MARKETING MANAGEMENT

Mustafa Karataş

4P's: Product & Promotion

2022
 4P's: Product and Promotion

ANALYSI DECISIONS
S
Aspiration Decisions

• Segmentation
Company • Targeting
• Positioning
Customer
Action Plan
Competitors
Marketing Mix Decisions: 4P's
• Product
• Promotion
• Place
• Price
 What is a product?

• "Anything that can be offered to a market to satisfy a

want or need, and consists of a set of attributes. It
includes physical goods, services, experiences, events,
persons, places, properties, organizations, ideas." –
Philip Kotler
 What is a product?

• Three layers of value

• Core product
 What is a product?

• Three layers of value

• Core product
• Tangible benefits—product
features, styling, quality,
packaging, brand name
 What is a product?

• Three layers of value

• Core product
• Tangible benefits—product
features, styling, quality,
packaging, brand name
• Augmented benefits—
installation, warranty, after-
sale service, delivery;
experience, associations
 New Product Development
• Products are primary and essential to value delivery,
and new offers are engines of growth
• But, new product design and delivery is very
expensive and risk of failure is high
• Marketing inputs to NPD reduce the risk of failure
and increase the probability of success
 How to develop new products or new offers
• Observe customers talking about and using products

• Risk—product death cycle

no one
uses our
product

we add we ask
the consumers
missing what is
features missing
 Overreliance on customer input
• America's "perfect" painting
Overreliance on customer input
 Overreliance on customer input
• The Netherlands' "perfect" painting
 How to do new product/offer research

• Minimum viable product—a version of a product with

just enough features to be used by early adopters who
then provide feedback

• What is my riskiest assumption?

• What is the smallest experiment I can run to test the
idea?
Minimum Viable Product
Minimum Viable Product
 Product Launch

• A pioneer or a late entrant?

 Product Launch

• A pioneer or a late entrant?

• Advantages of being a pioneer • Disadvantages of being a pioneer
• Supply side • Incumbent inertia
• channel preemption • the firm might be locked
• raw material advantages onto fixed costs
• Demand side • High uncertainty in market
• advantages of demand
familiarity • Customer needs change
• creates standards • Market development costs
• Second mover(s) can learn
from pioneer's mistakes
If you are not a first mover…
 If you are not a first mover…

• Target customers with a distinct attribute

• Research customers to see what they are dissatisfied
with, and reduce customer risks
• Create alliances with key suppliers and distributors; if
not possible, look at "uncovered" aspects of the market
Enterprise Rent-a-Car
 Will a product be adopted?

• Rogers' five factors

• Relative advantage—does it work better?
• Compatibility—can it be used with existing products or
are there any switching/adoption costs?
• Observability—are benefits visible and obvious?
• Complexity—is it easy to understand and use?
• Trialability—is it easy to try?
Will a product be adopted?

• Does it work better?

• Will people see it?
• Will people understand it?
• Will people try it?
• High switching/adoption
costs?
Will a product be adopted?
 CES 2021 examples

• Would you invest in?

• Which of Rogers' five factors impede or slow adoption of

your choice?

• How could you address this factor?

 Cold Snap

• Does it work better?

• Will people see it?
• Will people understand it?
• Will people try it?
• High switching/adoption
costs?

The ColdSnap machine accepts shelf-stable, ambient temperature

ColdSnap pods – and then freezes and dispenses the contents of these
pods within 120 seconds. No preparation of ColdSnap pods is required
and no cleanup of the ColdSnap machine is necessary. ColdSnap makes
single-servings of  ice cream, frozen yogurt, frozen coffee, frozen
smoothies, frozen healthy shakes (frozen nutraceuticals), and frozen
cocktails.
 Targus Antimicrobial Backpack

• Does it work better?

• Will people see it?
• Will people understand it?
• Will people try it?
• High switching/adoption
costs?

