MARK4210 Class 9 product complete.pdf - Product Strategy...

Product Strategy
MARK4210 Spring 2018 (complete)

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Time and venue

March 21 (Wed) 7:30-8:50pm, LT-A

For students who take MIMT3120: March 21 (Wed) 6:30-7:50pm, main
building Room 1505 (Lift 25/26)
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No lecture on the exam day
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Content and format
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Covers up to STP (including STP)
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Short scenario questions
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Open book: lecture notes, cases, written/typed material in hard copy
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Things to note
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Bring a calculator
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No computer/laptop, no smart phone/tablet, internet access
Mid-Term Exam

Situation Analysis
(Customer, Competitor, Company)
Market Selection
(Segmentation, Targeting, Positioning)
Marketing Mix Formulation
(Product, Pricing, Distribution, Promotion)
- Quantitative Analysis
- Consumer Behavior
Simulation Game
PharmaSim
Elements of Marketing Strategy Fundamentals Application
Course Roadmap

Refresher

What is a product?

Anything that can be offered to a market to satisfy a consumer need and
create value for consumers

Three levels of product

Refresher:
Category Membership

Product category defines a set of similar products designed to
serve a specific common set of customer needs

How to establish a product category membership?:
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Product design

Channel
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Marketing communication

Pricing

Managing Product Mix:
Types of Differentiation

Product mix: All the products and items that a company
offers

Product differentiation
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Horizontal differentiation?
-
Benefits do not imply a universal preference order

Vertical differentiation?
-
Benefits can be ordered in terms of attractiveness

Managing Product Mix:
Should You Have a Large Product Mix

Benefits of having a large product mix??

Target multiple segments (sub-segments)
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Counter encroachment by alternative products

Control shelf space

Downside of having a large product mix??

Increase decision difficulty
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Encourage consumers’ variety seeking
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Increase cost
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Cannibalization

Food for Thought
“Our research shows that in certain categories shoppers feel they
have more choices after category options are reduced because there
is less clutter and confusion; they can more easily find the product
that meets their specific need...
Product simplification is a big opportunity. We are investing in new
tools and using deep shopper insight to simplify product lines and
increase consumer and shopper satisfaction.”
-- Robert A. McDonald, P&G Chairman & CEO

Managing Product Mix:
BCG Matrix
High Market Share
High
Market
Growth
Market Growth Rate
Relative Market Share
Low Market Share
Low
Market
Growth
Source: Boston Consulting Group
Where should you invest
the most $$$?