Marketing management english

MARKET OFFRING DIFFERENTIATION

Features - attributes and benefits that supplement their basic function should be evaluated versus company cost for each potential featured value attribute

Form - An aspirin is essentially a commodity, it can be differentiated by dosage size, shape, color or action time

Product bundles or packages - cosmetics firms offer beauty packs at several CPV price levels

Performance quality - Performance value is the level (low, average, high or superior) at which the market offering's primary characteristic attributes operate

Durability - product's expected operating life under natural or stressful conditions

Reliability - the probability that a key benefit or valued attribute will not malfunction or fail within a specified time period

Repairability - the ease of correcting a market offering when it malfunctions or fails

Aesthetics - Absolut Vodka, Lindt chocolate also play a key role in such brands as and

DESIGN DIFFERENTIATION

Design offers a potent way to differentiate

technologicalnovices (i.e. home electronic equipment market)

Customer training - helping the customer's employees to use the vendor's equipment properly and efficiently

McDonald's requires its new European franchisees to attend its Hamburger University in the United States for a two-week franchise management training course

Customer consulting - data, information systems and advice services that sellers offer buyers

Maintenance and repair - service program for helping customers keep purchases in good working order

Returns - a reality of doing business, especially with online purchases - The average return rate for online sales is roughly 5% and return and exchange policies is a deterrent for most of the online customers

PRODUCT HIERARCHY

The hierarchy stretches from basic needs to particular value attributes and benefits that satisfy those needs. Six hierarchy levels can be identified, here using life insurance as an example:

1. Need family: the core need that underlies the existence of a family policy. Example: security
2. Product family: all the product classes that can satisfy a core need. Example: savings and income
3. Product class or product category: a group of products within the product family having a certain coherence. Example: financial instruments
4. Product line: a group of products within a product class closely related for similar function, same customer groups, same outlets or channels, or within given price ranges. Example: house and property insurance.
5. Product type: a group of items within a product line that share one of several possible forms. Example: life insurance.
6. Item: a product variant distinguishable by size, price, appearance or some other attribute. Example: renewable life insurance.

PRODUCT MIX: the complete set of all market offerings that a company brings to the marketplace

Width of a product mix: how many different product lines the company carries

Depth of a product mix: how many different variations are offered within each product line

itemsAs items are added, costs rise: design and engineering costs, inventory carrying costs, manufacturing changeover costs, order processing costs, transportation costs and new item promotional costs stretch its line down market, up market, or both ways

The company can-> Many customers nd that having more choices is appealing, but the reality is that customers can sometimes be overwhelmed by the choices-> Too much choice may be a source of frustration, confusion and regret for some customers 56ff ff fi fi ff fi ff fi ff fi fi

Not all the new choices may be winners-> In 2004 Nestl rolled out a vast array of KitKat bars new avors. It was a disaster – the tastes were too sweet and unusual – and some consumers could not nd the classic KitKat. Sales dropped 18%

If a company has been attacked by a low-end competitor, it could counterattack by entering the low end of the market

A company faces brand titles when deciding to move a brand down market:- Sony used its name on products

In a variety of price tiers- Electrolux used a sub-brand name with its economy brands Zanussi

Up-market stretch - to achieve more growth either to return higher margins or to position themselves as full-line manufacturers

Line filling:

To reach for incremental profits, to try to satisfy dealers that complain about lost sales, to utilize excess capacity, to try to be a full-line company, and trying to plug holes to keep out competitors

Line filling is overdone if it results in self-cannibalization and customer confusion-> The company needs to differentiate each item in the consumer's mind with a just-noticeable difference-> The company should also check that the proposed product specification meets a market need

Line modernization:

Product lines need to be modernized piecemeal or completely-> A major issue is timing improvements so they do not appear too early, thus damaging sales of the current line or too late-> With the program 'Path to Growth' Unilever in 1999

Co-branding: the market offering may be convincingly positioned by virtues of the multiple brands.

Co-branding can generate greater sales from the existing target market as well as opening additional opportunities for new consumers and channels.

It can reduce the cost of introducing a new market offering, because it combines two well-known images and speeds adoption.

The disadvantages of co-branding are the risks and lack of control in becoming aligned with another brand in the minds of consumers.

Unsatisfactory performance could have negative repercussions for both brands.

Consumers are more likely to perceive co-brands favorably if the two brands are complementary rather than similar.

Packaging: All the activities of designing and producing the container or presentation pack for a market offering.

- Well-designed packages can build brand equity and drive sales.

- The package is the customers' first encounter with the item and either impresses or disinterests them.

3 levels: package) - beer

1. Identify the brand in an attractive and descriptive way
2. Convey information
3. Provide protection to facilitate transportation
4. Assist at-home consumption
5. Aid storage

Aesthetic considerations: relate to a package's size and shape, material, colour, text and graphics.

Functionally design: is crucial - innovations with food products have resulted in packages that are resealable, tamper-proof, easy to hold or squeezable.

Immediate impact on sales: an example is the book publishing industry, where customers often choose a book by its cover.

Green packaging: Many companies are recognizing the importance of going 'green' and are finding new ways to develop their packaging.

• Some supermarkets promote the sales of environmentally friendly multiple-use bags, often sourced in underdeveloped economies.
• In Sweden, McDonald's has run an outdoor campaign.