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![3M – Producing more than 55000
Products
• The 3M Company : Minnesota Mining and Manufacturing
Company
• an American multinational conglomerate corporation
– operating in the fields of industry,
– health care,
– and consumer goods.[2]
– produces a variety of products, including
• adhesives, abrasives, laminates, passive fire protection, personal
protective equipment, dental and orthodontic products, electronic
materials, medical products, car-care products,[3] electronic circuits,
healthcare software and optical films.[4]
• In 2017, 3M made $31.7 billion in total sales.[2]
• The company has 91,000 employees[6] and has operations in
more than 70 countries.](https://image.slidesharecdn.com/lt-13product-thefirstpofmarketing-230531102731-ab4c563d/75/Lt-13-Product-The-first-P-of-Marketing-pptx-4-2048.jpg)
![Get a Pinterest account in[ pvatopservice ]sell regular every day.docx](https://cdn.slidesharecdn.com/ss_thumbnails/getapinterestaccountinpvatopservicesellregulareveryday-251030182004-67b5ef9f-thumbnail.jpg?width=640&height=640&fit=bounds)
Lt-13 Product- The first P of Marketing.pptx
- 1. Lecture 13 The FirstP of marketing : The Product
- 2. Product • Product –Basics • Product Lifecycle • New Product Development
- 4. 3M – Producingmore than 55000 Products • The 3M Company : Minnesota Mining and Manufacturing Company • an American multinational conglomerate corporation – operating in the fields of industry, – health care, – and consumer goods.[2] – produces a variety of products, including • adhesives, abrasives, laminates, passive fire protection, personal protective equipment, dental and orthodontic products, electronic materials, medical products, car-care products,[3] electronic circuits, healthcare software and optical films.[4] • In 2017, 3M made $31.7 billion in total sales.[2] • The company has 91,000 employees[6] and has operations in more than 70 countries.
- 5. Chapter Questions • Whatare the characteristics of products and how do marketers classify products? • How can companies differentiate products? • How can a company build and manage its product mix and product lines? • How can companies combine products to create strong co- brands or ingredient brands? • How can companies use packaging, labeling, warranties, and guarantees as marketing tools?
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- 7. What is aProduct? A Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want A product can include physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.
- 8. Components of the MarketOffering Attractiveness of the market offering Value-based prices Product features and quality Services mix and quality
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- 12. Chapter 8 -slide 12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Levels of Product and Services
- 13. The Product Hierarchy •The product hierarchy moves from basic need to particular items that satisfy those needs. – Need family (security) – Product family (savings and income) – Product class (financial instruments) – Product line (insurance) – Product type (term insurance) – Item/ product variant. (term insurance offered by ICICI)
- 14. Each level addsmore customer value, and the five constitute a customer value hierarchy. The core benefit: the service or benefit the customer is really buying. A hotel guest is buying "rest and sleep." The purchaser of a drill is buying "holes." Marketers must see themselves as benefit providers. Basic product: At the second level, the marketer has to turn the core benefit into a basic product. Thus a hotel room includes a bed, bathroom, towels, desk, dresser, and closet. At the third level, the marketer prepares an expected product, a set of attributes and conditions buyers normally expect when they purchase this product. Hotel guests expect a clean bed, fresh towels, working lamps, and a relative degree of quiet. Because most hotels can meet this minimum expectation, the traveler normally will settle for whichever hotel is most convenient or least expensive. At the fourth level, the marketer prepares an augmented product that exceeds customer expectations. In developed countries, brand positioning and competition take place at this level. In developing countries and emerging markets such as China and India, however, competition takes place mostly at the expected product level At the fifth level stands the potential product, which encompasses all the possible augmentations and transformations the product or offering might undergo in the future
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- 16. •Nondurable goods aretangible goods normally consumed in one or a few uses, like beer and soap. These goods are consumed quickly and purchased frequently, Marketing strategy •Make them available in many locations •Charge only a small markup •Advertise heavily to induce trial and build preference •Durable goods are tangible goods that normally survive many uses: refrigerators, machine tools, and clothing. Marketing strategy •Durable products normally require more personal selling and service, •command a higher margin, •and require more seller guarantees. •Services are intangible, inseparable, variable, and perishable products. Marketing strategy •Require more quality control, •supplier credibility, and adaptability. •Examples include haircuts, legal advice, and appliance repairs.
