9.

TÉTEL – PRODUCT POLICY, CATEGORISATION, DEVELOPMENT PROCESS

Product: a tangible object or an intangible service which satisfies cusomer needs or wants
The customer-value hierarchy
is constituted by 5 levels:
- Core benefit (rest and sleep)
- Basic product (bed, bathroom, etc. added)
- Expected product (clean bed, fresh towels, etc.)
- Augmented product
(exceeds expectations eg.jacuzzi added)
- Potential product (anything that can make the product
more unique
CUSTOMER VALUE HIERARCHY FIGURE --------->
 Classification/Categorisation: - several aspects and methods
1. DURABILITY:
- non-durable goods are tangible articles that usually last one or very few uses (e.g. foodstuff)
- durable goods are tangible products that survive many uses (e.g. washing machine)
2. TANGIBILITY: aspect defining the difference between product & service
- tangible: goods – products that can be smelled, felt, touched, heard, seen (e.g. food)
- intangible: services – offerings which customers obtain through the work or labour of
someone else (e.g. haircut)
SERVICES: FIVE SUB-CATEGORIES: - pure tangible (toothbrush)
- tangible with accompanying services (car, phone)
- hybrid (restaurant meal)
- major service with minor goods/services (air travel)
- pure service (babysitting)
 4 distinctive SERVICE CHATACTERISTICS that determine marketing approach:
1. INTANGIBILITY: since unlike a tangible article it cannot be tasted, smelled, seen, etc. the
provider’s task is to „make the intangible tangible”, i.e. they need to prove the quality to make
uncertainty disappear
2. INSEPARABILITY: the provider is a part of the service -therefore the product – itself.
3. VARIABILITY: services are highly variable, because the quality and theexperience
depends on the person of the provider.
4. PERISHABILITY: services cannot be stored so it can become a problem (e.g. the number
of extra buses during rush hours – extra equipment)

sources used: The book of marketing (google drive folder)

Nyersanyag_tételkidolgozáshoz.docx (google drive folder)
  PLC – The product lifecycle
During each stage the factors change, therefore companies need to differentiate and tailor
their marketing strategy to the current situation. No two products are exactly the same, they
require different amounts of investments, different technology, manufacturing, have different
target audience.
4 stages of PLC:
characteristics: INTRODUCTION GROWTH MATURITY DECLINE
SALES low rising peak sales dropping
COSTS high moderate/average low low
PROFIT negative rising high declining
CUSTOMERS innovators early adopters middle laggards
majority
AIM: raising awareness maximise market maximise reduce
share profit, defend expenditures
market share and milk the
brand
PLC graph is usually bell shaped, however, it’s not always the case.
Examples: cycle-recycle pattern - growth, maturity and decline stage happen continously
fad – rapidly growing, reaches peak sales quicckly, then decline stage happens
just as fast
 PRODUCT DEVELOPMENT:

STAGES OF PRODUCT DEVELOPMENT

sources used: The book of marketing (google drive folder)

Nyersanyag_tételkidolgozáshoz.docx (google drive folder)
 PRODUCT PORTFOLIO ANALYSIS (BCG MATRIX + ANSOFF MATRIX)

BCG MATRIX
ANSOFF MATRIX

ANSOFF MATRIX
The Ansoff matrix shows the correlation between the BCG matrix and the PLC.
The following two figures represent the corrrelation between the market and the product from
a marketing point of view:

The first figure shows the main ideas of different categories as they are placed within the
matrix. The one on the right hand side does the same, illustrating it through the example of
Coca Cola.

sources used: The book of marketing (google drive folder)

Nyersanyag_tételkidolgozáshoz.docx (google drive folder)