Part 5- Chapter 12: Setting Product Strategy

1. Identify characteristics of products, and how do marketers classifyproducts

2. Describe the importance of product designs and factors affect a good design
3. Build and manage its product mix and product lines
4. Use packaging, labelling, warranties, and guarantees as marketing tools

1. Identify characteristics of products, and how do marketers classifyproducts

- Product: Anything that can be offered to a market to satisfy a want or need, including physical
goods, services, experiences, events, persons, places, properties, organizations, information, and
ideas.
- Marketing planning begins with formulating an offering to meet target customers’ needs or
wants.
- The customer will judge the offering by three basicelements: product features and quality,
services mix and quality, and price
All three elements—products, services, and pricing—must be meshed into a competitively
attractive offering
5 Product levels: The customer- value Hierarchy : Core benefit - Basic product – Expected
product – Augmented product – Potential Product

- Product classifications
> Durability and Tangibility
> Consumer-Goods Classification
> Industrial-Goods Classification
> Durability and Tangibility
● Nondurable goods: beer, soap,...
● Durable goods: refrigerators, machinetools, clothing,...
● Services
> Consumer- Goods Classification
● Convenience: frequently, immediately, and with a minimum of effort
● Shopping:goods that the consumer, in the process of selection and purchase,characteristically
compares on such bases as suitability, quality, price, and style.
● Specialty: unique characteristics or brand identification
● Unsought: those the consumer does not know about or does not normally think of buying
> Industrial- Goods Classification
● Materials and parts
● Capital items: long-lasting goods that facilitate developing or managing the finished product
● Supplies and business services: short-term goods and services

- Design
The totality of features that affect the way a product looks, feels, and functions to a consumer.
- THE PRODUCT HIERARCHY
1. Need family : The core need that underlies the existence of a product family. For example,
security.
2. Product family : All the product classes that can satisfy a core need with reasonable
effectiveness. For example, savings and income.
3. Product class : A group of products within the product family recognized as having a certain
functional coherence. Also known as product category. For example, financial instruments.
4. Product line : A group of products within a product class that are closely related because they
perform a similar function, are sold to the same customer groups, are marketed through the same
outlets or channels, or fall within given price ranges. For example, life insurance.
5. Product type : A group of items within a product line that share one of several possible forms
of the product. For example, insurance term life ( 20 years, 25 years, 30 years, …)
6. Item : (also called stockkeeping unit or product variant)—A distinct unit within a brand or
product line distinguishable by size, price, appearance, or some other attribute. For example:
Prudential renewable term life insurance
The product systems and product mixes
- Product system: is a group of diverse but related items that function in a compatible manner.
Ex: the iPod system includes earphones, cables and docks,...
- Product mix or product assortment is the set of all products and items a particular seller
offers for sale, includings: một nhóm các sản phẩm có liên quan chặt chẽ với nhau vì
chúng hoạt động theo cách tương tự và được bán cho cùng một nhóm khách hàng,
được marketing thông qua các loại cửa hàng giống nhau, nằm trong phạm vi mức giá
nhất định.”
+Width
+length
+Depth
+Consistency
Product line length
- Line stretching
- Line filling
- Line modernization
- Line featuring
- Line pruning

- Line stretching: occurs when a company lengthens its product line beyond its current range
+Down market stretch
một công ty có thể muốn giới thiệu một dòng sản phẩm có giá thấp hơn. Nó tiềm ẩn rủi ro vì nó
có thể ăn thịt thương hiệu cốt lõi của mình.
+ Up- market stretch
một công ty tham gia vào thị trường cao cấp để tăng trưởng nhiều hơn, tỷ suất lợi nhuận cao hơn
hoặc đơn giản là để định vị mình là nhà sản xuất toàn dây chuyền.
+Two- way stretch
một công ty phục vụ thị trường tầm trung có thể quyết định kéo dài đường của họ theo cả hai
hướng.

- Product Mix Pricing

The firm searches for a set of prices that maximizes profits on the total mix
Product - Line Pricing : price level set up low- average- high quality as well.
Optional -Feature Pricing: food revenue covers cost, drinks produce the profit
Captive - Product pricing : give mobile phone free if customer commits to buying 2 years of
phone service
Two -part pricing: consisting of a fixed fee plus a variable usage fee.
By- product pricing: meats, petroleum products and other chemicals
Product - Bundling pricing: cosmetics, skincare products

Ingredient branding
-Co-branding that creates brand equity for parts that are necessarily contained within other
branded products – 1 phan thuong hieu dung de co - branding
4. Use packaging, labelling, warranties, and guarantees as marketing tools
Packaging
-All the activities of designing and producing the container for a product
- Labeling nhan dan
Identifies, grades, describes, and promotes the product
- Warranties bao hanh
Formal statements of expected product performance by the manufacturer
- Guarantees
Promise of general or complete satisfaction

