Aug16Sem1_Lesson7_updated.pptx
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Aug16Sem1_Lesson7_updated.pptx
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Lesson7Product&ServiceStrategyMKT1003SEMESTER1,2016/17,WEEK1ByJanetLiauThreeLevelsOfProductsWhatIsaProduct?
LevelsofProductandServicesCorebenefitsrepresentwhatthebuyerisreallybuying.Actual/Tangibleproductrepresentsthedesign,brandname,andpackagingthatdeliversthecorebenefittothecustomer.Augmentedproductrepresentsadditionalservicesorbenefitsoftheactualproduct,whichhelpstoenhanceenjoymentofbenefitsAssignmentClassparticipationWhatarethecore,tangibleandaugmentedproductsofferedbythefollowingthreesituations?
Howcantheseorganizationsimprovetheirmarketingperformanceasaresultofthisanalysis?
AssignmentClassParticipationNUSundergraduateprogramsBarcelonaFootballClubiPhone6SCoreProductTangible/ActualProductAugmentedProductWhatIsaProduct?
ProductandServiceClassificationsConsumerproductsIndustrialproductsWhatIsaProduct?
ProductandServiceClassificationsConsumerproductsareproductsandservicesforpersonalconsumption.ClassifiedbyhowconsumersbuythemConvenienceproductShoppingproductsSpecialtyproductsUnsoughtproductsClassificationofconsumergoodsWhatIsaProduct?
ProductandServiceClassificationsConvenienceproductsareconsumerproductsandservicesthatthecustomerusuallybuysfrequently,immediately,andwithaminimumcomparisonandbuyingeffort.NewspapersCandyFastfoodWhatIsaProduct?
ProductandServiceClassificationsShoppingproductsareconsumerproductsandservicesthatthecustomercomparescarefullyonsuitability,quality,price,andstyle.FurnitureCarsAppliancesWhatIsaProduct?
ProductandServiceClassificationsSpecialtyproductsareconsumerproductsandserviceswithuniquecharacteristicsorbrandidentificationforwhichasignificantgroupofbuyersiswillingtomakeaspecialpurchaseeffort.DesignerwatchesBrandedfashionwearHigh-endelectronicsWhatIsaProduct?
ProductandServiceClassificationsUnsoughtproductsareconsumerproductsthattheconsumerdoesnotknowaboutorknowsaboutbutdoesnotnormallythinkofbuying.LifeinsuranceFuneralservicesBlooddonationsClassificationofConsumerProductsDurableproductsHighinvolvementSmallreplacementmarketsRevenuesfromaftersalessupport13ClassificationofConsumerProductsNon-durableproductsLowinvolvementLargereplacementmarketsMerchandising;easytorepurchase14ClassifyingIndustrialProductsEnteringGoodsFoundationGoodsFacilitatingGoodsRawMaterials-FarmProducts-NaturalProducts(e.g.,ironore,lumber)ManufacturedMaterials/Parts-ComponentMaterials-ComponentParts(e.g.,tires,microchips)Installations-Buildings&LandRights-FixedEquipmentAccessoryEquipment-LightFactoryEquipment(e.g.,lifttrucks)-OfficeEquipmentSupplies-OperatingSupplies(e.g.,lubricants,paper)-Maintenance&RepairItems(e.g.,paint)BusinessServices-Maintenance&RepairServices-BusinessAdvisoryServicesClassificationofIndustrialProductsEnteringgoodsContinuouspurchaseCostsQualityDelivery16ClassificationofIndustrialProductsFoundationgoodsLongtermuseandimpactInitialprice+operationcostsSupportservices17ClassificationofIndustrialProductsFacilitatinggoodsManyitemsandsmallvalueEfficiencyinmanagementAutomationandoutsourcing18ProductMixTheProductmixisthetotalvarietyofproductsafirmsells.Somefirmswillselljustoneproduct,whilstotherswillsellalargenumberofdifferentproducts.ForexampleSamsungsproductmixincludesmobilephones,netbooks,tablets,televisions,fridges,microwaves,printersandmemorycards.ProductMixProductMixProductlineisagroupofproductsthatarecloselyrelatedbecausetheyfunctioninasimilarmanner,aresoldtothesamecustomergroups,aremarketedthroughthesametypesofoutlets,orfallwithingivenpriceranges.ProductMixProductwidthisthenumberofdifferentproductlinesthecompanycarries.E.gUnilever:
Ice-creamPersonalandBeautyCareTeaFoodSeasoningandSoupsProductLineProductLineProductLineProductLineProductMixTheproductlengthshowsthenumberofdifferentproducttypesinaproductline.Alongproductlinehaslotsofdifferentproductsinitandashortproductlinehasasmallnumberofdifferentproducts.Iftherearetoomanyproducttypesinaproductline,theywillbegintocompetewitheachother,increasecostsunnecessarilyandevenconfusecustomers.Iftheproductlineistooshortitwilllimitcustomerchoiceandsendcustomerstocompetitorswithagreaterselectionofproducts.ProductMixProductdepthisthenumberofversionsofferedofeachproducttypeintheline.LiptonIcedTeaProductMixApplytoAppleProductLifeCycleProductsgothroughcycleswithstages.Characteristicsaredifferentfordifferentstages.DifferentstrategiesmayberequiredfordifferentstagesIntroductionGrowthMaturityDeclineSalesTimeNewtomarketLowsalesvolumeRapidincreaseinSalesVolumeMarketSharePeaksalesReducedproductioncostNewcompetitorsProductdevelopmentSalesdeclineReduceproductionEndofproductlifecycleProductLifeCycleSOMELIFECYCLEPATTERNSSalesLevelTimeFADFASHIONSTYLETYPICAL2012PrinciplesofMarketing:
AnAsianPerspective30ProductLife-CycleCategoriesofPLCsproductclass(gasoline-poweredautomobiles)productform(SUVs)brand(theKiaSorrento)ProductclasseshavethelongestlifecyclesProductformshavethestandardPLCshapeProductbrandsPLCcanchangequicklyLifeCycleStrategiesIntroductoryLowsales,fewcompetitors.Growthemarketthroughproducteducation.MARCOMbudgetloworhigh?
Priceloworhigh?
LifeCycleStrategiesGrowthRapidlyincreasingsales,manyentrants.Capturesharethroughbrandawarenessandpreference.Rangeanddifferentiation.DistributionandavailabilityProductionandavailabilityLifeCycleStrategiesMaturityHighpenetrationrateandfiercecompetitionSalespeakanddeclinegraduallyConsolidationofindustryMarketingstrategiesusedatMaturityStageModifythemarketModifytheproductRepositioningtheproductForparticipation,defineandandgiveexamplesofthestrategiesabove.LifeCycleStrategiesDeclineSalesdeclineovertime.Somecompetitorsexit.Focusonprofitableproductsandsegments.Timeyourexit.Maintain(hopingthatcompetitorswillexit),HarvestorDivestAdoptersCategoriesBrandingWhatarethebenefitsforbuyers?
Whatarethebenefitsforcompanies?
BrandingWhatarethebenefitsofbrandingforBuyers?
Signalsquality,standingforcertainbenefitsandvalueSimplifyinformationsearchanddecision-makingincrowdedandcomplexmarketplaceProvidesIdentityBrandingWhatarethebenefitsofbrandingforSellers?
Identification-standsforcertainbenefits,values,qualityDifferentiation/competitiveadvantageRepeatpurchaseLoyaltyPremiumPricingProfitBrandExtensionBrandEquityValueofcompanyWhatisaBrand?
