Tutorial 6

Marketing Mix
- Product

Prepared by Kim Du
 Read the chapter-opening vignette on Nike (Chapter 8, page 246-247)

1. What “product” is Nike really selling?

2. How does Nike successfully promote bonding between athletes and its products?
CASE STUDY: NIKE
ACTIVITY 1
Objectives & Key terms

1. Product & Service

2. Product & Service Classifications
3. Product & Service Decisions
4. New Product Development
5. Product Life-Cycle
6. Services Marketing
Marketing Mix – 4Ps

What How much

How Where
1. Product & Service
Product • is anything that can be offered in a market for attention, acquisition,
use, or consumption that might satisfy a need or want

• Also include services, events, persons, places, organizations, ideas, or a

mix of these. (broadly defined)

Service is a product that consists of activities, benefits or satisfaction that is

essentially intangible and does not result in the ownership of anything.

Experiences represent what buying the product or service will do for the customer.
Companies may now focus on creating and managing customer experiences with
their brands or company.
2. Product and Service Classifications

Consumer Products Industrial Products

Convenience products Materials and parts

Shopping products Capital items

Specialty products Supplies and services

Unsought products
2. Product & Service Classifications
2. Product & Service Classifications
Types of Industrial Product

• Materials and parts include raw materials and manufactured materials and parts usually sold
directly to industrial users.

• Capital items are industrial products that aid in the buyer’s production or operations, including
installations (buildings, factories, offices, elevators, computer systems, etc.) and accessory
equipment (factory equipment, office equipment, etc.)

• Supplies and services include operating supplies, repair and maintenance items, and business
services.
3. Product & Service Decisions
❖ Individual Product and Service Decisions

• Quality
• Features
• Style (appearance of the product) & Design (a product’s usefulness as well as to its looks)

❖ Product Line Decisions

• Line filling
• Line stretching (Downward, Upward and Both directions)

❖ Product Mix Decisions

3. Product & Service Decisions
❖ Product Mix Decisions

No. of versions offered

by a product line.

Product Total number of items the

Line company carries within its
Depth product lines
Product Mix Length

Product Mix Width

No. of different product lines

4. New-Product Development Strategy
2 ways to obtain new products

• Acquisition refers to the buying of a • New Products Development refers to original

whole company, a patent, or a license products, product improvements, product
to produce someone else’s product. modifications, and new brands developed from
the firm’s own research and development.
CASE STUDY: BOSE
ACTIVITY 2

Synopsis
The Bose Corporation has been around since the 1960s. Known for its high-end speakers and headphones, Bose is a brand
with a very high level of equity and is the most trusted brand of the 22 best-known consumer technology brands. As the
brainchild of its founder, Amar Bose, the Bose Corporation has been very successful financially as well. Yet Bose the company
and Bose the man are very much intertwined. Amar Bose has kept the company private to control the degree to which the
company invests in and conducts research, which he considers the lifeblood of the company. Time and time again, he has
ignored existing technologies and started entirely from scratch. It is this philosophy that has led to groundbreaking
innovations. Bose Corporation has marketed speakers and headphones unlike anything else on the market.

Questions for Discussion:

1. Describe the factors that have contributed to Bose’s new product success.
2. What can be considered as the uniqueness of Bose in terms of product life-cycle management?
4. New-Product Development Strategy

• Internal resources (R&D, Internal social network & intrapreneurial programs)

• External resources (Distributors & Suppliers, Competitors, Customers)
• Crowdsourcing – Calling for external collaboration
5. Product Life-Circle

Product
Extension
6. Services Marketing
6. Services Marketing
FOR THE NEXT CLASS

• For Quiz 3: Chapter 8 + 9 + 10 + 11 – After Tutorial 7

• Reminder: Deadline for A2 – 23:55 PM, Sunday, July 11th