module 6 products brands and npd final.pdf

7/27/2019 Module 6 Products Brands and NPD FINAL.pdf

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CRICOS Provider Code 00301J

MM555Module 6 Product Development

Source: http://www.forbes.com/sites/sap/2012/12/03/6-steps-to-executing-a-content-strategy/





Session Outline

Welcome Review of Module 5

Internal Classes - Activity

Digging Deeper

Module 6: Products, Brands and New Products

Development

Break

Learning Activity

Next Steps

Marketing plan group time





Review Module 5: Learning Objectives

1. Be able to distinguish among the various types of businessmarkets

2. Identify the major characteristics of business customers

and transactions3. Understand several attributes of the demand for business

products

4. Become familiar with the major components of a buyingcentre

5. Understand the stages of the business buying decisionprocess and the factors that affect the process





DIGGING DEEPER

In the News; Out of Academia; Around the Grounds

“In each Module we encourageyou to hunt out the latest news;

explore the research and scansocial media for what’s new,what’s important and what haspiqued your interest on the topicof marketing”





…..What Caught Your Eye This Week?

Source: http://thisweekin.com

http://www.news.com.au/technology/gaming/sony-set-to-launch-playstation-4-in-new-york/story-e6frfrt9-1226582304957

http://www.news.com.au/technology/gaming/sony-set-to-launch-playstation-4-in-new-york/story-e6frfrt9-1226582304957





http://www.abc.net.au/news/2013-02-12/nz-coke-death/4515008

http://www.geekologie.com/2013/02/coke-kills-woman-dies-from-too-much-coca.php




CRICOS Provider Code 00301J 21/02/2013 ABC News

http://www.abc.net.au/news/2013-02-21/telstra-confirms-mass-sensis-job-losses/4531902





This Week’s Reading….…..Which Ideas Will You Hold Onto?

Luan, Y.J. and K. Sudhir. 2010. Forecasting marketing-mix

responsiveness for new products. Marketing Research 47 (3):

444-457.

Bryce, D. and J. Dyer. 2007. Strategies to crack well-guarded

markets. Harvard Business Review 85 (5): 94-92.

Can you think of some

examples of effective

strategies in competitive

markets?

http://eres.lis.curtin.edu.au/cgi-bin/gw?url=dc60266973












Module 6: Learning Objectives

1. Define ‘product’ and product attributes

2. Outline how an organisation can differentiate its products to

obtain a competitive advantage3. Explain the value of branding brand management

4. Briefly review the concept of the product life cycle &

marketing implications

5. Discuss the new-product development process and themajor considerations in managing this process





MODULE 6: PRODUCT

Customers rarely buy what the business thinks it sells. One reason

for this is, of course, that nobody pays for a ‘product’. What is paid

for is satisfaction.......Drucker (2010)

M k i M F k





Marketing Management Framework

The MM555 Marketing Management Framework drawson a number of sources including Iacobucci (2013),

Armstrong et al (2012) and Gibbs (2009) and includesthe key factors which need to be taken into accountwhen developing a comprehensive marketing strategy.

Create Value

Product / Service

People

Processes

Physical Evidence

Capture Value

Price

CommunicateValue

Integrated MarketingCommunications

(includingPromotion)

Deliver Value

Placement Logistics

Customer Consider factors suchas decision making,

values, needs &wants

CompanyOr organisation. What

is our StrategicPurpose? Capabilities?

Weaknesses?

ContextWhat’s going on in

the macroenvironment?

CollaboratorsWho do we work with?Who are our partners?

CompetitorsWho are our current

and potentialcompetitors? Whereare they placed in the

market?

SegmentationBased on geographic,

demographic,psychographic and/or behavioural factors

TargetingConsider strategic fit;

potential and defensibilityagainst competition

Analysis &Strategy

Planning &Implementation

PositioningYour place in the market space

Core benefit propositionUnique selling proposition

Positioning Statement

DifferentiationDifferentiating the marketoffering to create superior

customer value

Implementation, Monitoring &Measuring Outcomes

Marketing is

about creating

customer value

and profitable

customer

relationships

Marketing Objectives





A Product Defined

A good, a service, or an idea received in an exchange

Can be tangible (good) or intangible (service) or a combination of both

‘products’ versus ‘services’

It includes functional, social, and psychological utilities or benefits

A good is a tangible physical entity (or thing)

Laptop, desk, book, vehicle or house

A service is a mostly intangible result of the application of

human and mechanical efforts to people or objects

Entertainment, education, medical examinations, real estate or

business services

An idea is a concept, philosophy, image, or issue

Political, religious, social or secular activities can all be communicated

to try to gain acceptance

What is a Product?





Total product concept

1

• Describes the core product, expected product, augmented product

and potential product in order to analyse how the product creates

value for the customer.





Consumer Products

• Consumer product categories

Convenience products

• Inexpensive and frequently purchased

Shopping products

• Buyers willing to expend considerable effort in planning andmaking the purchase

Specialty products

• Possess one or more unique characteristics and buyers arewilling to expend considerable effort to obtain them

Unsought products• Purchased when a sudden problem must be solved, customers

are unaware of them and do not usually think of purchasingthem

William Pride, OC Ferrell, Bryan Lukas, Sharon Schembri and OutiNiininen 2011 Marketing Principles Asia Pacific Edition CengageLearning





Classifying Products

Convenience product and shopping product

An ice cream bar is a convenience product. Hotels are shopping products






Business Products

Products bought to use in an organisation’s

operations, to resell, or to make other productsInstallations - facilities and non-portable equipment Accessory equipment - not part of final productRaw materials - natural materials part of productComponent parts - finished items ready for assembly or need little processingProcess materials - used in production but notidentifiableMRO supplies - maintenance, repair, andoperating items not part of final productBusiness services - intangible products used inoperations