Brandinginwhichanorganizationusesaname,phrase,design,symbols,oracombinationofthesetoidentifyitsproductsanddistinguishthemfromthoseofcompetitors”Abrandisasetofperceptionsandimagesthatrepresentacompany,productorservice.Whilemanypeoplerefertoabrandasalogo,taglineoraudiojingle,abrandisactuallymuchlarger.Abrandistheessenceorpromiseofwhatwillbedeliveredorexperienced.“Theintangiblesumofaproductsattributes:
itsname,packaging,andprice,itshistory,itsreputation,andthewayitsadvertised”(DavidOgilvy)Abrandisthesetofexpectations,memories,storiesandrelationshipsthat,takentogether,accountforaconsumersdecisiontochooseoneproductorserviceoveranother.BrandingBrandidentityincludes:
Aname(e.g.Apple.HP,Mentos)Phrase(“AGreatWaytoFly”,“JustDoit”)Design(e.g.Coke,Pepsi)Symbols(e.g.NikeSwoosh,ApplesBittenApple,M&Mscharacters,EnergizerBunny)Music/Jingle(e.g.PizzaHut)=VisualBrandIdentityBrandingBrandidentityincludes(contd):
PositioningPersonalityBehaviorValues/BeliefsRelationshipsExample:
13-41FirstsinManyBESTINFLIGHTSERVICEBrandingBrandsaregenerallydevelopedovertimethrough:
EffectivecommunicationcontainingconsistentmessagingRecommendationsfromfriends,familymembersorcolleaguesInteractionswithacompanyanditsrepresentativesReal-lifeexperiencesusingaproductorservice(generallyconsideredthemostimportantelementofestablishingabrand)BrandingBrandequityisthepositivedifferentialeffectthatknowingthebrandnamehasoncustomerresponsetotheproductorservice.CompetitiveAdvantageConsumersTopofMindAwarenessandLoyaltyConsumersWillingtoPayaPremiumValuationofNon-tangibleAssetBrandExtensionandLicensingBrandingAttitudebrandingisthechoicetorepresentalargerfeeling,whichisnotnecessarilyconnectedwiththeproductorconsumptionoftheproductatall.MarketinglabeledasattitudebrandingincludethatofNike,Starbucks,TheBodyShop,Safeway,andAppleInc.Agreatbrandraisesthebar-itaddsagreatersenseofpurposetotheexperience,whetheritsthechallengetodoyourbestinsportsandfitness,ortheaffirmationthatthecupofcoffeeyouredrinkingreallymatters.-HowardSchultz(president,CEO,andchairmanofStarbucks)BrandnameChoosingtheRightBrandName:
ShouldSuggestProductBenefits(e.g.Energizer,HeadandShoulder,Fairprice)ShouldBeMemorable,DistinctiveandPositive(e.g.Osim,Nike)ShouldFittheCompanyorProductImage(e.g.Nestle)ShouldHaveNoLegalorRegulatoryRestrictions(e.g.Koufu)ShouldBeSimpleandEmotional(e.g.Bold)BrandNames47BrandNames48BrandNames49WhocanbuildBrands?
Canonlybigcompanieshavesuccessfulbrands?
Isadvertisingimportantforbranding?
Copyright2009PearsonEducationSouthAsiaPteLtd13-5011-51AlternativeBrandArchitectureStrategiesAlternativeBrandArchitectureStrategiesBrandingStrategyMulti-branding/IndividualBrandingMulti-product/UmbrellaBranding/FamilyBrandingCorporatevsproductAresultofbrandextensionandlineextensionSub-brandingAlternativeBrandArchitectureStrategiesMulti-branding/IndividualBrandingIndividualbranding:
eachbrandhaddistinctivenamenotassociatedwithfirmoritsotherproductsQuestions:
WhataretheexamplesofcompaniesthatpracticeIndividualBranding?
Whyisitagoodstrategy?
Whataretherisks?
AlternativeBrandArchitectureStrategiesAdvantages:
NoassociationincaseoffailureCanmarketseveralbrandsincompetitionwitheachotherCreateadvancementwithinfirmMorecontroloverdistributionDisadvantages:
HighcostofpromotingindividualbrandNocapitalizationonestablishedreputationPotentialcannibalizationAlternativeBrandArchitectureStrategiesFamilybranding:
Allnamesputunderoneumbrella.AlsocalledUmbrellaBrandingandMulti-productbrandingQuestions:
WhataretheexamplesofcompaniesthatpracticeUmbrellaBranding?
Whyisitagoodstrategy?
Whataretherisks?
AlternativeBrandArchitectureStrategiesFamily/UmbrellaBranding(contd)Advantages:
EasierandlesscostlytointroduceCapitalizeonreputationDisad
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