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Market research reveals

What consumers want and points towards


2 questions before developing

a new product:

1. can we produce it

Production team answers:

1. can we produce it

2. can we sell it

2. costs
For many businesses product
development is infrequent

Once the business is underway

In the case of most successful An ongoing marketing activity

businesses product
development is
Cooperation between
marketing and production is

complex and constant

Feasibility study

To determine if a business opportunity is possible,

practical and viable

Who performs feasibility


All businesses

Invention or Innovation
Product development begins An idea that is based on solving a problem for
Necessity is the mother of invention

Inventions are

New devices, methods or processes developed from

study or experimentation

Businesses use invention to

Create original solutions to consumer needs

Innovation is

A product or service that uses new technology, items, or

process to change:
1. existing products
2. methods used to produce products
3. ways to distribute them

There are many more

Innovators than there are inventors

Most innovations develop as a Competitive market

result of the

Tracking packages for shipping

Stages of Product Development

Inventors tend to

Sell or license their ideas to others who know how to

develop products for the marketplace

Innovators on the other hand marketers

are more likely to be
Stages of product

1. idea generation

2. idea screening
3. concept development
4. market strategy
5. feasibility study
6. product design
7. test marketing
8. Market Entry


Sample of what the product might look like and operate

Market strategy discovers:

Primary and secondary market

Feasibility is closely tied to

what other stages?

Product design takes into

account the preferences of

1. market strategy
2. product design
Primary market

Test marketing often includes A survey

Product Development and Utility


What is added to the product to make it valuable on the

Utility affects


The value equation by providing consumers with

something they did not have before
1. form
2. information
3. place
4. time
5. possession


What the product is intended to do

Form follows function means: The products looks will be dictated by what its
intended to do
Components of the Form

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

Information utility

Provides consumers with instructions, directions,


Place utility

Makes it possible for consumers to purchase the product

Time utility refers to

Making the product available when consumer needs it

Possession Utility

When they are easy to purchase

How can we increase

possession utility

1. payment plans
2. lower price

.1 - Positioning and Branding

Perception is Reality

Positioning allows us to

Create an image, the outward representation of the person

we want to be

Positioning by others can

lead to

Misunderstandings and limited choices

Marketers too make choices How to position their product or service

These choices mean

That the brand will appeal to some people and not to


6.2 - Types of Positioning

5 Types of positioning:

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

Benefit positioning

Customers want the product they buy: to do something

for them

Often a company will

position its products or
service as being

One that offers consumers more benefits than competitors

Problem with benefit


Competition can do the same

Price Positioning

Marketer is faced with 2 options when using price for

1. cheapest
2. most expensive

If a marketer chooses a price in the middle range, they must use a different positioning
A luxury good offers

Status more than quality

Consumers of luxury
products want

The product to be expensive

Examples of luxury items

1. caviar
2. diamond watches
3. expensive ties

Many consumers are willing Quality

to pay high prices for
Manufacturers who use
price positioning with the
promise of quality must

Be sure to provide it

It is possible that if a
The product is of inferior quality.
product boasts the same
features but less expensive

consumers will think

Distribution Positioning

1. Avon
2. Amazon

Service Positioning

1. convenience stores
2. free installation

Ikea uses price and service Low price, less service because products not assembled
in combination.

6.3 How to Position a Product

The initial positioning

Marketers have to be prepared to alienate some consumers

Businesses may decide that It doesnt want!

there are some consumers
Some companies try to be Examples:
all things to all consumers
1. nike
2. apple
3. Car manufacturers
Clear and coherent

If consumers dont know: they wont go!

A company that does not

position its product in a
distinctive manner will

Consumers have no reason to choose it over a competitors

6.4 Branding
Business creates a brand forA distinct identity
a product to give it

Product Differentiation

To keep consumers from confusing it with

1. branding
2. advertising
3. positioning

A brand consists of

All the features that make up the products image

1. name
2. logo
3. slogan


Unbranded products

Why dont farmers need to They sell stuff like potatoes, lettuceall the same
engage in marketing
Commodity marketing is
usually conducted by:

Marketing boards

Marketing boards try to

Brand Names

Increase the overall consumption of the commodities

1. corporate dominant
2. product dominant

Corporate dominant

1. Roots
2. Mastercraft
3. Presidents Choice
4. Kelloggs
5. Nike

Product Dominant

1. Zest
2. Kodiak
3. Luvs


Symbolic ways to create a brand

1. trademarks
2. trade names
3. brand marks
4. logotypes
5. symbols

3 types of logos:

1. monogrammatic

2. Visual Symbols
3. Abstract Symbols

Short catchy phrase that is always attached to the

companys name and logo

How many words should a 7

slogan have?

Brand Strategies

Brand Strategies

1. Support
2. Develop Extension
3. license
4. co-brand
5. acquire

Once a brand has been reposition

positioned it is very hard
When is it feasible to

Introducing into foreign market

Brand Extension

Capitalize on other brands success


1. coke/diet coke
2. Humpty Dumpty chips/Cheezys
3. Nike apparel/golf clubs

Licensing: similar to

Brand extension but for a fee license to other


Famous people even



Co-Branding: when two Or more brands combine

Acquisition of a
successful brand

If you cant beat em, buy em!

Branding for International Markets

The Internet connects

3 choices when going

Consumers and businesses around the globe

1. leveraging positive reputation and use the same
brand identification
2. rename to reflect local culture and market
3. acquire local brand

Factors when choosing:

1. Centralized or not? If centralized, stay the same

Glocal means:

Thinking global but acting local

2. Expansion Strategy If wants to go global, build on original, but if wants

limited trade, acquire or rename
3. Corporate Identity

Strong international identity would lead to keeping it,

otherwise change or merge

4. Similarity of

If the product mix is narrow it is easier to push it into

foreign markets

5. Similarity of marketsThe more similar the market is to your own the easier
it is to push the same product
6. Competition in
foreign markets

Joint ventures or buyouts best if heavy competition


7. Cultural

If bad blood exists, use different brand or


8. Changing Dynamics Brand can be local one day and international the next