___\/50<\/p>\n
___\/50<\/p>\n
Workbook 4A: Products, Services and New Products <\/p>\n
We all use products everyday of our lives, and might have never considered classifying them in any way, from a marketing perspective what attributes comprise our products and how we might classify them is vitally important when making marketing mix decisions as buying behaviour can vary across classifications. There are two main classifications of product: consumer products that are bought by final consumers such as convenience products (milk, newspapers); specialty products (Rolex watches, Mercedes) and unsought products (life insurance); and business to business products that are used in the processing of goods or in conducting business, such as materials and parts (leather, castings); capital items (buildings, desks) and supplies and services (lubricants, window cleaning). More specific to classifying our products, we also need to make decisions regarding individual products, services and experiences, and how they might fix within product lines, and product mixes. We will then consider how marketers build and manage the brands that communicate the uniqueness of our offerings to consumers \u2013 one of the most critically important elements of any marketing campaign. <\/p>\n
As we build and brand our product portfolio to meet and exceed our chosen markets expectations, we also need to consider that all things change over time (e.g.: tastes, fashion and technology) and that demand for products will eventually fall or even cease, bringing an end to the life of those products (sometimes abbreviated to E.O.L.). In order to maintain the viability of our product portfolio we need to plan for this by developing new products to meet the ever changing demand of our markets.<\/p>\n
A new product is a good, service, experience or idea that is perceived by some potential customers as new. It can be argued that a product that is simply new to the company is also classified as a new and as such the concept of \u2018new\u2019 may also include me-too products as well as innovative new products. You should note that the rate of market failure for new products is quite high, but with robust product-planning we can reduce that rate for a company. As you will discover through your study of this module there is a well-defined and established process for the development of new products, from idea generation, idea screening, concept development testing, marketing strategy development, business analysis, product development and test marketing prior commercialisation. By following this process marketers can better assure the likely success of those products they launch to the market. Whilst we have already alluded to the life and death of individual products, we will also consider the five-stage product lifecycle (P.L.C) that forms the basis for sound product portfolio management and planning. <\/p>\n
Chapters 7 and 8 objectives<\/p>\n
Define product and the main classifications of products and services.<\/p>\n
Describe the decisions companies make regarding their individual products and services, product lines, and product mixes.<\/p>\n
Identify the four characteristics that affect the marketing of a service and the additional marketing considerations that services require.<\/p>\n
Discuss branding strategy\u2014the decisions companies make in building and managing their brands.<\/p>\n
Explain how companies find and develop new-product ideas.<\/p>\n
List and define the steps in the new-product development process and the major considerations in managing this process.<\/p>\n
Describe the stages of the product life cycle and how marketing strategies change during the product life cycle.<\/p>\n
Discuss two additional product issues: socially responsible product decisions and international product and services marketing<\/p>\n
Part 1 Definitions (3 x 2 marks = 6 marks)<\/p>\n
1.1: Product <\/p>\n
Definition: <\/p>\n
Example: <\/p>\n
1.2: Service <\/p>\n
Definition: <\/p>\n
Example: <\/p>\n
1.3: Brand<\/p>\n
Definition: <\/p>\n
Example: <\/p>\n
Part 2: Conceptual Question (5 marks)<\/p>\n
Describe a service: <\/p>\n
_______________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
Explain each characteristic and use a hair salon\/barbershop as an example: <\/p>\n
Characteristic 1: _______________________________________________________________<\/p>\n
______________________________________________________________________________________________________________________________<\/p>\n
For example: A hair salon\/barbershop has this characteristic because __________________________________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
Characteristic 2: _______________________________________________________________<\/p>\n
______________________________________________________________________________________________________________________________<\/p>\n
For example: A hair salon\/barbershop has this characteristic because __________________________________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
