appearance & Reputation

-
Differentiation can also be based on PRICE:
Low-Price Position
Lower Transaction Costs Position

Silver Bridge Collapse - December 15,
1967, Point Pleasant, WV


Investigation of the wreckage pointed to the cause of
the collapse being the failure of a single eyebar in a
suspension chain, due to a small defect 0.1 inch (2.5
mm) deep
Analysis showed that the bridge was carrying much
heavier loads than it had originally been designed for
and had been poorly maintained