AB1501

Marketing
Lecture 04

boonchong@ntu.edu.sg
6790-5710
 Product
Definitions of Product
What Is a Product?
Product is anything that can
be offered in a market for
attention, acquisition, use,
or consumption that might
satisfy a need or want.

Tangible Intangible

Chapter 8 (pp. 245-250)

Participate in the Polls
In order to participate
in the poll, scan the QR
code or go to the
following link:

www.wooclap.com/TEKSNP
Food for Thought: What opportunities can
3D printing technology bring?

Source: Nikkei Asian Review

“Both Sony and Microsoft have already made moves into selling games as a service.
Sony fully launched its "PlayStation Now" service in 2015, which allows customers to
stream a selection of titles via their console or PC. The service already has 700,000
subscribers, paying around $20 per month.” Source: Nikkei Asian Review
 Source: CNBC International YouTube

Food for Thought: Will you sign up for fitness

classes that are conducted online?
What Is a Product?

Source:

Chapter 8 (p. 246)

 What Is a Product?
Product
Classifications

Industrial Products
Consumer
Products
Chapter 8 (pp. 246-248)
 What Is a Product?
Product Classifications
Consumer Products Industrial Products
Convenience
Products Materials
Shopping and Parts
Products Capital
Specialty Items
Products Supplies
Unsought and Services
Products Chapter 8 (pp. 246-248)
 What Is a Product?
Societal Classification of Products

Chapter 20 (p. 662)

 Product
Individual Product Management
 The Design of the Product Always
Starts with the Target Segment’s
Needs and Wants.

“The first-of-its-kind mask was designed for children aged three

to six, and said to be 95 per cent efficient in filtering out
airborne contaminants.” Source: CNA YouTube
Individual Product
Decisions

Chapter 8 (pp. 250-255)

Product Attributes
Product Quality

Performance The characteristics

Quality of a product or
service that bear on
its ability to satisfy
Conformance stated or implied
Quality customer needs.
Chapter 8 (p. 251)
Product Attributes
Product Features

A competitive tool
for differentiating
a product from
competitors’
products.
Chapter 8 (p. 251)
 Product Attributes
Style
and Design
Style describes
the appearance
of the product.
Source: www.nytimes.com

Design contributes to a product’s

usefulness as well as to its looks.
Chapter 8 (p. 252)
 Branding
The brand
identifies
the maker
or seller of
a product
or service.
Source: Channel NewsAsia

The brand can represent the consumer’s

perceptions and feelings.
Chapter 8 (pp. 252-253 & pp. 258-268)
 Importance
Branding of Branding
Build Trust with Legal
the Customers Protection

Higher Seller / Command a

Buyer Power Price Premium

Market Effective
Expansion Communication
Chapter 8 (p. 252-253 and pp. 258-259)
Branding Brand Positioning
Companies can position brands* using:

Product Attributes

Product Benefits

Product Beliefs Source: TODAY Online

* View Fast Company video “When
and Values* Companies Speak Out, Customers Listen”.
Chapter 8 (p. 262)
 Source: FilaSG FaceBook

Food for Thought: Why is Fila becoming an in-

trend brand again?
Branding Brand Name Selection
Desired qualities of a brand name:
Excerpt: “The Chinese
Suggest Benefits and Qualities characters of Coca-
Cola translate literally
Easy to Pronounce, Recognize, and
to ‘Delicious
Remember Happiness’.”
Distinctive for the Product Category

Extendable to Other Product Categories

Translatable for the Global Economy

Source: The Coca Cola Company

Can be Registered and Protected Legally

Chapter 8 (pp. 263-266)
 Types of
Branding Brand Sponsorship
Manufacturer’s
(National) Brand
Store/Private/House
Brand
Source: NTUC FairPrice

Licensing

Co-Branding*
* View WSJ video “Uniqlo Teams Up With Disney”.
Source: tic tac Facebook fan page Chapter 8 (pp. 266-268)
“NTUC FairPrice customers will soon have 300 new products to choose
from, when the supermarket chain refreshes its house brand range.
FairPrice is hoping to push all 300 products…. Currently, FairPrice offers
more than 2,000 house brand products.” Source: CNA YouTube
 Branding Managing Brands

In addition to
communicating a
brand’s positioning
continuously, there
should be a consistent
brand experience across
different touch points.
Source: corporate.mcdonalds.com Chapter 8 (p. 270)
 Packaging and Labeling
Packaging involves designing
and producing the container
or wrapper for a product.
Labels range from simple
tags attached to products to
complex graphics that are
Source: Dunkin’ Donuts
part of the package.
* View Bloomberg video “The soy sauce
bottle designed to bring happiness”. Chapter 8 (p. 254)
 Packaging and Labeling
Packaging Food for Thought:
Why are cup
User-Friendly noodles so
popular?
Attractive Source: www.nissinfoods.com

