lesson 8: the 4 components Flashcards
5 topics that represents additional and essential concepts for marketing
(first component, solution)
1 tangible vs intagible 2 product life cycle and Boston Consultancy group matirix 3 growth strategies 4 adoption curve 5 branding
goods vs service
good:
- material, owned, produced, consumed, durable, standardised
service:
- immaterial but visible, not possessed, co- production, simultaneous production/ consumption, instand consumption, custimised variable
good and service are inseparable
-> product- service continuum
- tangible dominant: good surrounded by service
- intangible dominant: service surrounded by good
the more intangible dominant
more difficult to:
- display - control variables/ process
- justify - transfer ownership
- synchronise - export
- protect
PLC (Theodore Levitt)
product life cycle:
- life of product in the market with respect to cost and sales
product process (of PLC)
1 introduction stage (expencive, stimulates awareness, create demand)
2 growth stage (growth in sales, investing in promotion to compete and maximize potential)
3 maturity stage (product is established, maintaining market share, invest wisely, product modification/ improvement-> as long as possible)
4 decline stage (market shrinks is satuated, making profit with less expense)
saturated
customers who buys the product have already bought it
product process stages are tied to
- specific business cycles
- sudden events
- seasonal factors
PLC framework (holds true for)
- long term, for industry segment
- short term, for brands and organisations
BCG matrix
classifies brands or products into one of four quadrants that are defined by the intersection of two market metrics
2 market metrics
- market growth rate (market opportunity/ potential)
2. relative market share (competitive strength)
4 quadrants (of BCG matrix)
- stars (growth)
- question marks (development and intro)
- cash cow (maturity and saturation)
- dog (decline)
4 quadrants (of BCG matrix)
- stars (growth)
- question marks (development and intro)
- cash cow (maturity and saturation)
- dog (decline)
cows for tomorrow
cash cows bring in financial means for creating stars and question marks
product adoption curve (Everett Rogers)
procentige acceptance of a product per stage, the number of customers buying new technology spread over time after launch
time line of product adoption (curve) model
1 innovators 2 early adopters 3 early majority 4 late majority 5 Laggards
innovators
the first poeple who invest in the product, wants to keep up with new technology (are rushed)
early adopters
have waited to buy the product until they collected enough information
early majority
are pragmatic, only buys something after it has bin road tested, proven its value
late majority
widespread use but people who were still skeptical of the product buys the product after worries dies
Laggards
extreme skeptics or poeple who only heard about the product now, buys it later in product lifecycle
the CHASM (Geoffrey Moore)
complements adoption curve, by trying to explain why innovative launges where not succesfull
(falls in between early adapters and early majority)
2 groups in the chasm
- tech enthusiasts/ visionaries: care about product qualities
- pragmatists: care about reliable solutions
profit comes when (chasm)
majority of customers buys the product if the launch stops before crossing the chasm there are disastrous financial results
to create profit (chasm) Moore recommended
- create whole product
- create appropriate position
- price relatice to competing products
- distribut through right channels
Product growth strategies (Harry Igor Ansoff)
provides framework to help marketers devise product management strategies for future help
ingredients that defines a brand
- name (emotional loaded)
- language (worlds belonging)
- image
- colour, shape, sound, smell, taste (linked to it)
- touch (experience of good)
- ritual (habit)
- reputation (beliefs)
- packaging (info,…)
Branding strategies;
David Aakers’ 2 main strategies
1 House of Brands: each product is launched as a separate brand (mutli- branding)
2 Branded House: dominant brand name with sub- brands (mono- brand)
brand maintainment strategies: STRETCHING (3)
- product/ line stretching: intorduction, launch of new varient of product
- brand stretching: extending to an other related category
- image stretching: extending to an other unrelated category
brand maintainment strategies: CO-BRANDING (3)
- support branding: supports use non- competitive brand with its customers
- ingredient/ component branding: end product shows composition of mutlible brands
- joint branding: 2non-competitive brands intoduce a new product/ brand together
international product management (2)
- same local: same maket tools and same models used
- different local: (different)
2strategies of international product management
- etic: we standardize our product, it is the same for all international audiences
- emic: audience want different things we adapt
can all be a choice, a must (under pressure of values and norms) or an evolution
translated brand names
to change/ reinstall meaning of the name so it would not be miss interpetted
4 topics essential to manages the fourth component, access
- distribution of channels
- push and pull strategies
- short, long, owned, outsourced, physical, digital channels
- mono, multi, omni channel strategies (the routes to markets)
distribution channels
sets of interdepended but independent organisations partispating in process, a pathway a product follows
functions and flows of distrubution channels
- product flow: time and place utility
- service flow: sale and post purchase service
- money flow: retailers taking, sharing risks or transfer clients
- information flow: direct contact end consumer, gives feedback customer experience,…
push strategy
uses manufactures sales force, trade promotion money to induce intermediaries to carry, promote and sell the product to end users
pull strategies
manufactures uses advertising, promotion and other forms of communication to persuade consumers to demand the product from intermediaries
short or long channels
onbtaining info end user and to exercise control is harder when there are more channel levels
(higher cost, impact expertise, price)
owned or outsourced
- owned: controled, selling organisation organises and controles distribution by themselfs
- outsourced: dependable, selling organisations depends on agents, brokers, wholesalers,.. to sell
physical or digital
- physical: in store/ bricks, face to face, 5 sences are activated, experience of exporing (adv: avoide online inconveniences)
- digital: onine/ clicks, cheaper, ease order, home deliver, compare offers (adv: avoid in store incon.)
RTM
Route- To- Market
- strategy aiming to align and optimize communication disribution and sales
- how to deliver the right target, right product, right place, in the right way at the least costs
different RTM channels
- mono (one channel atracts multiple groups of segments)
- multi (highly exclusive, a targeted group all prefer different channels)
- cross (low exclusive, targeted customers brows trough one channel and buys in an other)
- omni (targeted customers brows, research and purchase all throught several channels)
3 topics of the second component, interaction
1 communication objectives
2 communication mix
3 content
communication objectives
(what do you want to obtain with target)
- illustated sequence: growth communication sequence, level up favourable level
- reversed sequence: crisis communication sequence, turn the tide into growth
communication mix , the 8 major modes of communication
1 adverising (promotion) 2 sales pormotion (short term) 3 event and experience (sponsered activities) 4 public relations and publicity (program to protect image) 5 online and social media (awareness) 6 mobile communication 7 direct and database communication 8 personal selling (face to face)
communication content
(info or experience directed to end user or audience via medium)
- info provident trough medium
- the way info is presented
- experience it created
2 dimentions of participatin and integration (content)
integeration
- absorption: content is brought to customer
- immersion: customer is part of content
participation
- passive: customer undergoes the content
- active: customer partivipate in the content