Characteristic 3: _______________________________________________________________<\/p>\n
______________________________________________________________________________________________________________________________<\/p>\n
For example: A hair salon\/barbershop has this characteristic because __________________________________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
Characteristic 4: _______________________________________________________________<\/p>\n
______________________________________________________________________________________________________________________________<\/p>\n
For example: A hair salon\/barbershop has this characteristic because __________________________________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
2.1: Please explain four (4) characteristics of a service and use a hair salon or barbershop as an example to elaborate your points.<\/p>\n
Part 3: Case Study<\/p>\n
Chinese Electric Vehicle Startup Byton Taps Aurora For Self-Driving Car Tech<\/p>\n
Byton, the new China-based company that unveiled a\u00a0tech-centric all-electric SUV concept\u00a0at the big tech trade show CES in January, is now tapping some outside experts to bring self-driving car technology into their future vehicles.<\/p>\n
Byton announced Monday that it has partnered with self-driving vehicle technology startup Aurora. The buzzy startup, led some of the\u00a0best minds in self-driving cars, will work on bringing Level 4 autonomous vehicle capabilities into Byton vehicles. The two companies will conduct a pilot deployment of Aurora\u2019s L4 autonomous driving systems on Byton vehicles in the \u201cnext two years.\u201d The pilot will be in California, Aurora CEO Chris Urmson said. Urmson previously led the\u00a0Google\u00a0self-driving project before it spun out to become Waymo, a business under parent Alphabet.<\/p>\n
Level 4 is a designation by SAE International that means the car takes over all of the driving in certain conditions. In Level 5 autonomy, a vehicle is driverless in any and all circumstances and environments.<\/p>\n
The two companies will also \u201cexplore\u201d using Aurora\u2019s self-driving system in Byton\u2019s series production vehicles, which aren\u2019t expected to be in mass production until the end of 2019 (at the earliest).<\/p>\n
The announcement is the third partnership for Aurora, which launched a little more than a year ago. Aurora works with automakers to design and develop a package of sensors, software, and data services\u2014the \u201cfull stack,\u201d in industry lingo\u2014needed to deploy fully autonomous vehicles. The company has been\u00a0working with Volkswagen\u00a0for months on integrating its self-driving system into custom-designed electric shuttles for VW\u2019s new Moia brand. Volkswagen aims to launch commercial fleets of self-driving electric vehicles in two to five cities beginning in 2021, beginning with Hamburg and Silicon Valley.<\/p>\n
Aurora is also working with Hyundai.<\/p>\n
The partnership shows Aurora\u2019s progression\u00a0from secretive startup\u00a0to player in the race to commercialise self-driving vehicles. And it reveals more about Byton. However, the China-based startup still has a long way\u2014and lots of money left to raise\u2014before its ambitions become actual products that customers can buy and drive, or be driven by, around.<\/p>\n
The company has raised $320 million from outside investors. Additional sources of funding from lenders will be used to help build the factory in Nanjing. Byton, formerly Future Mobility Corporation, plans to raise additional capital from investors in a Series B round this year. Construction on the factory began in September 2017, and the building is expected to be completed by the third quarter of this year. Trial production will begin in early 2019.<\/p>\n
Sales are set to begin in China in 2019, and sales in the United States and Europe to start in 2020.<\/p>\n
Byton was founded by Carsten Breitfeld, the former head of the BMW i8 program, and Daniel Kirchert, the former managing director of Infiniti China and a longtime BMW executive. Not a lot was known about the company until recently.<\/p>\n
In January, Breitfeld and Kirchert revealed the medium-ish SUV crossover that they call an SIV, or \u201csmart, intuitive vehicle.\u201d The concept vehicle, which the founders say represents about 80% of what the production vehicle will look like, is loaded with technology. There\u2019s a sweeping display that takes up the entire dashboard, another touchscreen on the steering wheel, \u201csmart\u201d connected features that will let future customers use hand gestures, and voice commands via Amazon\u2019s Alexa assistant to control aspects of the car. The vehicle will even monitor the driver\u2019s heart rate, weight, oxygen saturation, or blood pressure.<\/p>\n
