* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Product and Service Decisions
Marketing plan wikipedia , lookup
Consumer behaviour wikipedia , lookup
Viral marketing wikipedia , lookup
First-mover advantage wikipedia , lookup
Brand equity wikipedia , lookup
Planned obsolescence wikipedia , lookup
Digital marketing wikipedia , lookup
Brand ambassador wikipedia , lookup
Neuromarketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Direct marketing wikipedia , lookup
Target audience wikipedia , lookup
Pricing strategies wikipedia , lookup
Food marketing wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Target market wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Street marketing wikipedia , lookup
Multicultural marketing wikipedia , lookup
Emotional branding wikipedia , lookup
Youth marketing wikipedia , lookup
Product lifecycle wikipedia , lookup
Product placement wikipedia , lookup
Advertising campaign wikipedia , lookup
Green marketing wikipedia , lookup
Marketing channel wikipedia , lookup
Predictive engineering analytics wikipedia , lookup
Global marketing wikipedia , lookup
Marketing strategy wikipedia , lookup
Principles of Marketing, Arab World Edition Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed Tolba Presentation prepared by Annelie Moukaddem Baalbaki CHAPTER EIGHT Products, Services, and Brands: Building Customer Value Lecturer: Lulu Saud Altweem Ch 8 -0 Copyright © 2011 Pearson Education Chapter Learning Outcomes Topic Outline 8.1 What Is a Product? 8.2 Product and Services Decisions 8.3 Branding Strategy: Building Strong Brands 8.4 Services Marketing Ch 8 -1 Copyright © 2011 Pearson Education What Is a Product? Products, Services, and Experiences Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want. Service is any activity or benefit that one party can offer to another that is essentially intangible and does no result in the ownership of anything. Experiences represent what buying the product or service will do for the customer. Ch 8 -2 Copyright © 2011 Pearson Education What Is a Product? Ch 8 -3 Copyright © 2011 Pearson Education What Is a Product? Product and Service Classifications Products and services fall into two broad classes on the types of consumers that use them Consumer products Industrial products Ch 8 -4 Copyright © 2011 Pearson Education What Is a Product? Product and Service Classifications Consumer products are products and services for personal consumption. Classified by how consumers go about buying them. • Convenience products • Shopping products • Specialty products • Unsought products Ch 8 -5 Copyright © 2011 Pearson Education What Is a Product? Product and Service Classifications Convenience products are consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort. • Newspapers • Candy • Fast food Ch 8 -6 Copyright © 2011 Pearson Education What Is a Product? Product and Service Classifications Shopping products are consumer products and services that the customer compares carefully on suitability, quality, price, and style. • Furniture • Cars • Appliances Ch 8 -7 Copyright © 2011 Pearson Education What Is a Product? Product and Service Classifications Specialty products are 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. • Medical services • Designer clothes • High-end electronics Ch 8 -8 Copyright © 2011 Pearson Education What Is a Product? Product and Service Classifications Unsought products are consumer products that the consumer does not know about or knows about but does not normally think of buying. • Life insurance • Funeral services • Blood donations Ch 8 -9 Copyright © 2011 Pearson Education What Is a Product? Product and Service Classifications Industrial products are products purchased for further processing or for use in conducting a business. Classified by the purpose for which the product is purchased. • Materials and parts • Capital • Supplies and services Ch 8 -10 Copyright © 2011 Pearson Education What Is a Product? Product and Service Classifications Capital items are industrial products that aid in the buyer’s production or operations. Materials and parts include raw materials and manufactured materials and parts usually sold directly to industrial users. Supplies and services include operating supplies, repair and maintenance items, and business services. Ch 8 -11 Copyright © 2011 Pearson Education What Is a Product? Organizations, Persons, Places, and Ideas Organization marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward an organization. Person marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people. Ch 8 -12 Copyright © 2011 Pearson Education What Is a Product Organizations, Persons, Places, and Ideas Place marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places. Social marketing is the use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society. Ch 8 -13 Copyright © 2011 Pearson Education Product and Service Decisions Figure 8.2 shows the important decisions in the development and marketing of individual products and services. The focus of all of these decisions is to create core customer value. Ch 8 -14 Copyright © 2011 Pearson Education Product and Service Decisions Individual Product and Service Decisions Product attributes are the benefits of the product or service. • Quality • Features • Style and design Ch 8 -15 Copyright © 2011 Pearson Education Product and Service Decisions Individual Product and Service Decisions Product quality includes level and consistency. Quality level is the level of quality that supports the product’s positioning. Conformance quality is the product’s freedom from defects and consistency in delivering a targeted level of performance. Product features are a competitive tool for differentiating a product from competitors’ products. Product features are assessed based on the value to the customer versus the cost to the company. Ch 8 -16 Copyright © 2011 Pearson Education Product and Service Decisions Individual Product and Service Decisions Style describes the appearance of the product. Design contributes to a product’s usefulness as well as to its looks. Brand is the name, term, sign, or design—or a combination of these—that identifies the maker or seller of a product or service. Brand equity is the differential effect that the brand name has on customer response to the product and its marketing. Ch 8 -17 Copyright © 2011 Pearson Education Product and Service Decisions Individual Product and Service Decisions Packaging involves designing and producing the container or wrapper for a product. (PG 211) Labels identify the product or brand, describe attributes, and provide promotion.