Principles of Marketing

Group 2 - 2Win
Lecturer: Ngo Thi Nhat Tuyet
 CHAPTER 8

PRODUCTS, SERVICES, AND BRANDS:

BUILDING CUSTOMER VALUE

CHAPTER 9

DEVELOPING NEW PRODUCTS AND

MANAGING THE PRODUCT LIFE CYCLE
 01. NGUYEN THI MINH TUYET
MY TEAM
02. NGUYEN NGOC MINH CHAU

03. NGUYEN HOANG KHANH DUYEN

04. PHAN DUY THINH

 TABLE OF CONTENTS
Chapter 8 Chapter 9

1 Define and level, classification

01 New Product Development Strategy

Organizations, Persons, Places,

2 and Ideas
Product Life-Cycle Strategie
02
3 Product and Service Decisions

4 Services Marketing
Additional Product and
03 Service Considerations
5 Brand Strategy
1 DEFINE LEVEL AND CLASSIFICATION

01 02 03 04
What is What is Three levels Product and
product? service? of product service
classifications
 WHAT IS A
PRODUCT?

1 2 3
Product is the item Every product is made at
Each product has a
offered for sale. A a cost and each is sold at
useful life after which
product can be a a price. The price that can
it needs replacement,
service or an item. It be charged depends on
and a life cycle after
can be physical or in the market, the quality,
which it has to be
virtual or cyber form. the marketing and the
re-invented.
segment that is targeted.
 WHAT IS SERVICES?

Physical services are those

A service is Services are
that you can touch, feel, or
defined as an intangible,
see, such as a haircut or a
intangible good value-added
massage. Digital services
that is produced activities that a
are those that exist in the
and consumed company provides
digital world, such as an
simultaneously. to its customers.
app or a website.
 The core product is the first level.
01 This is the basic need or wants that
the customer is trying to satisfy.
THREE LEVELS OF PRODUCT

There are three levels of The second level of the product is the
product in marketing: 02 actual physical product or service.
the core product, the
actual product, and the
augmented product. The product’s third level is known as
03 the augmented product. This includes
everything else that surrounds the
physical product or service.
 Convenience products
CONSUMER Shopping products
PRODUCTS Specialty products
PRODUCT AND Unsought products

SERVICE
CLASSIFICATION
Materials and parts
INDUSTRIAL
Capital items
PRODUCTS Supplies and services
CONVENIENCE
PRODUCTS
Convenience productsare
consumer products and
services that the customer
usually buys frequently,
immediately, and with a
minimum comparison and
buying effort.
SHOPPING
PRODUCTS

Shopping productsare
consumer products and
services that the
customer compares
carefully on suitability,
quality, price, and style.
SPECIALTY
PRODUCTS
Specialty productsare
consumer products and
services with unique
characteristics or brand
identification for which a
significant group of
buyers is willing to make
a special purchase effort.
UNSOUGHT
PRODUCTS

The final category of

product is unsought
goods—products that
consumers either do not
know about or would
never think of buying.
 Convenience products
CONSUMER Shopping products
PRODUCTS Specialty products
PRODUCT AND Unsought products

SERVICE
CLASSIFICATION
Materials and parts
INDUSTRIAL
Capital items
PRODUCTS Supplies and services
MATERIALS
AND PARTS
Raw materials are industrial
products that are in raw
form and to make them
usable by consumers they
need to be processed. Raw
materials are the first part
of the production process.
CAPITAL
ITEMS

These are the goods

fundamental for
business organizations
to smoothly run the
production process.
SUPPLIES
AND SERVICES

Supplies and services include

operating supplies, repair and
maintenance items, and
business services.
 2. ORGANIZATIONS, PERSONS,
PLACES, AND IDEAS

01 02 03 04
Organization Person Place Social
marketing marketing marketing Marketing
ORGANIZATION
MARKETING

Organization marketing
consists of activities
undertaken to create,
maintain, or change the
attitudes and behaviors
of target consumers
toward an organization.
PERSON
MARKETING

Person marketing is
a strategy that
focuses on tailoring
marketing messages
and campaigns to
individual consumers
rather than targeting
a broad audience.
PLACE
MARKETING

