Chapter 8. Product and Services Strategy

Transcription

1 Chapter 8 Product and Services Strategy 1

2 Warming-up Case: Haier Chest Freezer 2

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4 What is a Product? A Product is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. Includes: Physical Objects Services Events Persons Places Organizations Ideas Combinations of the above 4

5 What is a Service? A Service is a form of product that consist of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. Examples include: Banking Hotels Tax Preparation Home Repair Services 5

6 Products, Services, and Experiences Pure Tangible Good Tangible Good With Accompanying Services Hybrid Offer Service With Accompanying Minor Goods Pure Service Soap Auto With Accompanying Repair Services Restaurant Airline Trip With Accompanying Snacks Doctor s Exam 6

7 Levels of Product Augmented Product Installation Delivery & Credit Brand Name Quality Level Packaging Core Benefit or Service Features Design After- Sale Service Warranty Actual Product Core Product 7

8 Product Classifications Consumer Products Convenience Products Buy frequently & immediately Low priced Mass advertising Many purchase locations i.e Candy, newspapers Specialty Products Special purchase efforts High price Unique characteristics Brand identification Few purchase locations i.e Lamborghini, Rolex Shopping Products Buy less frequently Higher price Fewer purchase locations Comparison shop i.e Clothing, cars, appliances Unsought Products New innovations Products consumers don t want to think about these products Require much advertising & personal selling i.e Life insurance, blood donation 8

9 Product Classifications Industrial Products Materials and Parts Capital Items Supplies and Services 9

10 Product Classifications Other Marketable Entities Activities undertaken to create, maintain, or change the attitudes and behavior toward the following: Organizations - Profit (businesses) and nonprofit (schools and churches). Persons Politicians, entertainers, sports figures, doctors and lawyers. Places - Business sites and tourism. Ideas (social ideas marketing) public health campaigns, environmental campaigns, and others such as family planning, or human rights. Place Marketing: Vacation spots are the subject of most place marketing Click or p ress space bar to re tu rn. 10

11 Individual Product Decisions (Fig. 8.2) Product Attributes Branding Labeling Packaging Product Support Services 11

12 Individual Product and Service Decisions Attributes Attributes Branding Packaging Labeling Product Support Quality Lined to customer value and satisfaction The whole company needs to be involved (TQM) Features Competitive tool for differentiating product Should be valued by the customer as determined through market research Style and Design Good design contributes to product s usefulness as well as looks 13

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14 Individual Product and Service Decisions Attributes Attributes Branding Packaging Labeling Product Support Brand A name, term, sign, symbol, or design that identifies the product Branding can add value to a product Branding helps buyers Identify products Determine quality Branding helps sellers Convey product quality Provide legal protection Segment markets 15

15 2007 年十大最有价值的品牌 2007 年排名 2007 品牌价值 ( 百万美元 ) 2006 品牌价值 ( 百万美元 ) 变化百分比 国家 1. 可口可乐 % 美国 2. 微软 % 美国 3. IBM % 美国 4. 通用电气 % 美国 5. 英特尔 % 美国 6. 丰田 % 日本 7. 诺基亚 % 芬兰 8. 迪士尼 % 美国 9. 麦当劳 % 美国 10. 奔驰 % 德国 SOURCE: The 100 Top Brands. BusinessWeek. August 6, 2007: p

16 品牌的角色 区分生产者简化产品处理管理会计记录提供法律保护 品质保证形成进入壁垒竞争优势获得品牌溢价 17

17 品牌元素 品牌名称 网址 口号 元素 标志 文字 符号 18

18 Branding Consistency Quality & Value Attributes High Brand Loyalty Advantages of Brand Names Brand Equity Identification Strong Brand Association Name Awareness Perceived Quality 19

19 Major Branding Decisions Brand Name Selection Selection Protection Brand Sponsor Manufacturer s Brand Private Brand Licensed Brand Co-branding Brand Strategy Line Extensions Brand Extensions Multibrands New Brands 20

20 Brand Name Four Brand Strategies Product Category Existing New Existing Line Extension Brand Extension New Multibrands New Brands 21

21 品牌延伸 优势 提高成功的机会 建立顾客正面的期望 零售商支持 加大当前品牌的知名度 广告 包装和分销的规模经济性 劣势 稀释品牌名称品牌完整性的风险损害母品牌的风险与母品牌相互蚕食丧失创建新品牌的机会 22

22 品牌组合中引入多品牌的原因 提高货架占有率和零售商的店内依赖吸引关注差异的消费者, 否则他们可能转向另一品牌增加公司内部的竞争实现规模经济 23

23 Brand Strategy Line Extension Existing brand names extended to new forms, sizes, and flavors of an existing product category. Brand Extension Existing brand names extended to new or modified product categories. Multibrands New brand names introduced in the same product category. New Brands New brand names in new product categories. 24

24 Individual Product and Service Decisions Attributes Attributes Branding Packaging Labeling Product Support Often includes primary, secondary and shipping packages Functions of packaging Contain and protect Promote the product Differentiate the product 25

25 Individual Product and Service Decisions Attributes Attributes Branding Packaging Labeling Product Support Serves to identify the product Describes the product Promotes the product Must be careful not to: Mislead customers Fail to describe ingredients Fail to include safety warnings 28

