It is crucial for a contemporary organization to have a marketing department that understands their crucial role in being able to market their product successfully and therefore profitably. The two major organizations discussed will be Lipton and American Express. Here, there will be a discussion of the two contrasting products; a 500ml bottle of Lipton Peach Ice tea and an American Express Platinum Credit Card. These two products will be compared and contrasted to one another in terms of product description, classification and segmentation.
When a marketer sells a product, they must take into consideration the three levels of a product; the core, ...view middle of the document...
The most obvious being the Lipton website which contains nutritional details and the health benefits of the product. There is also a ‘Lipton’s tea and health club’ where club members can have a newsletter sent to them detailing information about tea and health (Lipton website, 2007). And then there is also the E-store which organizes specific Lipton Peach Ice Teas to be home delivered for extra convenience. Lastly, there are deals at supermarkets with special discounts such as ‘2 for 1’ or savings on the purchase.
In respect to the American Express Platinum Credit Card the core product is that it is a credit card providing the ability to purchase goods on credit. Like the Lipton Peach Ice Tea, the Credit Card is able to give social status as it enables the consumer to appear to be more socially acceptable and is also used for convenience purposes.
Furthermore, the actual product is the ability to purchase personalized credit cards and the branding of American Express, which is a well known and trusted credit card company. With this delivers a responsibility to ensure the service and quality of this product is matched up with the customer’s expectations to ensure satisfaction.
Finally, the augmented product level of an American Express Platinum Credit Card involves many additional services. With the use of this credit card, the consumer is able to use traveler cheques; making international travel more convenient as it allows the customer to avoid the hassle of exchanging money in each country (American Express website, 2007). Another additional service is travel insurance as there is increased financial security for the customer in regards to property, accommodation, etc. And lastly, the American Express Platinum Credit Card is able to be personalized with different images for gift cards.
The two products are clearly differing in physical aspects and uses, however there are some similarities in some of their product description. As seen with the core level of the products, they both are marketed for social acceptance as these items seem to be fashionable. Also, both products are convenient for the consumer as they are lightweight, useful and easy to manage. However, the Ice Tea has a physical benefit as a drink where as the Credit Card enables goods to be bought on credit.
In regards to the actual level of the products, a similarity between the two is that their stylish exterior enable the product to look fashionable and this may differentiate them against their competitors. Furthermore, this is also done with their branding as both brand names exert positive thoughts about the products’ expected performance.
Lastly in relation to the augmented level of both products, other than the aspect that both organizations have websites, all other additional services and benefits are differing.
Table 1: Product Description
To develop a successful and effective marketing strategy, marketers must divide...