Prof. Patrick James G.

Putungan, MBA, DBA (CAR)

 Week 1 Sept 16 to 21, 2024 Orientation
Week 2 Sept 23 to 28, 2024
Week 3 Sept 30 to Oct 5, 2024
Week 4 Oct 7 to 12, 2024
Week 5 Oct 14 to 19 2024
Week 6 Oct 21 to 26, 2024
Week 7 Oct 28 to 30, 2024 7P’s of Marketing Mix PPT & write up
Estimated Week 8 Nov 4 to 9, 2024 Recalibration of PPT
Week 9 Nov 11 to 15 2024
Calendar
Week 10 Nov 18 to 22 2024 MIDTERM EXAM
Week 11 Nov 25 to 29, 2024
Week 12 Dec 2 to 7, 2024
Week 13 Dec 9 to 14, 2024 2mins advertisement
Week 14 Dec 16 to 20 , 2024
Week 15 Dec 23 to Jan 4, 2024 Christmas Break
Week 16 Jan 6 to 11, 2025 1st Draft of Marketing Plan
Week 17 Jan 13 to 18, 2025 Final Presentation
Week 18 Jan 20 to 25, 2025 Submission of Hard Copy
Week 19 Jan 27 to Feb 1, 2025 Finals Exam
Week 20 Feb 3 to 7, 2025
CREATING MARKET VALUE
MME4: Special
Topics
in
Marketing
Management
Topic to be discussed
• Product Value Proposition
• Setting Product Strategy
• Product Positioning
 Value Proposition
A value proposition is a promise of value to be delivered.
It’s the primary reason a prospect should buy your product.

A value proposition is a clear statement that:

• Explains how your product solves customer problems or improves their
situation
• Delivers a specific set of benefits
• Tells your ideal customer why they should buy your product instead of the
competition’s

A good value proposition can give you an advantage over your competitors and
is often what your prospects use to evaluate you.
Product
What is Product?
Is anything that can be offered to the market to satisfy a want or need , including
physical goods, services, experiences, events, persons, places, properties,
organizations, information and ideas.
Product propositions are your company’s elevator pitch. They’re your product’s central
thesis statement that briefly communicates:
1. The benefits for your users

Product
Value
Proposition
Setting Product Strategy

Market Offering
The Customer will judge the
offering by three basic elements
• Product features and quality
• Services mix and quality
• Price
 Five Product Levels
In planning its market offering, the marketer needs to address five product
levels. Each level adds more customer value , the five constitute a
customer-value hierarchy.
Core Benefit of Product
Basic Product
Expected Product
Augmented Product
Potential Product

The customers choose a product based on their perceived value of

it. Satisfaction is therefore the degree to which the use of product
matches the perceived value the customer had when it was
purchased. The customer is satisfied only if the actual value is the
same or exceeds the perceived value.
Five Product Levels
Core Benefit of Product - The
service or benefit the customer is
really buying. The fundamental
need or want that consumers
satisfy by consuming the product
or service.
 Basic Product (Generic) - A
Five Product Levels version of the product
containing only those
attributes or characteristics
absolutely necessary for it
to function. For example,
the need to process digital
images could be satisfied by
a generic, low-end, personal
computer using free image
processing software or a
processing laboratory.
 Five Product Levels
Expected Product - The set of
attributes or characteristics that
buyers normally expect and
agree to when they purchase a
product. For example, the
computer is specified to deliver
fast image processing and has a
high-resolution, accurate colour
screen.
Five Product Levels Augmented Product- The inclusion of
additional features, benefits, attributes
or related services that serve to
differentiate the product from its
competitors. For example, the
computer comes pre-loaded with a
high-end image processing software
for no extra cost or at a deeply
discounted, incremental cost
Five Product Levels Potential Product - This includes
all the augmentations and
transformations a product might
undergo in the future. To ensure
future customer loyalty, a
business must aim to surprise and
delight customers in the future by
continuing to augment products.
For example, the customer
receives ongoing image processing
software upgrades with new and
useful features.
 Product Classifications
Marketers classify products on the basis of:

Durability Nondurable Goods

Durable Goods

Tangibility Services

Convenience Goods
Shopping Goods
Consumer Specialty Goods
Unsought Goods
Use
Material and Parts
Industrial Capital Items
Supply and Business Services
 Product and Service Differentiation
Product Differentiation

• Form
• Features
• Customization
• Performance quality
• Conformance quality
• Durability
• Reliability
• Repairability
• Style
Services Differentiation

• Ordering ease
• Delivery
• Installation
• Customer training
• Customer consulting
• Maintenance and Repair
• Returns
 Product Differentiation
Form – Many product can be differentiated in form – size, shape or physical structure.

Features – Most product can be offered with varying features that supplement the
basic function.

Customization – Marketers can differentiate products by customizing them.

Performance Quality – Most products occupy one of four performance levels: low,
average, high or superior.

Conformance Quality – Buyers expect a high conformance quality , the degree to

which all produced units are identical and meet promised specifications.

Durability – is a measure of the product’s expected operating life under natural or

stressful conditions.

Reliability – Is measure of the probability that a product will not malfunction or fail
within specified time period.

Repairability – Measures the ease of fixing a product malfunctions or fails.

Style – describes the product’s look and feel to the buyer.

 Service Differentiation
Ordering Ease – Refers how easy it is for the customer to place an order with the
company

Delivery - Refers to how well the product or service is brought to the customers

Installation – Refers to the work done make a product operational in its planned
location.

Customer training – helps customer’s employees use the vendor’s equipment properly
and efficiently.

Customer Consulting – includes data, information system, advice services the sellers
offers to buyers.

Maintenance and repair – programs help customers keep purchased products in good
working order.

Returns – are also unavoidable reality of doing business, especially when online
purchase.
 Product Positioning
Refers to all activities undertaken by the marketer to create and maintain the
concept of value regarding its brand in the minds of customers as against
competitors.

Is the image that a product produces in the mind of customers in the

comparison to the competitors products and also in comparison to the other
products of the same company.

Criteria for Successful Positioning

Clarity

Consistency

Credibility

Competitiveness
 Pitfall Positioning
Positioning is normally done by managers with an “inside-out” thinking and
is based on what is going on in the organization but actually for a positioning
strategy to be successful, it has to be based on the “outside-in” strategy.

Companies often position their product such that it helps them achieve
short-term sales and profit but positioning has to be done keeping in mind
long term gains in the market and short term gains.

Under Positioning
Product should be positioned with powerful ideas and communicate as they
are. But normally marketers come out with a simple positioning idea and pass
it on the creative department. This is where the strength of the positioning
gets diluted and the process is known as under positioning. For example
Volvo’s positioned as “Drive Safely”

Over Positioning
In this situation where the firm initially promotes its brand as premium brand.
THANK YOU