Planning the Marketing Mix: Product PDF

Planning the marketing mix: Product Unit 3 Contents 3.1 Product 3.2 Branding Strategies programs 3.3 Segmentation 3.4 Packaging and and targeting labelling strategies  What is a Product? “A product is the item offered for sale.” “An...

Planning the marketing mix: Product Unit 3 Contents 3.1 Product 3.2 Branding Strategies programs 3.3 Segmentation 3.4 Packaging and and targeting labelling strategies  What is a Product? “A product is the item offered for sale.” “Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need” - Kotler, Wong, Saunders, Armstrong https://www.marutisuzuki.com/  Complete set of products and/or services offered by a firm. What is Product A product mix consists of product lines, which are associated items Mix? that consumers tend to use (Product together or think of as similar products or services. Portfolio) https://www.itcportal.com/  Product Strategy - Developing and Marketing a product A series of decisions that guide the development, launch, and management of a product. A set of objectives, policies, and rules that guide over time firm's marketing efforts. Product Strategy Elements 3. Value 1. Vision 2. Market Proposition 6. Marketing 4. Positioning 5. Roadmap Plan 7. Key Performance Indicators Product Strategies – International Market Standardization or Adaptation (1) Straight (2) Product (3) Product product extension adaptation invention https://www.nescafe.com/ https://www.mahindra.com/ https://www.youtube.com/watch?v=rcoRWGvrbck Aspect Straight Product Extension Product Adaptation Product Invention Selling the same product in the Modifying an existing product to Creating a completely new product Definition international market without any meet local needs or preferences. for the international market. changes. High cost, due to research, Low cost, as no changes are made Moderate cost, due to adjustments Cost development, and production of a to the product. in design, packaging, or features. new product. Suitable for markets with similar Suitable for markets with different Suitable for markets with unique Market Suitability tastes and preferences as the home tastes, preferences, or regulatory needs not met by existing products. market. requirements. Fast, as the product is already Moderate, as some time is needed Slow, as it involves extensive R&D Speed to Market developed and tested. for modifications. and testing. Low risk, due to the familiarity of the Moderate risk, as changes might not High risk, as the new product might Risk product. fully align with local preferences. not be accepted by the market. Unilever creating Pureit water Coca-Cola selling the same soda McDonald's offering McAloo Tikki in Examples purifiers for markets lacking clean globally. India. drinking water. Regulatory May face challenges if product Better compliance as the product is Designed specifically to meet local Compliance doesn't meet local regulations. adapted to meet local regulations. regulatory requirements. Consumer High in markets with similar Higher consumer acceptance as the Variable acceptance; high if the new Acceptance preferences; low in diverse markets. product meets local needs. product addresses a critical need. Moderate, as the product is slightly Variable, depending on how different High, as the same product Brand Consistency different but still maintains core the new product is from existing strengthens global brand identity. brand elements. offerings. What is a Brand? https://www.youtube.com/watch?v=1wCE7M3QXEk “Name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.” BRAND ELEMENTS Characte Packagin Names URLs Logos Symbols Slogans Graphics rs g  Branding Programs Establishing and growing a relationship between a brand and consumers. Brand Identity, Personality Defining and Crafting of and Brand establishing Brand Association Brand Elements s Values Consumer Identifying Brand and Knowledge establishing Brand Positioning Brand Awareness + Brand Brand Knowledge Brand Equity Image Brand Knowledge Brand knowledge refers to the thoughts, feelings, experiences, become associated of a customer with a business’s brand or a company. Brand Brand Image Awareness Consumer’s ability to identify the brand under different conditions – Consumers’ perceptions about a brand, as reflected by the brand associations held in Brand Recognition and Brand Recall consumer memory Brand Recognition Vs. Brand Recall Brand Image Brand Identity, Personality and Brand Associations Brand Associations Brand Identity Brand Personality Mental connection a Visual components The way a brand is customer makes that represents a personified in between your brand company’s ideas and terms of the sum of and a concept, allows customers to its