Topic 6:

Product Attribute Decisions

One of the primary decisions marketers have to make involves decisions about product attributes.
Product attributes are the characteristics and defining features of a product. They are individual
product decisions and are as follows:
 Product quality decisions - The quality of a product is crucial for its
marketing. It plays a key role in positioning as products can be
positioned based on their high quality (e.g., high-performance luxury
cars or high fashion clothing made from the best quality fabrics).
Product quality is also essential for providing value to customers - a
high-quality product can be a value-adding feature that results in
customer satisfaction.
 Product feature decisions - Another element of product attributes are
the product's features. Product features are crucial for differentiation.
Adding additional features makes a product stand out from similar
products offered by competitors. So, how do marketers know which
product features to add? Through Market Research. Of course, adding a
random product feature will not automatically guarantee success.
However, market research can help companies gain insight into what
customers actually want and need regarding a product, leading to
higher customer satisfaction.
 Product design decisions - Similarly to product features, product
design can help marketers differentiate their offerings from
competitors. For example, a functional design can make it easier for
customers to use a product, leading to fewer complaints, returns, etc.
On the other hand, product style can capture customers' attention.
For example, Apple is known for its innovative and high-performance MacBooks. However, this
product attribute is only part of the company's success, as many other tech companies offer
similar products. The MacBook's sleek design and user-friendliness (ease of use) differentiate the
product from its competitors.

Frequently Asked Questions about Product Decisions

What is production decision?

Product decisions are decisions to be made about the product or service a company wants to sell.
These decisions are vital to creating a successful marketing mix to meet the company's objectives.

Who makes the final decision on ordering the product backlog?

The product owner makes the final decision on ordering the product backlog.
What is the objective of the product decision?

The objective of product decisions is to ensure that the 'product' element of the marketing mix is
effective. Marketers make individual product decisions (attributes, branding, etc.), product line
decisions, and product mix decisions.
Which action can be considered a product decision?

Various actions can be considered product decisions. For instance, individual product decisions like
product quality or design decisions (i.e., product attributes), product line decisions (e.g., line filling),
and product mix decisions can all be considered product decisions.
How does pricing affect product decisions?

Pricing and product decisions go hand in hand in marketing as both elements are crucial to the
marketing mix. For example, if a product line is too short, marketers might consider adding a new
product to it to increase revenues. Additionally, they might use price skimming or penetration pricing
to price the new product development, showing the relationship between product and pricing
strategies.
Frequently Asked Questions about Product Decisions

What is production decision?

Product decisions are decisions to be made about the product or service a company wants to sell.
These decisions are vital to creating a successful marketing mix to meet the company's objectives.
Who makes the final decision on ordering the product backlog?

The product owner makes the final decision on ordering the product backlog.
What is the objective of the product decision?

The objective of product decisions is to ensure that the 'product' element of the marketing mix is
effective. Marketers make individual product decisions (attributes, branding, etc.), product line
decisions, and product mix decisions.
Which action can be considered a product decision?

Various actions can be considered product decisions. For instance, individual product decisions like
product quality or design decisions (i.e., product attributes), product line decisions (e.g., line filling),
and product mix decisions can all be considered product decisions.
How does pricing affect product decisions?

Pricing and product decisions go hand in hand in marketing as both elements are crucial to the
marketing mix. For example, if a product line is too short, marketers might consider adding a new
product to it to increase revenues. Additionally, they might use price skimming or penetration pricing
to price the new product development, showing the relationship between product and pricing
strategies.
Frequently Asked Questions about Product Decisions

What is production decision?

Product decisions are decisions to be made about the product or service a company wants to sell.
These decisions are vital to creating a successful marketing mix to meet the company's objectives.
Who makes the final decision on ordering the product backlog?

The product owner makes the final decision on ordering the product backlog.
What is the objective of the product decision?

The objective of product decisions is to ensure that the 'product' element of the marketing mix is
effective. Marketers make individual product decisions (attributes, branding, etc.), product line
decisions, and product mix decisions.
Which action can be considered a product decision?
Various actions can be considered product decisions. For instance, individual product decisions like
product quality or design decisions (i.e., product attributes), product line decisions (e.g., line filling),
and product mix decisions can all be considered product decisions.
How does pricing affect product decisions?

Pricing and product decisions go hand in hand in marketing as both elements are crucial to the
marketing mix. For example, if a product line is too short, marketers might consider adding a new
product to it to increase revenues. Additionally, they might use price skimming or penetration pricing
to price the new product development, showing the relationship between product and pricing
strategies.