The SUV will come with Level 3 autonomous capabilities, Byton says. This designation, determined by SAE International, is what\u2019s described as conditional automation. This means that the car can handle most aspects of driving in the right conditions with the expectation that the human driver will respond when asked to intervene.<\/p>\n
Article source: <\/p>\n
Korosec, K. 2018,\u00a0China-Based Electric Vehicle Startup Byton Taps Aurora For Self-Driving Car Tech, Fortune, retrieved 10 February 2018, <\/p>\n
Videos: <\/p>\n
https:\/\/www.youtube.com\/watch?v=FhJ0lmdYjgs <\/p>\n
https:\/\/www.youtube.com\/watch?v=xrLGMY2zp8E <\/p>\n
Questions:<\/p>\n
3.1: There are a variety of consumer product classifications. How would you classify Byton Smartcar? Please justify your answer. (3 marks) <\/p>\n
Describe and Explain each of types briefly: (2 marks)<\/p>\n
Type 1:_________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
Type 2:_________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
Type 3:_________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
Type 4:_________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
Apply the process to Byton SmartCar by answering the question below: (1 mark)<\/p>\n
How would you classify Byton Smartcar? Please justify your answer. _______________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
3.2: According to the case study, which stage in the new-product development process that Byton smartcar is at? Please justify your answer. (1 mark)<\/p>\n
Apply the process to Byton SmartCar by answering the question below: <\/p>\n
According to the case study, which stage in the new-product development process that Byton smartcar is at? <\/p>\n
_______________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
_____________________________________________________________________________________________________________________________________________________________________________________________<\/p>\n
Part 4: Assignment-Related Task (Individual)<\/p>\n
4.1 Define and explain the three (3) levels of products. Apply these three elements to your assignment topic. Lastly, draw the diagram! (4 marks)<\/p>\n
Describe three levels of products: <\/p>\n
_______________________________________________________________<\/p>\n
Explain each level and use your assignment topic as an example: <\/p>\n
Core customer value (level 1): _______________________________________________________________<\/p>\n
______________________________________________________________________________________________________________________________<\/p>\n
For example: __________________________________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
Actual product (level 2): _______________________________________________________________<\/p>\n
______________________________________________________________________________________________________________________________<\/p>\n
For example: __________________________________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
Augmented product (level 3): _______________________________________________________________<\/p>\n
______________________________________________________________________________________________________________________________<\/p>\n
For example: __________________________________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
Please find a 3 levels of product diagram (Hint: look on Google) and include on it what your company has for each level: <\/p>\n
4.2 Go to your company\u2019s website and draw a table showing their product mix design together with the product line, width, length and depth of each line. (1 mark)<\/p>\n
Describe product mix: <\/p>\n
_______________________________________________________________<\/p>\n
Explain each of the product mix decisions: <\/p>\n
-Product line is: _______________________________________________________________<\/p>\n
-Width is: _______________________________________________________________<\/p>\n
-Length is: _______________________________________________________________<\/p>\n
-Depth is: _______________________________________________________________<\/p>\n
Go to your company\u2019s website and draw a table showing their product mix design together with the product line, width, length and depth of each line. (1 mark)<\/p>\n
(you can add more rows or columns to the table below if necessary).<\/p>\n
4.3 Now, think about the STDP strategy that you have identified in your Workbook 3 and Assignment 1. Then think about today\u2019s topic on products. What recommendations can you suggest to the company in regards to their products? What should they change or improve in their product level elements, so they can attract the new target market? A new product? New sub-brands? Modify their current products? Redesign their product mix? How and why? Your recommendations should be detailed and actionable. (1 mark)<\/p>\n
Generate some ideas below
(Idea Generation)<\/p>\n
Which idea to choose?
