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Principles of Marketing MKT1014

Tutorial Group: 7
Day & Time: Thursday 1.30-2.30p.m.
Date: 3
rd
OCT 2013
Group Member: Jasmine Chee Xin Ni 13015615
Eunice Yong Jia Qi 13008784

Tutorial Question
1. Describe the differences between
goods and services.
2. List the entire core, actual and
augmented components of their
existing and new product.
3. Why do you think the company has
decided to use the brand name for
their existing and new product?

Services are intangible
- Cannot be seen, tasted, felt, heard or smelled
- Difficult to convey the benefits of services
- Consumers perception

In contrast

Goods are tangible
- Can be seen, tasted, felt, heard or smelled

Services are inseparable
- Service production cannot be separated from
consumption, provider- customer interaction
- Rarely to have the opportunity to enjoy the
service before purchase

In contrast

Goods are separable
- Can be separated from their providers


Services are variable
- The quality of services may vary greatly
depending on who provides them and when,
where, and how
- Accountant: Quality of delivering services are
variable

In contrast

- Goods are homogeneous and standardized
Services are perishable
- Cannot be stored for later sale or use
- any service time that is not used equals a loss
in revenue
- Airline company: Unoccupied airline seat

In contrast

- Goods are non-perishable and can be stored
for later use
Levels of Product & Services
Video Sharing
Core customer value
Design and Innovative
Easy and Simplicity
Quality
Quality
Two dimension

Level
Consistency
Design
Trendy
Classy

iPhone is the product
that you have with you
all the time; the unique
relationship people have
with their iPhones.
Innovation
Who wants a stylus?
Easy & Simplicity
Actual Product
Brand name
Quality Level
Packaging
Design
Features
Brand Name
iphone 5s
Packaging
Whats in the box

iPhone 5s with iOS 7
Apple EarPods with Remote and Mic
Lightning to USB Cable
5W USB Power Adapter

New Design
Features
Augmented Product
Delivery and Credit
Product and Support
After- sale service
Warranty

Delivery and Credit
Shipping & Pickup
Purchase online and pick them up at an Apple Store, or ship them directly to
your doorstep.
Shipping & Delivery
Personal Pickup

Apple offers free shipping on orders above RM 250.

Product Support

Technical Support
Warranty
Every iPhone includes 90 days of free telephone
technical support and a one-year limited
warranty.


Summary Q2
Identify the Core Customer Value



Design Actual Product


Ways to Augment the product to
customer satisfaction.
WHY i

It Starts with an Identity

Once upon a time
In 1998, Apples first product was iMac
computer
i stood for Internet to which the iMac could
easily be connected
iPod, iPhone, iPad, iMovie etc
Video Sharing
Brand
Products identity that set it apart from other
players in the same industry
Represent the combination of elements
i.e. product name, symbol, design, reputation,
and image.

Brand Equity
The differential effect that knowing the brand
name has on customer response to the
product or its marketing
The overall value of a brand to an
organization- the extra $$ that consumer will
spend to buy that brand
Strong brand can create financial & non
financial advantages to its organization

Qualtrics Brand Equity
http://www.qualtrics.com/university/researchsuite/research-resources/survey-types/market-surveys/brand-management-surveys/
Brand Awareness
The % of a target population who know a
company exists and what products or services
the company offers
No brand awareness = No/Less consideration
to buy the product
Sophisticated company & product name-
Strong ability to attract new customers and
retain current market share

Brand Associations
The attributes of brand which come into
consumers mind when the brand is talked
about
Internet survey from 300k users done by
brandtag.com



Battle of Brand Association





Perceived Quality

The customer's perception of the overall quality
or superiority of a product or service

Not only should products look elegant & timeless,
they should work the way you think they should-
simply & effectively

Trustworthiness & Reliability



Perceived Quality

Apples perceived quality:

1. They didnt use release dates
# not driven by competition; but the quality of its
products

2. They dont sell their products based on
specifications; they do it based on the experience
# how its products can make life beter?
# benchmark by which others are measured
Perceived Quality

3. A simplified product line
# one version of iPhone
# Were always thinking about new market we could
enter, but its only by saying no thay you can concentrate on the
things that are really important
Quoted by Steve Jobs-
4. Intuitive products
# used by a wide variety of people
Brand Loyalty
Consumers commitment to repurchase or continue
using the brand
Demonstrated by repeatedly buying a product or
service from the same supplier
Made up from customers perceived value, brand
trust, satisfaction in LONG RUN

Advantages:
Positive effect on companys profitability
Longer loyalty as a customer
Lower sensitivity to price increases


Best Global Brand 2013
http://www.interbrand.com
The End ;)

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