Transcript KotlerMM_ch12 - Middle East Technical University

MARKETING MANAGEMENT
14th edition
12
Setting Product
Strategy
Kotler
Keller
At the heart of a great brand is a
great product
CHP: 9&12&13&20-2
Product
Anything that can be offered to a market to
satisfy a want or need.
CHP: 9&12&13&20-3
Levels of Product
Augmented Product
Installation
Packaging
Delivery
& Credit
Brand
Name
Quality
Level
Core
Benefit or
Service
Features
AfterSale
Service
Design
Warranty
Actual Product
Core Product
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Product Classification Schemes
Durability
Tangibility
Use
CHP: 9&12&13&20-5
Durability and Tangibility
Nondurable
goods
Durable
goods
Services
CHP: 9&12&13&20-6
Product Classifications
Consumer Products
Convenience Products
 Buy frequently & immediately
 Low priced
 Mass advertising
 Many purchase locations
i.e Candy, newspapers
Shopping Products
 Buy less frequently
 Higher price
 Fewer purchase locations
 Comparison shop
i.e Clothing, appliances
Specialty Products
Unsought Products
 Special purchase efforts
 New innovations
 High price
 Unique characteristics
 Brand identification
 Few purchase locations
i.e can be anything
 Products consumers don’t
want to think about these products
 Require much advertising &
personal selling
i.e Life insurance, blood
donation
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Industrial Goods Classification
Materials and parts
Capital items
Supplies/
business services
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Product Differentiation
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Product form
Features
Performance
Conformance
Durability
Reliability
Reparability
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Style
Design
Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance
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The Product Hierarchy
Item
Product type
Product line
Product class
Product family
Need family
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The Product Hierarchy
• Product line
– A group of products
that are closely related
because they may:
• function in a similar
manner
• be sold to the same
customer groups,
• be marketed through the
same types of outlets
• fall within given price
ranges
• Product line length
– Line stretching:
adding products that
are higher or lower
priced than the
existing line
– Line filling: adding
more items within the
present price range
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The Product Hierarchy
• Product mix
– Also known as
product assortment
– Consists of all the
product lines and
items that a particular
seller offers for sale
• Product mix width:
– Number of different
product lines carried by
company
• Product line/mix depth:
– Number of different
versions of each
product in the line
• Product mix consistency
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Line Stretching
Down-Market Stretch
Up-Market Stretch
Two-Way Stretch
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Line Filling
CHP: 9&12&13&20-14
Packaging: The 5th P
All the activities of designing and producing
the container for a product.
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Packaging has been influenced by…
Self-service
Consumer affluence
Company/brand image
Innovation opportunity
CHP: 9&12&13&20-16
Innovations in Packaging
CHP: 9&12&13&20-17
Functions of Labels
Identifies
Grades
Describes
Promotes
CHP: 9&12&13&20-18
MARKETING MANAGEMENT
14th edition
13
Designing and
Managing
Services
Kotler
Keller
Service
Any act of performance that one
party can offer another that is
essentially intangible and does not
result in the ownership of anything;
its production may or may not
be tied to a physical product.
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Service Sectors
Government
Private
nonprofit
Business
Retail
Manufacturing
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Categories of Service Mix
Pure tangible good
Good w/ accompanying services
Hybrid
Service w/ accompanying goods
Pure service
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Continuum of Evaluation for Different
Types of Products
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Nature and Characteristic of a
Service
Intangibility
Inseparability
Variability
Perishability
Can’t be seen, tasted, felt, heard,
or smelled before purchase.
Can’t be separated from service
providers.
Quality depends on who provides
them and when, where and how.
Can’t be stored for later sale or
use.
CHP: 9&12&13&20-24
Physical Evidence and Presentation
Place
People
Equipment
Communication material
Symbols
Price
CHP: 9&12&13&20-25
How to Increase Quality Control
Invest in good hiring and training procedures
Standardize the service-performance process
Monitor customer satisfaction
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Matching Demand and Supply
Demand side
• Differential pricing
• Nonpeak demand
• Complementary
services
• Reservation
systems
Supply side
• Part-time employees
• Peak-time efficiency
• Increased consumer
participation
• Shared services
• Facilities for future
expansion
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Service-Quality Model
CHP: 9&12&13&20-28
Determinants of Service Quality
Reliability
Responsiveness
Assurance
Empathy
Tangibles
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MARKETING MANAGEMENT
14th edition
9
Creating
Brand Equity
Kotler
Keller
Brand
A name, term, sign, symbol
or design, or a combination of them,
intended to identify the goods
or services of one seller or group
of sellers and to differentiate
them from those of competitors.
