Module 4: Developing Marketing Mix - PDF

Module 4: Developing Marketing Mix Value Proposition: Types of Products  nd 2 Quarter Topics Performance Task Written Works Module 4: Developing of PT1: Marketing Research Results – Marketing...

Module 4: Developing Marketing Mix Value Proposition: Types of Products  nd 2 Quarter Topics Performance Task Written Works Module 4: Developing of PT1: Marketing Research Results – Marketing Mix (Product, October 28- November 22, 2024 W1: LQ1 – Price, Place, and Nov.4-8, 2024 Promotion) W2: LQ2 – Nov Module 5: The 18-29, 2024 Marketing Process CPT W3: SWOT and Module 6: Marketing Strategies – Marketing Plan with Research Plan: Marketing Program Report –December 2-11, 2024 Dec. 2-6, 2024 Philosophy Vision Emilio Aguinaldo College Emilio Aguinaldo College Mission envisions itself as an is a private, non-sectarian, Emilio Aguinaldo internationally co-educational institution College provides a recognized private of learning that fosters non-sectarian academic equal and fair learner-centered institution rooted in the opportunities of education, Filipino nationalist inquiry-based, and the total ____________, ________ that socially relevant conscious of their national consistently pursues the ___________. identity and their role in advancement and the global community. welfare of humanity. Our Target! At the end of our class, you should be able to: Determine the value proposition of products using a product comparison chart. Guided Questions: 01 What is a value proposition? 02 What are the three types of products? 03 What are the Types of Products according to Effort and Risk? What strategies can we use to continuously evolve and adapt our 04 value proposition to changing customer needs and market dynamics? Module 4: Developing Marketing Mix Value Proposition: Types of Products  Customer’s Testimonials "The HomeGuard Security System John S. "TurboClean Vacuum has made has brought me incredible peace of my life so much easier. It "EcoPower Solar Panels mind. The ease of installation and have not only effortlessly picks up pet hair and the user-friendly app make it perfect reduced my energy bills but also debris, and the easy-to-empty for anyone. I can monitor my home allowed me to contribute to a canister is a breeze. It's a from anywhere, and the alerts give greener planet. They were a must-have for anyone with furry me confidence that my family and worthwhile investment, and I property are safe." friends at home." appreciate the money I'm saving and the positive environmental impact." Erika V. Marie M.  Value Proposition  Value Proposition belief from the It promise customer answers Combina of value how value the tion of to be (benefit) will question, delivered be “Why product and delivered and should I recognize and price. buy this d experience product?” d Philosophy Vision Emilio Aguinaldo College Mission Emilio Aguinaldo College is envisions itself as an a private, non-sectarian, internationally Emilio Aguinaldo co-educational institution of recognized private College provides a learning that fosters equal non-sectarian academic and fair opportunities of learner-centered institution rooted in the education, the total Filipino nationalist inquiry-based, and development of students tradition that consistently socially relevant conscious of their national pursues the identity and their role in the academic advancement and global community. community welfare of humanity.  Product anything that is exist to address trends tangible, or in customers’ satisfy the intangible lifestyles and offered for needs and preferences attention, wants of the can become the acquisition, target top brands in use, or their respective market. consumption classes Give one product or service that you can’t live without. Two fundamental product questions: 1. Who is my target market? 2. What are their needs and wants? Must understand Lower level – basic the Hierarchy of quality of life (food, Marketers Needs by shelter, and security) Abraham Maslow and product Higher levels – (5-stage hierarchy) development aspirational in nature where each stage (being socially specialists offers a different accepted or being level of recognized) satisfaction  Three Types of Products Non-durable Durables Services s products which products that products which have a long have stronger are essentially interval between intangible repeat repeat because there purchases purchases are no physical because of their because they items involved long-lasting are  Two independent dimensions EFFORT wherein products can further be RISK distinguished  Types of Product according to Effort and Risk 1. Convenience products 2. Preference goods/products 3. Shopping products 4. Specialty products 5. Unsought products  Convenience Products Have the lowest risk Two types: and lowest effort, where either none or Staple goods such as very small basic rice, sugar, and other decision-making is commodities made by target consumer before Impulse goods such as buying the products. candies and snack food  Preference Goods/Products Have specific The strategy in marketing preferences for preference goods is brands or suppliers acknowledging the risk of but are willing to consumers when buying the make substitutions product, and then assuring when necessary, the buyer that the risk can be such as during minimized by buying your stock-out situations. brand.  