Chapter 13:
Designing and Managing Services
1. Define and classify services, and how do they differ from goods
2. Identify the new service realities
3. Create excellence in service marketing
4. Improve customer support services and service quality

1. Define and classify services, andhow do they differ from goods

13.1 The Nature of Services
- Service
Any act or performance one party can offer to another that is essentially intangible and does not
result in the ownership of anything
Categories of Service Mix
- A pure tangible good
- A tangible good withaccompanying services
- A hybrid
- A major service with accompanying minor goods/ services
- A pure service
Service distinctions
- Equipment - or people- based
- Different processes of delivery
- Some need client’s presence
- Meets personal or business need
- Differs in objectives and ownership
Sự khác biệt của dịch vụ
- Dựa vào thiết bị - hoặc dựa vào con người
- Quy trình giao hàng khác nhau
- Một số cần sự có mặt của khách hàng
- Đáp ứng nhu cầu cá nhân hoặc doanh nghiệp
- Khác nhau về mục tiêu và quyền sở hữu
Characteristics of Services
 Intangibility TÍNH VÔ HÌNH
 Inseparability TÍNH KHÔNG THỂ TÁCH RỜI
 Variability TÍNH BIẾN ĐỔI
 Perishability TÍNH DỄ HỎNG
2. Identify the new service realities
113.2 The New Service Realities
New services realities
- A shifting customer relationship - Mối quan hệ khách hàng đang thay đổi
● Customer empowerment and co-production Trao quyền cho khách hàng
và hợp tác sản xuất
● Satisfying employees as well as customers Làm hài lòng nhân viên như
cũng như khách hàng
3. Create excellence in service marketing
13.3 Achieving Excellence in Services Marketing
Marketing excellence :
DN tạo ra External marketing với customer, internal marketing với nhân viên, Nhân viên tạo
interactive marketing tới khách hàng
- Technology and service delivery
Differentiating Services
- Primary and secondary service options
- Innovation withservices
Incorporating Self-Service Technologies
SSTs (self-service technologies)can:
- Make transactions more accurate
- Make transactions more convenient
- Make transactions faster
- Reduce costs
Three types of customer worries
- Failure frequency
- Downtime
- Out-of-pocket costs
Postsale service strategy
● Customer -service evolution
● The customer- service imperative

> Marketing communications

- The means by which firms attempt to inform persuade and remind consumers about the
products and brands they sell
> Truyền thông tiếp thị
- Phương tiện mà doanh nghiệp sử dụng để thông báo thuyết phục và nhắc nhở người tiêu dùng
về sản phẩm và thương hiệu họ bán
5.
Direct marketing-Use of mail, telephone, fax, email, or the Internet to communicate directly
with or solicit response or dialogue from specific customers and prospects.

Developing Effective Communications

> Identify the target audience
> Set the communications objectives
> Design the communications
- Message strategy
- Creative strategy
- Message source

>Creative Strategy

1. Informational appeals

- One-sided vs two-sides arguments

ONE SIDE LÀ CHỈ NÓI VỀ LỢI ÍCH SẢN PHẨM

2 SIDE LÀ NÓI VỀ LỢI ÍCH SP VÀ CẢ NHỮNG VẤN ĐỀ TIÊU CỰC CỦA KH

2. Transformational appeals

- Negative/ fear vs. positive appeals

NEGATIVE : ĐƯA RA NHỮNG CÁI KQ XẤU

POSITIVE : ĐƯA RA NHỮNG CÁI KQ TỐT

Message source
> Messages delivered by attractive or popular sources can achieve higher attention and recall.
SỬ DỤNG NG NỔI TIẾNG HAY NG THÀNH CÔNG LÀM NGUỒN THÔNG ĐIỆP

Developing effective communications

> Selecting the communications channels
- Personal communications channels CÁC KÊNH CÁ NHÂN LÀ TIẾP CẬN CHỈ 1 NG NHƯ
PR , SALE PROMOTION,…
Nonpersonal (Mass) communication channels CÁC KÊNH TIẾP CẬN NHIỀU NGƯỜI NHƯ
TV RADIO TẠP CHÍ
Establish the marketing communications budget

> Affordable method

XĐ NGÂN SÁCH DỰA TRÊN SỐ TIỀN MÀ DN CÓ THỂ CHI TRẢ

> Percentage of sales method

XĐ NGÂN SÁCH DỰA TRÊN % DOANH THU CỦA DN

> Competitive parity method

XĐ NGÂN SÁCH DỰA TRÊN ĐỐI THỦ CẠNH TRANH

> Objective and task method

XĐ NGÂN SÁCH DỰA TRÊN MỤC TIÊU CỦA CHIẾN DỊCH