Marketing

Table of Contents

1. Topic pack - Marketing - introduction
2. 4.1 The role of marketing - notes
3. 4.1 The role of marketing - questions
4. 4.2 Marketing Planning - notes
5. 4.2 Marketing planning - questions
6. 4.3 Product introduction - notes
   1. Product
   2. Classification of products
   3. The total product and Marketing Myopia
   4. New product design and development
   5. New Product Development: Invention and Innovation
   6. Product development: the good, the bad and the ugly
   7. New product development
   8. New product development - case study
   9. Product life cycle
   10. Product life cycle - interactive diagram
   11. Product life cycle - case study (1)
   12. Product life cycle - case study (2)
   13. Product life cycle - case studies (3)
   14. Product life cycle - extension strategies
   15. The product life cycle & cash flow
   16. The product life cycle and product diffusion
   17. Product adoption - case study
   18. Product portfolio analysis
   19. The Boston Consulting Group (BCG) matrix
   20. Using the BCG matrix
   21. Branding
   22. The importance and role of branding
   23. Branding - activities
   24. Brand development
   25. Brand loyalty
   26. Types of branding
   27. Global Brands
   28. Marketing blunders
   29. Brand-as-person
7. 4.3 Product - questions
8. 4.3 Product - simulations and activities
9. 4.4 Price - notes
10. 4.4 Price - questions
11. 4.4 Price - simulations and activities
12. 4.4 Promotion - notes
13. 4.5 Promotion - questions
14. 4.6 Place (distribution) - notes
15. 4.7 International marketing - notes
16. 4.7 International marketing - questions
17. 4.8 E-commerce - notes
18. 4.8 E-commerce - questions
19. Printable version

Product

One of the main aims of any firm is to mark themselves out from other firms and ensure that their product is, or appears to be, different or even unique. This is termed product differentiation and it is something all companies are striving for. Product differentiation is the basis of a Unique Selling Point or Proposition (USP).

Product differentiation

This is when a producer tries to make their products significantly different from their rivals, or at least to persuade consumers that there is a fundamental difference worthy of staying loyal to the brand and/or paying more.

A firm may differentiate itself from competitors by:

• providing a better service such as better in-sale and after-sale services. This may include home delivery by a supermarket, extended guarantees and a range of financial offers such as credit.
• looking different by focusing on specific features which make the firm distinctive and recognisable. Marketing departments, for example, spend considerable time and money on features such as colour of products, logos and trademarks, design, shape or the convenience of products and outlet layout.
• branding - here the company builds a certain image into its products. Name association, presentation awareness, personality links seek to maintain product and corporate awareness.

A strong corporate identity and customer loyalty provides the firm with a range of opportunities such as premium pricing.

Product

What can a firm do to increase its appeal and uniqueness? It can try to:

• Improve quality - a firm needs, if possible, some new angle or development that differentiates its e-reader, smartphone or whatever from the rest. Quite often it's what customers perceive to be 'quality' that matters. Why do people wait years for two to three years for certain supercars like a Ferrari or a Rolls Royce to be specially made for them? Why pay more for certain designer labels?
• Features - these are characteristics or elements of a product that may help to differentiate it from others, the extras and add-ons.
• Colour - Customers relate to certain colours in scientifically proven ways. Colour is normally a major part of a firm's marketing mix. Indeed, some colours are closely associated with a particular brand in a market segment. Shell, for example, uses red and yellow, while BP concentrates on green. Cigarette manufacturers are heavily restricted in how they can advertise, but the use of colour can be closely associated with a brand and then displayed in a variety of ways that attempt to circumvent restrictions. Formula One cars, for example, carry the colours of their tobacco sponsors. Perhaps the strongest customer preferences and opinions relate to the choice of car colours.
• After sales service - customers don't like their products to break, so an extended warranty period and a wide-ranging after sales service may encourage purchase of one brand in preference to another.
• Size - perhaps it does matter! Customers normally seek value for money. Some products are sold as king-size, which we understand to be larger than average. Yes, but what is average? Other products are sold as small and we like this. The market has to establish customer expectation and then build on this. We seem to be attracted to 25% extra or 3 for the price of 2 as we perceive this to really be 'something for nothing'.