Marketresearchreveals

Whatconsumerswantandpointstowards
opportunities

2questionsbefore
developinganewproduct:

1. canweproduceit
2. canwesellit

Productionteamanswers:

1. canweproduceit
2. costs

Formanybusinesses
productdevelopmentis
infrequent

Oncethebusinessisunderway

Inthecaseofmost
successfulbusinesses
productdevelopmentis

Anongoingmarketingactivity

Cooperationbetween
complexandconstant
marketingandproductionis

Feasibilitystudy

Todetermineifabusinessopportunityis
possible,practicalandviable

Whoperformsfeasibility
studies

Allbusinesses

InventionorInnovation
Productdevelopmentbeginswith

Anideathatisbasedonsolvingaproblemforconsum

Necessityisthemotherofinvention

Inventionsare

Newdevices,methodsorprocessesdevelopedfromst

experimentation

Businessesuseinventionto

Createoriginalsolutionstoconsumerneeds

Innovationis

Aproductorservicethatusesnewtechnology,items,
change:
1. existingproducts
2. methodsusedtoproduceproducts
3. waystodistributethem

Therearemanymore

Innovatorsthanthereareinventors

Mostinnovationsdevelopasaresultof
the

Competitivemarket

Example

Trackingpackagesforshipping

StagesofProductDevelopment
Inventorstendto

Sellorlicensetheirideastootherswhoknowhowtod
themarketplace

Innovatorsontheotherhandaremore
likelytobe

marketers

Stagesofproductdevelopment

1. ideageneration
2. ideascreening
3. conceptdevelopment
4. marketstrategy
5. feasibilitystudy
6. productdesign

7. testmarketing
8. MarketEntry

Prototype

Sampleofwhattheproductmightlooklikeandoperat

Marketstrategydiscovers:

Primaryandsecondarymarket

Feasibilityiscloselytiedtowhatother
stages?

1. marketstrategy
2. productdesign

Productdesigntakesintoaccountthe
preferencesof

Primarymarket

Testmarketingoftenincludes

Asurvey

ProductDevelopmentandUtility

Utility

Whatisaddedtotheproducttomakeitvaluableonthe

Utilityaffects

Thevalueequationbyprovidingconsumerswithsome
havebefore

Types

1. form
2. information
3. place
4. time
5. possession

Function

Whattheproductisintendedtodo

Formfollowsfunctionmeans:

Theproductslookswillbedictatedbywhatitsintend

ComponentsoftheFormUtility

1. material
2. scent
3. flavour
4. colour
5. design
6. packaging

Informationutility

Providesconsumerswithinstructions,directions,manu

Placeutility

Makesitpossibleforconsumerstopurchasetheproduc

Timeutilityrefersto

Makingtheproductavailablewhenconsumerneedsit

PossessionUtility

Whentheyareeasytopurchase

Howcanweincreasepossessionutility

1. paymentplans
2. lowerprice

.1PositioningandBrandingPerceptionisReality
Positioningallowsusto

Createanimage,theoutwardrepresentationoftheperson

Positioningbyotherscanleadto

Misunderstandingsandlimitedchoices

Marketerstoomakechoicesabout

Howtopositiontheirproductorservice

Thesechoicesmean

Thatthebrandwillappealtosomepeopleandnottoothe

6.2TypesofPositioning
5Typesofpositioning:

1. Benefit
2. target
3. price
4. distribution
5. service

Benefitpositioning

Customerswanttheproducttheybuy:todosomethingf

Oftenacompanywillpositionits
productsorserviceasbeing

Onethatoffersconsumersmorebenefitsthancompetito

Problemwithbenefitpositioning

Competitioncandothesame

PricePositioning

Marketerisfacedwith2optionswhenusingpriceforpo
1. cheapest
2. mostexpensive

Ifamarketerchoosesapriceinthemiddlerange,theymustuseadifferentpositioningstrategy!

