Republic of the Philippines
PAMANTASAN NG LUNGSOD NG MUNTINLUPA
NBP Reservation, Poblacion, Muntinlupa City 1776
COLLEGE OF BUSINESS ADMINISTRATION
Principles of Marketing Midterm Reviewer
Chapter 4: Product Strategy
-Consist of 5 Strategies, namely:
1. Product
2. Branding
3. Packaging
4. Managing Product Line
5. Green Marketing
I. Product Strategy: Product
."For the poor Majority, the downscale consumer, the issues is not product quality. It is simply
PRODUCT."
-DR. EDUARDO ROBERTO
>An Author, Columnist, Professor and Marketing Research Guru.
.GOOD PRODUCTS- exist to satisfy the needs and wants of the target market.
.An additional concept that marketers and product development specialist must understand is the
hierarchy-of-needs espoused by ABRAHAM MASLOW.
>3 types of product
1. Durables-w/c has a long interval between repeat purchases because of the long lasting nature of the
product. E.G. Cars like Mitsubishi & Nissan
2. NON-DURABLES-w/c have stronger repeat purchases because products are consumables. E.G.
Detergents like Surf & Pride
3. Services-w/c are essentially intangible because there are no physical products involve. E.G. Beauty
Parlors like David's Salon or Reyes Haircutters.
>Two Independent Dimensions
1. Effort- is the amount of money, time, & energy the buyer is willing to spend to purchase a given
product. It is also an objective measurement.
2. RISK- is the buyer's subjective feeling about the consequences of making a purchasing mistake.
>By combining products using effort & risk, we end up w/ 4 categories:
1. Convenience Products-are the lowest risk & lowest effort products.
*types of Convenience Products:
-Staple goods like rice, sugar, etc.
-Impulse goods like candies & snack foods.
2. Preference Products-consumers have specific preferences for brands but are willing to make
substitutions when necessary.
3. SHOPPING PRODUCTS-products that consumers feel are worth the time & effort to compare w/
other competing products.
4. SPECIALTY PRODUCTS-are unique, customized products w/c have their own niches.
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>3 Levels of Product
1. Formal Product-is the physical or tangible product.
2. AUGMENTED PRODUCT-are the "extras" built-in to formal product.
3. Core Product-is the generic benefit that each product gives.
.CHANGE
GEAR-is a salesmanship technique that highlights the major capabilities of a product.
>Two Method's of Satisfying customer's needs & wants:
1. PROBLEM-SOLVING METHOD-This method identifies & satisfies an actual or existing need and
want of a customer.
2. Creating Dissatisfaction Method-introduces new ways of doing things to the customer’s w/c would
convert customer's existing satisfaction level to a dissatisfaction level.
.PIMS means PROFIT
IMPACT ON MARKETING STRATEGIES.
.QUALITY-is an important competitive weapon that can result in increased market shares for the
firm.
>Signal Quality are Divided into two:
1. Intrinsic cues-involves the physical composition of the product.
2. Extrinsic cues-are product-related but not part of the physical product itself.
>ISO means INTERNATIONAL
ORGANIZATION FOR STANDARDIZATION.
.ISO-is a series of quality management & assurance standards w/c define the elements required to
achieve a quality product.
.ISO 9001:2008 Standard-certification
.ISO 9000- top management.
.ISO 14000-Environmental Management
>New Product Development Process
1. Product Criteria-define the kinds of products a firm will be selling, or won't be selling.
2. Idea Generation-ideas need are not always come from crisis situations.
*consist of Marketing techniques can also be used to get new product ideas:
-Mission Statement-answers the question "What business are we in?"
-FGD's means Focus Group Discussions-are generally taped (audio or video) for subsequent
analysis.
-Competitive Products Segmentation-products that compete in a specific market.
-Perceptual Mapping-concentrates only on the determinant attributes (most important attributes) of a
product.
-Items by Use-to determine how existing consumers see existing products.
3. IDEA SCREENING-this procedures are need to eliminate ideas generated w/ poor or low potential
& allow those w/ superior potential to go further.
4. Business Analysis-is like an extension of the idea screening stage.
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5. Prototype Development-consist of conjoint analysis, product Brief and:
.PRODUCT PROTOTYPE TESTING-It is important to ensure the product actually works well
& is safe to use & can easily be operated or figured out by the customer.
6. Market Test & Full Commercialization-this is the learning & fine-tuning period before the total
offering will be tested in the market.
.PLC means PRODUCT LIFE CYCLE-Shows the process where both the customers & the
suppliers change their behavior while interacting in the market.
