PowerPoint Slides to accompany Rix Marketing: A Practical Approach 7e
• Core product
= ability to
satisfy wants
1. Can capture
memories
2. Opportunity
for selfexpression
What is a Product?
• Actual product
= what it is and
does
1. Well-made
2. Light and
stylish
3. Attractive
packaging
Rix Marketing: A Practical Approach 7e
Chapter Seven: Product Planning and Development
• Augmented
product
= extras
1. Brand status
and retailer
reputation
2. Before and
after-sales
service
3. Warranty
Next: Classifying Consumer Goods
Learn more on pages 239 – 241
Classifying Consumer Goods
Categorising products can help guide product management strategies
• Convenience goods
1. Groceries, snack foods,
socks/undies, stationary
2. Low unit value
3. Usually frequently purchased
4. Low involvement in brand or
price comparison
5. Substitute readily accepted
All elements of the marketing mix
are important, but which of the
four Ps is critical for convenience
goods?
Rix Marketing: A Practical Approach 7e
Chapter Seven: Product Planning and Development
Place (distribution): because if our
brand is not on the shelf, the
consumer will readily accept a
substitute.
Next: Classifying Consumer Goods
Learn more on pages 242 - 246
Classifying Consumer Goods
• Shopping goods
1. White goods, most cars,
furnishings, clothing
2. Higher unit value
3. Less frequently purchased
4. Consumer compares price and
other features
Which element(s) of the four Ps
is critical if we are marketing
shopping goods?
Rix Marketing: A Practical Approach 7e
Chapter Seven: Product Planning and Development
Price: because consumers shop
around for the best deal, and
Promotion: especially combined
manufacturer and retailer
promotions
Next: Classifying Consumer Goods
Learn more on pages 242 - 246
Classifying Consumer Goods
• Specialty goods
1. Luxury items, specialty
stereo, unique cars
2. Usually high unit value
3. Very high involvement in
purchase
4.Very high brand or outlet
loyalty
Which element of the four Ps is
critical if we are marketing
specialty goods?
Rix Marketing: A Practical Approach 7e
Chapter Seven: Product Planning and Development
Product: because the quality,
style or brand is what has made
the product a sought-after
specialty good
Next: Classifying Consumer Goods
Learn more on pages 242 - 246
Classifying Consumer Goods
• Unsought goods
1. Consumer is not aware of
product, or
2. Consumer has to be shown
the need
Which element of the four Ps is
critical if we are marketing
unsought products?
Rix Marketing: A Practical Approach 7e
Chapter Seven: Product Planning and Development
Promotion: because consumers
are either unaware of the
product or don’t actively seek it
out.
Next: Classifying Business Goods
Learn more on pages 242 - 246
Classifying Business Goods
• Raw materials
• Fabricating materials and parts
• Installations
• Accessory equipment
• Operating supplies
Each of these also has some
relevance for B2B marketing
strategy (See Table 7.1)
Rix Marketing: A Practical Approach 7e
Chapter Seven: Product Planning and Development
Next: Classification of Services
Learn more on pages 246 - 250
Classification of Services
• B2B v B2C
• Extent of physical good involved
• Capital investment required
• Delivery method
• Degree of customer involvement
Each of these is relevant for
services marketing strategy (See
also Chapter 9)
Rix Marketing: A Practical Approach 7e
Chapter Seven: Product Planning and Development
Next: Developing New Products
Learn more on pages 250 - 251
Developing New Products
3. Business
analysis
Identify
the
strategic
role of
the new
products
4. Product
prototype
development
5. Test
marketing
6. Commercialisation
2. Screening
and
evaluation of
ideas
1. Idea
generation
CONCEPT
TESTING
Rix Marketing: A Practical Approach 7e
Chapter Seven: Product Planning and Development
Next: New Product Adoption and Diffusion
Learn more on pages 252 - 259
New Product Adoption and Diffusion
Success with a new line is more likely if
three aspects of the adoption process are
understood
1. Stages consumers go through in
adopting a new line
2. Types of consumers who adopt new
products early or late
3. Factors affecting the adoption rate of a
new product
Rix Marketing: A Practical Approach 7e
Chapter Seven: Product Planning and Development
Next: Stages in the Adoption Process
Learn more on page 260
Stages in the Adoption Process
1. Awareness
Consumer is exposed to the new
line
2. Interest
Consumer looks for information
3. Evaluation
4. Trial
5. Adoption
6. Post-adoption confirmation
Rix Marketing: A Practical Approach 7e
Chapter Seven: Product Planning and Development
Consumer compares the new
line to alternatives
Consumer buys one or tries a
sample
Consumer buys on a regular
basis
Consumer looks for re-assurance
in ads or others’ opinions
Next: Adopter Categories
Learn more on page 260
Adopter Categories
Consumers adopt products at different stages of its life cycle.
Early majority
Early adopters
Innovators
(very small group)
Late majority
Laggards
Marketers target early groups who ‘educate’ other consumers.
Rix Marketing: A Practical Approach 7e
Chapter Seven: Product Planning and Development
Next: Innovations Can Have Different Adoption Rates
Learn more on page 261
Innovations Can Have Different Adoption Rates
Rix Marketing: A Practical Approach 7e
Chapter Seven: Product Planning and Development
Next: Factors Affecting the Adoption Rate
Learn more on page 261
Factors Affecting the Adoption Rate
50% market
penetration in
2 years
50% market
penetration in
20 years
Why the difference in adoption rate?
•
•
•
•
•
Relative advantage
Compatibility
Complexity
Ability to trail
Ability to observe
Rix Marketing: A Practical Approach 7e
Chapter Seven: Product Planning and Development
Next: Product Life Cycle
Learn more on pages 260 -263
Product Life Cycle
Introduction
• Costs high,
sales low
• Gaining
distribution is
key task
• High risk of
product failure
Growth
• Sales
increasing
• Competition
increases
• Competitive
promotion is
key task
Rix Marketing: A Practical Approach 7e
Chapter Seven: Product Planning and Development
Maturity
• Sales slow
• Margins fall
• ‘Extra reason to
buy’ product
improvement
and promotion is
key task
Decline
• Consider
deletion
• Cost control is
key task
Next: Planned Obsolescence
Learn more on pages 263 269
Planned Obsolescence
Planning for a product to ‘die’ is a controversial aspect of product
management. Two types of obsolescence:
1. Technological or function
obsolescence
• New materials
• Miniaturisation
• Improved functions
2. Fashion or style
obsolescence
• Shapes
• Colours
• Superficial improvements
Rix Marketing: A Practical Approach 7e
Next: Five Minute Quiz
Learn more on pages 270-271
Chapter Seven: Product Planning and Development
Five Minute Quiz
1. List three categories each of consumer goods and
business goods
2. List the steps for developing a new product
3. List the stages in the new product adoption
process
4. List five factors than can affect the
adoption rate for a new product
5. Briefly outline the stages in the
product life cycle
Rix Marketing: A Practical Approach 7e
Chapter Seven: Product Planning and Development