Marketing chapter 8[1]
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  • Note to Instructor <br /> Core benefits represent what the buyer is really buying. <br /> Actual product represents the design, brand name, and packaging that delivers the core benefit to the customer. <br /> Augmented product represents additional services or benefits of the actual product. <br /> It is a good idea for the students to bring in some products so the class can discuss the levels of product and services. Products including Gatorade, toothpaste, facial moisturizer or cosmetics work well in this discussion. You can often find augmented product features on the product’s Web sites including games, features and support. <br />
  • Note to Instructor <br /> Discussion Question <br /> What is a product that could be convenience, shopping, and specialty? <br /> This is a bit of a puzzle. They might realize that a camera could fall into several categories depending on the buyer and the situation. Certainly, if you are on vacation and you forgot your camera, you would pick one up at a convenience store, pharmacy, or maybe the hotel store. If you were a professional photographer, a camera purchase could easily be specialty if you were buying a $5,000 camera. <br />
  • Note to Instructor <br /> This Web link brings you to CBIZ—a consulting firm for businesses. It is interesting to look at their drop-down menus for an overview of the services they offer. <br />
  • Organization marketing example: The Al Rostamani Group’s ‘50 Years of Excellence’ campaign was launched to create awareness about the group of companies’ strong heritage in the region and to reinforce the values of ‘commitment and care’ within the brand. <br /> Person marketing example: big-name companies—such as Coca-Cola and Damas—have recently featured Nancy Ajram, the <br /> award-winning Arabic pop star, in their advertisements and promotions to promote their business in the Arab youth market. <br />
  • Note to Instructor <br /> Place marketing: “Malaysia Truly Asia” is a tourist campaign for Malaysia <br /> In March 2009, Dubai launched a huge global tourism campaign to promote the Emirate internationally, themed “Keep Discovering Dubai.” The campaign involved Emirates Group, the Dubai Department of Tourism and Commerce Marketing (DTCM), Dubai hoteliers, and Destination Management Companies (DMCs). The campaign was a significant investment for these partners, with an estimated cost of around AED 50 million (US$13.6 million). <br />
  • Note to Instructor <br /> This weblink desplays Dyson’s unique style and design <br />
  • Discussion Questions <br /> What brands do you tend to purchase consistently? Why? <br /> This discussion should lead to the consumer benefits of brands including quality and consistency. It is interesting to now ask students what the benefits might be for the seller of having a strong brand. This will include segmentation, positioning, and the ability to communicate product features <br /> Web link to P&G’s website presenting the different brands they offer. <br />
  • Note to Instructor <br /> Innovative packaging can give a company an advantage over competitors and boost sales. With Heinz’s ‘refrigerator-door-fit’ bottle, Heinz ketchup sales jumped 12 percent in the four months following its introduction. <br />
  • Note to Instructor <br /> Companies must continually: <br /> Assess the value of current services to obtain ideas for new ones. <br /> Assess the costs of providing these services. <br /> Develop a package of services to satisfy customers and provide profit to the company. <br /> Product support services: Hewlett-Packard (HP) promises “HP Total Care— expert help for every stage of your computer’s life. From choosing it, to configuring it, to protecting it, to tuning it up—all the way to recycling it.” <br />
  • Note to Instructor <br /> Product line stretching is when a company lengthens its product line beyond its current range. <br /> Downward product line stretching is used by companies at the upper end of the market to plug a market hole or respond to a competitor’s attack. <br /> Upward product line stretching is by companies at the lower end of the market to add prestige to their current products. <br /> Combination line stretching is used by companies in the middle range of the market to achieve both goals of upward and downward line stretching. <br /> Product line filling occurs when companies add more items within the present range of the line. <br />
