Operational Marketing

B1 S2 – Product
A.
Product & Value Creation
 Definition

« Any offer available on a market (product or service), aiming to satisfy a need,

whether it is sold or not »
A product can be :

•A tangible good •A person

•A service •A place

•An experience •An organization

•An event •An idea

Marketing Mix : Product I 2024 I 3

 Value Creation

« What is decisive is not what managers intend to produce, but rather what consumers think they
are buying, their own conception of the value they attribute to a product »

(Peter Drucker, management consultant)

Consumers expectations Food + funny taste Health Delight

Target Kids Women Chocolate fans

With its fruity taste and Thanks to this healthy, delicious

bright colours, this cereal is
a wholemeal that helps
Positioning
children start the day with
optimism.
and nutritious blend of cereals,
With this ultimate
vitamins, minerals and fibre,
chocolate experience,
active women can start the
chocolate lovers can start
day in good shape, while
their day with pleasure
taking care of their weight

Product

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 The 3 different levels of product

Actual product
Core product
Other services Customer service

Shape/design
Name Colour
Warranty
Installation Quality
Brand Size
Packaging

Delivery Credit

Sold or augmented product

Marketing Mix : Product I 2024 I 5

 1-Value creation via the core product

« Core product = technical description of its components, manufacturing

process, or specific characteristics »

Here, value creation is achieved by highlighting performances linked

to the specificities of the core product

Marketing Mix : Product I 2024 I 6

 2- Value creation via the actual product

« Actual product = all visible elements that the final consumer can see (shape,
colors, size, brand, name, packaging, …) »

Here, value creation is achieved by developing visual cues, that

differenciate the product from its competitors and trigger purchases

Marketing Mix : Product I 2024 I 7

 3- Value creation via the augmented product

« Augmented product = all type of services that add value to the product »

Here, value creation is achieved by implementing specific services in

addition to the product itself. These services are likely to trigger
purchases

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B.
Range management
 Definition

« Range = set of products available in a given category, sold by one company »

A range is made of several product lines

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 Range dimensions

3 dimensions: Width (or breadth) / Depth / Length

Facial Care Skin care Sunscreen

Depth of facial care: 7

Shaving products Firming cream = 1 Skin protection = 5

(gel + foam) = 2 product products
products
Moisturising cream= 1 Lip protection = 1
Smoothing balm =3 product product
products
Anti-wrinkle cream = 1 After sun balm
Aftershave balm = 2 product = 1 product
products

Width (or breadth) = 3 lines

Depth depends on each line

Length = 17 products in total

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 Analyzing the range

« The number of products developed is a strategic decision for the company »

When a company expands its range, it allows to meet new needs (and
make more profit) but it also increases the costs

The marketing manager must analyse the range(s) regularly, from

different perspectives:

The product life

The product role The turnover
cycle

Marketing Mix : Product I 2024 I 12

 Exercices – Group work

Find the definition of the following concepts:

According to the Leading products / loss leaders / Specialty (or image)
product role products

According to the What is the Pareto’s law? How does it apply to the
Turnover range management?

What are the different phases of the Product Lifecycle?

(find examples to illustrate each of them)
According to the When managing a product range, what should a
product life cycle marketer do to take into account the different phases?
What are the limits of this model?

I 2024 I 13
Marketing Mix : Product
 To do for next time

Watch the video « Brand

management » on C@mpus

Please note: there will be a MCQ at the beginning of next class

(about today’s class + the video)

Marketing Mix : Product I 2024 I 14

INSPIRING EDUCATION INSPIRING LIFE
TOULOUSE • PARIS • BARCELONA • CASABLANCA • LONDON