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- 19. CONSUMER-GOODS CLASSIFICATION The vastarray of goods consumers buy can be classified on the basis of shopping habits. We can distinguish among Convenience : These goods are purchased frequently, immediately, and with a minimum of effort. Examples include tobacco products, soaps, and newspapers Staples are goods consumers purchase on a regular basis. A buyer might routinely purchase Heinz ketchup, Crest toothpaste, and Ritz crackers. Impulse goods are purchased without any planning or search effort. Candy bars and magazines are impulse goods. Emergency goods are purchased when a need is urgent— umbrellas during a rainstorm, boots and shovels during the first winter snowstorm Shopping: Goods that the consumer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price,color and style. Examples include furniture, clothing, used cars, and major appliances. Homogeneous shopping goods are similar in quality but different enough in price to justify shopping comparisons. Heterogeneous shopping goods differ in product features and services that may be more important than price Specialty: These have unique characteristics or brand identification for which a sufficient number of buyers are willing to make a special purchasing effort. Examples include cars, stereo components, photographic equipment, and men's suits Unsought goods. These are those goods which the consumer does not know about or does not normally think of buying, like smoke detectors , Insurance etc.
- 20. Industrial Goods Classification Materialsand parts Supplies/ business services Capital items -Raw materials -Manufactured materials and parts -Installations -Equipment - Supplies - Business Services
- 21. INDUSTRIAL-GOODS CLASSIFICATION Industrial goodscan be classified in terms of how they enter the production process and their relative costliness. These are categorized as materials and parts, capital items, and supplies and business services 1) Materials and parts are goods that enter the manufacturer's product completely. They fall into two classes: raw materials and manufactured materials and parts. Raw materials fall into two major groups: farm products (e.g., wheat, cotton, livestock, fruits, and vegetables) and natural products (e.g., fish, lumber, crude petroleum, iron ore). Farm products are supplied by many producers, who turn them over to marketing intermediaries, who provide assembly, grading, storage, transportation, and selling services. Natural products are limited in supply. They usually have great bulk and low unit value and must be moved from producer to user. Fewer and larger producers often market them directly to industrial users Manufactured materials and parts fall into two categories: component materials (iron, yarn, cement, wires) and component parts (small motors, tires, castings). Component materials are usually fabricated further—pig iron is made into steel, and yarn is woven into cloth Component parts enter the finished product with no further change in form, as when small motors are put into vacuum cleaners, and tires are put on automobiles
- 22. INDUSTRIAL-GOODS CLASSIFICATION 2)Capital itemsare long-lasting goods that facilitate developing or managing the finished product. They include two groups: installations and equipment. Installations consist of buildings (factories, offices) and heavy equipment (generators, drill presses, mainframe computers, elevators). Installations are major purchases. They are usually bought directly from the producer, with the typical sale preceded by a long negotiation period. Equipment comprises portable factory equipment and tools (hand tools, lift trucks) and office equipment (personal computers, desks). These types of equipment do not become part of a finished product. They have a shorter life than installations but a longer life than operating supplies. 3) Supplies and business services are short-term goods and services that facilitate developing or managing the finished product. Supplies are of two kinds: maintenance and repair items (paint, nails, brooms), and operating supplies (lubricants, coal, writing paper, pencils).Supplies are the equivalent of convenience goods; they are usually purchased with minimum effort on a straight rebuy basis. Business services include maintenance and repair services (window cleaning, copier repair) and business advisory services (legal, management consulting, advertising).
- 23. Product Systems andMixes Product System Consistency
- 24. Proctor & GambleProduct Mix Detergents Toothpaste Bar Soap Disposable Diapers Paper Products Ivory Snow Gleem Ivory Pampers Charmin Dreft Crest Camay Luvs Puffs Tide Zest Bounty Cheer Safeguard Dash Oil of Olay Bold Gain Era Product Mix Width Product Line Length
- 25. Product Mix A productmix (also called a product assortment) is the set of all products and items a particular seller offers for sale. A product mix consists of various product lines. A company's product mix has a certain width, length, depth, and consistency. These four product-mix dimensions permit the company to expand its business in four ways. The width of a product mix refers to how many different product lines the company carries. Table 12.1 shows a product-mix width of five lines. (In fact, P&G produces many additional lines.) The depth of a product mix refers to the total number of items in the mix. In Table 12.1, it is 20. We can also talk about the average length of a line. This is obtained by dividing the total length (here 20) by the number of lines (here 5), or an average product length of 4. The width of a product mix refers to how many variants are offered of each product in the line. If Tide comes in two scents (Mountain Spring and Regular), two formulations (liquid and powder), and two additives (with or without bleach), Tide has a depth of eight as there are eight distinct variants. The average depth of P&G's product mix can be calculated by averaging the number of variants within the brand groups. The consistency of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way. P&G's product lines are consistent insofar as they are consumer goods that go through the same distribution channels. The lines are less consistent insofar as they perform different functions for the buyers.
