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Products Services andBrandsBuildingCustomerValue Chapter7 Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 2 Defineproductandthemajorclassificationsofproductsandservices Describethedecisionscompaniesmakeregardingtheirindividualproductsandservices productlines andproductmixes Identifythefourcharacteristicsthataffectthemarketingofservices Discussbrandingstrategy thedecisionscompaniesmakeinbuildingandmanagingtheirbrands RestStop PreviewingtheConcepts Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 3 Product Anythingthatcanbeofferedtoamarketforattention acquisition use orconsumptionandthatmightsatisfyawantorneed 7 4 Service Anyactivity benefit orsatisfactionofferedforsalethatisessentiallyintangibleanddoesnotresultintheownershipofanything 7 5 WhatIsaService Services Servicesareintangible Examplesincludebanking hotelaccommodations airlinetravel legalservicesandothers 7 6 Marketingofferings Includesbothtangiblegoodsandservices aswellascombinationsofboth Puregood soap Pureservice Legalrepresentation Combination Restaurantmeal Products ServicesandExperiences 7 7 MarketinginAction Creatingandmanagingcustomerexperiencesdifferentiatesmarketingoffersfromcompetitors UmpquaBankdesignsits stores tomakebankingapleasurableexperience Theirbanksfeatureacozycoffeebar big screenTVsshowinginvestmentnews comfyseating WiFiaccess andanonlinemusicstore Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 8 Figure7 1 ThreeLevelsofProduct Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 9 LevelsofProductandServices Corecustomervalue Whattheconsumerisreallybuying Actualproduct Includesthebrandname features design packaging andqualitylevel Augmentedproduct Additionalservicesandbenefitssuchasdeliveryandcredit instructions installation warranty andservice Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 10 Whendevelopingproducts marketersfirstmustidentifythecorecustomervaluethatconsumersseeksfromtheproduct Theymustthendesigntheactualproductandfindwaystoaugmentitinordertocreatethiscustomervalueandthemostsatisfyingcustomerexperience Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 11 MarketinginAction PeoplewhobuyaBlackBerrydevicearebuyingmorethanacellphone Theyarebuyingtheabilityto ConnecttoeverythingyouthroughthepoweroftheBlackBerrysmartphone Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 12 Consumerproducts Productsandservicesboughtbyfinalconsumersforpersonalconsumption Alsoincludedareothermarketableentities Classifiedbyhowconsumersbuythem Convenience shopping specialty andunsoughtgoods ProductandServiceClassification Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 13 Conveniencegoods Purchasedfrequentlyandimmediatelywithlittlecomparisonshopping Lowpriced Massadvertisingandpromotion Widespreaddistributionwithmanyconvenientlocations E g candy soda newspapers TypesofConsumerGoods Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 14 TypesofConsumerGoods Shoppingproducts Boughtlessfrequently moreplanningandeffort brandcomparisonsonbasisofprice quality style Higherprice Selectivedistributioninfewerpurchaselocations Advertisingandpersonalsellingisundertakenbybothproducerandreseller E g furniture clothing cars Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 15 Specialtyproducts Strongbrandpreferenceandloyalty specialpurchasingeffort littlecomparisonshopping Highprice Exclusivedistributioninonlyoneorafewoutletspermarketarea Carefullytargetedpromotionbybothproducerandreseller E g Lamborghini Rolexwatches TypesofConsumerGoods Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 16 Unsoughtproducts Littleproductawarenessorknowledgeofthebrand sometimesnegativeinterest Pricingstrategiesvary Distributionstrategiesvary Requireaggressiveadvertisingandpersonalsellingbybothproducerandresellers E g lifeinsurance cemeteryplots blooddonation TypesofConsumerGoods 7 17 FuelforThought Thinkabouthigh definitiontelevisionsforamoment Areproductslikelytochangeclassificationcategoriesovertime Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 18 Industrialproducts Thosepurchasedforfurtherprocessingorforuseinconductingbusiness Distinctionbetweenconsumerandindustrialproductsisbasedonthepurposeforwhichanitemisbought e g homeorbusinessuse ProductandServiceClassification Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 19 Materialsandparts Rawmaterials manufacturedmaterials andparts Capitalitems Productsthataidinbuyer sproductionoroperations Suppliesandservices Operatingsupplies maintenance andrepairitems TypesofIndustrialGoods 7 20 OtherMarketOfferings Organizations Profitandnonprofit schoolsandchurches Persons Politicians sportsfigures doctors etc Places Create maintain orchangeattitudesorbehaviortowardparticularplaces Ideas socialmarketing Publichealthcampaigns environmentalcampaigns familyplanning orhumanrights Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 21 MarketinginAction