RSM250H1 Chapter Notes - Chapter 6: Marketing Mix, Product Differentiation, Empathic Design
22 Feb 2018
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When is it time to trade down the product line by offering a cheaper version of an existing product: these are the issues related to the product p of the marketing mix. Product: anything that is offered to a market for consumption (in one form or another) and that satisfies a need. Core product: what consumers are actually buying: serves direct, primary benefit. Ex: buying bottle of snapple: core product is the physical bottle of juice. Additional benefits: gives them a sense of treating themselves, feel like they belong to a group with a quirky, offbeat lifestyle: for customers who appreciate the added benefits, the augmented product is more valuable than the core product. Each firm faces the task of determining the optimal product length and depth and optimal number of product lines. In a vertical product line, products are more clearly delineated on a price/performance basis.