Place marketing
consists of activities
undertaken to create,
maintain, or change
attitudes and
behavior toward
particular places.
SOCIAL
MARKETING

Social marketingis the

use of commercial
marketing concepts
and tools in programs
designed to influence
individuals' behavior to
improve their well-being
and that of society.
[Link] & SERVICE DECISIONS

INDIVIDUAL PRODUCT AND SERVICE DECISIONS

PRODUCT LINE DECISIONS

PRODUCT MIX DECISIONS

 INDIVIDUAL PRODUCT & SERVICE
DECISIONS

Labeling &
Product product
Branding Packaging
attributes support
services
QUALITY Product attributes

Product
Product
Conformance
Quality Level
Quality

The product’s
The level of quality
freedom from defects
that supports the
and consistency in
product’s
delivering a targeted
positioning.
level of performance.
FEATURES

A competitive tool for differentiating a

product from competitors’s products.

STYLE &
DESIGN
_ Style: describes the appearance of
the product.
_ Design: contributes to a product’s
usefulness as well as to its looks.
BRAND
The name, term, sign, design, or a
combination of these that identifies the
maker or seller of a product or service.

PACKAGING
Designing and producing the
container or wrapper for a product.
LABELING & PRODUCT SUPPORT SERVICES

Labeling: displays information Product support service: information,

and/or essential characteristics ordering, hospitality, safekeeping,
about the product. exceptions, billing, and payments.
PRODUCT LINE DECISIONS

Product line:
a group of products
that are closely
related.
PRODUCT LINE DECISIONS
Product line length:
Line stretching: Downward, Upward, Combination line
stretching.

Line filling: Add more

items within the present
range of the line.
PRODUCT MIX DECISIONS

Consists of all the

products and items
that a particular
seller offers for
sale.
 [Link] MARKETING

TYPES OF SERVICE INDUSTRIES

FOUR SERVICE CHARACTERISTICS

MARKETING STRATEGIES FOR SERVICE FIRMS

TYPES OF SERVICE INDUSTRIES

Refers to the formulation, deformulation,

CONSUMER
technical consulting, and testing of most
SERVICES
customer products.

PUBLIC A service intended to serve all members of

SERVICES the community.

The act of selling an intangible product to a

BUSINESS
specific audience (tourism, education, and
SERVICES
technical repairs and maintenance).
FOUR SERVICE CHARACTERISTICS
MARKETING STRATEGIES FOR SERVICE FIRMS

SERVICE-PROFIT INTERNAL INTERACTIVE

CHAIN MARKETING MARKETING

Links employee The promotion of Brands use video,

satisfaction, a company's comments,
customer loyalty, objectives, visuals,
and financial products, and infographics,
success in services to games, blogs,
service-oriented employees within email, social
businesses. the organization. media, audio, etc.
 INTERACTIVE MARKETING

SERVICE SERVICE
SERVICE QUALITY
DIFFERENTIATION PRODUCTIVITY
Make your firm The measure of how
stand out from The ability of a an organization
otherwise similar service organization understands their
competitors in the to use its inputs to client’s needs and
marketplace. provide services. fulfills their expectations
 5. NEW PRODUCT
DEVELOPMENT STRATEGY
5. NEW PRODUCT DEVELOPMENT STRATEGY

BRANDING STRATEGY:
BRAND EQUITY BRAND EVALUE
BUILDING STRONG BRANDS
BRAND EQUITY is the differential effect that knowing the
brand name has on customer response
to the product or its marketing.

27% 29%
Top of Mind Loyalty
Brand Awareness
(Source: VIRACE in 2021)
 Total financial value of a brand.

TH True Milk 1.2 billion USD

(Source: TH Book in 2020)
MAJOR BRAND STRATEGY DECISIONS
BRAND BRAND NAME
POSITIONING SELECTION
Product attributes(qualities)
Selection
Product benefits (beneficial)
Protection
Product beliefs and values

BRAND BRAND
SPONSORSHIP DEVELOPMENT
Manufacturer’s brand Line extensions
Private brand Brand extensions
Licensed brand Multibrands

Co-brand New brands

Brand Positioning
impression in the minds of customers and
the marketplace
 Attributes Benefits Beliefs and values
Focusing on the positive Linking the brand to
Highlighting the quality,
outcomes that the product beliefs, values, and larger
performance, and unique
delivers, such as goals that customers
design features to differentiate. care about to create
convenience, cost savings,
and improved health. differentiation.
Brand Name Selection the process of choosing a name for a product or service.