(Idea Screening)<\/p>\n
Recommendations and Justification: <\/p>\n
4.4: There are 4 stages in the PLC. Please draw and label these stages indicating which stage your product\/segment is in this cycle. (1 mark)<\/p>\n
4.5: Explain your reasoning to the graph above (1 mark)<\/p>\n
Workbook 4B: Pricing: Capture Customer Value <\/p>\n
Companies today face a fierce and fast-changing pricing environment. Value-seeking customers have put increased pricing pressure on many companies. Thanks to the weak global economy, the pricing power of internet vendors such as Amazon \u2013 the world\u2019s largest online merchant \u2013 and value-driven retailers such as ALDI, Costco, Coles Supermarkets and Woolworths, consumers seem to have become bargain-hunters more than ever before. In response, it appears that almost every company is looking for ways to slash prices. <\/p>\n
Yet, cutting prices is often not the best answer. Reducing prices unnecessarily can lead to lost profits and damaging price wars. IT can cheapen a brand by signalling to customers that the price is more important than the customer value a brand delivers. Instead, no matter what the state of the economy, companies should sell value, not price. In some cases, that means selling lesser products at rock-bottom prices. But in most cases, it means persuading customers that paying a higher price for the company\u2019s brand is justified by the greater value they gain. The challenge is to find the price that will let the company make a fair profit by getting paid for the customer value it creates. After all, most of us will happily pay for products that deliver value. <\/p>\n
Chapter 9 objectives<\/p>\n
Identify the three main pricing strategies, and discuss the importance of understanding customer-value perceptions, company costs and competitor strategies when setting prices. <\/p>\n
Describe the main strategies for pricing new products <\/p>\n
Explain how companies determine a set of prices that maximises the profits form the total product mix <\/p>\n
Discuss how companies adjust their prices to take into account different types of customers and situations <\/p>\n
Part 1 \u2013 Definition Questions (3 x 2 marks = 6 marks)<\/p>\n
1.1: Pricing<\/p>\n
Definition:<\/p>\n
Example: <\/p>\n
1.2: Trade-in allowance <\/p>\n
Definition: <\/p>\n
Example:<\/p>\n
1.3: Price Ceiling<\/p>\n
Definition:<\/p>\n
Example: <\/p>\n
Part 2: Conceptual Question (3 marks)<\/p>\n
2.1: Please describe and explain the importance of price for the economy, for marketers as well as consumers. Please think of your own example for each strategy. <\/p>\n
Define price: <\/p>\n
_______________________________________________________________<\/p>\n
Explain and give examples of the importance of price: <\/p>\n
For the economy: _______________________________________________________________<\/p>\n
_____________________________________________________________________________________________________________________________________________________________________________________________<\/p>\n
For example: __________________________________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
For marketers: _______________________________________________________________<\/p>\n
_____________________________________________________________________________________________________________________________________________________________________________________________<\/p>\n
For example: __________________________________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
For customers: _______________________________________________________________<\/p>\n
_____________________________________________________________________________________________________________________________________________________________________________________________<\/p>\n
For example: __________________________________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
_______________________________________________________________<\/p>\n
Part 3: Case Study: This robot will fold your laundry in 2 to 4 minutes<\/p>\n
How much would you pay to have a robot fold your laundry? California-based robotics start-up FoldiMate hopes the answer to that question is about $1,000.<\/p>\n
FoldiMate is building a home assistant robotics machine to fold laundry. The start-up showcased a prototype at the Consumer Electronics Show in Las Vegas this week, but the final product will not ship until late 2019.<\/p>\n
And it\u2019s expected to cost $980, according to the FoldiMate website.<\/p>\n
\u201cI started this journey seven years ago with a humble goal: to help out with laundry folding in my home. After recently trying out one of our early prototypes, my kids started fighting over who will be using FoldiMate when we\u2019ll have it in our house,\u201d says Gal Rozov, the founder and CEO, on the FoldiMate website.<\/p>\n
The robot will fold shirts, blouses and pants from those fitting a child age five through an adult XXL, FoldiMate says. It will also fold standard towels and pillowcases. It will not fold very small items like baby clothes, socks and underwear, nor will it fold very large or bulky items like sheets or hoodies.<\/p>\n
