Marketing Management

Dr. Rana Shaaban

Product
A product: anything that can be offered to the market for attention,
acquisition, use or consumption that might satisfy a want or a need

Products include more than just tangible goods, they include services,
events, persons, places, organizations or ideas

Services: a form of a product that consists of activities, benefits, or

satisfaction offered for sale that are essentially intangible and don’t
result in the ownership of anything as banking, hotel and airline travel
Products, Services and Experiences
• Products are a key element in the overall market offering
• The marketing mix planning begins with building an offering worth of
value
• A market offering includes:
ØPure tangible goods: shampoo and toothpaste, no services accompany the
product
ØPure services: doctor’s exam
ØCombination of both: Education or movies (service and books/popcorn)
ØTo further differentiate their offers, beyond simply making products and
delivering services, they are creating and managing customer experiences
with brands and companies (Disney maufactured dreams and memories);
(Nike; Its not so much the shoes but where they take you)
Levels of Products and Services
Basic level one: core customer value
• What is the buyer really buying?
• Core, problem solving benefits or services
• Charles Revson of Revlon “ In the factory, we make cosmetics; in the store
we sell hope”
• Ipad: entertainment, self expression, productivity and connectivity
Second Level: Actual Product
• Features, design, quality level, brand name and packaging
Final level: Augmented Product
• Additional customer services and benefits (Delivery, after sales services,
waranty and product support)
5 levels applied
• Core Benefit: sustainable and eco-friendly transportation. Customers
choose Tesla to reduce their carbon footprint and enjoy the
convenience of electric mobility.
• Generic Product: an electric vehicle (EV) that reliably transports
people from point A to point B, similar to other cars on the market.
• Expected Level: Customers expect a certain quality and set of features
in a Tesla, like a long battery range, safety features, and reliable
performance.
5 levels applied
• Augmented Product: Tesla offers augmented features that
differentiate it from other EVs. These include Autopilot and Full Self-
Driving software (even if still in beta), the over-the-air (OTA) software
updates, an extensive Supercharger network, and an immersive in-car
experience with a large touchscreen for navigation and entertainment.
• Potential Product: Tesla’s potential product involves future
improvements like fully autonomous driving and vehicle-to-grid
energy storage (where cars can power homes). Tesla is also innovating
in battery technology, with aspirations for even longer ranges and
more affordable EVs.
Products and Services Classifications
• Consumer product: bought by final consumer for personal consumption

• Convenience product: buy frequently, immediately with minimal comparison

(Low price, Wide distribution and Mass promotion)

• Shopping product: customer here usually compares quality, price and style
during selection and purchasing process (Higher price, Selective distribution,
Advertising and personal selling by producer and reseller)

• Specialty product: unique characterstics, brand identification for which a

significant group of buyers is willing to make a special purchase (High price,
Exclusive distribution, targeted promotion)

• Unsought product: consumer doesn’t know about, or knows about but doesn’t
normally consider buying (varying price and distribution, Aggressive advertising
and personal selling)
Organization Marketing
Activities to create, maintain or change the attitudes and the behavior
of target consumer towards an organization

Business firms sponsor public relations or corporate image marketing

campaigns to market themselves and polish their image.
Person Place Social
Marketing Marketing Marketing
Product and Service Decisions
Product Quality:
• It affects product/service performance
• Linked to customer value and performance
• Can be defined as ”no defects”
• Characteristics of a product/service that bear on its ability to satisfy stated
or implied needs
• TQM:everyone is involved in improving quality of products, services and
business processes
• Return on quality (quality as an investment)
• Performance quality
• Conformance quality (consistency)
Product Features
Specifications that explain what a product does
Google Docs, as an illustration, offers the following features:
• Works at all times, anywhere (even offline).
• Automatically saved modifications
• Instantaneous cooperation
• An intelligent editing and styling tool
• Several different templates
A company can always identify new features to add by periodically surveying
buyers asking them:
How do you like the product?
Which features do you like most?
Which features could be added to improve?
Product Style and Design
Style: appearance of the product, can be eye catchy, may grab
attention, and may produce pleasing aethetics but does not necessairly
make the product perform better

Design is more deep, contributes to a product’s usefulness. It begins

with observing customers, understanding their needs, and shaping their
product use experience. Designers should think less about technical
specifications and more about how cosnumers will use and benefit
from the product.
Branding
A brand: a name, term, sign, symbol, design or a combination of these

• Brand names help consumers identify products

• Brands say something about quality and consistency
• Brand name and trademark provide legal protection for unique
product features that might otherwise be copies by competitors
• Branding helps seller to segment (Sub brands)
 Purpose/Mission
TOM’s Tagline Values
Nike IKEA Positioning
Apple

Vision
Tesla
Personality
Harley
Davidson Voice Heritage
Old spice Hermes Storytelling
Airbnb
Packaging
Designing and producing the container or wrapper for a product

It has become an important marketing tool, they must attract consumers

and commicate brand positioning

They create immediate recognition for the brand

Product safety is important

Bold Design Minimalism
Vocal for Glory of the
Local brand story
Interactivity Type to
Typography