SUGGESTS BENEFITS EASY TO PRONOUNCE,

DISTINCTIVE
AND QUALITIES RECOGNIZE, AND
REMEMBER

TRANSLATABLE FOR CAPABLE OF

EXTENDABLE
THE GLOBAL ECONOMY REGISTRATION AND
LEGAL PROTECTION
TRUE HAPPINESS
c. Brand Sponsorship
a form of advertising that
involves the financial support of
a particular product or service in
exchange for brand promotion
 A product may be launched as a manufacturer’s
brand. This is also called national brand

Manufacturer’s
brand

The manufacturer could also sell to

resellers who give the product a private
brand. This is also called a store brand, Private brand
a distributor brand or an own-label.
 Licensed brands

license names
or symbols previously created
by other manufacturers.

Co-brand

Co-branding is the practice of

using the established brand
names of two different
companies on the same product.
[Link] Development Strategies
 Line Extension
introduction of additional
items in a given product
category under the same
brand name

Brand Extension
using a successful brand
name to launch a new or
modified product in a new
WHOLE SUGAR LESS CHOCOLATE STRAWBERRY
MILK MILK SUGAR FLAVOR FLAVOR category.
MILK
 Multibrands
offers a way to establish different features and
appeal to different buying motives.

developed based on belief

that the power of its existing brand
is waning and a new brand name
is needed. Also used for products
in new product category.

New Brand
 Chapter 9

Developing New
Products and
Managing the
Product Life Cycle
 OVERVIEW

Additional
New Product Product Life-
Product and
Development Cycle
Service
Strategy Strategies
Considerations
 1. New Product
Development Strategy
 WAYS TO OBTAIN NEW PRODUCTS
ACQUISITION
the buying of a whole company, a NEW PRODUCT
patent, or a license to produce DEVELOPMENT
someone else’s product. original products,
product improvements,
product modifications,
and new brands
developed from the
firm’s own research
and development

TH Group acquires Tate & Lyle sugar factory

Major Stages in New Product Development
 is the systematic search for new
IDEA GENERATION product ideas.

External sources Internal sources Crowdsourcing

Involves inviting broad communities
refer to the company’s own formal refer to sources outside
of people - customers, employees,
research and development, the company
independent scientists and
management and staff, and
researchers, and the public - into
intrapreneurial programs the new product innovation process.
Idea screening
refers to reviewing new-product ideas in
order to drop poor ones as soon as
possible.
 CONCEPT DEVELOPMENT AND TESTING

PRODUCT IDEA PRODUCT CONCEPT PRODUCT IMAGE

an idea for a possible product is a detailed version of the the way consumers
that the company can see itself idea stated in meaningful perceive an actual or
offering to the market. consumer terms. potential product.
CONCEPT TESTING

testing new product

concepts with groups
of target consumers
MARKETING STRATEGY
DEVELOPMENT
Marketing strategy development is
esigning an initial marketing
strategy for a new product based
on the product concept.
MARKETING STRATEGY STATEMENT

Sales, market-
share, and
Target market marketing mix
Value proposition
description
planned
BUSINESS ANALYSIS
a review of the sales, costs,
and profit projections for a
new product to find out
whether these factors satisfy
the company’s objectives.
 PRODUCT DEVELOPMENT

developing the product concept

into a physical product to ensure
that the product idea can be turned
into a workable market offering
is the stage of new product
development in which the
product and its proposed
marketing program are tested
in realistic market settings.
 Marketing Strategy Development

When test marketing is likely When test marketing is unlikely

Simple line extension

New product with large investment
Copy of competitor product
Uncertainty about product or
marketing program Low costs

Management confidence
COMMERCIALIZATION

The process of bringing a new product,

service or technology to market for sale
and distribution thereby generating profit.
CUSTOMER-CENTERED NEW PRODUCT DEVELOPMENT