Aluxurygoodoffers

Statusmorethanquality

Consumersofluxuryproductswant

Theproducttobeexpensive

Examplesofluxuryitems

1. caviar

2. diamondwatches
3. expensiveties

Manyconsumersarewillingtopayhigh Quality
pricesfor

Manufacturerswhouseprice
Besuretoprovideit
positioningwiththepromiseofquality
must

Itispossiblethatifaproductboaststhe Theproductisofinferiorquality.
samefeaturesbutlessexpensive
consumerswillthink

DistributionPositioning

Examples:
1. Avon
2. Amazon

ServicePositioning

Examples:
1. conveniencestores
2. freeinstallation

Ikeausespriceandservicein
combination.

Lowprice,lessservicebecauseproductsnotassembled

6.3HowtoPositionaProduct
Theinitialpositioningpremise

Marketershavetobepreparedtoalienatesomeconsumer

Businessesmaydecidethatthereare Itdoesntwant!
someconsumers

Somecompaniestrytobeallthingsto Examples:
allconsumers
1. nike
2. apple
3. Carmanufacturers

Clearandcoherentpositioning

Ifconsumersdontknow:theywontgo!

Acompanythatdoesnotpositionits Consumershavenoreasontochooseitoveracompetitors
productinadistinctivemannerwill
discover

6.4Branding
Businesscreatesabrandfora
producttogiveit

Adistinctidentity

Why?

Tokeepconsumersfromconfusingitwithcompetitors

ProductDifferentiationincludes

1. branding
2. advertising
3. positioning

Abrandconsistsof

Allthefeaturesthatmakeuptheproductsimage

Includes:

1. name
2. logo
3. slogan

Commodities

Unbrandedproducts

Whydontfarmersneedtoengage Theysellstufflikepotatoes,lettuceallthesame
inmarketingactivities?

Commoditymarketingisusually
conductedby:

Marketingboards

Marketingboardstryto

Increasetheoverallconsumptionofthecommodities

BrandNames

1. corporatedominant
2. productdominant

Corporatedominant

Examples:
1. Roots
2. Mastercraft
3. PresidentsChoice
4. Kelloggs
5. Nike

ProductDominant

Examples:
1. Zest
2. Kodiak
3. Luvs

Logo

Symbolicwaystocreateabrand

Includes:

1. trademarks
2. tradenames
3. brandmarks
4. logotypes
5. symbols

3typesoflogos:

1. monogrammatic
Example:
2. VisualSymbols
Example:

3. AbstractSymbols
Example:

Slogans

Shortcatchyphrasethatisalwaysattachedtothecompany
andlogo

Howmanywordsshouldaslogan
have?

BrandStrategies

BrandStrategies

1. Support
2. DevelopExtension
3. license
4. cobrand

5. acquire

Onceabrandhasbeenpositioned reposition
itisveryhardto

Whenisitfeasibletochange?

Introducingintoforeignmarket

BrandExtension

Capitalizeonotherbrandssuccess

Examples:

1. coke/dietcoke
2. HumptyDumptychips/Cheezys
3. Nikeapparel/golfclubs

Licensing:similarto

Brandextensionbutforafeelicensetoothercompanies

Famouspeopleevenlicense

Themselves

CoBranding:whentwo

Ormorebrandscombine

Acquisitionofasuccessfulbrand Ifyoucantbeatem,buyem!

BrandingforInternationalMarkets

TheInternetconnects

Consumersandbusinessesaroundtheglobe

3choiceswhengoinginternational:

1. leveragingpositivereputationandusethesame
identification

2. renametoreflectlocalcultureandmarketprefe

3. acquirelocalbrand

Factorswhenchoosing:

1. Centralizedornot?

Ifcentralized,staythesame

Glocalmeans:

Thinkingglobalbutactinglocal

2. ExpansionStrategy

3. CorporateIdentity

Stronginternationalidentitywouldleadtokeepingit,
changeormerge

4. SimilarityofProducts

Ifwantstogoglobal,buildonoriginal,butifwantslim
acquireorrename

Iftheproductmixisnarrowitiseasiertopushitintof
markets

5. Similarityofmarkets

6. Competitioninforeignmarkets

Jointventuresorbuyoutsbestifheavycompetitionex

7. CulturalAssociations

Ifbadbloodexists,usedifferentbrandoracquire/merg

8. ChangingDynamics

Themoresimilarthemarketistoyourowntheeasier
thesameproduct

Brandcanbelocalonedayandinternationalthenext