  • Note to Instructor <br /> Product mix width is the number of different product lines the company carries. <br /> Product mix length is the total number of items the company carries within its product lines. <br /> Product mix depth is the number of versions offered of each product in the line. <br /> Consistency is how closely the various product lines are in end use, production requirements, or distribution channels. <br /> Colgate offers both product mix length and product mix depth. Colgate toothpaste comes in 13 varieties: Colgate Total, Colgate Tartar Control, Colgate 2-in-1, Colgate Cavity Protection, Colgate Sensitive, Colgate Fresh Confidence, Colgate Max Fresh, Colgate Simply White, Colgate Sparkling White, Colgate Kids Toothpaste, Colgate Luminous, Colgate Baking Soda & Peroxide, and Ultrabrite. Then each variety comes in its own special forms and formulation. <br />
  • Note to Instructor <br /> The brand must stand out in ways that are relevant to consumers’ needs. But even a differentiated, relevant brand is far from <br /> a shoe-in. Before consumers will respond to the brand, they must first know about and understand it. And that familiarity must lead to a strong, positive consumer-brand connection. Real marketing 8.1 presents breakaway brand BlackBerry which has perfected a truly unique community-building tool. Today, it is becoming increasingly difficult within the business community <br /> to imagine life before BlackBerry. <br />
  • Note to Instructor <br /> The text has an excellent example from Pampers: <br /> Pampers used to be thought of as functional benefits. <br /> Listening very closely to customers they learned Pampers are more about parent-child relationships and total baby care. <br /> They set to “be a brand experience; we want to be there to help support parents and babies as they grow and develop.” <br /> The equity of great brands has to be something that a consumer finds inspirational and the organization finds inspirational. <br /> “You know, our baby care business didn’t start growing aggressively until we changed Pampers from being about dryness to being about helping mom with her baby’s development.” <br />
  • Note to Instructor <br /> The text has example for each of these: <br /> It should suggest something about the product’s benefits and qualities. Examples: True Fitness, Techno Flex Fitness Club, Sweat Club Fitness Gym (all fitness centers in Malaysia). <br /> It should be easy to pronounce, recognize, and remember: Tide, Silk, iPod Touch. <br /> The brand name should be distinctive: Lexus, Zappos. <br /> It should be extendable: Amazon.com began as an online bookseller but chose a name that would allow expansion into other categories. <br /> The name should translate easily into foreign languages. Before changing its name to Exxon, Standard Oil of New Jersey rejected the name Enco, which it learned meant a stalled engine when pronounced in Japanese. <br />
  • Note to Instructor <br /> Licensing: The cable TV channel Nickelodeon has developed a stable full of hugely popular characters—such as SpongeBob SquarePants—that generate billions of dollars of retail sales each year. <br />
  • Note to Instructor <br /> This weblink directs you to the homepage of the Lebanese designer Elie Saab. He started his business in a small shop in Beirut and now he has a wide international and regional presence. His clothes attract the high society and are worn by many celebrities and famous people around the world. His main workshop is in Lebanon, but he also has workshops in Milan and Paris. His creations can be found all over the world, with boutiques located in Beirut, Paris and London. <br /> Another example is the Fairouz brand. Real Marketing 8.2 looks at this brand and how it has grown both regionally and internationally. <br />
  • Note to Instructor <br /> Intangibility refers to the fact that services cannot be seen, tasted, felt, heard, or smelled before they are purchased. <br /> Inseparability refers to the fact that services cannot be separated from their providers. <br /> Variability refers to the fact that service quality depends on who provides the services as well as when, where, and how they are provided. <br /> Perishability refers to the fact that services cannot be stored for later sale or use. <br />
  • Note to Instructor <br /> Jumeirah’s core essence to Stay Different™ embodies its promise to guests to deliver “ passionate service, delivered by our multinational team of warm and friendly colleagues” . <br />
  • Note to Instructor <br /> Discussion Questions <br /> Have you ever been disappointed in an airline? Did you fly that airline again? <br /> Good service recovery can turn angry customers into loyal ones. In fact, good recovery can win more customer purchasing and loyalty than if things had gone well in the first place. Therefore, companies should take steps not only to provide good service every time but also to recover from service mistakes when they do occur <br />

Transcript

  • 1. Ch 8 -1 Copyright © 2011 Pearson Education
  • 2. 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: Insert your name here Ch 8 -2 Copyright © 2011 Pearson Education