Socialmarketingisdesignedtoinfluenceindividual sbehaviortoimprovetheirwell beingandthatofsociety Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 22 Figure7 2 IndividualProductDecisions Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 23 Productqualitydimensions Productfeatureconsiderations Productstyleanddesign Shapesthebuyer susageexperience ProductandServiceAttributes Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 24 MarketinginAction OXOapproachesproductdesignbyfocusingonthedesiredend userexperience andthentranslatingitsnotionsintoeminentlyusablegadgets Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 25 Brand Aname term sign symbol design oracombinationofthese thatidentifiestheproductsorservicesofonesellerorgroupofsellersanddifferentiatesthemfromthoseofcompetitors Brandinginvolvesbuildingandmanagingbrands Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 26 Branding Advantagestobuyers Helpsidentifyproducts Cuetoproductqualityandconsistency Advantagestosellers Basisforproduct squalitystory Provideslegalprotection Helpstosegmentmarkets Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 27 Packaging Packaging Involvesdesigningandproducingthecontainerorwrapperforaproduct Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 28 Packaging Ideally goodpackagesshould Helptomarketthebrand Protectthecontents Provideconvenienceandeaseofuse Ensureproductanduser childsafety Addressenvironmentalconcerns Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 29 MarketinginAction Ahaslaunchedamulti yearinitiativetocreate frustration freepackaging formanytoys electronics andothermanufactureditemsinordertoeliminate wraprage Visitthewebpagewherethisisexplained Ashortvideo 1 36 demonstrateshowAmazon srepackagingeffortssavebuyerstime Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 30 Labeling Labelingreferstoprintedinformationappearingonorwiththepackage includingtheproductname Performsseveralfunctions Identifiesproductorbrand Describesseveralthingsabouttheproduct Promotestheproductthroughattractivegraphics Labelingisregulatedbythegovernment Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 31 FuelforThought Takeanup closelookatthelabelfortheTabascobrandhotpeppersauce Howwelldoesitfulfillitsfunctionsofidentifyingthebrand describingproduct andpromotingthebrandviaattractivegraphics Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 32 MarketinginAction Logosareeasilyrecognizablesymbols signs orstylizedwrittenportrayalsofbusinessbrandnames Logosprovideashort cuttoproductandfirmidentification Butjusthowgoodareyouatrecognizingtheletterformsusedincorporatelogos FindoutbyvisitingthisWebsite andplayingtheretailalphabetgame Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 33 MarketinginAction Labelingandlogoscanenhanceabrand spositioningandpersonality Pepsi snewlogois moreadventurous moreyouthful withabitmorepersonalitytoit Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 34 ProductSupportServices Monitoringofsupportservicesiskey Talkwithcustomerstoassessthevalueandqualityofcurrentservicesandtoobtainideasfornewservices Fixproblemsandputtogetherapackageofnewservicesthatdelightsthecustomersandyieldsprofitsforthecompany Newtechnologiescanoftenenhancemanysupportserviceofferings Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 35 MarketinginAction TheLexusCovenantpromisesthatdealerswill treateachcustomeraswewouldaguestinourownhome and gotoanylengthstoservethembetter Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 36 ProductLine Agroupofproductsthatarecloselyrelatedbecausetheyfunctioninasimilarmanner aresoldtothesamecustomergroups aremarketedthroughthesametypesofoutlets orfallwithingivenpriceranges Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 37 ProductLineDecisions Productlinelengthisamajordecision Filling addingmore Stretching downward upwardorbothways Manyautomanufacturersmayhavefilledandstretchedtheirlinestoofar particularlyinlightofrecenteconomicproblems Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 38 ProductMix Thesetofalloftheproductlinesanditemsthataparticularselleroffersforsale Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 39 ProductMixDecisions Productmixdimensionsinclude Width thenumberofdifferentproductlinesthecompanycarries Length thenumberofitemsinaline Depth thenumberofversionsofferedofeachproductintheline Consistency howcloselyrelatedvariouslinesare Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 40 MarketinginAction Sonyhasalargeanddiverseproductportfolio dividedintofourprimaryproductbusinesses eachofwhichhashundredsofproductsinitsmix Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 41 Figure7 3 FourServiceCharacteristics Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 42 MarketinginAction Theintangiblenatureofservicescreatesbuyeruncertainty Tocombatthis serviceprovidersoftenpractice evidencemanagement tacticsthatshowcustomershonestevidenceoftheircapabilities