Popular examples of service-based industries that use this form of marketing include:
 Telecommunications.
 Health and wellness.
 Financial.
 Tourism, leisure and entertainment.
 Transportation.
 Hospitality.
 Consulting.
 Design, marketing and sales.
Topic 5:
Vdu về quá trình quyết định mua điện thoại
The buyer decision process:

1. Awareness of needs: A person owns an old phone and realizes that it no longer meets
their needs effectively. They become aware of the need for a newer and more modern
phone.
2. Research and information search: This individual starts searching for information about
new phones online, reading reviews, comparing prices, features, and evaluating feedback
from other users to better understand the available options in the market.
3. Identifying options: Based on the gathered information, the buyer narrows down the list
of potential choices that align with their needs and preferences. They select a few phone
models that seem most suitable.
4. Purchase decision: Having identified the final choice, the buyer makes the decision to
purchase the product. They may decide to buy online or go to a store for the purchase.
5. Decision confirmation: After purchasing the product, the buyer might feel satisfied or
dissatisfied with their decision. They may reassess the buying experience and product
usage to determine whether they made the right choice in selecting the product.
The buyer decision process can vary depending on the specific product or service and individual
factors such as budget, social factors, and influences from the surrounding environment.

CHAPTER 7: CUSTOMER VALUE-DRIVEN MARKETING STRATEGY

Undifferentiated marketing, also known as mass marketing, is a strategy where a company
creates a single marketing mix and implements it for the entire market without segmenting it into
different groups. This approach assumes that all consumers have similar needs and wants, and
the company aims to reach the widest possible audience with the same product or message.
Here's an example of undifferentiated marketing:

Example: Coca-Cola's Marketing Campaigns

Coca-Cola is a classic example of a company that historically used undifferentiated marketing

strategies. For many years, Coca-Cola focused on creating universal advertisements that aimed to
appeal to the general population without targeting specific demographics or market segments.

The company's iconic campaigns, such as "Share a Coke," "Open Happiness," and its classic
"Santa Claus" ads during the holiday season, were designed to create emotional connections and
resonate with a broad audience worldwide. These campaigns emphasized universal themes of
joy, happiness, and togetherness, aiming to appeal to people of all ages, backgrounds, and
preferences.

Coca-Cola's undifferentiated marketing strategy relied on creating a single brand image and
message that would be relevant and attractive to the mass market. Instead of tailoring its
marketing efforts to specific consumer segments based on demographics or psychographics,
Coca-Cola aimed to create a strong, consistent brand identity that could resonate with as many
people as possible.

While undifferentiated marketing can reach a wide audience and simplify marketing efforts, it
may not be as effective in targeting specific consumer needs or preferences. In recent years,
Coca-Cola has also adopted more segmented and targeted marketing strategies to better engage
with diverse consumer groups and respond to changing market dynamics.

Segmented marketing, also known as differentiated marketing, is a strategy where a company

divides the market into different smaller groups based on characteristics such as age, gender,
income, geographic location, preferences, or consumer behavior. The company then creates
separate marketing strategies for each of these groups to meet the specific needs of each target
segment. Here's an example of segmented marketing:

Example: P&G's Household Products Marketing Campaign

Procter & Gamble (P&G), a leading company in household products, has employed a segmented
marketing strategy to reach and engage with various consumer groups by creating distinct brands
and campaigns.
For instance, P&G might segment the market based on groups such as households with young
children, singles, seniors, or urban versus rural consumers. They would then create different
products or adjust their marketing strategies to cater to each consumer segment.

For example, P&G might have a skincare brand specifically targeted at younger individuals,
offering gentle products with youthful fragrances. Simultaneously, they might have another
brand focused on skincare for seniors, featuring anti-aging and intense moisturizing products.

Through segmented marketing, P&G is able to enhance interactions with specific target customer
groups, providing products and messages that align with the unique needs and preferences of
each segment. This approach allows them to achieve greater focus and effectiveness in their
marketing strategies.

Product life cycle stages with potential solutions for each step: Introduction: Challenge: Low
awareness and acceptance of a new fashion trend or product. Solution: Increase visibility through
targeted marketing campaigns, influencer collaborations, and fashion shows to create buzz and
generate interest. Offering incentives like limited-time discounts or exclusive previews can also drive
initial sales. Growth: Challenge: Coping with increasing demand and competition. Solution: Scaling
production, optimizing supply chains, and expanding distribution channels to meet demand.
Maintaining the trend's relevance by introducing variations, collaborations, or limited editions can
sustain growth. Maturity: Challenge: Saturation and plateauing sales as the trend becomes
widespread.

Solution: Differentiate the product through innovation, design enhancements, or value additions.
Marketing strategies such as rebranding, targeting new demographics, or creating nostalgia around
the trend can help prolong its life cycle. Decline: Challenge: Decreasing demand and market
saturation as the trend loses popularity. Solution: Diversification by exploring new markets,
repackaging the product, or pivoting towards emerging trends. Clearance sales, collaborations with
emerging designers, or repositioning the product as vintage or limited edition can extend its lifespan.
Throughout each stage, customer feedback and market analysis play crucial roles in adjusting
strategies. Additionally, sustainable practices, ethical sourcing, and responsible manufacturing can
contribute to a longer-lasting appeal for certain products, aligning with evolving consumer values