Targus Antimicrobial Protection is an infused protective finish to

the material that creates a cleaner surface and protects the
backpack. Unlike topically applied sprays, Antimicrobial
Protection is infused into the fabric and key touch points and
works continuously to prevent the growth of microorganisms.
The Antimicrobial Protection is guaranteed for the life of the
backpack
 Product Life Cycle
Sales,

Profit

Time

Maturity
Growth
Introduction Decline
Product
development
 Product Life Cycle

Pragmatists Conservatives

Early Late
majority majority

Skeptics
Early
adopters
Laggards
Innovators
Techies
, 2.5% 13.5% 34% 34% 16%
nerds
Visionaries
 Product Life Cycle

Introduction Growth Maturity Decline

Rising sales,
Low sales, high Peak sales, low Declining sales
declining costs,
Characteristics costs, negative
increasing profits,
costs, high profits, and profits, fewer
profits stable competitors
more
competition
competition

Product awareness Increase market Reduce expenses,

Objective and trial share
Maximize profits
milk the brand

Get rid of weak

Selective Intensive Diversify the
products, cut price,
distribution, big distribution, build brand, establish
Strategy promotions, entice awareness, low differentiation,
maximum
efficiency to
trial or no discounts build up loyals
increase cash flow
Managing mature products
 Managing mature products

• Two ways to increase sales of mature goods

• Primary demand—new uses/new users
• Secondary demand—steal share

• As markets mature, emphasis shifts from new

uses/users to stealing share
New uses
New users
 Promotion (Communication)
• All activities that involve communicating a product's
features and benefits with target customers
 Promotion (Communication)

STRATEGIC INTENT

MISSION MARKET

What are the objectives? Who is the target?

STRATEGIC EXECUTION

MESSAGE MEDIA
What is the story? Where will the message be delivered?

STRATEGIC IMPACT

MONEY MEASUREMENT

What is the budget? How will the impact be measures?

 Setting the objectives (Mission)
• Drive purchase, but how?
 Setting the objectives (Mission)
• Different functions of promotions for different objectives

Decision Making The role of marketing

Stage communications
Problem • Help identify new problems
recognition and needs

• Remind consumers of existing

needs

Information • Make consumers aware of a

search product

• Educate consumers about

product's features and
benefits
 Setting the objectives (Mission)
• Different functions of promotions for different objectives

Decision Making The role of marketing

Stage communications
Evaluation of
alternatives • Assist consumers in making
comparisons among options

Purchase
• Prompt sales

Post-purchase
• Reminding customers about
re-purchase
 Identifying the target (Market)
• Segmentation
• Tailor how, where and when the message will be
delivered based on the target audience's…
• needs and sought benefits
• point of purchase
• media habits
• stage of adoption (potential users, new users, frequent
users)
 Designing the Message
• What?
• The content of the message
• How?
• The manner of communication
• Explicit
• Implicit
• creativity
• symbolism
• Who?
• Who will deliver the message?
 Designing the Message
• What would you consider for marketing a hair loss treatment and
prevention drug?
 Designing the Message
• Understanding the market
• Who are aware and who are not?
• Are they using a similar product?
• Are they even aware?
• At what stage of the funnel are they?
• Central versus peripheral route to persuasion
 Designing the Message
• 4 elements of storytelling—and, "good messages"

• The message

• The conflict

• The character(s)

• The plot
 Designing the Message
• Who should say it?
• Expertise versus attractiveness/likeability
Deciding on the promotional mix (Media)
 Deciding on the promotional mix (Media)
Advertising Sales/Trade Promotions

• Builds equity • Not much equity built

• Benefit emphasis
• High marketer control
• End-user targeted
• May take time to have an
effect
Demand
Producer
• Price emphasis
• Low marketer control
• Both end-user and
intermediary targeted
• Effective immediately
Demand
Retailer Consumers

Advertising

PULL strategy
 Deciding on the promotional mix (Media)
Advertising Promotions

• Builds equity • Not much equity built

• Benefit emphasis
• High marketer control
• End-user targeted
• May take time to have an
effect
Producer
Sale promotion
• Price emphasis
• Low marketer control
• Both end-user and
intermediary targeted
• Effective immediately
Retailer Consumers
Retailer’s marketing
activity
(personal selling,
advertising, sales, etc.)

PUSH strategy
 Deciding on the promotional mix (Media)
Traditional (TV, Digital (new) media
newspaper)
• Better targeting
• Higher control • Tailored messaging
• Easier to buy • Less expensive

• Expensive • Measures of impact are not

• Trust issues yet as high as traditional
• Differentiation among media
different segments is
difficult
 Ads

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 Ads

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