Sales & Marketing introduction - Session 2
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The document discusses various topics related to managing products and services over their lifecycles, including: 1) Common reasons products may resist change or fail include cultural/image barriers, psychological barriers, risk barriers, lack of incentive to change, incompatibility with habits, and lack of usage barriers. 2) When managing a product's lifecycle, companies can modify the product, modify the market, or reposition the product. Products may be repositioned in reaction to competitors, catching trends, or reaching new markets. 3) Services have characteristics of inseparability, variability, intangibility, and perishability that products do not. Their quality can be inconsistent due to variable human delivery and they cannot be
Sales & Marketing introduction - Session 2
- 1. Managing products & services
- 3. Managing the product life cycle
- 4. Common reasons for resisting a product Cultural differences or image . Psychological barrier Physical, economic, or social Risk barrier Product provides no incentive to change Value barrier Product is incompatible with existing habits Usage barrier
- 5. How AM should manage the product during its cycle? Modify the product Modify the market Reposition the product
- 6. When to reposition a product? In reaction to competitor positioning Catching rising trend Reaching new market Changing offered value: Trade up Trade down
- 7. Marketing MIX Product line Product line depth Product MIX breadth Product MIX consistency Cross products
- 8. Why new products may Fail? Undifferentiated product Too little market attractiveness Poor marketing mix Poor product quality Bad timing No economical access to buyers
- 9. Product warranty Full warranty Limited coverage warranty Implied warranty Warranty Express of warranty
- 10. Characteristics of services When the service is available but there is no demand . Cost of paying the people and overhead Inventory carrying costs of service vary between high and low Inventory Consumers cannot and do not separate the deliverer of the service from the service itself . Interaction between consumer and the service provider varies based on whether consumer must be physically present to receive the service. Inseparability Quality is often inconsistent . Service personnel (have different capabilities, vary performance from day to day) Problems can be reduced by standardization and training Inconsistent Services cannot be held, touched, or seen before the purchase decision . Marketing must make them tangible or show the benefits Marketers often use tangible cues to communicate service Intangible
- 11. Services buying behavior Pre-sales assessment After or during sales assessment Less-assessable
- 12. Assessing service quality Gap Service that customers receive & Service they want Service What the company provides & What the customer is told it provides Communication Service quality specifications & Service that is actually provide Delivery What management thinks customers want & Quality specifications that management develops to provide the service Standard What management thinks customers want & What customers want Knowledge
- 13. Services marketing (service mix) Product: Exclusivity Branding Capacity management Pricing Place Promotions
- 14. Case study 2 Binary Works plans to offer an e-learning consultation services. Form your point of view what is the considerations should be taken to offer such services. How it can position its product How this new service comply with the current marketing mix Plan of the service mix
- 15. Thanks