Shopping Products Products that consumers feel are worth the time and effort to compare with other competing products.  Specialty Products Unique, customized It commands the highest products which have levels of effort and risk in their own niches. No buying. Therefore, suppliers substitutes and even willing to make a or specialty products special effort to command the utmost loyalty purchase. from their buyers.  Unsought Products consumer products that the consumer either does not know about or knows about but does not normally consider buying. Any Questions? Activity Identify the Types of these Products according to their effort and risk. Convenience Product Convenience Product Preference Product Shopping Product Specialty Product Unsought Product Unsought Product Specialty Product Any Questions? Guided Questions: 01 What is a value proposition? 02 What are the three types of products? 03 What are the Types of Products according to Effort and Risk? What strategies can we use to continuously evolve and adapt our 04 value proposition to changing customer needs and market dynamics? Activity Product Comparison Chart Reminders: Asynchronous classes start on October 21– 25 Modules for those days will be uploaded. Do not forget to visit the Brightspace. Start finalizing the Survey Questionnaire for your Research. W1: Long Quiz 1 will be available November 4-8  Levels of Products and Customer-Oriented Product Framework Review: What is a value proposition? What are the types of products? What are the types of products according to effort and risk? Provide an example. Our Target! At the end of our class, you should be able to: Describe the levels of products by outlining the functions of the three levels.  Guided Questions: What are the levels How does a of products? Explain customer-oriented each. product framework help marketer? Answer the following: Give the fundamental benefit or need that the product fulfills. Describe features and attributes of the product that deliver the benefit. Determine features, services, or benefits that exceed your expectations. Three Levels of Product Three Levels of Product Core Product Generic benefit Formal Product Physical features and attributes Augmented Product Additional features, services, or benefits Example: Augmented product: Availability of credit, free detox sampling, home detox service, free delivery Formal product: Foot detox system Core product: Better Health Example: Augmented product: Greater growth in dividends Formal product: Life insurance from professionally trained and warm service providers, backed by a highly solvent company with an extensive branch network and quick claim payment reputation Provide the levels of product Product Category: Smartphone Augmented product: Formal product: Core product: Provide the levels of product Product Category: Fine Dining Restaurants Augmented product: Formal product: Core product: Philosophy Vision Emilio Aguinaldo College Mission Emilio Aguinaldo College is envisions itself as an a private, non-sectarian, internationally Emilio Aguinaldo co-educational institution of recognized private College provides a learning that fosters equal non-sectarian academic and fair opportunities of learner-centered institution rooted in the education, the total Filipino nationalist inquiry-based, and development of students tradition that consistently socially relevant conscious of their national pursues the identity and their role in the academic advancement and global community. community welfare of humanity.  Customer Oriented-Product Framework  Customer Oriented-Product Framework Company’s Differentiation Focuses on Cust Low High understanding ome High Improve Emphasiz and meeting the r or e needs, Purc Change preferences, and hase gear expectations of Deci Low Low Possible the target sion priority overkill audience. Crite  Customer Oriented-Product Framework Company’s Differentiation Cust Low High Change gear – a ome High Improve Emphasiz salesmanship r or e method that Purc Change highlights the hase gear major capabilities Deci Low Low Possible of a product sion priority overkill Crite  What do you think are the possible ways to execute a customer-oriented product framework effectively?  Two Methods of Satisfying Customers’ Needs and Wants Problem-solving method – identifies Creating Dissatisfaction and satisfies an actual method – introduces new ways of doing things to or existing need and the customers by want of a customer. converting customer’s “What problems or existing satisfaction level needs can our product to a dissatisfaction level. solve?” Cost-effective options for customers in satisfying their needs and wants, or in solving their problems: Quality Product Look-alike It is conforming attributes that product to the signal quality: A product with customer’s Intrinsic cues – the same brand specifications, involve the physical but with a measured composition. different quality through Extrinsic cues – are product-related but that ruins the customer brand of a not part of the satisfaction. physical product product. Any Questions? How are the levels of product related to the Customer-Oriented Product Framework? Any Questions?  