UD10 MARKETING MIX: THE PRODUCT

Transcription

1 UD10 MARKETING MIX: THE PRODUCT

2 Marketing mix

3 10.1. Initial aspects to consider There are two types of variables that affect the company: Uncontrollable and Controllable. The outside of the company is uncontrollable although can be analyzed. The inside of the company has 4 controllable: Product, Price, Advertising and Distribution

4 Remember! We must adapt our product to the needs of each client.

5 Remember! Clients project psychological attributes on the products or companies. Do you have a clear idea of your personality as company? The personality of your product? If you are already working what s your position in client s mind and what s the position you want?

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7 10.2. Differences between products and services

8 PRODUCT Tangible Is made Client not present First made, later sold Is distributed Ownership Easy to standardize You can try it in advance Can be returned Easy to compare Can be stored and sold another day SERVICE Intangible Is offered Client present Made, and sold simultaneously Not distributed Only use Difficult to standardize You can t try it in advance Can t be returned Difficult to compare Can t be stored. Must be sold in the day

9 10.3. CYCLE OF LIFE

10 OBJECTIVES NUMBER OF CLIENTS INTRODUCTION GROWTH MATURITY DECLINE GET THE PRODUCT KNOWN BRAND PREFERENCE BRAND LOYALTY SMALL BIGGER A LOT SMALL TYPE OF CLIENTS Innovators Fast Majority Majority Rebels COMPETITORS A FEW SOME A LOT A FEW SALES SMALL GROWING STEADY SMALL GET SELECTED SEGMENTS PROFIT BIG BIG SMALL SMALL OR BIG! PRODUCT Original Improved Differenciated Imitated DISTRIBUTION FEW CHANNELS SELECTED CH. ALL CH. SELECTED PRICE HIGH HIGH (lower) LOW LOW OR HIGH! ADVERTISING Explain the product Explain differences with competitors Loyalty, Remembe r Low Maintenance

11 10.4. Product strategy

12 Single brand

13 Multiple brands

14 Secondary brands

15 Secondary brands Group BSH brands: - Bosch - Siemens - Balay - Gaggneau - Neff - Ufesa - Lynx - Other countries: [Grecia]: Pitsos; [Turquia]: Profilo; [Perú]: Cóldex, Thermador, Constructa, Viva, Junka, Zelmer

16 Secondary brands Group ELECTROLUX: 1ª brand, ELECTROLUX. 2ª brand: AEG, ZANUSSI, CORBERÓ Y FRIGIDAIRE. Group FAGOR. 1ª Brand, FAGOR (en España), in France: BRANDT. Second brand: EDESA, ASPES, DE DIETICH.

17 Distributor brand

18 Alliance brand

19 10.5. Types of products

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21 10.6. PRODUCT LEVELS

22 10.6.A. BASIC PRODUCT INCLUDES CORE PRODUCT: The dominant benefit or satisfaction that a customer expects from a good or service he or she buys. (coffee) FACILITATING PRODUCTS. The ones that must be present to use the core product. (cup, spoon, plate, sugar) ACTUAL PRODUCT: Location, athmosphere, decoration, style, brand image, other clients

23 10.6.B. SUPPORTING PRODUCTS COMPLEMENTARY GOODS, ADD-ONS Added to differenciate from competitors. Free of charge for the client, small gifts (chocolate in a coffee, wifi )

24 10.6.C. SECONDARY-CLOSED (Often called PERIPHERAL products) The value of some products can be enhanced with add-on products that the client must pay separately but just available for users of the basic product. Minibar at a hotel, wifi, guarantee, customer service, a swimming pool in a hotel, etc.

25 10.6.D. SECONDARY OPEN Often called DERIVATIVES. They are extras but available for anyone client or not. Usually items that make the main product easier to use (laptop carrybag), enhance styling (cellphone cases) or extend functionality (portable keyboard for tablet devices) or secondary services (a restaurant in a hotel, food in a gas station, etc.)

26 > Remember < Very often companies get more benefits from secondary products than basics

27 10.7. SERVUCTION

28 10.7.A. DEFINITION Organization in a systematic and coherent way of physical and human elements necessary for giving a service of predetermined characteristics and quality (Eiglier and Langeard, 1989)

29 It represents all the material and human elements used as well as the activities deployed to design, create and develop the service that a company wishes to propose in the market, according to a chosen quality level.

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31 The concept of servuction emphasizes the importance of the process. The service, as a result, can not be separated from the way in which it is provided.

32 The simultaneous production, consumption and distribution of a service has several consequences: on the one hand, the quality of the interaction between the customer and the company is decisive for the success of serving, On the other hand, the customer participates in the production of the service, and finally the interactions occur between the customers who consume the service. The term "servuction" is often associated with the expression "production of services".

33 Basically, the servuction model illustrates all the factors that influence the consumer s service experience, both visible and invisible. The invisible factors considered in a servuction model include the things that happen within the organization that the consumer does not necessarily see, but affects their experience. These may include company policies, rules and guidelines, or a company s core values. The visible factors include the environment, the service providers, and other consumers. Very good examples of these would be the way a physical store is designed and kept organized. Another example would be the way a brand s frontliners talk to their potential clients.

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35 10.7.B SERVUCTION ELEMENTS Three sets of elements are required for the production of a tangible product: Human Resources, Machines Raw materials. The product is the result of the interaction of these elements, but not in an arbitrary way, but with reactions defined in advance.

36 The service is the result of the interaction of three basic elements: the client, the physical support and the staff in contact In the background, the coordination of the organization's internal organization system and the presence of other clients.

37 Staff We can differentiate between contact staff invisible staff

38 Physical support It refers to the use of any physical evidence to design service environments. Physical support can be divided into two categories: Instruments and tools necessary for the service (technology, furniture, etc.) any non-living thing you need to give the service. The environment (the building, the decoration, lights, doors, elevators,...)

39 The costumer The customer is involved in the creation of the service. Its presence is absolutely necessary

40 Internal Organization System It is therefore constituted by all the classic functions of the company: finance, marketing, personnel, supplies, cleaning, etc. Which affect the final service even if the customer does not see them.

41 Other clients When it comes to services to the general public, the provision is usually not isolated, but services are offered to several clients simultaneously.

42 All of them usually have the same type of relationships with the staff in touch and with the physical support, but also a relationship will be established between clients since they are together in the same place.

43 10.8 SERVICE STANDARDIZATION A. Define exactly and clearly the concept of the service to be offered B. Define maximum capacity. Remember: As we approach maximum utilization quality decreases. C. Define the structure of the service: basic, support and secondary (open or closed) D. Create a Service Diagram

44 Service delivery diagram model Service Delivery Diagrams Allow managers and employees to better understand the servicing process, specially when there are new workers. Allow establishing quality controls. Help standardizing service.

45 Service Delivery Diagram Model Time line Client actions Physical evidences Visible Staff Invisible staff Internal Organization Maximum capacity

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