BA 332 Chapter 7 Notes
BA 332 Chapter 7 Notes BUAD 332 001
Popular in CBM I: Demand Management
Popular in Business Administration
This 39 page Class Notes was uploaded by Morgan Notetaker on Monday October 26, 2015. The Class Notes belongs to BUAD 332 001 at University of Tennessee - Knoxville taught by Mark A Moon (P) in Summer 2015. Since its upload, it has received 23 views. For similar materials see CBM I: Demand Management in Business Administration at University of Tennessee - Knoxville.
Reviews for BA 332 Chapter 7 Notes
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 10/26/15
Chapter 7 Products Services and Brands Building Customer Value STRATEGY now getting into the four P s Products Anything that can be offered to a market for attention acquisition use or consumption and that might satisfy a want or need What is a Product 0 Products include physical objects services events persons places organizations ideas or some combination thereof 0 It s important to NOT limit your thinking about products to be only physical objects Clicker question products are always physical objects that are offered to market to satisfy customer needs and wants false Services Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything Clicker question Services are a same thing as products b special case of products 0 easier to market than physical products because they re more tangible and thus easier to explain d becoming less important in US economy B The ProductService Continuum Pure Tangible P U r 9 Good Service Many products have services associated with them Three Levels of Product Core customer value Core customer value What is the customer getting out of ownership or consumption of that product What is it doing for customers Actual product actual elements of that product or service Augmented product augmented elements of a product whole variety of augmented services that tcome along with a product or service where company can gain comp advantage make it more benefit for customer Levels of Product and Services 0 Core customer value 0 What the consumer is really buying 0 Remember Customers buy benefits 0 Actual product 0 Includes the brand name features design packaging and quality level 0 Augmented product 0 Additional services and benefits such as delivery and credit instructions installation warranty and service Product and Service Classification 0 Industrial Products 0 Those purchased for further processing or for use in conducting business 0 Distinction between consumer and industrial products is based on the purpose for which an bought nk Product and Service Classification 0 Consumer Products 0 Products and services bought by final consumers for personal consumption 0 Also included are other marketable entities 0 Classified by how consumers buy them Types of Consumer Goods 0 Convenience goods 0 Purchased frequently and immediately with little comparison shopping effort 0 Low customer involvement 0 Low priced 0 Mass advertising and promotion 0 Widespread distribution with many convenient locations 9 EX candy soda newspapers bottle of 10 Types of Consumer Goods 0 Shopping products 0 Bought less frequently more planning and effort brand comparisons on basis of price quality style 0 Higher price 0 Selective distribution in fewer purchase loca ons 0 Advertising and personal selling is undertaken by both producer and reseller 0 EX furniture cars appliances Typically more engagement by the marketer 11 Types of Consumer Goods 0 Specialty products 0 Strong brand preference and loyalty special purchasing effort little comparison shopping 0 High price 0 Exclusive distribution in only one or a few outlets per market area 0 Carefully targeted promotion by both producer and reseller EX Lamborghini Rolex watches 1 Not easy to get offered in relatively few outlets Not a lot of mass advertising very targeted 12 Types of Consumer Goods 0 Unsought products 0 Little product awareness or knowledge of the brand sometimes negative interest 0 Pricing strategies vary 0 Distribution strategies vary 0 Require aggressive advertising and personal selling by both producer and resellers 0 EX life insurance cemetery plots blood dona on I Not something think about either people don t want to think about it or don t know about it 13 Types of Industrial Goods 0 Materials and parts 0 Raw materials manufactured materials and parts 0 Capital items 0 Products that aid in buyer s production or operations 0 Supplies and services 0 Operating supplies maintenance and repair items Materials and parts Apple doesn39t hardly manufacture anything themselves outsource almost everything Capital items Ford goes out and buys robots to help them in their manufacturing process Videos what s the Product in this commercial Product being promoted in the video we just watched is jet engines false GE is the product who s the customer Potential employees Any consumers are potential customers promoting self GE 14 Other Market Offerings Organization 0 Profit businesses and nonprofit schools and churches Person 0 Politicians entertainers sports figures real estate agents doctors and lawyers Bob Corker video Bob is product Place 0 Create maintain or change attitudes or behavior toward particular places Michigan promo video target of this video Peoplebusinesses to move to Ann Arbor Ideas social marketing 0 Public health campaigns environmental campai ns famil planning or human rights Raccoons video pro ut 15 Individual Product Decisions Product 16 Product and Service Attributes 0 Product quality dimensions 0 Performance quality 0 Conformance quality 0 Product feature considerations 0 Value to consumer 0 Cost to company 0 Product style and design 0 How will it influence the user experience Highest possible quality for everything No WalMart They deliver the right amount of quality for their target customer understanding what levels of quality you want in your productservices is important Style and design design elements are rly important characteristics that constitute a product 17 Product Design Good product design begins with an understanding of consumer needs OXO Good Grips OXO successfully redesigns