(PG 212) Product support services augment actual products. (PG 213) Ch 8 -18 Copyright © 2011 Pearson Education Product and Service Decisions Product Line Decisions Product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. Ch 8 -19 Copyright © 2011 Pearson Education Product and Service Decisions Product Line Decisions Product line length is the number of items in the product line. • Product line filling occurs when companies add more items within the present range of the line. • Product line stretching - Downward stretching - Upward stretching - Both directions Ch 8 -20 Copyright © 2011 Pearson Education Product and Service Decisions Product Mix Decisions Product mix consists of all the products and items that a particular seller offers for sale. • Width • Length • Depth • Consistency Ch 8 -21 Copyright © 2011 Pearson Education Branding Strategy: Building Strong Brands Brand Equity (see Real Marketing 8.1) pg217 Brand equity is the differential effect that knowing the brand name has on customer response to the product and its marketing. It’s a measure of the brand’s ability to capture consumer preference and loyalty. Ch 8 -22 Copyright © 2011 Pearson Education Branding Strategy: Building Strong Brands Building Strong Brands This Figure shows that the major brand strategy decisions involve brand positioning, brand name selection, brand sponsorship, and brand development. Ch 8 -23 Copyright © 2011 Pearson Education Branding Strategy: Building Strong Brands Brand Positioning Marketers need to position their brands clearly in target customer’s minds. • Product attributes • Product benefits • Product beliefs and values Ch 8 -24 Copyright © 2011 Pearson Education Branding Strategy: Building Strong Brands Brand Name Selection Desirable qualities • Suggest benefits and qualities • Easy to pronounce, recognize, and remember • Distinctive • Extendable • Translate easy into foreign languages • Capable of registration and legal protection Ch 8 -25 Copyright © 2011 Pearson Education Branding Strategy: Building Strong Brands Brand Sponsorship •A manufacturer has four sponsorship option: Ch 8 -26 Manufacturer’s brand Private brand Licensed brand Co-brand Copyright © 2011 Pearson Education Branding Strategy: Building Strong Brands A company has four choices when it comes to developing brands. It can introduce line, brand extension, multibands, or new brand. (pg. 222 & 223) Ch 8 -27 Copyright © 2011 Pearson Education Branding Strategy Managing Brands • Companies must manage their brands carefully. • Companies must put great care into managing the touch points that customers come to know their brand through: – Advertising – personal experience with the brand – word of mouth – company web pages Ch 8 -28 Copyright © 2011 Pearson Education Branding Strategy International and Regional Branding Decisions Many local brands in the Arab world have succeeded in dominating their markets by benefiting from their local knowledge of consumer needs and preferences. Many of them have even extended their operations internationally as well as regionally. Ch 8 -29 Copyright © 2011 Pearson Education Services Marketing Types of Service Industries • Government • Private not-for-profit organizations • Business services Ch 8 -30 Copyright © 2011 Pearson Education Services Marketing Ch 8 -31 Copyright © 2011 Pearson Education Services Marketing Marketing Strategies for Service Firms In addition to traditional marketing strategies, service firms often require additional strategies. • Service-profit chain • Internal marketing • Interactive marketing Ch 8 -32 Copyright © 2011 Pearson Education Services Marketing Marketing Strategies for Service Firms Service-profit chain links service firm profits with employee and customer satisfaction. • Internal service quality • Satisfied and productive service employees • Greater service value • Satisfied and loyal customers • Healthy service profits and growth Ch 8 -33 Copyright © 2011 Pearson Education Services Marketing Marketing Strategies for Service Firms Internal marketing means that the service firm must orient and motivate its customer contact employees and supporting service people to work as a team to provide customer satisfaction. Internal marketing must precede external marketing. Ch 8 -34 Copyright © 2011 Pearson Education Services Marketing Marketing Strategies for Service Firms Interactive marketing means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter. • Service differentiation • Service quality • Service productivity Ch 8 -35 Copyright © 2011 Pearson Education Services Marketing Ch 8 -36 Copyright © 2011 Pearson Education Services Marketing Marketing Strategies for Service Firms Managing service differentiation creates a competitive advantage from the offer, delivery, and image of the service. Offer can include distinctive features. Delivery can include more able and reliable customer contact people, environment, or process. Image can include symbols and branding. Ch 8 -37 Copyright © 2011 Pearson Education Services Marketing Marketing Strategies for Service Firms Managing service quality provides a competitive advantage by delivering consistently higher quality than its competitors. Service quality always varies depending on interactions between employees and customers. Ch 8 -38 Copyright © 2011 Pearson Education Services Marketing Marketing Strategies for Service Firms Managing service productivity refers to the cost side of marketing strategies for service firms. • Employee recruiting, hiring, and training strategies • Service quantity and quality strategies Ch 8 -39 Copyright © 2011 Pearson Education From book Read reviewing objectives and key terms (pg. 232 and 233) Read all 'Key Terms' (pg. 233) Company case- Alshaya: the House of Brands (pg. 235-236). Ch 8 -40 Copyright © 2011 Pearson Education