Professional Documents
Culture Documents
Attractiveness of the
market offering
(1) Core
(5) Potential Product
Product
(2) Basic
Product
(3) Expected
(4) Augmented Product
Product
FIVE LEVELS OF THE PRODUCT
• (1) Core Product / Core Benefit : The
fundamental service or benefit that the
customer is really buying.
• (2) Basic Product : At the same level, the
marketer has to turn the core benefit into
a basic product.
• (3) Expected Product : A set of attributes
and conditions buyers normally expect
when they purchase this product.
FIVE LEVELS OF THE PRODUCT
effort.
(4) UNSOUGHT GOODS
High New
Present
New
Product
Price Present
New Present
Product New
Low
Low High
Quality
(Downward) (Upward) (Two Way)
PRODUCT PORTFOLIO
MANAGEMENT
• Brand Decisions
• Brand Positioning
• Individual Names
Brand Brand
Awareness Identity
Brand
Equity
Perceived Brand
Quality Loyalty
• Advertising
• Sponsorship of games and events
• Social Causes
• Public Facilities
• Founder’s personality
BRAND STRATEGY DECISIONS
• Line Extensions
• Brand Extensions
• Multibrands
• New brands
• Co-brands
BRAND STRATEGY DECISIONS
Product Category
Existing New
Sales
Time
STAGES IN THE PRODUCT LIFE
CYCLE
Sales
&
Profits
Time
Introduction Growth Maturity Decline
STAGES IN THE PRODUCT LIFE
CYCLE
• By identifying the stage that a product is in, or may be
headed toward, companies can formulate better
marketing plans.
• Products require different marketing, financial,
manufacturing, purchasing and personnel strategies in
each stage of their life cycle.
• Marketers must pursue appropriate marketing
strategies in each stage of PLC.
• Today, in order to succeed, it is absolutely essential to
constantly improve products to increase the value
offered to customers, ( V = B/P ).
• The success of competitors is based on creating value
for the customer by differentiating their product,
( Competitive Differential ).
EXTENDING THE PRODUCT LIFE
CYCLE
Sales
Time
•( When the sales of a product starts declining
marketers may choose suitable strategy for
further growth of product /business/enterprise.)
PRODUCT LIFE CYCLE
• Market Modification
• Product Modification
Market Modification
• Expand number of users :
- Convert non-users
- Enter new market segments
- Win competitors’ customers
• Increase annual usage :
- More frequent use
- More usage per occasion
- New and more varied uses
MARKETING STRATEGIES IN THE
MATURITY STAGE
Product Modification
• A strategy of quality improvement aims at
increasing the product’s functional
performance - its durability, reliability, speed,
taste.
• A strategy of feature improvement aims at
adding new features ( for example - size,
weight, materials, additives, accessories ) that
expand the product’s versatility, safety, or
convenience.
MARKETING STRATEGIES IN THE
MATURITY STAGE