“Convenience store
Functional operator Seven-Eleven
Japan will switch to
plant-derived
Ensure Safety bioplastic wrappers
for all rice ball
offerings…..”
Environmentally
Source: Nikkei Asian Review
Friendly Chapter 8 (p. 254)
“The consumer movement against plastic food and beverage packaging
is gathering momentum, and companies are beginning to respond. The
FT’s Anna Gross takes a closer look at some of the more innovative
products available, including reusable takeaway cups and compostable
packaging. Meanwhile, as part of its sustainable strategy, food giant
Nestlé is looking to create plastic that’s easier to recycle.”
Source: FT YouTube
Packaging and Labeling
Source: marketingweek.com
Chapter 8 (p. 254)
Labeling
Informative
Attractive
Truthful*
Abide by Rules and
Regulations**
* Review CNA video “Can Eco-
labels Be Trusted”*
** Refer to SFA website about food
labelling guidelines in Singapore.
Source: support.apple.com

Product The support

services can be a
Support minor part or
major part of the
Services total offering.
Chapter 8 (p. 255)
 44

Product
Product Line
and Product Mix
Management
 Product Line
Product line is a group of products that
are closely related:
Function in a Similar Manner

Sold to the Same Customer Groups

Marketed Through the Same Types of Outlets

Fall Within Given Price Ranges

Chapter 8 (pp. 255-257)

Product Line Decisions
Product line length is the number of
items in the product line. A company can
expand its product line through:
Upward

Product Line Product Line Combination

Filling Stretching
Downward

Chapter 8 (pp. 256-257)

 Product Mix
Product Mix Width

Oral Care Personal Care Home Care

Product Mix Depth

Product Mix Length

Source: colgate.com.sg

Chapter 2 (46-50)
and Chapter 8 (pp. 257-258)
Market-Oriented Mission
The mission statement states the
organization’s purpose and defines the
organization
in terms of
satisfying
basic
customer
needs.
Chapter 2 (pp. 42-46)
 Brand Development

Chapter 8 (pp. 268-270)

Source: Marketing Interactive
 55

Product
Service Marketing
Characteristics and
Nature of Services

Chapter 8 (pp. 271-272)

“Airlines have been deliberately overbooking flights for decades and
though the practice infuriates passengers, industry experts argue it also
benefits them.” Source: CNBC International
Extended Marketing Mix

Source: Zeithaml, Bitner, & Gremler (2013). Services

Marketing : Integrating Customer Focus Across the Firm.
(6hth International Edition), McGraw-Hill
 Service Marketing
Internal Service Quality
Satisfied and Productive
Service Employees
Greater Service Value

Satisfied and Loyal Customers

Healthy Service Profits
and Growth
Chapter 8 (pp. 272-274)
Service Marketing
 63

Product
New Product Development
 The Buyer Decision
Process for New Products
Influence of Product Characteristics on Rate of Adoption

Relative Advantage
Compatibility*
Complexity
Divisibility Source: economist.com
* View The Atlantic video “What Makes
Things Cool?”.
Communicability**
** View BBC News video “CES 2017: Sony Chief
Pledges to Detangle Confusing TV Tech”. Chapter 5 (pp. 165-166)
 Increasing the
Source: appleinsider.com
Product Mix
According to one
Acquisition
estimate, 90
percent of all new
New Product consumer products
Development fail.
Chapter 9 (p. 286)
New-Product
Development
Process
Chapter 9 (pp. 286-299)
“It took four years to make the McGriddle. From concept to counter,
McDonald's takes the innovation behind its 145 menu items seriously.”
Source: Bloomberg YouTube
“Dunkin' has a team dedicated to coming up with new ideas that can be
replicated across all its stores, from donuts, to savories, to a new
espresso that's helped boosted sales.” Source: CNBC International YouTube
When Procter & Gamble wanted to test its new shaving innovation, a heated razor for
its Gillette brand, it chose what until recently would have seemed an unusual route.
Rather than holding focus groups or sending out surveys, it turned to crowdfunding
platform Indiegogo…. The idea for P&G, however, was not to raise money for a new
product but to test demand. The razor had already been in development for two-and-
a-half years when its Indiegogo campaign launched so the company was pretty sure it
had hit on a worthwhile innovation. What it needed to do next was raise awareness
and interest, and gain feedback ahead of putting the product into production.
Source: Marketing Week
Product Life-Cycle Different
products have
(PLC) Stages different PLC
length and shape.

Some products do not go through

all the product life cycle stages.
Chapter 9 (pp. 299-307)
“Malaysia has seen a gamut of bubble tea brands, both big and small,
open up shop across the country. But will the bubble soon burst? “
Source: CNA YouTube