Marketing II / Session 1

June 2015: 90 Minutes, open-ended questions, 40% contribution to

final grade Two written (groups of two) assignments until: Session 8; 7th of May 2015 Session 12; 1st of June 2015 30% contribution per assignment Groups of two students each need to discuss in form of an essay a given question per assignment. Assignment a) Product and Price Assignment b) Place and Promotion Each essay needs to be structured in introduction, main text and conclusion (a deeper structure/chapters of 2nd and 3rd level are also allowed). A minimum of 15 pages (fonts and layout according to LBS standards) is required per essay. You will be asked to elaborate on an example of your choice about the applicable concepts of pricing and product strategies respectively distribution channels and networks a s well as integrated marketing communication (promotion).

Marketing II/ Session 1

product can refer to
- both goods and services
- the full

product profile (4Ps)
- part of the customer-company exchange

Remember: A Company offers something (a flight), and the customer offers something in return (payment).

marketable product is the profitable intersection between
What customers want
(Utilize marketing

research to find answers
regarding value, quality, specific features, benefits,
etc.
and what the firm is well-suited offer

and straight re-buys
Customers are inclined to
engage in limited, if

any, word-of-mouth
exert minimum effort retrieving the product
be more price sensitive
Marketers are inclined to
offer price-related loyalty programs
engage in extensive distribution
try to capture customers’ attention

Products
Specialty and new buys
Customers are inclined to
engage in considerable

word-of-mouth
exert effort retrieving the product
be less price sensitive
Marketers are inclined to
offer community related loyalty programs
engage in selective distribution
offer much information about products

a lot of specific information about products!

Riedel HP

services

Pure goods are tangible
- socks

Pure service are intangible
- medical

procedure

A mix has tangible and intangible components
- rental cars

evaluated prior to purchase
- socks

Experience Qualities
Require trial or consumption

before evaluation
- restaurants

Credence Qualities
Difficult to judge even post-consumption
- medical procedures

and consumed

Perishability: Services are more perishable than goods
Marketers must

try to even out demand

Inseparability: Services are more impacted by the interaction between the service provider and the customer than goods

to changing needs, abilities, etc. in the service provider and

customer
Self-service and equipment can decrease variability

Try to reduce bad variability
Errors in the system

Try to improve good variability
Customization for customers’ unique needs

services influence business decisions
- Advertising, branding, pricing, logistics, etc.

Thinking beyond

traditional services…
- Professional services
- Purchase experiences
- On-line shopping

product one needs to define the product’s core offerings and

the value-added

to the product offering
Core elements are expected by customers
If core

elements are substandard, dissatisfaction can be triggered


Value-added is supplemental and can be used for differentiation
Marketers can affect level of satisfaction through value-addeds
For example, luxurious rooms may lead to high satisfaction

the industry changes or as the firm’s competencies change

Ask…
What

business are we in?
What benefits do we want to provide to the
consumer?
Who is our competition?

Example: IBM

of product lines

Depth
Number of products in a line

or supplement existing lines

Extensions into breadth and depth must be

done for strategic reasons

Shouldn’t try to be all things to all people
Are the new launches consistent with brand’s/company’s positioning?
If not, can the brands be directed to different target segments without diluting the existing position?