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PRODUCT PLANNING
Marketing Management
Session 7 and 8
October 13 and 27, 1999
SESSION OUTLINE
• Positioning: review of concepts and perceptual maps
• Video case: « Creating Bread »• Brief review• Theoretical concepts of product management• Managerial concepts• Video: « Marketing a Product Range »
POSITIONING
• Part of the marketing strategy which allows to give the product/service its own identity
• Positioning is a competitive tool
• Positioning can be operated at the physical level or at the perceptual level
• A strong position in buyers’ minds gives the product a competitive advantage
PERCEPTUAL MAPS
• Indicate where a product stands in buyers’ minds relative to its direct and indirect competitors
• Horizontal and vertical axes are perceived relevant dimensions of the product category
• Distances between two brands are perceived competitive distances
• Ideal tool for positioning strategies
POSITIONING STRATEGIES
• Move brand closer to ideal point
• Move ideal point closer to brand
• Change relevance of dimensions
• Introduce a new brand close to ideal point
REVIEW
• Planning the marketing strategy involves:– Situation analysis and setting objectives– Market segmentation– Selecting target market(s)– Defining a positioning strategy– Developing the marketing mix
MARKETING MIX
• Controllable variables:
– Product– Price– Promotion– Place
MARKETING MIX
PromotionPlace
PriceProduct
Controllable Variables
MARKETING MIX
PromotionPlace
PriceProductEngineering
Accounting/Finance
Sales
Operations
THEORETICAL CONCEPTS
• Definition of a product
• Product classifications
• Product life cycle
DEFINITION OF A PRODUCT
Centralproduct
Tangible product
Augmented product
INTANGIBLE GOODS
• Simultaneous consumption and production
• Wide variations in demand over short periods of time
• Many different types of services:– continuous services (electricity, telephone)– produced by a person (banking)– produced to a person (doctor, hairdresser)
MANAGERIAL DECISIONS
• Elements of the product:– product attributes– brand name and logo– packaging and colours– format– labelling– product-support services
MANAGERIAL DECISIONS
• Managing an existing product line
• Developing and introducing new products
• Organizing the marketing department
NEXT SESSION
• Chapter 9
• Product life cycle
• New product introductions
• Case presentations: The launch of mbanx, teams 3, 4, 9, and 10
• Video case: Profiting from the net
Office hours for mid-term
• Please see Prof. Mark A. Tomiuk, room 4.756, tel. 340-6415
• Tuesday, Oct. 20, 10 a.m.-12 p.m.
• Wednesday, Oct. 21, 10 a.m.-12 p.m.
• Thursday, Oct. 22, 10 a.m.-12 p.m.
Mid-term exam
• Saturday, October 23
• 1:30 p.m. - 3:30 p.m.
• Material covered:– chapters 1, 2, 4, 5, 6, and 20– video cases (Race to Market, Looneyspoons,
Tough to Reach, Creating Bread)– cases (Fottle and Omega Paw)
Format of Mid-term• 10 True-false questions with short
justification (15 points)• 2 short answer questions - you choose
among 3 questions (10 points)• read the instructions carefully• read the question• answer the question• good answer + wrong question = 0
