MARKETING TACTICS Y2Q2
WEEK 1 TS
Product
Core product
Addressing the question “what is the buyer really buying”? What
customer needs are fulfilled by the product?
example: Ipad = communication, freedom, on the go connectivity
to people and resources
example: make up: you sell hope, fulfill the need to look good in
social interactions
Actual product
At the second level, product planners must turn the core benefit into an actual product. They need to
develop the product, service features, design, the quality level, brand name and packaging.
Example: Ipad = various parts, design, packaging and brand.
Features / Design: exterior and interior design and choice of material choice of colors for the
range to reflect trendy tastes design and prominence of Mini emblem on the vehicle
Engineering / Quality: choice of engine and range of engine capacities available performance
Brand name / Logo: capitalizing on the nostalgic associations with the Mini name
The physical good or delivered service that you actually get
Augmented product
The augmented product must be built around the core and actual product by offering additional
consumer services and benefits, like installation services or guarantees.
Example: warranty on the Ipad, repair service, customer telephone number.
Warranty: 3-year, 50.000 km, bumper-to-bumper warranty
Installation / Delivery: dealer preparation prior to delivery
Customer Support Services: dealer parts and repair services
Credit: 3,5% interest auto loan
Additional customer services and benefits
Packaging
Whether you’re getting ready to create packaging for a product you’re selling or you’re considering
changing the packaging of an existing product, you may be wondering if the appearance of a
product’s package is important. Many product providers may think that the product and its
performance is more important than what the packaging looks like, but the product packaging can
play a role in the success or failure of the sales of the product:
Function
The purpose of product packaging is to protect the product from damage. Product packaging not only
protects the product during transit from the manufacturer to the retailer, but it also prevents damage
while the product sits on retail shelves. Most products have some form of packaging. For example,
soups must have a container and package while apples may have packaging for transport but not to
sell the product from the produce department of the local grocery store.
Attraction
How a product is packaged may be what attracts the consumer to take a look on the product as is sits
on store shelves. For this reason, many companies conduct extensive research on color schemes,
designs and types of product packaging that is the most appealing to its intended consumer.
Promotion
Packaging also plays an important role for portraying information about the product. Outside
packaging may contain directions on how to use the product or make the product.
Facilitates Purchase Decision
Philip Kotler, Gary Armstrong, Lloyd C. Harris, Nigel Piercy - Principles of Marketing, 7 th European
edition
,MARKETING TACTICS Y2Q2
Packaging may also contain ingredients and nutritional information about the product. This
information can help to sell the product because it allows potential customers to obtain the
necessary information they need to make a purchase decision. Information contained on a package
may propel the reader to buy the product without ever having to speak to a store clerk.
Differentiation
Packaging can also differentiate one brand of product from another brand. Because the product
packaging can contain company names, logos and the color scheme of the company, it helps
consumers to identify the product as it sits among the competition’s products on store shelves. For
example, as a shopper walks through the coffee aisle of the local grocery store, the bright orange,
pink and white packaging of the Dunkin’ Donuts coffee brand may be easily recognizable for the
consumer to grab on his way by the coffee shelf. The shopper may identify with the company brand,
which propels them to buy the product. If the product packaging changes, it may alter the brand
perception of the company, which doesn’t mean that the consumer would not still purchase the
product, but it may delay the purchase until the person is able to identify the product according to its
new packaging.
Advantages of packaging for…: o Positioning towards
Consumers consumers
o Protects the contents o Communication
o Convenient usage and storage o Convenience
o Provide necessary information o Cost savings
about the products o Distribution and storage
o Helps memory and Logistic services
recognition: brand and pack o Facilitates storage
o Value for money equation: is o Number of products in box
the value perceived by o Pallet load
consumers? o Help in transit
Manufacturers
o …fulfill basic needs Packaging decisions for a product manager:
(Production): Why so important in the product mix
keep the product safe management?
facilitate storage • Key to win in store with shoppers:
enhances goodwill – Visibility, shelf impact,
o …and help build brand equity differentiation, price
(Marketing): • Key communication tool with consumers
promotes product – First touch point with consumers for
helpful in advertising the brand
and sales promotion – Develop trial and repeat purchase
increase profit when – Use as promotional vehicle
value perceived by • Key source of differentiation versus
consumers competition
Retailers/wholesalers • Key to drive usage satisfaction and bring
o Shelf space innovation to the brand
– Build consumer loyalty over time
Online shopping has had such a profound effect on how shoppers shop, that the path to purchase has
forever been altered. The consumer is still alive, but the shopper characteristic has become more
important because of the many ways to connect with him/her, ultimately transforming how a
consumer thinks.
Philip Kotler, Gary Armstrong, Lloyd C. Harris, Nigel Piercy - Principles of Marketing, 7 th European
edition
, MARKETING TACTICS Y2Q2
While the consumer is a person who purchases goods and services for personal use, the shopper is
focused on the experience; hence, the birth of shopper insights.
Marketers see the shopper under a whole new light. Both the consumer and shopper are one in the
same person, but think differently.
