1 / 65

Busn 101 Chapter 14

Busn 101 Chapter 14. Developing & Pricing Products and Services. Goals . Total Product Offer Consumer And Industrial Goods Functions Of Packaging Describe The Differences Between: Brand Brand Name Trademark Brand Equity Brand Loyalty Brand Manager New Product Development Process

issac
Télécharger la présentation

Busn 101 Chapter 14

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Busn 101 Chapter 14 Developing & Pricing Products and Services

  2. Goals • Total Product Offer • Consumer And Industrial Goods • Functions Of Packaging • Describe The Differences Between: • Brand • Brand Name • Trademark • Brand Equity • Brand Loyalty • Brand Manager • New Product Development Process • Product Life Cycle • Pricing Objectives And Strategies • Nonpricing Strategies

  3. Value • Good quality at a fair price • When customers calculate the value of a product, they look at the benefit and then subtract the cost to see if the benefits exceed the cost • Value = Benefits – Costs • If Benefits > Costs, Then: Value, Otherwise: Not Value • Why would someone buy Milk at 7-11 that cost $3.99 when it is $2.50 at Safeway? • Best value includes factors such as price, benefits sought, service they receive, and more

  4. Better Products and Services • With global competition, companies try to avoid market share loss by continuing to design and promote better products • To satisfy customers, marketers must: • Learn to listen to customers better than they do now • Adapt to constantly changing market demands • This means: listen to customers, make what they want • Example of listening: • Product: Fast food restaurants offer salads • Service: Fast food restaurants accept credit cards • Continually developing new products is a key activity for businesses around the globe

  5. Better Products and Services (Economist meg, Oct 11, 2007) • Lego listened to customers (and others) when they designed Lego-Mindstorms • GM launched OnStar, a mobile-information system meant only to provide safety and emergency services for drivers • But customers wanted it to do more: • See if car is working properly • Open the doors for a driver who accidentally locks the keys inside • Locate the nearest pizza place

  6. Total Product Offer or Value Package • Everything that consumers evaluate when deciding whether to buy something • From a strategic marketing point of view, total product offer is more than just the product or service

  7. Total Product Offer:Milk at 7-11 = $3.99 or Milk at Safeway = $2.50

  8. Products at a Business • Product Mix • The combination of product lines offered by a manufacturer • Product Line • A group of products that are physically similar or are intended for a similar market • More on Products: http://pgdba.blogspot.com/2008/05/product-mix-product-line.html

  9. University Products (http://www.enotes.com/business-finance-encyclopedia/product-mix)

  10. Procter & Gamble Products http://www.pg.com/common/product_sitemap.shtml

  11. Product Differentiation • The creation of real or perceived product differences • Actual product differences can be quite small, so marketers must use a creative mix of value enhancers: • Price • Advertising • Packaging • Image

  12. Product Differentiation • How much difference is there between: Bounce, Cheer, Downy, Dreft, Era, Febreze Air Fresheners, Gain, Ivory and Tide?

  13. Groups of Consumer Goods • Convenience Goods and Services • Shopping Goods and Services • Specialty Goods and Services • Unsought Goods and Services

  14. Convenience Goods and Services • Products that the customer wants to purchase frequently and with a minimum of effort • Examples: • Milk • Gum • Gas • ATM • Important marketing considerations: • Location • Brand awareness • Image • Some convenience items are available on the internet: Banking services, Books

  15. Shopping Goods and Services • Those products that the consumer buys only after comparing value, quality, price, and style from a variety of sellers • Examples: • Appliances • Repair Services • Shoes and Clothes • Important marketing considerations: • Price differences • Quality differences

  16. Specialty Goods and Services • Consumer products with unique characteristics and brand identity • Because these products are perceived as having no substitute, the consumer puts forth a special effort to purchase them • Examples: • Medical specialists • Expensive cars • Fancy foods • Important marketing considerations: • High quality, Image, Service, Brand Name • Sold through: • Internet, specialty goods retailer or specialty magazines

  17. Unsought Goods and Services • Products that consumers are unaware of, haven’t necessarily thought of buying, or find that they need to solve an unexpected problem • Examples: • Emergency car-towing • Burial services • Insurance

  18. Industrial Goods or Business Goods or B2B Goods • Products used in the production of other products • Examples: • Rubber for a tire factory • Microsoft Office can be both a B2B Good and a Consumer Good

  19. Importance Of Packaging • Protection • Attraction • Description • Explain Benefits • Information on warranties, warnings, etc. • Indication of price, value, and uses

  20. Packaging is important and can change the product • Morton’s • When it rains, it pours • Squeeze bottles • UPCs (Universal Product Code) makes check out and inventory control much easier • RFID (Radio frequency identification chip)

  21. Brand • A name, symbol, or design that identifies the goods or services and distinguishes them from the goods and services of competitors • Examples of Brand Names: • Campbell • Coca Cola • WholeFoods • Toyota 

  22. Trademark • A Brand that has been given exclusive legal protection for both the brand name and the pictorial design

  23. Brands • Brand name assures quality • Reduces search time • Adds prestige to purchase • Generic Name • Name for product category • Companies are afraid to have brand name become a generic name • Examples: • Aspirin, Linoleum, Kleenex, Styrofoam, Rollerblade