emotional, image, emotion, remember a brand psychological and experience, person, and distinguish it behavioral patterns interest, or activity. from others Brand Positioning Who is the target “Designing the company’s offer and image so that it consumer? occupies a distinct and valued place in the target customer’s minds.” Who are the main competitors? How is the brand similar to Exercise – Brand Positioning competitors? – Points of Map Parity How is the brand different from them? – Points of Difference Brand values Beliefs that the company stands for Compass that guides brand story, actions, behaviors, and decision-making process They help make key operating decisions Diversity Accountabil Promise to Integrity Honesty Fairness and ity Customers Inclusion Learning Teamwork Passion Quality Determinants - International Marketing Global Brand Brand Country-Specific Strategy Architecture Branding Straight Product Branded House Localization Extension Product Adaptation House of Brands Cultural Relevance Country of Origin Product Invention Hybrid Effect Brand Architecture Google P&G Microsoft Coke Marriot Apple Samsung Segmentation Dividing a market into smaller groups of consumers who have similar needs, behaviors, or characteristics. Geographic Segmentation: Based on location, such as countries, regions, or cities. Demographic Segmentation: Based on characteristics like age, gender, income, education, or family size. Psychographic Segmentation: Based on lifestyle, values, attitudes, and interests. Behavioral Segmentation: Based on how people behave, like purchasing habits, brand loyalty, or product usage.  Process of designing and producing the container Packagingor wrapper for a product. Informatio Convenien Protection Promotion n ce Safeguards Provides Improves the Attracts the product essential ease of use, customers during details such handling, and and transportatio as usage storage of enhances n, storage, instructions, the product. brand and handling. ingredients, visibility, and legal often using compliance. design elements like color, shape, Packaging Strategies Differentiation: Creating unique and distinctive packaging to stand out from competitors. Eco-friendly Packaging: Using sustainable materials to appeal to environmentally conscious consumers. Minimalist Design: Focusing on simplicity and elegance, often used in premium products. Cohesive Branding: Ensuring that the packaging design is consistent with the overall brand identity. Innovative Packaging: Incorporating new materials or technology, like smart packaging with QR codes or temperature-sensitive materials. Convenience Packaging: Designing packages that offer added convenience, such as resealable bags or single-use portions. LabelingProcess of creating and attaching informative tags to a product’s packaging Product Identification: Labels help consumers identify the product by displaying the brand name, logo, and product description. Information Provision: Labels provide essential information about the product's contents, usage, and any necessary warnings. Regulatory Compliance: Labels ensure that the product meets all legal and regulatory requirements, such as nutritional information on food products or safety warnings on hazardous materials. Marketing and Promotion: Labels can include promotional messages, special offers, or endorsements to attract customers. Facilitation of Purchase Decisions: Clear and informative labeling can help consumers make informed purchasing decisions by providing details like price, quality certifications, or eco-labels. Labeling Strategies Descriptive Labeling: Providing detailed information about the product, such as ingredients, nutritional facts, and usage instructions, to help consumers make informed choices. Persuasive Labeling: Using labels to influence consumer behavior, often through promotional messages, branding elements, or endorsements. This might include phrases like “New and Improved” or “Best Seller”. Grade Labeling: Indicating the quality or grade of the product, such as “Premium”, “Organic”, or “Grade A”, to attract specific customer segments. Eco-Labeling: Highlighting the environmental benefits of the product, such as “Recyclable”, “Biodegradable”, or “Energy Efficient”, to appeal to eco-conscious consumers. Private Labeling: Branding a product under a retailer’s name rather than the manufacturer’s, often used for store brands to differentiate them from national brands. Brand-Centric Labeling: Ensuring the label aligns with the overall brand image and identity, using consistent colors, fonts, and design elements to reinforce brand recognition. Case Study https://www.indiatoday.in/india-today- insight/story/why-amuls-us-foray-is-a- gamechanger-2519946-2024-03-27