Consumer Mode:
That brand looks great, I should buy Shopper Mode:
one next time Do I need this?
I need to remember to put that on my Where is that product in the store?
list The other brand is cheaper, but will it
That product could make my life easier do the same thing?
Values of that company are aligned Why was I convinced I needed this?
with me Emotional decision-making,
Research led decision-making, logical impressionistic
Everyone is a consumer. We all digest media, we make a certain amount of money, we live in a certain
place, etc.; however, we are not all the same type of shopper. It's the personal side of who we are.
The shopper is about values, relationships, and environment.
We all have preferred categories in which we spend a significant amount of time and money on. We
also have categories in which we are trying to spend the least amount of time and money in. In some
categories, we are shopping for ourselves and in some we are fulfilling the needs of others. All of
these decisions are personal and vary by each person. That is where the lines become blurred and the
real complexities of understanding a shopper lie.
Our involvement and engagement in a category or channel as a shopper does not tie neatly to our
consumer type. Each individual shopper has different needs, wants, likes and dislikes, so retailers and
suppliers need to analyze what decisions are made pre-store and what decisions are made in-store.
The more the retailer is in sync with the manufacturer, the better the manufacturer can create a
proper media mix both pre-store and in-store. When successful, the two can drive trips and increase
basket size, quantify the shopper’s decisions, and turn analysis into a profitable outcome for all.
For a consumer, a habit that will never die are pre-store decisions that are brand driven: the shopper
has purchased the product in the past and will continue to do so in the future.
Small and innovative companies know this well. And not until this decade, have we seen the rise of
shopper knowledge sparking a movement in the industry that has greatly benefited these companies.
Knowing that the shopper is the way to gain market share from the big brands that have big media
budgets has made all the difference in the success of nimble companies. By leveraging an
understanding of in-store decision-making where the consumer becomes the shopper, disruption
runs rampant in the CPG industry, but also provides the consumer with more selection.
What are the Packaging decisions for a PM?
• Package design:
– role brand, naming, color code, shape of pack , range differentiation
– legal information, brand protection, in store scanning
• Use of pack as vehicle for promo, specific message such as “new” and “improved”…...
• Compatibility with existing production, need new production line or outsourcing
• Package size: Retail Selling Price, usage, family pack or portion pack?
• Package cost relating to total COGS and targeted profitability
• Package test needed
• Package sustainability
Philip Kotler, Gary Armstrong, Lloyd C. Harris, Nigel Piercy - Principles of Marketing, 7 th European
edition
WEEK 1 TS
Product
Core product
Addressing the question “what is the buyer really buying”? What
customer needs are fulfilled by the product?
example: Ipad = communication, freedom, on the go connectivity
to people and resources
example: make up: you sell hope, fulfill the need to look good in
social interactions
Actual product
At the second level, product planners must turn the core benefit into an actual product. They need to
develop the product, service features, design, the quality level, brand name and packaging.
Example: Ipad = various parts, design, packaging and brand.
Features / Design: exterior and interior design and choice of material choice of colors for the
range to reflect trendy tastes design and prominence of Mini emblem on the vehicle
Engineering / Quality: choice of engine and range of engine capacities available performance
Brand name / Logo: capitalizing on the nostalgic associations with the Mini name
The physical good or delivered service that you actually get
Augmented product
The augmented product must be built around the core and actual product by offering additional
consumer services and benefits, like installation services or guarantees.
Example: warranty on the Ipad, repair service, customer telephone number.
Warranty: 3-year, 50.000 km, bumper-to-bumper warranty
Installation / Delivery: dealer preparation prior to delivery
Customer Support Services: dealer parts and repair services
Credit: 3,5% interest auto loan
Additional customer services and benefits
Packaging
Whether you’re getting ready to create packaging for a product you’re selling or you’re considering
changing the packaging of an existing product, you may be wondering if the appearance of a
product’s package is important. Many product providers may think that the product and its
performance is more important than what the packaging looks like, but the product packaging can
play a role in the success or failure of the sales of the product:
Function
The purpose of product packaging is to protect the product from damage. Product packaging not only
protects the product during transit from the manufacturer to the retailer, but it also prevents damage
while the product sits on retail shelves. Most products have some form of packaging. For example,
soups must have a container and package while apples may have packaging for transport but not to
sell the product from the produce department of the local grocery store.
Attraction
How a product is packaged may be what attracts the consumer to take a look on the product as is sits
on store shelves. For this reason, many companies conduct extensive research on color schemes,
designs and types of product packaging that is the most appealing to its intended consumer.
Promotion
Packaging also plays an important role for portraying information about the product. Outside
packaging may contain directions on how to use the product or make the product.
Facilitates Purchase Decision
Philip Kotler, Gary Armstrong, Lloyd C. Harris, Nigel Piercy - Principles of Marketing, 7 th European
edition
,MARKETING TACTICS Y2Q2
Packaging may also contain ingredients and nutritional information about the product. This
information can help to sell the product because it allows potential customers to obtain the
necessary information they need to make a purchase decision. Information contained on a package
may propel the reader to buy the product without ever having to speak to a store clerk.
