Week 3 - Product and brand strategies (P = Product Part 1) Flashcards
Distinguish Goods and Services.
Both are products because they both add value.
Define Cost Leadership.
Firms drive their costs way down; focus is often on production distribution and economies of scale.
Define Differentiation.
Refers to a customer’s perception of differences (USP) on at least one product characteristic (physical or non).
Examples of Narrow and Broad target.
Narrow - Tesla
Broad - Apple
Farmer’s Market?
Cost Leader AND Differentiation.
How can product differentiation take place at the product line level?
- Some products differentiate themselves by offering many product variations, i.e. long product lines. - Product Extension
Eg. timtams, coca-cola
- New Product categories
Difference between Breadth and Depth.
Breadth - new product categories
Depth - same product different variations (flavours, etc0
What is the core top marketing advice?
Simplicity
Simple product lines create:
- Less confusion for consumers and managers
- Efficient standardisation of products/ packing/ promotions
- Brand consistency
What are the key takeaways from Levitt (1960)?
- Constantly re-define your value (industry) in line with customer needs (focus on the core benefit)
- Focus less on selling and more on marketing (i.e. more on the needs of the buyer than the company).
What is dumb?
To claim that you are selling something. You have to mention the benefits.
E.g. Do not say “i am selling electricity” instead say:
“I am providing you warmth, light, etc”
Good example of selling?
DULUX moved from “selling cans of paint” to tins of optimism” (because market research showed that colours influence how we feel)
Thinking about your value proposition can help…
you understand the psychological purpose of your business and discover untapped needs of your customers.