Guided Questions: What are the levels How does a of products? Explain customer-oriented each. product framework help marketer? Reminders: Asynchronous classes start on October 21– 25 Modules for those days will be uploaded. Do not forget to visit the Brightspace. Start finalizing the Survey Questionnaire for your Research. W1: Long Quiz 1 will be available November 4-8 Product Development Process and Product Life Cycle Our Target! At the end of our class, you should be able to: Explain how a product is developed until its life cycle through a timetable (Gannt chart).  New Product Two sets of needs must be met Development in new product development Factors Internal needs - External needs - company’s Customer’s objectives and needs and Diversification – satisfying the resources wants customers’ needs and wants entails identifying opportunity gaps (unfilled needs and wants),  Reasons for New Product Development Programs Effectively Company’s Preempt respond to expansion competitor the changing plan s and customer’s needs and other wants threats fast New Product Development Process New Product Development Process Product criteria Idea generation Idea screening Business analysis Prototype development Market test and Full commercialization  Product Criteria Possible product criteria for retail stores Can be divided into Product Criteria MUST – Product uniqueness Defines the kinds of “must” and “wants”. potential for market Good value products a firm will be Must – are mandatory or dominance Advertising support selling or won’t be non-negotiable, while WANTS – unique Profitability selling. wants – are desirable benefits, good product but negotiable. Introductory discounts or quality allowances Company reputation  Idea Generation Major sources of new product ideas include Pain points of the customers Systematic search for internal sources (R&D) and and the consumers are a new-product ideas. external sources such as good source of new product customer, competitors, or new service ideas. distributors, and suppliers.  Idea Screening Compare the Three questions in Is it real? – is there a real need Needed to eliminate and desire for the product and ideas generated with new product new-product will customers buy it? poor or low potential idea versus the screening: Can we win? – does the product offer a sustainable and allow those with defined R-W-W (real, win, competitive advantage? Is it worth doing? – does the superior potential to worth doing) go further. product product fit the company’s overall growth strategy? Does it offer criteria. sufficient profit potential?  Business Analysis Extension of the idea screening stage, defining This is a critical During the business analysis phase, 3 important things more parameters before an “stage gate” of must be defined: Target actual (and sometimes very expensive) product prototype new product market, communication plan, and financial analysis and will be assembled. development. marketing mix plan  Prototype Development Product brief – submitted “can the new product Conjoint analysis or to formalize prototype Product prototype deliver the benefit tradeoff study – development. Parts – testing – takes into promised?” know the designed to identify the overall objective, primary consideration the basic as well as the motivating and key target market, product use, performance objectives, Filipino culture of motivating features features customers use to differentiate products brand personality, “pakikisama” of a product. financials, timetable  Market Test and Full Commercialization exposed to a portion of the actual customers within a realistic market environment. Product Life Cycle  Product Life Cycle Shows the process where both the customers and the suppliers change their behavior while interacting with the market. It determined by the rate of new product development in a particular market.  Product Life Cycle Product introduction – consumers are confronted with a brand from an unfamiliar product category Growth stage – consumers may encounter a new brand in a familiar product category Maturing stage – consumers are familiar with both the brand and the product category Declining stage – sales volume would fall due to the introduction of new product  Activity: Timetable (Gannt Chart) Instructions: Develop a timetable or a Gantt Chart showing the process of developing a product until its product life cycle. Explain each stage. Reminders: Asynchronous classes start on October 21– 25 Modules for those days will be uploaded. Do not forget to visit the Brightspace. Start finalizing the Survey Questionnaire for your Research. W1: Long Quiz 1 will be available November 4-8