1 marketing mix BSBMKG502B TangLing
2 Marketing mix Product Price Place Promotion
3 Product mix 1.What is a Product? The term "product" refers to tangible, physical products as well as services(intangible).
4 Product support servicesProduct Decisions Product attributes Branding Packaging Labeling support services Product support services Branding Brand name selection Brand sponsor Brand strategy Product attributes quality features styling designing Packaging Primary container Secondary package Shipping package
5 What are the benefits of this product?
6 Why people buy the washing machineWhy people buy the washing machine? why different people have different choices? Replace people to wash clothes Core product Washing machine Quality, features, styling, packaging Actual product Delivery, installing Augmented product
7 Activity: List and compare the core product, actual product and augmented product of Hair(XQG J ) and Siemens’s(XQG52-07X060 ) washing machine.
8 Classification of productsTwo product categories: 1 Consumer products Intended for household consumer, non-business use. 2 Business products Intended primarily for producing other products or providing services in a business.
9 Types of Consumer ProductsConvenience products（便利品） Shopping products （选购品） Specialty products （特制品） Unsought products （非寻求品）
10 Convenience goods Consumer is familiar with and buys with minimum effort. Typically have a low unit price. Products purchased frequently. Readily accessible and widely distributed. Retailers usually carry several brands, E.g. tobacco, toothpaste batteries.
11 Shopping goods Consumers usually compare price, quality and style.Buying habits affect distribution and promotional strategies. Manufacturers work closely with retailers. Retail stores often buy shopping goods in large quantities and distribution direct from manufacturers to the retailer is common. E.g. appliances, furniture.
12 Specialty goods Consumer: Has strong brand preference.Is willing to forgo more accessible substitutes. Is willing to invest time and effort in product search. Fewer store outlets. E.g. sound equipment.
13 Unsought goods Consumer goods that are not yet known or that are not yet needed. Seller must place emphasis on demonstrating that consumers might have a need for this product.
14 Branding Name the brands and companies
15
16 e.g. household cleaning product:Mr. Muscle
17 Soap: safeguard
18 Four criteria for picking a good brand name
19 Branding
20
21
22 Brand equity Brand equity is the market value a brand adds to a product. Brand equity benefits: Become a differential advantage. Create barriers for companies entering the market. Help products survive changes in the operating environment. Strong potential for trademark or brand licensing. Maintaining product quality. Support positioning (through promotional message). Maintain open two-way communication with customers.
23 Brand equity (billion $)Rank Brand Brand equity (billion $) Country 1 Coca-cola 670.00 U.S. 2 Microsoft 569.26 3 IBM 562.01 4 GE 489.07 5 Intel 323.19 6 Nokia 301.31 Filand 7 Toyota 279.41 Japan 8 Disney 278.48 9 McDonald’s 275.01 10 Mercedes-Benz 217.95 Germany Global top 10 brand in 2006
24 Brand equity (billion RMB)Rank Brand Brand equity (billion RMB) Company 1 海尔 530.00 海尔集团公司 2 红塔山 460.00 玉溪红塔山烟草（集团）有限责任公司 3 五粮液 269.00 四川省宜宾五粮液集团有限公司 4 联想 268.05 联想集团有限公司 5 第一汽车 267.63 中国第一汽车集团公司 6 TCL 267.12 TCL集团股份有限公司 7 长虹 267.06 四川长虹电子集团有限公司 8 美的 121.50 广东美的集团股份有限公司 9 解放 107.62 10 青岛 100.90 青岛啤酒股份有限公司 参见北京名牌资产评估有限公司《2003中国品牌价值报告》
25 Branding 品牌化决策 品牌使用者决策 品牌战略决策 Brand name selection SelectionProtection Brand sponsor manufacturer’s brand Private brand Licensing Co-branding Brand strategy Separate name Family branding Combined-brand Multi-branding
26 Brand Sponsor 私人品牌 制造商品牌 许可品牌 复合品牌A manufacturer has four sponsorship options. The product may be launched as a manufacturer’s brand (or national brand). Or the manufacturer may sell to resellers who give it a private brand (store brand or distributor brand). Although most manufacturers create their own brand names, others market licensed brands. Finally, two companies can join forces and co-brand a product. Private brand: a brand created and owned by a reseller of a product or service. Co-brand: the practice of using the established brand names of two different companies on the same product. 私人品牌 制造商品牌 许可品牌 复合品牌
27
28 Corporate brand licensing: Coca-Cola partners with some 320 licensees to produce more than 10,000 products in 57 countries. Products range from fashion apparel to holiday decorations and even a Coca-Cola Babie doll.
29 licensing
30 王老吉和加多宝的关系 广药与加多宝之间的关系 2000年签署主商标合同(时限至2010年)； 广药与加多宝之间的关系 2000年签署主商标合同(时限至2010年)； 2002年11月签署第一份补充协议(时限延长至2013年)，此前广药集团原老总李益民收受香港鸿道集团董事长陈鸿道港币200万元； 2003年6月签署第二份补充协议(时限再延长至2020年)，李益民收受陈鸿道港币100万元，随后李益民落马； 2010年11月广药在北京发布王老吉品牌价值过千亿一事，随后加多宝发声明澄清与广药之间没有隶属关系，让矛盾公开化； 2011年4月广药递交“王老吉商标”仲裁申请； 2011年12月“王老吉商标”案进入仲裁程序； 2012年5月11日，广药集团收到中国国际经济贸易仲裁委员会日期为2012年5月9日的裁决书，广药胜诉。 2012年5月15日，广药集团赢得王老吉商标
31
32 Brand Strategy Separate name (individual brand)—a brand name given to individual products, leaving out the manufacturer’s name. Family branding (blanket)—brands that take on the manufacturer’s name Combined-brand strategy—the combination of the manufacturer’s name with a product Multi-branding—firm using more than one brand name for similar products in its range in an attempt to reach different market segments.