It will take the FoldiMate between two and four minutes to fold between 20 and 40 items, which is what the robotics company dubs an average load of laundry.<\/p>\n
The start-up doesn\u2019t have a product yet, but it\u2019s already raised $3 million in seed funding from an undisclosed collection of investors, according to a statement published by the company in July.<\/p>\n
Though folding laundry is a near-universally despised chore (who likes folding laundry?!), cleaning the kitchen is the chore most people would like to see a robot take care of, according to former Alphabet Chairman Eric Schmidt.<\/p>\n
\u201cWhen you ask a person what they would like a robot to do \u2014 the thing that they would like more than anyone else \u2014 is clean up the dishes in the kitchen,\u201d the billionaire former Google executive says speaking at the Halifax International Security Forum in November.<\/p>\n
\u201cThat is literally the number one request. And I say this having done this exhaustively,\u201d Schmidt says.<\/p>\n
Article Source: <\/p>\n
Clifford C. 2018, This robot will fold your laundry in 2 to 4 minutes, CNBC, retrieved 30 November 2018, <\/p>\n
Video:<\/p>\n
https:\/\/youtu.be\/_BVrLYY4jZg <\/p>\n
Questions:<\/p>\n
3.1: What would determine the price ceiling and price floor of the new laundry robot (Foldimate) above? Please elaborate your answer (2 marks)<\/p>\n
Describe the price ceiling and floor concept in general: <\/p>\n
Explain each of them:<\/p>\n
Apply these two to Foldimate by answering the question below: <\/p>\n
What would determine the price ceiling and price floor of the new laundry robot (Foldimate) above?<\/p>\n
3.2: Please explain which of the two new product pricing strategy that the company has applied to Foldimate. Please explain your answers. (4 marks)<\/p>\n
Describe and Explain the new product pricing strategies: <\/p>\n
Market-skimming pricing is:<\/p>\n
Market-penetration pricing is:<\/p>\n
Apply these two to Foldimate by answering the question below: <\/p>\n
The new product pricing strategy that they have applied to Foldimate is: _____________________ <\/p>\n
Because: <\/p>\n
3.3: Should Foldimate use psychological pricing? Why and how? Please elaborate your answer. (2 marks)<\/p>\n
Describe the price adjustment strategies below: <\/p>\n
_______________________________________________________________<\/p>\n
psychological pricing strategy: <\/p>\n
Apply these two to Foldimate by answering the question below: <\/p>\n
Should Foldimate use psychological pricing? Why and how? Please elaborate your answer. <\/p>\n
Part 4: Assignment-Related Task<\/p>\n
4.1: Describe and explain the three major pricing strategies. Out of these three, which one(s) do you think your company has used? (3marks)<\/p>\n
Describe and Explain the three major pricing strategies in general: <\/p>\n
Customer value-based pricing is: <\/p>\n
Competition-based pricing is: <\/p>\n
Cost-based pricing is: <\/p>\n
The major pricing strategy that your company has used is: _________________________________________________________________________________ <\/p>\n
Because: <\/p>\n
4.2: Now, refer back to your Workbook 5. You have recommended some new product ideas for the companies relevant to the new target market identified in the Assignment 2. If your company were to launch this new product\/idea to the Australian market in 2020, which new product pricing strategy they should adopt? Please explain why and why not and how they should adopt this. Your recommendations should be detailed and actionable. (2 marks)<\/p>\n
Describe and Explain the new product pricing strategy concept in general: <\/p>\n
Your company should adopt: ____________________________<\/p>\n
Because: <\/p>\n
How should they do this? <\/p>\n
4.3: There are internal and external factors that your company should also consider before adopting the new product pricing strategy that you recommended in Question 4.2 for their new product? Please provide a detailed explanation of each factor. Explain 2 internal and 1 external factor which would affect your product. (3 marks)<\/p>\n
MMK101 Workbook 4 Semester 2 2021 Page 9<\/p>\n","protected":false},"excerpt":{"rendered":"
___\/50 ___\/50 Workbook 4A: Products, Services and New Products We all use products everyday of our lives, and might have never considered classifying them in any way, from a marketing perspective what attributes comprise our products and how we might classify them is vitally important when making marketing mix decisions as buying behaviour can vary […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-78548","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78548","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=78548"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78548\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=78548"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=78548"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=78548"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}