powerpoint slides to accompany rix marketing: a practical approach 7e
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PowerPoint Slides to accompany Rix Marketing: A Practical Approach 7e
• Core product = ability to satisfy wants1. Can capture memories2. Opportunity for self-expression• Actual product
= what it is and does1. Well-made2. Light and stylish3. Attractive packaging
What is a Product?
Rix Marketing: A Practical Approach 7e Next: Classifying Consumer GoodsChapter Seven: Product Planning and Development Learn more on pages 239 – 241
• Augmented product = extras1. Brand status and retailer reputation2. Before and after-sales service3. Warranty
Rix Marketing: A Practical Approach 7e Next: Classifying Consumer GoodsChapter Seven: Product Planning and Development Learn more on pages 242 - 246
Classifying Consumer GoodsCategorising products can help guide product management strategies
• Convenience goods1. Groceries, snack foods, socks/undies, stationary2. Low unit value3. Usually frequently purchased4. Low involvement in brand or price comparison5. Substitute readily accepted
All elements of the marketing mix are important, but which of the
four Ps is critical for convenience goods?
Place (distribution): because if our brand is not on the shelf, the
consumer will readily accept a substitute.
Rix Marketing: A Practical Approach 7e Next: Classifying Consumer GoodsChapter Seven: Product Planning and Development Learn more on pages 242 - 246
Classifying Consumer Goods
• Shopping goods1. White goods, most cars, furnishings, clothing2. Higher unit value3. Less frequently purchased4. Consumer compares price and other features
Which element(s) of the four Ps is critical if we are marketing
shopping goods?
Price: because consumers shop around for the best deal, and
Promotion: especially combined manufacturer and retailer
promotions
Rix Marketing: A Practical Approach 7e Next: Classifying Consumer GoodsChapter Seven: Product Planning and Development Learn more on pages 242 - 246
Which element of the four Ps is critical if we are marketing
specialty goods?
Product: because the quality, style or brand is what has made
the product a sought-after specialty good
• Specialty goods1. Luxury items, specialty stereo, unique cars2. Usually high unit value3. Very high involvement in purchase4.Very high brand or outlet loyalty
Classifying Consumer Goods
Rix Marketing: A Practical Approach 7e Next: Classifying Business GoodsChapter Seven: Product Planning and Development Learn more on pages 242 - 246
Classifying Consumer Goods
Which element of the four Ps is critical if we are marketing
unsought products?
Promotion: because consumers are either unaware of the
product or don’t actively seek it out.
• Unsought goods1. Consumer is not aware of product, or2. Consumer has to be shown the need
Rix Marketing: A Practical Approach 7e Next: Classification of ServicesChapter Seven: Product Planning and Development Learn more on pages 246 - 250
Classifying Business Goods
• Raw materials• Fabricating materials and parts• Installations• Accessory equipment• Operating supplies
Each of these also has some relevance for B2B marketing
strategy (See Table 7.1)
Rix Marketing: A Practical Approach 7e Next: Developing New ProductsChapter Seven: Product Planning and Development Learn more on pages 250 - 251
Classification of Services
• B2B v B2C• Extent of physical good involved• Capital investment required • Delivery method• Degree of customer involvement
Each of these is relevant for services marketing strategy (See
also Chapter 9)
Rix Marketing: A Practical Approach 7e Next: New Product Adoption and DiffusionChapter Seven: Product Planning and Development Learn more on pages 252 - 259
Developing New Products
Identify the
strategic role of
the new products
1. Idea generation
2. Screening and evaluation of ideas
3. Business analysis
4. Product prototype development
5. Test marketing 6. Commercialisation
CONCEPT TESTING
Rix Marketing: A Practical Approach 7e Next: Stages in the Adoption ProcessChapter Seven: Product Planning and Development Learn more on page 260
New Product Adoption and Diffusion
1. Stages consumers go through in adopting a new line
2. Types of consumers who adopt new products early or late
3. Factors affecting the adoption rate of a new product
Success with a new line is more likely if three aspects of the adoption process are
understood
Rix Marketing: A Practical Approach 7e Next: Adopter CategoriesChapter Seven: Product Planning and Development Learn more on page 260
Stages in the Adoption Process
1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Adoption
6. Post-adoption confirmation
Consumer is exposed to the new line
Consumer looks for information
Consumer compares the new line to alternatives
Consumer buys one or tries a sample
Consumer buys on a regular basis
Consumer looks for re-assurance in ads or others’ opinions
Rix Marketing: A Practical Approach 7e Next: Innovations Can Have Different Adoption RatesChapter Seven: Product Planning and Development Learn more on page 261
Adopter Categories
Consumers adopt products at different stages of its life cycle.
Marketers target early groups who ‘educate’ other consumers.
Innovators(very small group)
Early adopters
Early majority
Late majority
Laggards
Innovations Can Have Different Adoption Rates
Rix Marketing: A Practical Approach 7e Next: Factors Affecting the Adoption RateChapter Seven: Product Planning and Development Learn more on page 261
Rix Marketing: A Practical Approach 7e Next: Product Life CycleChapter Seven: Product Planning and Development Learn more on pages 260 -263
Factors Affecting the Adoption Rate
Why the difference in adoption rate?
• Relative advantage• Compatibility• Complexity• Ability to trail• Ability to observe
50% market penetration in
2 years
50% market penetration in
20 years
Rix Marketing: A Practical Approach 7e Next: Planned ObsolescenceChapter Seven: Product Planning and Development Learn more on pages 263 269
Product Life Cycle
Introduction• Costs high, sales low• Gaining distribution is key task• High risk of product failure
Growth• Sales increasing• Competition increases• Competitive promotion is key task
Maturity• Sales slow• Margins fall• ‘Extra reason to buy’ product improvement and promotion is key task
Decline• Consider deletion• Cost control is key task
Rix Marketing: A Practical Approach 7e Next: Five Minute Quiz Chapter Seven: Product Planning and Development Learn more on pages 270-271
Planned Obsolescence
Planning for a product to ‘die’ is a controversial aspect of product management. Two types of obsolescence:
1. Technological or function obsolescence
• New materials• Miniaturisation• Improved functions
2. Fashion or style obsolescence
• Shapes• Colours• Superficial improvements
Five Minute Quiz
1. List three categories each of consumer goods and business goods
2. List the steps for developing a new product3. List the stages in the new product adoption
process4. List five factors than can affect the
adoption rate for a new product5. Briefly outline the stages in the
product life cycle
Rix Marketing: A Practical Approach 7e Chapter Seven: Product Planning and Development
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