>Primary VS. Derived Demand
.PRIMARY DEMAND-referring to the total & per capita consumption for a general product category.
.DERIVED DEMAND-For industrial a product that is dependent upon the demand for consumer’s
product.
II. Product Strategy: Branding.
"BRANDING is the process of differentiating yourself from the competition."
-Dondi Gomez
>Vice President and Head of Corporate Marketing of Jollibee Foods Corporation, Former Managing
Director of Unilever Philippines
>Why do brand Exist?
1. IDENTIFICATION-enables consumers to easily distinguish one product from another.
2. PROTECTION-enables the owner of the brand name to enjoy the goodwill associated with the
name.
3. Positioning-enables the owner to communicate the benefits of his product vis-à-vis competition.
>BRAND CONCEPT MANAGEMENT
consists of the 3 possible brand concepts, namely:
1. FUNCTIONAL NEEDS-That motivate the search for products that solve or prevent consumptionrelated problems.
2. Symbolic Needs-desires for products that fulfill internally generated needs.
3. Experiential Needs-desires for products that provide sensory pleasure, variety, & cognitive
stimulation.
.BRAND EQUITY-refers to the net worth (network) of a brand.
III. Product Strategy: Packaging
"Gusto ko yan, maganda ang design."
-CALEL GOSINGTIAN
>Grade 3, 9 years old (in 2001)
.Outstanding and unique PACKAGING always stands out in the marketplace.
IV. Product Strategy: Managing Product Lines
"The quality and selection of each will determine the strength and beauty of the fabric."
-JOHNLU KOA >Founder of The French Baker
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>Boston Consulting Group Grid
.SBU means STRATEGIC
BUSINESS UNIT
>BCG Model consists of 4, namely:
1. CASH COWS-are commonly referred to as "Today's Businesses"
2. Stars-also known to be “tomorrow’s Breadwinners"
3. Question Marks-could be "Day After Tomorrow's Businesses"
4. Dogs-are "Yesterday's Has-beens"
V. Product Strategy: Green Marketing
"SOCIAL RESPONSIBILITY is not only responsibility to people but also responsibility for making
people "People"."
-Prof. Emmanuel Fernandez
>Former Chairman and Management Department of Ateneo De Manila University.
.ENVIRONMENTAL THREATS composed of:
1. Global warming and ozone depletion.
2. Acid rain
3. Water pollution
4. Air pollution
5. Over-packaging
Chapter 5: Customer Service Strategy
."We work all the time, seven days a week. Even if we are the leader, we make it a point to serve and
not to be SERVED."
-Wilson Lim
>President of Abenson Group of Companies
>Customer Service Strategy
*Customer Satisfaction Framework.
-TOP MANAGEMENT-must consider the bigger picture- that the customer is the benefactor of
one's product or service.
*Strategic Customer Satisfaction Management focuses on three critical components:
1. Market Segmentation-They must not try to serve all types of customers if it will result in poor
customer satisfaction given scarce resources in all companies.
2. LEADERSHIP-is critical as it decides on what kind of corporate vision and culture it wants. 3.
Feedback and Reward System-customer satisfaction measurement can be quantified.
>CUSTOMER SERVICE: Who are our customers?
*External Groups
.BENCHMARKS-are then established for measuring and tracking shifts in perception between the
company and its competitors.
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*Customers
.CRITICAL ISSUES-it is specific, high annoying incidents, which create customer dissatisfaction. .
*INTERNAL STAFF-Group of constituents’ inside the company.
*Internal Customer Service System
>Happy employees make HAPPY customers.
>Customer service improvement cycle has 6 parts, namely:
1. Identify room for improvement
2. Describe the customer's need
3. Prepare service standard
4. Test standard if realistic
5. Modify and adopt
6. Monitor and improve
.SAS means SCANDINAVIAN
AIRLINE SYSTEM
BRAIN TEASERS
PRODUCT CONCEPT-Refers to a new product
BRAND CONCEPT-Reflects a general wearing on image associated with brand.
MARKET PENETRATION-Existing product in an existing market.
PRODUCT DEVELOPMENT-totally new product in an existing market.
HANDLING COMPLAINT ON MERCHANDISE- When retailer’s product does not meet
customer’s expectation.
HANDLING COMPLAINT ON SALESPERSON- Salesman makes unrealistic promise to
customer.
HANDLING COMPLAINT ON STORE POLICY- Goods are returned, they do not accept.
PRICE- The value of goods and services expressed in terms of money.
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