MayoClinicisastellarexampleasitsSharingMayoClinicblogletswebsitevisitorsheardirectlyfromworkersandformerpatients Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 43 TheService ProfitChain Theserviceprofitchainlinksemployeeandcustomersatisfactiontofirmprofits Fivelinksexistwithinthechain Internalservicequality Satisfiedandproductiveserviceemployees Greatservicevalue Satisfiedandloyalcustomers Healthyserviceprofitsandgrowth Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 44 MarketinginAction Zapposknowsthathappycustomersbeginwithhappy dedicated and perpetuallychipper employees Employees tweets tocustomersbearthatout Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 45 Figure7 4 ThreeTypesofServiceMarketing Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 46 ServicesMarketing Externalmarketing Traditionalmarketingviathe4 Ps Internalmarketing Orientingandmotivatingcustomer contactemployeesandthesupportingservicepeopletoworkasateamtoprovidecustomersatisfaction Interactivemarketing Trainingserviceemployeesinthefineartofinteractingwithcustomerstosatisfytheirneeds Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 47 MarketinginAction FourSeasonshasperfectedtheartofinternalandinteractivemarketingtoitsemployees TheFourSeasonshiresonlythebestpeoplewiththerightattitudewhowillfollowthegoldenrule Employeesreceive3monthsoftraining includingimprovisationexercisestohelpthemunderstandcustomers Salariesareamongthe75th 90thpercentilefortheindustry Allemployees regardlessofposition eattogetherregularlyforfreeinthehotel PlusemployeesareallowedfreenightlystaysatanyFourSeasonsresortorhotel Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 48 MajorServiceMarketingTasks Managingservicedifferentiation Developadifferentiatedoffer delivery andimage PetSmartisaone stopshopforallpetneeds includingboarding Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 49 MajorServiceMarketingTasks Managingservicequality Sethighservicequalitystandards havegoodservicerecovery empowerfront lineemployees Servicerecoveryiscritical Managingserviceproductivity Traincurrentemployeesorhirenewones increasequantityandsacrificequality harnesstechnology ReinventingLasVegasBackground Old timersthinkofLasVegasas SinCity Yetcasinogamingnowaccountsforlessthan50 ofthecity srevenues LasVegashasbeenreinventedasaluxurydestination Howwasitdone Extensiveconsumerresearchstudiedthebrandexperience FindingsindicatedthatpeoplewerealittlenaughtierwhentheycametoLasVegas PeopleassociatedLasVegaswithadultfreedom LasVegas BuildingtheBrand PromotingtheBrandAdvertising The OnlyVegas WhatHappensHere StaysHere 75millionadcampaigncapturedthebrandexperienceandpromotedtheimagethatLasVegasrepresentsfreedom Results LasVegasisthe 2brandbehindGoogleandLasVegastourismisbooming WhatisLasVegasselling Andwhatarevisitorsreallybuying Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 51 BrandEquity Thedifferentialeffectthatknowingthebrandnamehasoncustomerresponsetotheproductoritsmarketing DiscussthebrandequityofLasVegas Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 52 LasVegashaspositivebrandequityandforgesanemotionalconnectionwithvisitors Itisavaluableasset HighbrandequityofLasVegasprovidesthecompanywithmanycompetitiveadvantagesandhighlevelofconsumerbrandawarenessandloyalty Itformsthebasisforbuildingstrongandprofitablecustomerrelationships Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 53 BuildingStrongBrands Brandequity Measuresthebrand sabilitytocaptureconsumerpreferenceandloyalty Isavaluableassetthatoffersmanycompetitiveadvantages Buildsstrongandprofitablecustomerrelationshipsthatresultinloyalcustomers customerequity Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 54 Figure7 5 BrandStrategyDecisions Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 55 BrandPositioning Marketerscanpositionbrandsclearlyincustomers mindsatanyofthreelevels ProductattributesProductbenefitsBeliefsandvaluesMarketersshouldcreateabrandmissionandvisionofwhatthebrandmustbeanddowhenpositioningthebrand Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 56 BrandNameSelection Desirablequalitiesforabrandname Itshouldsuggesttheproduct sbenefitsandqualities Itshouldbeeasytopronounce recognize andremember Itshouldbedistinctive Itshouldbeextendable Itshouldtranslateeasilyintoforeignlanguages Itshouldbecapableofregistrationandlegalprotection Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 57 BrandSponsorship Brandsponsorshipoptionsinclude NationalbrandsAlsocalledmanufacturerbrandsStorebrandsAlsocalledprivatebrandsLicensedbrandsNameorcharacterlicensingCo brandingCreatesbroaderappealandbrandequity Privatelabelsaregrowingrapidly Copyright2011 PearsonEducationInc PublishingasPrentice Hall 7 58 MarketinginAction Nickelodeonhasdevelopedastablefullofhugelypopularcharacterswhichcanbelicensedbymarketers suchasSpongeBobSquarePants thatgenerate
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