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The Role of Brands
Identify the maker
Simplify product handling
Organize accounting
Offer legal protection
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The Role of Brands
Signify quality
Create barriers to entry
Serve as a competitive
advantage
Secure price premium
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Marketing Advantages of Strong Brands
• Improved perceptions of
product performance
• Greater loyalty
• Less vulnerable to
competition
• Less vulnerable to crises
• Larger margins
• Inelastic consumer
response to price
increases
• Elastic consumer
response to price
decreases
• Greater trade
cooperation
• Increase in
effectiveness of IMC
• Licensing
opportunities
• Brand extension
opportunities
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Brand Promise
The marketer’s vision of what
the brand must be and do for
Consumers.
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Brand Elements
Brand
names
Slogans
URLs
Elements
Logos
Characters
Symbols
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Brand Elements
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Brand Elements
Companies often create product icons to develop
an identity for their products. Many made-up
creatures and personalities, such as Çelik
(and now Çeliknaz), Sütaş İnek and Yumoş Ayı,
are widely recognized figures in popular culture.
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Brand Element Choice Criteria
• Memorable
• Meaningful
• Likeability
• Transferable
• Adaptable
• Protectible
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Slogans
• Like a good neighbor,
State Farm is there
• Just do it
• Nothing runs like a
Deere
• Help is just around the
corner
• Save 15% or more in
15 minutes or less
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We try harder
We’ll pick you up
Nextel – Done
Zoom Zoom
I’m lovin’ it
Innovation at work
This Bud’s for you
Always low prices
CHP: 9&12&13&20-40
Slogans
• Adını unutabilirsiniz, tadını
asla!
• “Hayaaaatın tadıııı!”
• Farkı, fiyatı!
• Yok aslında birbirimizden
farkımız, ama biz Osmanlı
Bankası’yız.
• Ne biçim lastik buuu?
• Honda, hayat onda.
• Çakar çakmaz çakan
çakmak.
• Bira bu kapağın altındadır.
• Citroen gelir, hayat
değişir.
• Türkiye’nin motosikleti.
• Erkek sünnet olur, askerlik
yapar, Permatik kullanır!
• Philips hayatımızı
kolaylaştıracak.
• Kirlenmek güzeldir.
• Tefal, ne varsa sende var.
• Arçelik demek yenilik
demek.
• Kalebodur, seramik budur.
CHP: 9&12&13&20-41
Brand Equity
The differential effect that brand
knowledge has on consumer
response to the
marketing of that brand.
CHP: 9&12&13&20-42
The 10 Most Valuable Brands
(Source: Millward Brown)
Brand
2011 Brand Value (Billions)
Apple
$153
Google
$115
IBM
$101
McDonalds
$78
CocaCola
$74
AT&T
$70
Marlboro
$68
China Mobile
$57
GE
$50
ICBC
$44
Four Brand Strategies
Product Category
Existing
Brand Name
Existing
New
New
Line Extension
Arçelik New Refrigerators
Brand Extension
Arçelik TV-A/C
Multibrands
Arçelik - Beko
New Brands
OYAK - Tukaş
CHP: 9&12&13&20-44
MARKETING MANAGEMENT
14th edition
20
Introducing New
Market Offerings
Kotler
Keller
Categories of New Products
New-to-the-world
New product lines
Additions
Improvements
Repositionings
Cost reductions
CHP: 9&12&13&20-46
The New Product-Development
Decision Process
CHP: 9&12&13&20-47
Consumer-Adoption Process
Adoption is an individual’s decision
to become a regular user
of a product.
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Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
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Adopter Categorization
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Characteristics of an Innovation
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Relative advantage
Compatibility
Complexity
Divisibility
Communicability
CHP: 9&12&13&20-51