common kitchen tools by focusing on the end user experience desired by buyers Apple has always benefited from design 18 Packaging 0 Packaging 0 Involves designing and producing the container or wrapper for a product 19 Remember packaging can deliver a competitive advantage Coors label turns blue Packaging 0 Ideally good packages should 0 Help to market the brand 0 Protect the contents 0 Provide convenience and ease of use 0 Ensure product and userchild safety 0 Address environmental concerns 20 Product Line A group of products that are closely related because they function in a similar manner are sold to the same customer groups are marketed through the same types of outlets or fall within given price ranges 21 21 Product Line Decisions 0 Product line length 0 The number of items in a product line 0 Adjust line length by 0 Filling 0 Stretching 0 Downward upward or in both directions Marketing In Action Product Line Stretching I e a mall H quotElquot52 3quot no I ELS a soars 39339 39l 7 quot 9frr391939939fcr i mm were brands each aimed are dl erenl market John Deere how could they fill that product How can you stretch it downward Make one for 500 to lower price point also upward 5k When Toyota introduced the scion a low price point brand to its product line this was an example of a filling the product line b stretching the product line downward c stretching the product line upward B 22 Brands A brand is a name term sign symbol or design or a combination of these that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors Branding involves building and managing brands 23 Branding 0 Advantages to buyers 0 helps identify products 0 Cue to product quality and consistency 0 Advantages to sellers 0 Basis for product s quality story 0 provides legal protection 0 Helps to segment markets Brand takes whole bunch of info and makes image in your head It communicates info to us Big advantages for both buyers and sellers 24 Brand Equity 0 Brand equity 0 Measures the brand s ability to capture consumer preference and loyalty 0 Is a valuable asset that offers many competitive advantages 0 Builds strong and profitable customer relationships that result in loyal customers Procter and gamble bought Duracell didn t buy Duracell just because of their batteries they bought it for their brand too What do you think is the worlds most valuable brand Intrabrand 2015 amazon McDonalds GE Samsung Toyota IBM Microsoft coca cola Google apple least to most valuable 2010 HewlettPackard Disney Nokia Intel McDonalds GE Google Microsoft IDM coke Apple was 17 in 2010 right behind Louis Vuitton and right ahead of Marlboro 25 1 Major Brand Strategy Decisions Brand sponsorshlp Brand development Manufacturers brand Line extensions Private brand Brand extensions Licensing Multibrands Cobranding New brands Exactly how are we going to go about the brand itself 26 Brand Positioning 0 Marketers can position brands at any of three levels 0 Product attributes 0 Product benefits what does it actually do for you 0 Beliefs and values Godiva Picture How are we going to define what he brand rly means to customers 27 Brand Sponsorship 0 Brand sponsorship options include 0 Manufacturer s brands 0 Also called nationa brands Ex Levi s Wh 01 0 Store brands 0 Also called private brands 0 Can only buy Kenmore at Sears 0 JC Penny s Arizona jeans Kenmore Walgreens brand Whirlpool actually manufactures Kenmore appliances and Sears buys them and gets Kenmore tag on them Store brands tend to be more profitable for the retailer than the national brands Brand Sponsorship 0 Brand sponsorship options include 0 Licensed brands 0 Ex UT logo 0 Cobranding Doritos 29 Brand Development Decisions Product category Existing New Existing Brand name New What do we do with the brand once we establish it 4 different ways companies can develop their brands Line extension very safe not a lot of risk 30 Brand Development 0 Line extension 0 Introduction of additional items in a given product category under the same brand name eg new flavors forms colors ingredients or package sizes 31 0 Brand extension 0 Using a successful brand name to launch a new or modified product in a new category 0 New product category with a brand name that already exists 0 V8 Natural brand extension Challenge is picking a product category that is a natural extension of category you are already in Potentially dangerous 32 Brand Development 0 Multibranding 0 Offers a way to establish different features and appeal to different buying motives Costs a lotto introduce a new brand Toyota has itself Then Lexus for higher class Then scion for millennial generation Provide different benefits to different customers 33 Brand Development 0 New brands 0 Developed based on belief that the power of its existing brand is waning and a new brand name is needed 0 Also used for products in new product categories for which none of the firm s existing brands are appropriate Riskiest Examples Life Line Phillips made it Their brand name didn t seem to resonate with customers in that category so they made a new brand Question if Samsung were to begin producing and making automobiles with Samsung brand that would be an example of brand extension 34 Services Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything 35 What is a Service 0 Services include 0 Hair styling tax preparation air travel banking 36 Four Service Characteristics lnseparability Services cannot be separated from their providers Variability Quality of services depends a on who provides them and when where and how 37 Major Service Marketing Tasks 0 Managing service differentiation 0 Develop a differentiated offer delivery and image A 0 British Airways seeks to deliver the best service one can ask for Softer at beds for a deeper sleep 38 Major Service Marketing Tasks 0 Managing service quality 0 Set high service quality standards have good service recovery empower frontline employees quality relative to what 0 Managing service productivity 0 Train current employees or hire new ones increase quantity and sacrifice quality harness technology 39
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'