Chapter 12
Five Product Levels
Core benefit option: The main benefit it will provide me (Coke and water satisfies our need for
thirst) (BMW Toyota and all other cars offer us the benefit of private transportation) (Cakes
satisfy our needs for celebrating birthdays and special occasions)
Basic Product: The body or structure of the product (Distinctive differences in products.
(Toyota and BMW wont look similar in terms of outlook, branding, etc) (going to parlor and
taking different service)
Expected product: My expectations towards a product. (If I buy a car, I do not want it to
malfunction in a month) (a hotel room I rent must not be dirty and offer good service)
Augmented product: Enhances the product/service but not mandatory. (3 years warrantee in a
market where everyone offers 2 years)
Potential product: First to offer something special (when NSU offered the first private uni
private campus)
Types of Consumer Products:
Convenience: We can find it anywhere and everywhere even in billboards. Most frequently
brought, we do not give much thought. Mudir dokan stuff. Low price (250 ml coke) These
products are widely available, inexpensive, and easily accessible, making them convenient for
consumers to grab on the go.
Shopping product: Things we buy for shopping. High price than coke (2 liter coke) Consumers
may take time to evaluate options, compare prices, and consider various factors before making
a decision.
Specialty: Selective distribution. Very specific. We give much thought (Purchasing my first car
with my own money) we take extensive research before purchasing it. Purchasing something for
our favorite person. Consumers may take time to evaluate options, compare prices, and
consider various factors before making a decision. These purchases involve extensive research,
consideration, and emotional attachment.
All these can vary from person to person. For a beggar 250 ml can be a specialty
Unsought product: Little sought or awareness of product. We know it exists, but do not
purchase it. (Life insurance) we do not casually buy insurance just like that. (Anti virus
service/drop box or drive) we purchase these only once we feel the need to.
The Product Hierarchy:
Need family: I need to quench my thirst
Product family: Beverages encompass a wide category of products designed to quench thirst
or provide refreshment. Product Family refers to the wide selection of products in the market
designed to suit the same need, like Coke, Pepsi, Mojo, Jeera Pani
Product class: Numerous products of the same category are offered at different prices to suit
the needs of different classes of people. Which range, expensive, medium, or low
Produce line: Various lines within a product class. It gives several options to consumers. If
consumers do no like one product they will definitely like the other one. Ex: Toyota Corolla,
Camry, Prius
Product type: Specific, Ex: Sony's product line of TVs includes various types such as OLED
TVs, 4K HDR TVs, and Smart TVs. Each type represents different technological features and
viewing experiences within the television category.
Item: Can stand on its own with their own distinctive features. Ex: The iPhone 13 Pro Max is an
item within Apple's product type of the iPhone 13 series. It's a specific model with distinct
features, specifications, and design.
Product Mix Pricing
Product line pricing: We charge different prices for different product lines
Optional-feature pricing: Just an extra product, an extra charger along with a phone. It is
optional, our life is fine without it.
Captive Product: A gillete razor requires gillete blade only, not any other blade. Without it, I
cannot use my product.
Two-part pricing: 1 we have to pay a fixed price to use it, then we have to pay more If we use
it excess. Internet. We have to pay it even if we do not use it. Then if we use more, we have to
pay extra.
By product pricing: Sometimes products can become a by product. (garments make clothing,
but sometimes a lot of cloth Is wasted, we can purchase these small cloths from them. More
clothes can be made with it) (Wood sprinkles are a by product of wood factory which can be
used for matches)
Product bundling pricing: package for lower price (combining some items together as a
package. Johnsons baby pack with lotion, cream etc) ( travel agencies offer a package where
they provide transportation, food)
The Market and Demand
Pure Competition: Large number of buyers and sellers offering identical services. There is not
much difference in pricing and offers. (wheat)
Undifferentiated: Not different (buying water whether Kinley or Mum will give us no difference)
Monopolistic: Many firms compete but each products are slightly different. Ex: Fast food
chains.
