Chapter 10 What is a Product Marketing Mix Product Anything that can be offered to a market to satisfy a need or want Marketing Mix Product A product is a Marketing Mix Product ID: 303599
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Slide1
Product Decisions
Chapter 10Slide2
What is a Product?
Marketing Mix: ProductSlide3
“
Anything
that can be
offered to a market
to satisfy a need or want”
Marketing Mix: ProductSlide4
A product is a ...
Marketing Mix: Product
GoodSlide5
A product is a ...
Marketing Mix: Product
ServiceSlide6
A product is a ...
Marketing Mix: Product
EventSlide7
A product is a ...
Marketing Mix: Product
ExperienceSlide8
A product is a ...
Marketing Mix: Product
PersonSlide9
A product is a ...
Marketing Mix: Product
PlaceSlide10
A product is a ...
Marketing Mix: Product
Idea
Concordia Children’s Services
If you don’t help feed them, who will? Slide11
Product Types
Marketing Mix: Product
Durability
tangibilitySlide12
Brands
Anything that help you to
identify
and to
differentiate your goods or services from those of competitors.A variety of brand elements to enhance brand awareness or facilitate the formation of strong, favorable, and unique brand associations:
Brand Name
Logo
Symbol
Character
Packaging
SloganSlide13
Brand Equity
The added value that accrues to a product as a result of investments in the marketing of the
brand
An asset that represents the value created by the relationship between the brand and customer over timeSlide14
6-
14
Brand
Equity
extent to which a consumer holds strong, favorable, and unique associations with a brand in memory
extent to which s/he is willing to pay more for the branded version of a product than for a nonbranded (generic) version Slide15
Brand Equity Benefits
Greater loyalty
Less vulnerability to marketing actions
Less vulnerability to marketing crises
Larger margins
More inelastic consumer response to price increases
More elastic consumer response to price decreases
Increased marketing communication effectivenessSlide16
Local Products and Brands
Brands that have achieved success in a single national market
Represent the lifeblood of domestic companies
Entrenched local products/brands can be a significant competitive hurdle to global companies
Coca-Cola
SokenbichaSlide17
International Products
and Brands
Offered in several markets in a particular region
‘
Euro-brands
’
Honda 5-door hatchback auto is known as Fit in Japan and Jazz in EuropeSlide18
Global Products and Brands
Global products meet the wants and needs of a global market and are offered in all world regions
Global brands have the same name and similar image and positioning throughout the world
In any language Gillette’s trademarked brand promise is easy to understand
.Slide19
Global Products and Brands
“
A multinational has operations in different countries. A global company views the world as a single country. We know Argentina and France are different, but we treat them the same. We sell them the same products, we use the same production methods, we have the same corporate policies. We even use the same advertising—in a different language, of course.
”
-
Alfred
Zeien
Former Gillette CEOSlide20
Global Brand Characteristics
Quality signal—allows a company to charge premium price in a highly competitive market
Global myth—marketers can use global consumer culture positioning to link the brand identity to any part of the world
Social responsibility—shows how a company addresses social problemsSlide21
Global Products and Brands
Global brands are not the same as global products
iPod = brand
mp3 player= productSlide22
Which of the following statements is
not
an example of local products or brands?
A) Coca-Cola developed several branded drink products for Japan.
B) Coca-Cola markets Kinely brand bottled water in India. C) BMW uses "the ultimate driving machine" slogan in India.
D) Diageo PLC markets Gordon's Edge, a gin-based ready-to-drink beverage in the United Kingdom.