26 Individual Product and Service Decisions Attributes Attributes Branding Packaging Labeling Product Support Survey customers regularly to assess current customer service Companies use a mix of phone, , fax, Internet and interactive voice and data technologies 29

27 Product - Support Services Companies should design its support services to profitably meet the needs of target customers and gain competitive advantage. How? Step 1. Survey customers to assess the value of current services and to obtain ideas for new services. Step 2. Assess costs of providing desired services. Step 3. Develop a package of services to delight customers and yield profits to the company. 30

28 Consistency Product Mix Decisions Width - number of different product lines Length - total number of items in product lines Depth - number of versions of each product Product Mix - all the product lines & items offered 31

29 宝洁公司的产品组合宽度和产品线长度 ( 包括导入市场的日期 ) 宝洁公司的产品组合宽度和产品线长度 ( 包括导入市场的日期 ) 产品组合的宽度 清洁剂牙膏条状肥皂纸尿布纸巾 象牙雪 1930 格利 1952 象牙 1879 帮宝适 1961 媚人 1928 产品线的长度 德来夫特 1933 汰渍 1946 快乐 1950 奥克雪多 1914 德希 1954 波尔德 1965 圭尼 1966 佳洁士 1955 柯克斯 1885 洗污 1893 佳美 1926 爵士 1952 保洁净 1963 海岸 1974 玉兰油 1993 舒肤佳 露肤 1976 粉扑 1960 旗帜 1982 绝顶 伊拉

30 图 14.3: 产品项目对产品线总销售额和利润的贡献 对销售额和百利分润比的贡献 产品项目 销售额 利润额 33

31 Product Line Decisions Product Line Length Number of Items in the Product Line Stretching Lengthen beyond current range Filling Lengthen within current range Downward Two-Way Upward 34

32 Nature and Characteristic of a Service Intangibility Inseparability Can t be seen, tasted, felt, heard, or smelled before purchase. Can t be separated from service providers. Variability Quality depends on who provides them and when, where and how. Perishability Can t be stored for later sale or use. 35

33 The Service-Profit Chain Healthy Service Profits and Growth Internal Service Quality Satisfied and Loyal Customers Satisfied and Productive Service Employees Greater Service Value 36

34 Marketing Strategies for Service Firms Managing Service Differentiation Develop differentiated offer, delivery and image. Managing Service Quality Empower front-line employees, Become Customer obsessed, Develop high service quality standards, Watch service performance closely. Managing Service Productivity Train current or new employees better, Work on quality as well as quantity, Utilize technology. 37

35 International Product and Services Marketing Decide Which Products & Services to Introduce Decide How Much to Standardize or Adapt Packaging Presents New Challenges Service Marketers Face Special Challenges Trend Toward Global Service Companies Will Continue 38

36 Product Life Cycle Sales and Profits ($) Sales Profits Product Introduction Develop- ment Losses/ Investments ($) Time Growth Maturity Decline Sales and Profits Over the Product s Life From Inception to Demise 39

37 Applications of the Product Life Cycle The PLC concept can describe a: Product class which has the longest life cycles (i.e. gas-powered cars), Product form which tend to have the standard PLC shape (i.e. minivans), Brand which can change quickly because of changing competitive attaches and responses (i.e. Ford Taurus), Style which is a basic and distinctive mode of expression, Fashion which is a popular style in a given field, Fad which is a fashion that enters quickly, is adopted quickly and declines fast. 40

38 Egg Beaters had to first convince people that they needed an egg substitute (overcoming a strong negative response to fake eggs ) then demonstrate that their product was a perfect solution. Introduction Stage of the PLC Summary of Characteristics, Objectives, & Strategies Sales Costs Profits Marketing Objectives Product Price Distribution Advertising Low sales High cost per customer Negative or low Create product awareness and trial Offer a basic product Usually is high; use cost-plus formula High distribution expenses Build product awareness among early adopters and dealers 42

39 Growth Stage of the PLC Summary of Characteristics, Objectives, & Strategies Sales Costs Profits Marketing Objectives Product Price Distribution Advertising Rapidly rising sales Average cost per customer Rising profits Maximize market share Offer new product features, extensions, service, and warranty Price to penetrate market Increase number of distribution outlets Build awareness and interest in the mass market 43

40 Maturity Stage of the PLC Summary of Characteristics, Objectives, & Strategies Sales Costs Profits Marketing Objectives Product Price Distribution Advertising Peak sales Low cost per customer High profits, then lower profits Maximize profits while defending market share Diversify brand and models Price to match or best competitors Build more intensive distribution Stress brand differences and benefits 44

41 Maturity Stage of the PLC Company tries to increase consumption of the current product. Changing characteristics such as quality, features, or styles to attract new users. Company tries to improve sales by changing one or more marketing mix elements. 45

42 Decline Stage of the PLC Summary of Characteristics, Objectives, & Strategies Sales Costs Profits Marketing Objectives Product Price Distribution Advertising Declining sales Low cost per customer Declining profits Reduce expenditure and maintain, reposition, harvest or drop the product Phase out weak items Cut price Go selective: phase out unprofitable outlets Reduce to level needed to retain hard-core loyal customers 46

43 Review of Concept Connections Define product and the major classifications of products and services. Describe the roles of product and service branding, packaging, labeling, and product support services. Explain the decisions companies make when developing product lines and mixes. Identify the four characteristics that affect the marketing of a service. Discuss the additional marketing considerations for services. 47