  24. Manufacturers’ Brand Name • The brand name of manufacturers that distribute products nationally and internationally • Examples: • Sony • Honda • Kodak

  25. Dealer (Private Label) Brands or House Brands or Distributor Brands • Products that do not carry the manufacturer’s name but carry a distributor or retailer's name • Examples: • 365 Everyday Value • http://www.wholefoodsmarket.com/products/private-label.php • Kenmore at Sears

  26. Generic Goods • Nonbranded products that usually sell at a sizable discount compared to national or private label brands • Examples: • Lucky Foods Yellow Brand • Generic cigarettes

  27. Knockoff Brands • Illegal Copies of national brand name goods • Examples: • Is you expensive watch or dress a knockoff?

  28. Brands • Brand Equity • The combination of factors – such as loyalty, perceived quality, images, and emotions – that people associate with a given brand name • Examples: Ziploc, GE • Brand Loyalty • The degree to which customers are satisfied, like the brand, and are committed to further purchases • Brand Awareness • How quickly or easily a given brand name comes to mind when a product category is mentioned • Brand insistence  Specialty Good

  29. Brands • Brand Association • The linking of a brand to other favorable images • Think of Michael Jordon, Tiger Woods • Brand Manager or Product Manager • A manager who has direct responsibility for one brand or one product line

  30. Characteristics of a Good Brand Name • Short, sweet, and easily pronounced, but flexible and expandable, and does not lend itself to abbreviation • Unique within its industry and retain its age • Legally available and defensible • Good alliteration and linguistically clean • Embraces company personality / brand portfolio Source: The Brand Name Awards 2005

  31. Best/Worst/Weirdest Car Brand Names Source: FT Weekend, November, 2005

  32. Betty Crocker Chef Boyardee Uncle Ben Colonel Sanders Little Debbie Fake Real Both Real guy, fake rank Real Brand Characters: Are They Real or Fake? Source: Fast Company, August 2004

  33. 10 Most Valuable Brands Source: Business Week, August 7, 2006

  34. Top 10 Favorite Mascots of America • M&Ms figures / Mars • Doughboy / General Mills, Smucker’s • Duck / Aflac • Tony the Tiger / Kellogg • Gecko / Berkshire Hathaway’s Geico • Chester the Cheetah / Pepsi’s Frito-Lay • Energizer Bunny / Energizer Holdings • Kool-Aid Man / Kraft Foods • Trix Rabbit / General Mills • Snap, Crackle and Pop / Kellogg Source: Forbes, January 9, 2006

  35. Developing New Products • 86% of new products fail to reach the business objectives within one year of release • Reasons: • Poor positioning • Little differentiation from other products • Poor packaging

  36. Idea Generation Screening Analysis Development Testing Commercialize New-ProductDevelopment Process

  37. New Products • Product Screening • A process designed to reduce the number of new product ideas being worked on at any one time • Does product fit well with present products? • Is it profitable? • Is it marketable? • Do we have the equipment and personnel?

  38. New Products • Product Analysis • Making costs estimates and sales forecasts to get a feeling for profitability of a new product idea • Concept Testing • Taking a product idea to consumers to test their reactions • Are there benefits? • How frequently would you buy it? • What price would you pay? • Try different packaging, branding, ingredients

  39. Commercialization • Promoting a product to distributors and retailers to get wide distribution, and develop strong advertising and sales campaigns to generate and maintain interest in the product among distributors and consumers • Commercialization: • Promoting to get wide distribution (distributors & retailers) • Advertising and sales efforts to generate & maintain interest (distributors & retailers & consumers) • Internet can speed this process up

  40. First Products Producedby Five Major Companies • Hershey - Caramels • Amway - No-rinse car wash • Heinz - Horseradish • Avon - Little Dot perfume set • 3M - Sandpaper Source: World Features Syndicate

  41. People Behind Product Innovation • Liquid Paper – an American Secretary • Paper Clip – a Norwegian Patent Clerk • Fax Machine – a Scottish Clock Maker • Lewis Waterman Fountain Pen – an American Insurance Salesman • Pencil Sharpener – French Mathematician • Ballpoint pen – a Hungarian Journalist • Eraser Head – English Chemist Source: World Features Syndicate

  42. Best ProductInnovation of ALL Time % of Consumers’ Choice Source: American Demographics

  43. Consumers Attitudes about New Products Source: USA Today

  44. Why People Purchase New Products Source: USA Today

  45. Product Life Cycle • The theoretical model of what happens to sales and profits for a product class over time (not all products follow this model, especially brands and classics)

  46. Product Life Cycle

  47. Product Life Cycle: Different Stages Require Different Marketing Strategies

  48. Product Life Cycle: Different Stages Require Different Marketing Strategies

  49. Pricing • Pricing is important because it is a CRITICAL ingredient in consumer evaluation of product • Objectives of Pricing • ROI: gain a profit (long-run) • Traffic: get people into your store (short-run) • Market Share: gain market share (short-run) • Image: Price high to give status (long-run) • Social: Lower price to help people with little money • No matter what a business does, ultimately, prices are set in the market

More Related