  • 3. 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 -3 Copyright © 2011 Pearson Education
  • 4. 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 -4 Copyright © 2011 Pearson Education
  • 5. What Is a Product? Ch 8 -5 Copyright © 2011 Pearson Education
  • 6. What Is a Product? Product and Service Classifications Ch 8 -6 Copyright © 2011 Pearson Education
  • 7. 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 -7 Copyright © 2011 Pearson Education
  • 8. 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 -8 Copyright © 2011 Pearson Education
  • 9. 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 -9 Copyright © 2011 Pearson Education
  • 10. 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 -10 Copyright © 2011 Pearson Education
  • 11. 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 -11 Copyright © 2011 Pearson Education
  • 12. 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 -12 Copyright © 2011 Pearson Education
  • 13. 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 -13 Copyright © 2011 Pearson Education
  • 14. 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 -14 Copyright © 2011 Pearson Education
  • 15. 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 -15 Copyright © 2011 Pearson Education
  • 16. Product and Service Decisions Ch 8 -16 Copyright © 2011 Pearson Education
  • 17. 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 -17 Copyright © 2011 Pearson Education
  • 18. 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. Ch 8 -18 Copyright © 2011 Pearson Education
  • 19. Product and Service Decisions Individual Product and Service Decisions 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 -19 Copyright © 2011 Pearson Education
  • 20. 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. Ch 8 -20 Copyright © 2011 Pearson Education
  • 21. Product and Service Decisions Individual Product and Service Decisions 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 -21 Copyright © 2011 Pearson Education
  • 22. Product and Service Decisions Individual Product and Service Decisions Packaging involves designing and producing the container or wrapper for a product. Labels identify the product or brand, describe attributes, and provide promotion. Ch 8 -22 Copyright © 2011 Pearson Education
  • 23. Product and Service Decisions Individual Product and Service Decisions Product support services augment actual products. Ch 8 -23 Copyright © 2011 Pearson Education
  • 24. 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 -24 Copyright © 2011 Pearson Education
  • 25. 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 -25 Copyright © 2011 Pearson Education
  • 26. 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 -26 Copyright © 2011 Pearson Education
  • 27. Branding Strategy: Building Strong Brands Brand Equity 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 -27 Copyright © 2011 Pearson Education
  • 28. Branding Strategy: Building Strong Brands Building Strong Brands Ch 8 -28 Copyright © 2011 Pearson Education
  • 29. 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 -29 Copyright © 2011 Pearson Education
  • 30. 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 -30 Copyright © 2011 Pearson Education
  • 31. Branding Strategy: Building Strong Brands Brand Sponsorship Ch 8 -31 Copyright © 2011 Pearson Education
  • 32. Branding Strategy: Building Strong Brands Ch 8 -32 Copyright © 2011 Pearson Education
  • 33. 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 -33 Copyright © 2011 Pearson Education
  • 34. 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 -34 Copyright © 2011 Pearson Education
  • 35. Services Marketing Types of Service Industries • Government • Private not-for-profit organizations • Business services Ch 8 -35 Copyright © 2011 Pearson Education
  • 36. Services Marketing Ch 8 -36 Copyright © 2011 Pearson Education
  • 37. 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 -37 Copyright © 2011 Pearson Education
  • 38. 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 -38 Copyright © 2011 Pearson Education
  • 39. 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 -39 Copyright © 2011 Pearson Education
  • 40. 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 -40 Copyright © 2011 Pearson Education
  • 41. Services Marketing Ch 8 -41 Copyright © 2011 Pearson Education
  • 42. 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 -42 Copyright © 2011 Pearson Education
  • 43. 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 -43 Copyright © 2011 Pearson Education
  • 44. 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 -44 Copyright © 2011 Pearson Education
  • 45. This work is protected by local and international copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from this site should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. Ch 8 -45 Copyright © 2011 Pearson Education