5.

MARKETING STRATEGY Marketing 1

- PRODUCT Arfadh Baparsyah
LaSalle College Jakarta
2019
 What is a Product?
A product is an item that satisfies a need or a desire. This can
be a physical item, a service or a virtual offering. It is produced
at a cost and is subsequently made available to the right
audience at a price. Whatever the nature of the product, it will
follow a lifecycle and through reasonable predictions of this
lifecycle, a company can increase its competitive edge. A brand
can be revamped or re-launched to remain relevant in a
changing market or at the end of its lifecycle.

A successful product has to fulfill a specific need in the

market. Functionally, it must be able to perform its function as
promised. There also needs to be clear communication to users
and potential customers regarding its benefits and
features. Branding is another important feature for a product.
Developing a product into a brand helps foster customer loyalty
and recall and differentiate itself in the market.
Credit: Martin via CLEVERISM
 Every product should have certain characteristics
that separate it from its competitors. These
characteristics should be foremost inputs to the
product’s marketing mix.

Features When a product is envisioned, it is an answer to

an identified market need. This need is translated

and Value into a product with particular characteristics.

These characteristics help determine all

creation subsequent actions such as pricing,

communication strategy and additional features
or add-ons.

For this reason, it is vital to try to create a unique

set of characteristics for any product.

Credit: Martin via CLEVERISM

 A factor that is shown to be the basis of why
one product is better than its competitors is
called a unique selling proposition or a USP.
This characteristic or set of characteristics helps
solidify a company’s market position and allows
them to stand apart from competition.

Unique
There are very few products that have no clear
competition in the market. Most often, there are

Selling
identical products with almost the same features.
In this situation, differentiation becomes of the

Proposition utmost importance for the success of any

product.

The company needs not only to identify an USP,

but also to clearly communicate this to the
potential audience so that it is understood why
the product is superior to other similar ones.

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 Product Classification
Tangible products: These are items with an actual physical
presence. E.g.: clothing, F&B, gadgets, cars, etc

Intangible products: These are items that has no physical

presence but can be felt indirectly. E.g.: insurance policies online
software, applications or even music and video files.

Services: Services are also intangible products but they are the
result of an economic activity that does not result in ownership.
It is a process that creates benefits for customers. Services
depend highly on who is performing them and remain difficult to
reproduce exactly. E.g.: consultancies, styling service, financial
advisor

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 Product Marketing Mix
An understanding of the elements that make up a product and
those necessary to successfully sell is called the product
marketing mix. Product has a vital role in developing the
strategy for the overall marketing mix which includes place,
price and promotion. Through a definition of the product features
and benefits, the rest of the marketing mix elements are
determined and agreed upon.

A company’s portfolio of products makes up its product mix.

Within this mix are Product lines which are closely linked groups
of products. These may offer the same benefit or have shared
characteristics. A product line is made up of product items
which are individual units that have unique appearances,
functions or price points.
Credit: Martin via CLEVERISM
 Philip Kotler proposed that a product can be looked at
three different levels:

Core – This is the first level to be defined and explored.

What is the main or core benefit that a product offers to
its consumers? In the case of a camera, they are able to
capture memories forever through the purchase of a
product

Understanding Actual – Here, any additional benefits are added on to

and Creating differentiate the product and highlight its USP. In our
example, all cameras offer the same core benefit. But
Benefits any additional features or strong branding can offer a
better product.

Augmented – Finally, there needs to be an assessment

of what further benefits can be offered to the customer
to ensure a loyal purchasing customer. In our example,
these can be after sales service, extended warranties or
product support blogs or helplines.

Credit: Martin via CLEVERISM

 With an understanding of the basic product mix
and benefits, a company can now begin to make
important product decisions. These include:

Design Decisions: The basic decision here to

identify how strong the design will be in the
entire product mix. Will it be a supplement to the
Product features or will the features be designed around

Decisions a unique design.

Quality Decisions: The quality of the proud needs

is kept with the other elements of the marketing
mix. A high price can be charged if the product
has superior quality.

Credit: Martin via CLEVERISM

 Features Decisions: What will be the final
features of the product? Will they add to the
perceived and actual benefits of the product?
Here also, the company can charge a premium
price for additional desirable benefits from
Product features.

Decisions Branding Decisions: Branding decision remain

(cont'd) some of the most important as it turns a product

into something beyond just a good. A brand can
have the power to generate instant sales as well
cement confidence in the product’s quality and
reliability.

Credit: Martin via CLEVERISM

 Product Development
Product development is the creation of a new or different product
that offers innovative new benefits to the end user. This includes
both the creation of an entirely new product and modifications to an
existing product.

Product development traditionally includes the following steps:

1. Generate Ideas
2. Screen Ideas
3. Develop and Test Ideas
4. Analyze for Profitability Potential
5. Conduct market or Beta Tests
6. Finalize Technical Aspects
7. Finalize Commercial Aspects
8. Conduct Post Launch Review
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 For a product of any nature to be successful, it
needs to:

Satisfy identified customer needs or wants

Hallmarks of
Be of the right quality to allow higher price
points

Successful Be cost-efficien to ensure better profit margins

Products
Be durable and attractive in its appearance to
match the price and the brand image

Able to stimulate new needs or unidentified

desires

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 In order to develop products that meet the criteria
specified above, ask the following questions:

What does the customer want from the product?

What needs does it address?
What features does it need to have to meet
Key these wants and needs?
Are there any overlooked features that can add
Questions in value?Are there any added features that add no

Developing value?
How, where, and when will the product be used
Successful by the consumer?

Products What does the product look like? How big or

small? Colors and materials?
What should the product be named?
What will the branding strategy be?
What will be the product’s USP?
How will it be communicated to the audience?
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 GROUP
WORK!
Develop a product line for AKARSANA.

Make sure you answer all the questions in the

previous slide.

Consider your interview results and the

theories we've just discussed

Go!