33 individual branding strategy
34 Coca-cola markets Coke, Fanta and Sprite as separate brands
35 Advantages: Unique positioning can be developed for each new product Avoids the problem of having all of the company’s eggs in one basket Disadvantages: Very expensive to develop a consumer following for each and every new brand
36 Family branding strategy
37 Advantages: Becomes much simpler and less expensive to introduce new ,related products to a line.
38 The family brand provides an umbrella and reduces marketing costs, and the individual name allows a unique brand story to be told. On the other hand, the family branding also provides limitations to the branding and the firm is still vulnerable to any problems that occur with the specific product.
39 Combined branding strategy
40 Multi-branding strategy
41 Aimed at increasing a firm’s market coverage.A company has built one type of sales appeal around a given brand. To reach other segments of the market, the company can use other appeals with other brands.
42 Packaging Packaging involves designing and producing the container or wrapper for a product. It may include Primary Container（首要包装） Secondary Package （次要包装） that is thrown away when the product is about to be used. Shipping Package（储运包装） necessary to store, identify, and ship the product
43 Packaging
44 Primary Container Secondary Package
45 Altering package of Green Giant
46 Give an example of a product for which the most important function of the package is the following:It aids in the usage of the product It aids in the display of the product It protects the consumer from the product It has another use once the product is used up It protects the product from damage in transit
47 Labelling A label is the part of a product that carries information about the product itself, or about the seller. It is used to communicate useful information to customers.
48 Examples are food product, where use-by date must be shown and ingredients and nutritional qualities listed, and children’s clothing, where the degree of fire resistance must be noted.
49 labeling
50
51 Check your things again to find various forms of packaging.Assess your examples against the roles of packaging discussed before. Select two packs and list the information provided on the label.
52 The product life cycle
53 1. Definition A product goes through different stages which can be labeled as I n, g h, m y, and d e. These stages considered together represent a product’s life cycle. ntroductio eclin aturit rowt 1
54 Product's Life Cycle (PLC)sales and profits sales curve profit curve development introduction growth maturity decline 2
55 2. Characteristics of each life cycle stageIntroduction stage profits are non-existent no awareness large amounts of advertising the most critical stage 3
56 2. Characteristics of each life cycle stageGrowth stage trial of the product increase in distribution competitors enter the market profits increase 4
57 For example, the internet search engine business has been growing rapidly and delivering very high profits for some firms like But the profitability of this sector has attracted a range of new entrants, such as 5
58 2. Characteristics of each life cycle stageMaturity stage prospect of saturation of competition lower prices owing to competition persuasive promotion takes place Persuasive promotions aim to encourage customers to make purchase, to switch from rival brands and to create loyalty for the product. 6
59 Mobile phone adoption rates have surpassed 99 percent in east of China, such as Shanghai, Jiangsu, Zhejiang. The survivors now battle for market share by introducing product improvements, using advertising and sales promotional offers, dealer discounting and price cutting. 7
60 Careful strategic decisions are very important in mature marketsCareful strategic decisions are very important in mature markets. For example, the falling profitability of Starbucks in 2007 has been attributed to decisions that sought to grow the business too rapidly (it has now over 30,000 outlets worldwide) in a mature market, which has led to market saturation and poor control over café. The 10,000th Starbucks outlet opened in the Badaling Great Wall Scenic Area 8
61 2. Characteristics of each life cycle stageDecline stage new products replace old ones sales and profits decline products are withdrawn from the market. 9
62 Products like cathode ray tube (CRT) televisions have fallen out of favor as consumers have switched to flat-panel screens. 10
63 Introduction: advertise and promote to build brand awareness and stimulate trialMaturity: develop international market and continually to add advertising and promotion Growth: battle with Pepsi’s to develop new product, penetrate the market by building brand preference As traditional carbonated drinks are not healthy, it developed other products or entered other industry 12
64 3. Summary of product life cycle characteristic, objectives and strategiesINTRODUCTION GROWTH MATURITY DECLINE Sales Costs Profits Consumers Competitors Marketing objectives Product Price Distribution Advertising Sales promotion 11
65 Activities Look at the Amazon.cn website
66 Topics: 1.microwave ovens 2.digital cameras 3.laptops 4.mobile phones5.DVD 6.film 7.typewriter 8.Automobile 9.Radio 10.Vacuum Cleaning Robot(扫地机器人） 14
67 Product mix Product line—a group of products sold together or intended for the same general use. Product mix—has dimensions of breadth (the number of product lines) and depth (the different product items within each line). For example, Nissan produces a line of cars whereas Revlon produces a line of cosmetics. Companies can have many product lines.
68 Product mix Product depth： the different product items in each lineProduct breath：the number of product lines Product mix Product depth： the different product items in each line
69
70 Product mix
71 Product mix of P&G Detergents and softeners toothpaste Soap BatterySkin care Food Personal care Shampoo
72 Major product mix strategiesExpansion of the product mix Add to the number of lines of company sells or increase the individual items in a line of products.
73 Contraction of the product mixCull individual product items or entire product lines because they are unprofitable or no longer fit the company’s goal
74 Activity: Describe the product mix of the product you choose for your assessment.