Oligopolistic: If there are less competition, less suppliers, then they dominate the entire
market. Ex: telecommunication industry in Bangladesh is dominated by a handful of companies
like Robi, Grameenphone and Banglalink.
Pure Monopoly: The only one in the market.
Chapter 15
Push Strategy: Giving some few units if customer buys in a bulk amount. Sellers insist I buy
more. They try to push the product and service. Pushed from manufacturer to wholesaler to
retailer to customer through some free units. Companies selling convenience products do this
usually, or if a business wants to improve market share.
Pull Strategy: Giving an advertisement before launch, creating high demand in the market,
leading to more sales. This is pulling people towards the product. No free units are given here.
Since the hype is real here, businesses following this strategy do not have to push the
consumers to purchase their products through free samples or other offers.
4 Types of Buying Decision Behavior:
Complex Behavior= One of the most interesting products we purchase, high involvement and
products are very different. Ex: Iphone, Samsung and 1+ phones are very different from one
another.
Variety seeking buying behavior= When we buy low involvement product/service and see a
wide variety, we intent to test out new products. Ex: In shopping malls we have a wide variety of
products to choose from.
Dissonance reducing buying behavior (Cognitive Dissonance reducing) = Very involved
but there is not much difference between products, so we get second thoughts about our
purchase. So to reduce this dissonance, sellers at times assure buyers that they have made the
right choice.
Habitual buying behavior= Usually common for convenience products like cokes and matches
as we buy these so much that we developed a habit.
Number of Intermediaries:
Intensive= Highest number having a mass buyer population. Ex: Potato Crackers are available
everywhere no matter where we go.
Selective= Clear premium shampoos are not available in a local convenience stores, but in
super markets. But clear mini packs are available in convenience stores. So selective sbus are
distributed in selective areas.
Exclusive= Only 1 or 2 distributors in the country. So not very easy to find anywhere. Mercedes
and BMW got just 1 distributor in BD.
Chapter 17:
The Communication process:
Selective attention: Whenever we use a brand, we only see the advertisements and
signboards of the brands we use, overlooking the other brands. Ex: I use Robi so I will pay
attention to adverts related to Robi only.
Selective Distortion: While looking at the advert of Robi, we will overlook everything else going
on around us and specifically focus on the Robi ad so that we may find some benefit out of it.
(whenever we intentionally distort our attention elsewhere because we do not need to see it)
Selective Retention We use Robi but we will not pay attention to all the adverts there are, but
rather pay attention only to the ones we need. If I am in need of a new internet pack, I will not
pay much attention to a signboard about Robi offering talktimes. We do not have to remember
the others. Advertised in a way so that we may recall these later.
This is done so that our advertising campaigns are a part of selective attention rather than
selective distortion, and we marketers do it in such a way so that consumers can be able to
remember the advert even after a few days or weeks.
Effective Communication:
Category Need: We need people to be feel the need to purchase our category of product.
Brand Awareness: We need people to be aware of our brand.
Brand Attitude: Have people have positive attitude towards my brand
Purchase Intention: People must have intention to purchase my product.
If we keep all of these in mind of course our products will sell more.
Opinion Leaders: When we are buying a car for the very first time, it is obvious that we do not
much about cars and cannot decide which one is best for me. Here we seek opinions from our
friends and family members who are expert in cars and have a level of expertise. Here my
friends and relatives with expertise are called the opinion leaders. It can be a human, it can be a
company or even influencers from You tube.
We need this these opinion leaders in marketing because we know that people are influenced
by them. So if we target them, provide them a few samples of my products and make them say
good things about our products, people will be easily influenced to purchase our products. It is
highly needed In todays day and age of social media. We must try our best to keep them happy.
Depending on the type of product, we should determine the right communication mix for it.
If it’s a convenience product then we need a huge amount of sales promotion.
If it’s a specialty then we should focus on personal selling
Chapter 18
Advertisement is and will always be a paid form of promotion.