BOP: Back of Premium

packaging Material
Clean is King
Labelling
• Range from simple tags to complex graphics
• They identify product/brand
• They describe where the product was made, who made it, when it was
made, its contents, how it is to be used and how to use it safely
• The label might help promote the brand, support its positioning, and
connect with customers
• Labels and logos add personality to the brand
• Customers often become attached to logos
• Avoid false and decptive labels
• Must state unit price, open dating, and nutritional labeling
Product Line Decisions
Product line: a group of products that are closely related because they
function in the same manner, are sold to the same customer group, or
marketed through the same outlets or fall within the same price ranges

Product line length: number of items in the product line, the line is too short
if manager can increase profits by adding items, and the line is too long if
manager can increase profits by dropping items

A company can expand product line by

Line filling: adding more items within the present range of line
Line stretching: lengthens product line beyond current range (downward
“Kheir zaman”-upward ”Lexus”)
Product Mix Decisions
• An organization with several product lines has a product mix
• A company’s product mix has 4 dimensions:
ØWidth: number of different product lines
ØLength: number of items a company carries within its product line
ØDepth: number of versions for each product in the line
ØConsistency: how closely related the various product lines are in end
use, production reequirments, or distribution
Service Differentiation
• Price competition made differentiation of services a challenge for service
marketers
• Customers view services of providers similar, and so care less about the
provider than the price
• Solution to price competition is to develop a differentiated offer, delivery
and image
• Service companies can differentiate their service delivery
ØMore able and reliable customer contact people
ØSuperior physical environmnent in which service is delivered (Mcdonalds
self-checkout)
• Service companies can differentiate their image (symbols and branding)
Service Quality
• Service quality is harder to define and judge than product quality
• Customer retention is perhaps the best quality measure
• Service quality will always vary unlike product depending on
employee-customer interaction, good service recovery can turn angry
customers to loyal ones
Managing Service Productivity
• With costs rising, service firms are under great pressure to increase
productivity
ØTrain current employees better
ØHire new onees who will work more skillfully
ØIncrease quantity of service by giving up some quality
ØHarness the power of technology
§ Do not push productivity so hard that doing so reduces quality
§ Airlines attempts to economize, improve productivity leading to
mangled customer service (don’t take service out of service)
Branding Strategy: Building Strong Brands
Brands are the major asset of a company

John Stewart, former CEO of Quaker Oats “If this business were split up, I
would give you the land and bricks and mortar, and I would keep the brands
and trademarks, and I would fare better than you”

A former CEO of Mcdonald’s “ If every asset we own, every building and

every piece of equipment were destroyed in a terrible natural disaster, we
would be able to borrow all the money to replace it very quickly because of
the value of our brand.. The brand is more valuable than the totality of all
these assets”
 Branding Strategy: Building Strong Brands
Brand Equity and Brand Value
A powerful brand has high Brand Equity: differential effect that knowing the brand
name has on customer response to the product and its marketing
Consumer
Measure of brand’s ability to capture consumer preference and loyalty awareness
and loyalty

How do you react to brand X vs a generic or unbranded version of it More

leverage in
bargaining
Brand devotion : Harley Davidson
with resellers

Brand Value: Total financial value of a brand Easily launch

line and
Fundemental asset of brand equity is customer equity: value of customer relationships a brand
brand creates (loyalty) extensions
Building Strong Brands
Brand Strategy decisions:
Brand positioning
Brand name selection
Brand sponsorship
Brand development
 Brand Positioning

Positioning can happen on 3 levels

Product attributes

Associate with a desirable benefit

On strong beliefs and values

Brands should strive to become lovemarks
inspire loyalty beyond reason
Brand name selection

• Should suggest something about product’s benefits/quality

• Easy to pronounce, recognize and remember
• Extendable
• Translate easily to foreign languages
 Brand Sponsorship
• National Brand Vs Store brands
(Battle of brands) the store brand
has power in displaying their
cheaper discounted brands side ny
side national brands

National Brands (Manufacturer

Brands)àFord, Nestle, Coca Cola
and Apple

Store brands (Private Brands)à

My Choice carrefour. Weher once
known as generic, no name brands
 Brand Sponsorship
Liscencing renting name, logo, slogan and character
Disney and Toy Manufacturers
Disney licenses its characters and intellectual properties (like
Mickey Mouse or Marvel superheroes) to toy manufacturers
and other merchandise creators. For instance, LEGO creates
Marvel or Star Wars sets under a licensing agreement with
Disney, enabling LEGO to attract fans of those franchises
while Disney benefits from the expanded reach of its
characters.

Co- Branding
Nike and Apple co-branded to create the "Nike+” series of
fitness products, including apps and accessories like the
Apple Watch Nike edition. This partnership combines Nike’s
reputation in sportswear and fitness with Apple’s technology,
particularly in health tracking. This co-branding strategy
appeals to fitness enthusiasts who value both athletic gear and
wearable technology.
Brand Development

Multi-
brands

New
brands
Product Lifecycle