MKTG-UB 1 Lecture Notes - Lecture 8: Value Proposition, Marketing Mix
11 May 2016
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Document Summary
Goal of marketing tactics: to identify best marketing mix. Companies communicate their value propositions through the marketing mix. Products are bundle of benefits that satisfy customer needs. Customers think of products in terms of benefits. Marketers think of them in terms of value proposition. Value proposition translated into 3 levels of product: Core product - main benefit customers seek (phsychological need satisfied) Basic product - main product attributes (features, design, packaging, brand) Augmented product - additional attributes (warranty, sales, support, delivery) used to differentiate from competitors. Consists of both tangible (good) and intangible (service) component. Pure tangible good, pure service with hybrids in between. You can augment value prop by moving from good to service or. Product life cycle: intro, growth, maturity, decline. service to good. Differences in market size, market growth and competition in each. Also differences in product, distribution, price and promotion. You can make tactical decisions depending on product life cycle.