New product development

focuses on finding new ways to
solve customer problems and
create more satisfying customer
experiences.
TEAM-BASED NEW PRODUCT DEVELOPMENT

An approach to the new

product development IDENTIFY NEEDS AND IDEAS

process based on group

work. This requires EVALUATE AND SELECT IDEAS
MARKETING AND INTRODUCE
collaboration and interaction
among team members to
generate new ideas, designs,
and product development.
PRODUCT DEVELOPMENT INSPECT AND EVALUATE
 EXAMPLE

IDENTIFY NEEDS AND IDEAS EVALUATE AND SELECT IDEAS PRODUCT DEVELOPMENT

INSPECT AND MARKETING AND

EVALUATE INTRODUCE
SYSTEMATIC NEW PRODUCT DEVELOPMENT
NEEDS ANALYSIS

A systematic process for developing new

products. It is a planned and step-by-step
IDENTIFY AND SELECT IDEAS
approach to creating new products or
improving existing products.
DESIGN FOR THE PRODUCT

PRODUCT DEVELOPMENT

MARKETING AND DISTRIBUTION

EVALUATE AND IMPROVE

NEW PRODUCT DEVELOPMENT IN TURBULENT TIMES

The process of developing new products in times

of uncertainty and rapid change. As the business ASSESS MARKET NEEDS

environment faces volatility, without certainty and

rapid change, the NPD process needs to adapt and
AGILITY AND SPEED
respond to ensure the success of new products

CREATIVITY AND ADAPTABILITY

RISK MANAGEMENT
[Link] Life-Cycle Strategies
 PRODUCT LIFE-CYCLE
01

Introduction
Marketing efforts are geared
towards creating product awareness, Focuses on building awareness of the
targeting early adopters, and product and generating initial customer
establishing a market presence. interest. Marketing activities are centered
around brand introduction, seeking
distribution partners, and establishing a
supply network
 PRODUCT LIFE-CYCLE
02

Growth
In the growth stage, sales and The product becomes well-known
demand for the product start to and widely accepted in the market.
increase rapidly. More customers focuses on expanding production
scale, increasing distribution channels,
become aware of the product, and it
and enhancing brand promotion.
gains wider acceptance in the market
 PRODUCT LIFE-CYCLE
03

Maturity
The maturity stage is
characterized by a plateau in The product has achieved a high level of
market penetration, and competition
sales growth. The product has
becomes fierce. The company focuses on
reached its peak level of market
maintaining market share, optimizing
penetration, and competition is
profitability, and differentiating from
usually high. competitors
 PRODUCT LIFE-CYCLE
04

Decline
In the decline stage, sales and
demand for the product start to
Can occur due to changing customer
decline due to various factors
preferences, technological advancements,
such as changing customer or the emergence of substitute products.
preferences, technological Decide to discontinue production and sales
advancements, or the emergence or continue selling to a smaller market
of substitute products. segment
CONCLUDE
Improved packaging for TH true milk products to
show that the company is always looking for the best
for customers, always knows how to improve and
change to make the product as perfect as possible

*With these basic factors, TH TRUE

MILK's products are mostly in the
"Mature" stage in the product life cycle.

Besides traditional products, TH TRUE MILK

always updates, upgrades and releases
products that keep up with customer trends.
3. ADDITIONAL
PRODUCT AND
SERVICE
CONSIDERATIONS
 Companies consider and make
PRODUCT product decisions based on
DECISIONS AND social responsibility and social
and environmental impact.
SOCIAL ensuring ethical sourcing,

RESPONSIBILITY minimizing negative impacts

on the environment, ensuring
consumer safety

Aiming for NET ZERO at TH

Group: Cleaning smoke,
minimizing plastic
INTERNATIONAL
PRODUCT AND
SERVICE MARKETING
Focuses on the distribution and
marketing of a company's products
and services to foreign markets,
including market research,
competitor analysis, distribution,
advertising, and relationship
building with international
customers. Difficulties: Cultural differences,
languages, legal regulations,
markets and competitors.
Thank You
For Your Attention
 Full Name Contribution Rate

Nguyen Hoang Khanh Duyen 100%

Nguyen Thi Minh Tuyet 100%

Phan Duy Thinh 100%

Nguyen Ngoc Minh Chau 100%