Differentiation
Packaging can also differentiate one brand of product from another brand. Because the product
packaging can contain company names, logos and the color scheme of the company, it helps
consumers to identify the product as it sits among the competition’s products on store shelves. For
example, as a shopper walks through the coffee aisle of the local grocery store, the bright orange,
pink and white packaging of the Dunkin’ Donuts coffee brand may be easily recognizable for the
consumer to grab on his way by the coffee shelf. The shopper may identify with the company brand,
which propels them to buy the product. If the product packaging changes, it may alter the brand
perception of the company, which doesn’t mean that the consumer would not still purchase the
product, but it may delay the purchase until the person is able to identify the product according to its
new packaging.
Advantages of packaging for…: o Positioning towards
Consumers consumers
o Protects the contents o Communication
o Convenient usage and storage o Convenience
o Provide necessary information o Cost savings
about the products o Distribution and storage
o Helps memory and Logistic services
recognition: brand and pack o Facilitates storage
o Value for money equation: is o Number of products in box
the value perceived by o Pallet load
consumers? o Help in transit
Manufacturers
o …fulfill basic needs Packaging decisions for a product manager:
(Production): Why so important in the product mix
keep the product safe management?
facilitate storage • Key to win in store with shoppers:
enhances goodwill – Visibility, shelf impact,
o …and help build brand equity differentiation, price
(Marketing): • Key communication tool with consumers
promotes product – First touch point with consumers for
helpful in advertising the brand
and sales promotion – Develop trial and repeat purchase
increase profit when – Use as promotional vehicle
value perceived by • Key source of differentiation versus
consumers competition
Retailers/wholesalers • Key to drive usage satisfaction and bring
o Shelf space innovation to the brand
– Build consumer loyalty over time
Online shopping has had such a profound effect on how shoppers shop, that the path to purchase has
forever been altered. The consumer is still alive, but the shopper characteristic has become more
important because of the many ways to connect with him/her, ultimately transforming how a
consumer thinks.
Philip Kotler, Gary Armstrong, Lloyd C. Harris, Nigel Piercy - Principles of Marketing, 7 th European
edition
, MARKETING TACTICS Y2Q2
While the consumer is a person who purchases goods and services for personal use, the shopper is
focused on the experience; hence, the birth of shopper insights.
Marketers see the shopper under a whole new light. Both the consumer and shopper are one in the
same person, but think differently.
Consumer Mode:
That brand looks great, I should buy Shopper Mode:
one next time Do I need this?
I need to remember to put that on my Where is that product in the store?
list The other brand is cheaper, but will it
That product could make my life easier do the same thing?
Values of that company are aligned Why was I convinced I needed this?
with me Emotional decision-making,
Research led decision-making, logical impressionistic
Everyone is a consumer. We all digest media, we make a certain amount of money, we live in a certain
place, etc.; however, we are not all the same type of shopper. It's the personal side of who we are.
The shopper is about values, relationships, and environment.
We all have preferred categories in which we spend a significant amount of time and money on. We
also have categories in which we are trying to spend the least amount of time and money in. In some
categories, we are shopping for ourselves and in some we are fulfilling the needs of others. All of
these decisions are personal and vary by each person. That is where the lines become blurred and the
real complexities of understanding a shopper lie.
Our involvement and engagement in a category or channel as a shopper does not tie neatly to our
consumer type. Each individual shopper has different needs, wants, likes and dislikes, so retailers and
suppliers need to analyze what decisions are made pre-store and what decisions are made in-store.
The more the retailer is in sync with the manufacturer, the better the manufacturer can create a
proper media mix both pre-store and in-store. When successful, the two can drive trips and increase
basket size, quantify the shopper’s decisions, and turn analysis into a profitable outcome for all.
For a consumer, a habit that will never die are pre-store decisions that are brand driven: the shopper
has purchased the product in the past and will continue to do so in the future.
Small and innovative companies know this well. And not until this decade, have we seen the rise of
shopper knowledge sparking a movement in the industry that has greatly benefited these companies.
Knowing that the shopper is the way to gain market share from the big brands that have big media
budgets has made all the difference in the success of nimble companies. By leveraging an
understanding of in-store decision-making where the consumer becomes the shopper, disruption
runs rampant in the CPG industry, but also provides the consumer with more selection.
What are the Packaging decisions for a PM?
• Package design:
– role brand, naming, color code, shape of pack , range differentiation
– legal information, brand protection, in store scanning
• Use of pack as vehicle for promo, specific message such as “new” and “improved”…...
• Compatibility with existing production, need new production line or outsourcing
• Package size: Retail Selling Price, usage, family pack or portion pack?
• Package cost relating to total COGS and targeted profitability
• Package test needed
• Package sustainability
Philip Kotler, Gary Armstrong, Lloyd C. Harris, Nigel Piercy - Principles of Marketing, 7 th European
edition