E) Coca-Cola developed a noncarbonated, ginseng-flavored beverage for Japan.Slide23
Branding Strategies
Combination or tiered branding
allows marketers to leverage a company
’
s reputation while developing a distinctive identity for a line of products
Sony Walkman
Co-branding
or dual branding
features two or more company or product brandsSlide24
Brand Extension
Brand acts as an umbrella for new products
Example: The Virgin Group
Virgin Entertainment: Virgin Mega-stores and MGM Cinemas
Virgin Trading: Virgin Cola and Virgin Vodka
Virgin Radio
Virgin Rail (UK only)
Virgin Media Group: Virgin Publishing, Virgin Television, Virgin Net (UK only)
Virgin Hotels
Virgin Travel Group: Virgin America Airways, Virgin Holidays, Virgin GalacticSlide25
Around the world, various brands of personal computers are sold with Pentium processors. This fact is often used as a selling point, with advertising that proclaims "Intel Inside." Which branding concept does such advertising reflect?
A) brand equity
B) co-branding
C) brand image
D) brand extension
E) tiered brandingSlide26
World
’
s Most Valuable
Brands, 2010Slide27
Global Brand Development
Questions to ask when management seeks to build a global brand:
Does this move fit the company and/or its markets?
How
difficult will it be to develop a global brand team?
Can a single brand be imposed on all markets successfully?Slide28
Global Brand Development
Create a compelling value proposition
Think about all elements of brand identity and select names, marks, and symbols that have the potential for globalization
Research the alternatives of extending a national brand versus adopting a new brand identity globally
Develop a company-wide communication systemSlide29
Global Brand Development
Develop
a consistent planning
process
Assign
specific responsibility for managing branding issues
Execute
brand-building
strategies
Harmonize, unravel confusion, and eliminate complexitySlide30
Local versus Global Products and Brands: A Needs-Based Approach
Maslow
’
s Hierarchy of NeedsSlide31
Country of Origin as
Brand Element
Perceptions about and attitudes toward particular countries often extend to products and brands known to originate in those countries
Germany
France
Italy
French perfumeSlide32
Packaging
Consumer Packaged Goods refers to products whose packaging is designed to protect or contain the product during shipping, at retail, or point of use
Eco-Packaging is key because package designers must address environmental issues
Offers communication cues that provide consumers with a basis for making a purchase decisionSlide33
Labeling
Provides consumers with various types of information
Regulations differ by country regarding various products
Health warnings on tobacco products
American Automobile Labeling Act clarifies the country of origin, and final assembly point
European Union requires labels on all food products that include ingredients from genetically modified
crops
US
COOL
requires
supermarkets
and other food retailers to display information that identifies the country that meat, poultry, and certain other food products come
from Slide34
Global Product Planning:
Strategic AlternativesSlide35
Product Invention
Strategy 5:
Important for reaching mass markets in less industrialized nations and certain segments in industrialized countries
Hand-cranked radios for areas with no electricitySlide36
How to Choose a Strategy?
Two errors that management makes in choosing a strategy
NIH (Not invented here) syndrome means managers ignore the advancements of subsidiaries overseas
Managers impose policies upon subsidiaries because they assume what is right for customers in one market is right in every marketSlide37
How to Choose a Strategy?
The product itself, defined in terms of the function or need it serves
The market, defined in terms of the conditions under which the product is used, preferences of potential customers, and ability to buy the product
Adaptation and manufacturing costs the company will incur Slide38
Prior to 2004, Nokia launched different cell phone products in different countries at different times. Nokia also used different advertising images and messages in different countries. Which approach to the world marketplace was Nokia using?
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) product-communication adaptation
E) product inventionSlide39
Before Ben & Jerry's launched their ice cream in the United Kingdom, the company conducted extensive research to determine whether the package design was appropriate. The research indicated that British consumers perceived the colors differently than U.S. consumers. The package design was changed accordingly. This type of strategy can be defined as:
A) product-communications extension.
B) product extension-communications adaptation.
C) product adaptation-communications extension.
D) product-communication adaptation.
E) product invention.Slide40
Colgate's Total is a new toothpaste brand whose formulation, imagery, and consumer appeal were designed from the beginning to translate across national boundaries. Which strategy did Colgate use with Total?
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) dual adaptation
E) product innovationSlide41
Dry soup mixes that have long been popular in Europe are marketed as sauces or dips in the U.S. This is an example of the ________ strategy.
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) dual adaptation
E) product invention