Chapter 10 Product Strategies

10.1 Generalities
In addition, a company may offer products/service by creating:
1. 2. 3. 4.
a certain range (range policy) by packaging the ware (packaging policy) by using brands for labeling (brand policy) by granting warranties for damage (warranty policy) 5. by offering customer services (service and customer service policy).
(2.) Additional use: satisfies a requirement that is related to the basic one but can go far beyond it. Example: in addition to our driver’s basic requirement, he could desire the following factors: prestige, comfort, lots of HP, security, low fuel consumption, etc.
延伸产品:又被成为附加产品，是指顾客购 买形式产品时所获得的全部附加服务和利 益，
包括提供信贷、免费送货、保证、安装、 售后服务等。 延伸产品的概念源于对市场需要的深入认 识。
10.1.2 Types of Products
With a view to better marketing, experts have classified products into types characterized by specific properties.
在市场营销中，产品整体概念包括三个层 次： 核心产品、形式产品、延伸产品。

1. The core product: the basic benefit.
This is the solution to the problem or the benefit sought by the customer.
The instruments of product policy are:
1. Product innovation（产品创新） 2. Product variation（产品变异） 3. Product elimination（产品淘汰）
Product Innovation
Products can only be sold on the market if they correspond to the requirements and expectations of the customers. The expectations of the customer are primarily geared towards the solution of a specific problem.
A continual renewal of products also conceals the danger of expensive false developments. Proceeding in a methodical and systematic way
3. Innovation Process
The selection can proceed via various methods.
Rentability analysis
Now, the product ideas remaining after the pre-selection have to be examined with respect to the expected costs of development, production, sales and revenue. Methods for this are the break-even analysis and also the individual investment calculation methods.
Industrial Goods
They are meant for professional and economic use.
Among them are: services, operational supply items, producer goods and raw materials.
Break-even Analysis
盈亏平衡分析是通过盈亏平衡点（BEP）分析项 目成本与收益的平衡关系的一种方法。
各种不确定因素（如投资、成本、销售量、产品 价格、项目寿命期等）的变化会影响投资方案的 经济效果，当这些因素的变化达到某一临界值时， 就会影响方案的取舍。
盈亏平衡分析的目的就是找出这种临界值，即盈 亏平衡点(BEP)，判断投资方案对不确定因素变 化的承受能力，为决策提供依据。
Furthermore, all the participants have to be familiar with the rules valid for the respective method and must stick to them.
Pre-selection of product ideas
Objects such as a car or a book; Organizations representing ideas; Places and locations; Persons leading and representing an enterprise.1. 2. 3. 4.
A product has 3 dimensions:
Search for ideas
In the case of all these methods, it is indispensable to establish a common and exact definition of the subject or problem and the goals.
Pre-selection has the task of selecting from the collected ideas and suggestions of the first phase those which promise the greatest success for the enterprise.
2. Product Innovation = Development of New Products
The development of new products is of great importance for all enterprises. For new products there is no saturated market and thus no struggle to drive competition out of the market.
1. Consumer Goods（日用消费品） 2. Industrial Goods（工业产品）
Consumer Goods
These are goods customer purchases for his own personal use. Among them are: everyday commodities, shopping goods, specialties ,unknown goods.
形式产品是核心产品的物质载体，是产品的基本 形式，是企业向市场提供的实体服务的可识别形 象的表现。
3. The extended product: additional benefits.
The goods themselves are often not enough. They have to be supplemented by additional benefits such as: warranty or guarantee, delivery and payment conditions, installation, explanation and training , support in case of malfunction (maintenance ,repair), or a telephone hotline.
Marketing Mix
Chapter 10 Product Strategies
Focus on:
1. Connotation and types of the product.
2. Elements of the product strategy. 3. Analyze the product strategy by using “Dog – Cow Figure” 4. Roles of the brand in the product marketing.
10.1.1 Term “Product”
The term “Product” does not only denote an object. A product is an “object” that satisfies desires or needs on the market. These may be

核心产品：它是企业为顾客所提供的最基 本的效用和利益，是对顾客基本需要的满 足。
核心产品是顾客购买商品时所真正追求的 东西，是产品的使用价值。

2. The real product: Here the core product takes on a real shape. The real product defined by 5 characteristics: Packaging（包装） Functionality（功能） Appearance / design（外观设计） Brand（品牌） Quality（质量）