Classifying Products

Business product

Boeing aircraft are products designed for use by business customers






Product Line and Product Mix

•Product item

‒ A specific version of a product that can be designated as a distinct offeringamong a firm’s products

•Product line ‒ A group of closely related product items viewed as a unit because of marketing, technical or end-use considerations

•Product mix ‒The total group of products that an organisation makes available tocustomers

•Width of product mix

‒The number of product lines a company has

•Depth of product mix ‒The average number of different product items offered in each product line






The Four Stages of the Product Life Cycle

• By understanding the typical life cycle pattern, marketers canmaintain profitable product mixes





Packaging

• Involves the development of a container and a graphic

design for a product• Packaging Functions

–Protect the product from damage

–Offer convenience to consumers

–Prevent waste and make storage easier –Promote the product by communicating its features and uses

Convenience

packaging

Outback spiritcompetes by

designing packages

that are convenient to

use, and reusable

New packaging

Altering thepackage - Cadbury was

very successful inchanging the Fun FilledFreddo into an AdventureFreddo, with muchmore economicalpackaging





BRAND STRATEGIES

How to stand stand out from the competition

Source: The Brand Agency W oodside Internal Marketing Campaign 2013

http://www.brandagency.com.au/Work/Woodside---Not-Easy





Brands are Big Business ! “..the combined value of Australia’s 30 most

valuable brands (was)$50.7 billion, a 1% fall

from 2011.”BrandFinance Australia Top 30 in 2012

http://www.interbrand.com/en/best-global-brands/2012/Best-Global-Brands-2012-Brand-View.aspx

http://brandirectory.com/league_tables/table/australia-30-2012





Request our servicesand brand

More acceptance of new brand services

Refuse substitutes

Revenue increases

External Benefits of Building Strong Brands

Minimal consideration

of other brands

Ready to pay apremium price

Brandrecommendation

Clarity in externalfocus & brand

execution

Cost decreases

Customer Benefits

(Davis & Dunn 2002)





more attractivelicensing candidate

Protection againstprice wars

Premium Pricing vs.competitive products

More attractive topotential co-brandingpartners

Greater newproduct/servicesuccessRevenue increases

Internal Benefits of a Strong Brand

Drives profitability

Employee pride inservice

Magnet for recruiting

Garner Loyalty

Mitigate brand crisismore effectively

Better leverage with

channel partners

Clarity in internalfocus & brand

execution

Cost decreases

STRONG

Brand

(Davis & Dunn 2002)





Creating and Managing Brands

EstablishBrand

Strategy and

Architecture

Determine

Governance

Structure

Definethe

Brand’s

Identity

Establisha

Distinctive

Positioning

Align

All

Touchpoints

Measureand

Report

Progress

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6

Internal branding comprises activities and processes that help

to inform and inspire employees.





Single Brand Architecture

A Branded House

Single Unitary Brand

Architecture used to createa single powerful image

Multiple Brand Architecture

House of Brands

Favoured by decentralised

companies targetingdiverse markets.

Establish

Brand

Strategy and

Architecture





Brand 360°

Align

All

Touchpoints

Ensure that all customer touch points are branded(Image Source: redtiemarketing )

Also consider:• Product Experience• Policies and Processes

• HR Practices• Crisis Management• Corporate Facilities• Internal Processes

http://www.redtiemarketing.com/page-touch-points.html







When high valuebrands fall short of delivering on highexpectations…

They create newsof the other sort……

Source: Google Image result for “BP logo”, 2013

Breaking the Brand Promise





NEW PRODUCT DEVELOPMENT

It is not how many ideas you have. It’s how many you make happen. Accenture (2012)





Larson T 2011 Product Development Research Group Web page http://www.bth.se/ing/pi.nsf/pages/pd Downloaded 18/02/13

http://www.bth.se/ing/pi.nsf/pages/pd







Module 6: Learning ObjectivesChecking In…..

1. Define ‘product’ and product attributes

2. Outline how an organisation can differentiate its products to obtain a

competitive advantage

3. Explain the value of branding brand management

4. Briefly review the concept of the product life cycle & marketing implications5. Discuss the new-product development process and the major considerations

in managing this process.





15 min Break

32

N t St F2F



Curtin University is a trademark of Curtin University of TechnologyCRICOS Provider Code 00301J

Next Steps – F2F

Review the Material for Module 7: Services Marketing

Be prepared to tell a good/bad service experience story Complete the required reading. Short of time? Focus on Ford & Dickson 2012

o Ladhari, R. 2009 "A review of twenty years of SERVQUAL research",International Journal of Quality and Service Sciences, Vol. 1 Iss: 2, pp.172 –

198 o Grönroos, c. and Ravald, A. 2011 "Service as business logic: implications for

value creation and marketing", Journal of Service Management, Vol. 22 Iss:

1, pp.5 – 22

Case preparation

Don’t forget to Dig Deeper!

Focus

N t St O li



Curtin University is a trademark of Curtin University of TechnologyCRICOS Provider Code 00301J

Next Steps – Online

Review the Material for Module 7: Services Marketing

Refer to the Weekly Newsletter for areas to Focus on Complete the required reading. Short of time? Focus on Ford & Dickson 2012

o Ladhari, R. 2009 "A review of twenty years of SERVQUAL research",International Journal of Quality and Service Sciences, Vol. 1 Iss: 2, pp.172 –

198 o Grönroos, c. and Ravald, A. 2011 "Service as business logic: implications for

value creation and marketing", Journal of Service Management, Vol. 22 Iss:

1, pp.5 – 22

Don’t forget to Dig Deeper!

Focus

module 6 products brands and npd final.pdf

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