HSEM 255 Lecture Notes - Lecture 4: Breakcore, Marketing Communications, Service Innovation
22 May 2018
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Core proposition
consists of the real core benefit or service. This may be a functional benefit, in terms of what the
offering will enable you to do, or it may be an emotional benefit, in terms of how the products or service
will make you feel.
Embodied proposition
consists of the physical good or delivered service that provides the expected benefit
Augmented proposition
consists of the embodied offering plus all those other factors that are necessary to support the purchase
and any post-purchase activities, such as credit and finance, training, delivery, installations, guarantees,
and the overall perception of customer service.
Durable goods
require the purchaser to have high levels of involvement in the purchase decision. There is a high
perceived risk in these decisions, and so consumers can spend time, care, and energy searching,
formulating, and making the right decision
Non-durable goods
reflect low levels of involvement and buyers are seldom concerned with which particular product they
buy. Risk is seen to be low and so there is little need to shop around for the best possible price. Buyers
may base their choice on availability, price, habit or brand experience.
Convenience products
non-durable and are bought because the consumer does not want to put very much, if any, effort into
the buying decision. Most decisions in this category are made habitually.
Shopping products
- not bought as frequently as convenience products and consumers do not always have up-to-date
information to make a buying decision.
- Consumers dedicate time and effort to planning these purchases as there is a higher risk.
Product life cycle
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- consists of 5 distinct stage - development, introduction, growth, maturity and decline. Sales and profits
rise and fall across the various life stages of the products.
. The life of a product can be extended
- Different marketing strategies, relating to the offering and its distribution, pricing, and promotion,
need to be deployed at particular times in the product life cycle so as to maximise financial returns.
- The shape of the lifecycle curve varies, with product classes having the longest cycle as the mature
stage is often extended
Limitations of PLC
identifying which stage an offering has reached in the cycle is problematic. However, the model world
well when the environment is relatively stable and not subject to dynamic swings or short-lived
customer preferences.
Developing new product propositions
management has to anticipate when the product will become tired, and when new ones will be
necessary to sustain the organisation and to help it grow.
Ensuring a stream of new propositions
- Buy in finished products from other suppliers or to license the use of other products for specific
periods of time
- Develop products through collaboration with suppliers or even competitors
- Develop new products internally, often means of research and development or by adapting
Reasons for poor success rates of new products
- No market exists for the product
- There is a market need, but the product fails to meet customer requirements
- The product's ability to meet the market need, although satisfactory, is not adequately communicated
to the target market.
New Product development process
perceived to be linear in that new proposition development occurs only after managers are satisfied
with progress of the development project at each stage
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Core proposition consists of the real core benefit or service. This may be a functional benefit, in terms of what the offering will enable you to do, or it may be an emotional benefit, in terms of how the products or service will make you feel. Embodied proposition consists of the physical good or delivered service that provides the expected benefit. Augmented proposition consists of the embodied offering plus all those other factors that are necessary to support the purchase and any post-purchase activities, such as credit and finance, training, delivery, installations, guarantees, and the overall perception of customer service. Durable goods require the purchaser to have high levels of involvement in the purchase decision. There is a high perceived risk in these decisions, and so consumers can spend time, care, and energy searching, formulating, and making the right decision. Non-durable goods reflect low levels of involvement and buyers are seldom concerned with which particular product they buy.