- 26. Chapter 8 -slide 26 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Product and Service Decisions randomly
- 27. Product Line Analysis Salesand Profit Market Profile
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- 30. Product Line Length Linestretching Up-market stretch Down-market stretch Two-way stretch Line modernization, featuring, and pruning Line filling
- 31. What is theFifth P? Packaging, sometimes called the fifth P, is all the activities of designing and producing the container for a product. Three kinds of Packaging 1)Primary Package: The main container (e.g. Glass bottle) 2)Secondary Package : Container that wraps main container (The Paper box) 3)Territory package : Shipping package (The corrugated box)
- 32. Factors Contributing tothe Emphasis on Packaging Self-service Consumer affluence Company/brand image Innovation opportunity
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- 34. Packaging Objectives • Identifythe brand • Convey descriptive and persuasive information • Facilitate product transportation and protection • Assist at-home storage • Aid product consumption
- 35. Label The label maybe a simple tag attached to the product or an elaborately designed graphic that is part of the package. Identifies Grades Describes Promotes Functions of Labels
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- 37. Services: The IntangibleProduct
- 38. Services: The IntangibleProduct A service is any act of performance that one party can offer another to satisfy their needs and wants. •It is essentially intangible and does not result in the ownership of anything •Its production may or may not be tied to a physical product.
- 39. Examples of ServiceIndustries • Health Care – hospital, medical practice, dentistry, eye care • Professional Services – accounting, legal, architectural • Financial Services – banking, investment advising, insurance • Hospitality – restaurant, hotel/motel, bed & breakfast, – ski resort, rafting • Travel – airlines, travel agencies, theme park • Others: – hair styling, pest control, plumbing, lawn maintenance, counseling services, health club
- 40. Categories of ServiceMix Pure tangible good Good w/ accompanying services Hybrid Service w/ accompanying goods Pure service
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- 42. Nature and Characteristicsof a Service
- 43. Services are Different GoodsServices Resulting Implications Tangible Intangible Services cannot be inventoried. Services cannot be patented. Services cannot be readily displayed or communicated. Pricing is difficult. Standardized Heterogeneous (Variable) Service delivery and customer satisfaction depend on employee actions. Service quality depends on many uncontrollable factors. There is no sure knowledge that the service delivered matches what was planned and promoted. Production separate from consumption Simultaneous production and consumption (Inseperable) Customers participate in and affect the transaction. Customers affect each other. Employees affect the service outcome. Decentralization may be essential. Mass production is difficult. Nonperishable Perishable It is difficult to synchronize supply and demand with services. Services cannot be returned or resold. Source: Adapted from Valarie A. Zeithaml, A. Parasuraman, and Leonard L. Berry, “Problems and Strategies in Services Marketing,” Journal of Marketing 49 (Spring 1985): 33-46.
- 44. 7Ps of ServiceMarketing • Product/Service • Price • Place • Promotion • Physical Evidence • Process • People
- 45. Table 13.4 TopCustomer Service Providers • USAA • Four Seasons Hotels • Cadillac • Nordstrom • Wegman Food Markets • Edward Jones • Lexus • UPS • Enterprise Rent-A-Car • Starbucks • Ritz-Carlton • Amica Insurance • Southwest Airlines
- 46. Marketing Strategies forService Firms In addition to traditional marketing strategies, service firms often require additional strategies • Service-profit chain : It links service firm profits with employee and customer satisfaction • Internal marketing: the service firm must orient and motivate its customer contact employees and supporting service people to work as a team to provide customer satisfaction • Interactive marketing : Service quality depends heavily on the quality of the buyer–seller interaction during the service encounter – Service differentiation : It creates a competitive advantage from the offer (distinctive features), delivery(more able and reliable customer contact people, environment, or process), and image of the service (symbols and branding ) – Service quality – Service productivity
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- 48. The Services MarketingTriangle Internal Marketing Interactive Marketing External Marketing Company (Management) Customers Employees “enabling the promise” “delivering the promise” “setting the promise” Source: Adapted from Mary Jo Bitner, Christian Gronroos, and Philip Kotler
- 49. Determinants of ServiceQuality Reliability Responsiveness Assurance Empathy Tangibles
- 50. Challenges for Services •Defining and improving quality • Communicating and testing new services • Communicating and maintaining a consistent image • Motivating and sustaining employee commitment • Coordinating marketing, operations and human resource efforts • Setting prices • Standardization versus personalization