If no money is involved, it is not called advertisement but rather publicity.
It is a non-personal form of communication (we are not directly communicating with the
celebrities with adverts, neither do they know we are watching them)
If someone from a company approaches us and take a survey on us, it is not called
advertisement but rather Personal Selling.
Advertisement has to be done by an identified sponsor (brand has to be known and identified)
If the sponsor is not identifiable (not popular enough) it is also publicity.
Dove’s Advertising History
Advertising Objectives:
Informative: Marketed in a way that gives full information about a product for consumers to
know its features.
Persuasive: Trying to persuade consumers to purchase the product.
Reminder: Constantly reminding customers of their presence. Ex: coke ads
Reinforcement: When a company keeps giving the same message in their ads again and again
to reinforce their ideas. Ex: Throughout the years, Dove has said the same thing in their adverts
for a long time.
Factors to Consider in Setting an Advertising Budget
Developing the Advertising Campaign
Television/ Print Ads
Choosing Among Major Media Types
Major Media Types
Place Advertising
Virtual Worlds Advertising
Sales Promotion:
Major characteristic of sales promotion has to be short term. Eid discounts or winter discounts
are only given for a week or two.
Promoted in a way so that consumers buy it as quickly as possible (if given a limited time like 2
days)/ so that consumers buy more in quantity (buy one get one free offer/ 50% off)
Sales promotion can be for either consumers or retailers
Sales Promotion Tactics:
Sample: small amount of demonstration item which can be given for free. After using this
people can decide whether to buy the actual product or not. There is no condition applied for
these samples, anyone can get lucky.
Coupons: Given for free/ no purchase or condition to be fulfilled. (Chaldal using coupons.
Pathao using coupons)
Cash refund offers/Cashback: If we make a purchase, at times we get a coupon which we can
only apply for our next purchases and receive discounts. These are never given for free.
Premiums: If purchase something, and we get an extra same product. (We buy 10 bananas
and get 2 free) (when we buy certain data, we get an extra 200mb for free) (20% extra
perfume/soap) HAS TO BE THE SAME PRODUCT
Contest: If we make a purchase, we have a chance to enter a fun competition which we can
participate and earn prizes. (Lux Channel Eye Superstar) purchase is NECCESARY
Sweepstakes: if we make a purchase, I do not have to take part in any contest, but a lottery will
take place and if I get lucky I will get a prize.
Membership programs/loyalty program/continuity program: If we make purchases
somewhere for a long time, we get extra benefits.
Discounts/price off: offering a price off
Chapter 20:
Categories of new products:
1. New to the world-when a product was first introduced ex-smartphones,coffee
2. ⁠New product lines- for coffee~ brewed, organic, blah blah
3. ⁠Additions- different capacity like coffee has different sizes
4. ⁠improvements- coffee taste improvising
5. ⁠repositioning- cold coffeee
6. ⁠cost reduction- offers or deals
Criteria for venture team:
• people with expertise on a certain level
• ability to guide the team
• the team members have necessarily skills set
• everyone is interested in the concept that has been proposed
• rewards for achievements
• every team member has different skill sets and knowledge on a particular matter
Concepts in concept development:
Product idea: initial thinking of a product
Product concept: details of the product, appearance, functionality
Category concept: for smartphones-smart devices , coffee- for warmth or popular during
cold
Brand concept-focus on brand identity and product value
Concept testing: gathering consumer feedbacks
Timing of market entry:
First entry: first kind to exist in the market
Parallel entry: launch similar products as competitors
Late entry: launch similar products after analysis of competitors survival
Stages in adoption process
1. Awareness - making people know that such product exists
2. ⁠ interest- showcase some interesting facts about the product to lure customers to buy it
3. ⁠evaluation- get feedbacks from buyers about whether the product is successful or not
4. ⁠Trial- allow testing before purchase so customers know what they are buying
5. ⁠ Adoption- finally purchase the product