1、Product,Services,and Branding StrategiesChapter 9ObjectivesBe able to define product and know the major classifications of products and services.Understand the decisions companies make regarding their individual products and services,product lines,and product mixes.1ObjectivesUnderstand how firms bu
2、ild and manage their brands.Know the four characteristics of services and the additional marketing considerations that services require.Review additional product issues related to social responsibility and international marketing.2Cosmetics Cosmetics companies sell companies sell billions of dollars
3、 billions of dollars worth of productsworth of productsConsumers buy Consumers buy more than just a more than just a particular smellparticular smellThe“promise”,The“promise”,image,company,image,company,name,package,and name,package,and ingredients are all ingredients are all part of the product,par
4、t of the product,as are the stores as are the stores where it is sold.where it is sold.The Cosmetics IndustryCase Study3DefinitionsProductAnything offered to a market for attention,Anything offered to a market for attention,acquisition,use,or consumption that might acquisition,use,or consumption tha
5、t might satisfy a need or want.satisfy a need or want.ServiceAny activity or benefit that one party can Any activity or benefit that one party can offer to another that is essentially intangible offer to another that is essentially intangible and does not result in ownership of and does not result i
6、n ownership of anything.anything.4What is a Product?#Products,Services,and ExperiencesMarket offerings,pure tangible goods,pure services,experiencesLevels of Product and ServicesCore benefit,actual product,and augmented productProduct and Service Classifications5What is a Product?#ConvenienceShoppin
7、gSpecialtyUnsoughtFrequent purchases Frequent purchases bought with minimal bought with minimal buying effort and little buying effort and little comparison shoppingcomparison shoppingLow priceLow priceWidespread Widespread distributiondistributionMass promotion by Mass promotion by producerproducer
8、Types of Consumer Types of Consumer ProductsProducts 6What is a Product?#ConvenienceShoppingSpecialtyUnsought Less frequent purchases Less frequent purchases requiring more shopping requiring more shopping effort and price,quality,effort and price,quality,and style comparisons.and style comparisons.
9、Higher than convenience Higher than convenience good pricinggood pricing Selective distribution in Selective distribution in fewer outletsfewer outlets Advertising and personal Advertising and personal selling by producer and selling by producer and resellerresellerTypes of Consumer Types of Consume
10、r ProductsProducts 7What is a Product?#ConvenienceShoppingSpecialtyUnsought Strong brand preference Strong brand preference and loyalty,requires and loyalty,requires special purchase effort,special purchase effort,little brand comparisons,little brand comparisons,and low price sensitivityand low pri
11、ce sensitivity High priceHigh price Exclusive distributionExclusive distribution Carefully targeted Carefully targeted promotion by producers promotion by producers and resellersand resellersTypes of Consumer Types of Consumer ProductsProducts 8What is a Product?#ConvenienceShoppingSpecialtyUnsought
12、 Little product awareness Little product awareness and knowledge(or if and knowledge(or if aware,sometimes aware,sometimes negative interest)negative interest)Pricing variesPricing varies Distribution variesDistribution varies Aggressive advertising Aggressive advertising and personal selling by and
13、 personal selling by producers and resellersproducers and resellersTypes of Consumer Types of Consumer ProductsProducts 9What is a Product?#Product and Service ClassificationsConsumer productsIndustrial productsvv Materials and parts Materials and partsvv Capital items Capital itemsvv Supplies and s
14、ervices Supplies and services10What is a Product?#Product and Service ClassificationsOrganizations,persons,places,and ideasOrganizations,persons,places,and ideasvv Organizational marketing makes use of corporate Organizational marketing makes use of corporate image advertisingimage advertisingvv Per
15、son marketing applies to political candidates,Person marketing applies to political candidates,entertainment sports figures,and professionalsentertainment sports figures,and professionalsvv Place marketing relates to tourism Place marketing relates to tourismvv Social marketing campaigns promote ide
16、as Social marketing campaigns promote ideas11Product and Service DecisionsIndividual ProductProduct Line Product MixProduct attributesProduct attributes Quality,features,style Quality,features,style and designand designBrandingBrandingPackagingPackagingLabelingLabelingProduct support Product support servicesservicesKey Decisions Key Decisions 12Product and Service DecisionsIndividual ProductProduct Line Product MixProduct line lengthProduct line length Line stretching:#Line stretching:#adding adding prod
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