Professional Documents
Culture Documents
In the early 20th century, the Trans-Atlantic Transcable allowed for the transmission of photographs in near real time. Still images went to press soon after news of events in Europe arrived here in the States. Are there any emerging communication technologies today that show similar potential? How can these be harnessed to improve a companys global offerings? www.bookfiesta4u.blogspot.com
Regional free trade zones offer many potential benefits to companies expanding their offerings abroad. Clearly defined national import/export policies are just one potential benefit. Can you think of any others? What marketing challenges will not be eased by such agreements?
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Promotion
Communication adaptation Dual adaptation
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One of the most profound political changes in the late 20th century was the fall of the iron curtain and the subsequent opening of markets in Eastern Europe. Has this potential marketplace been fully exploited by American companies? European companies? Why or why not?
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Kotler on Marketing
The best way to hold customers is to constantly figure out how to give them more for less.
Chapter Objectives
In this chapter, we focus on the following questions:
What are the characteristics of products? How can a company build and manage its product mix and product lines? How can a company make better brand decisions? How can packaging and labeling be used as marketing tools?
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Product hierarchy
Need family Product family Product class Product line Product type Item
Product classifications
Durability and Tangibility Classification:
Nondurable goods Durable goods Services
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Shopping goods
Homogeneous shopping goods Heterogeneous shopping goods
Capital items
Installations Equipment
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Table 14.1: Product-Mix Width and Product-Line Length for Proctor& Gamble Products
ProductProduct-Mix Width Detergents Toothpaste Ivory Snow (1930) PRODUCTPRODUCT- Dreft LINE (1933) LENGTH Tide (1946) Cheer (1950) Gleem (1952) Crest (1955) Kirks (1885) Lava (1893) Camay (1926) Luvs (1976) Puffs (1960) Banner (1982) Summit (1992) Disposable Bar Soap Ivory (1879) Diapers Pampers (1961) Paper Tissue Charmin (1928)
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Brand decisions
What is brand?
Attributes Benefits Values Culture Personality User
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Branding Challenges
Branding Decision: To Brand or Not to Brand?
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When is a brand more than just a brand? Have you ever based a purchasing decision primarily on the brand? Was it because of some perceived quality difference, or was it based on the expectation of how others would see or treat you? Have you ever seen someone buying a given brand of an item in an attempt to be seen as cool?
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Line Extensions
Branded variants
Brand extensions
Brand dilution
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Factors which have contributed to the growing use of packaging as a marketing tool
SelfSelf-Service Consumer affluence Company and brand image Innovation opportunity
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Kotler on Marketing
Every business is a service business. Does your service put a smile on the customers face?
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Chapter Objectives
In this chapter, we focus on the following questions:
How are services defined and classified? How do services differ from goods? How can service firms improve their differentiation, quality, and productivity? How can goods-producing companies goodsimprove their customer support services?
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Service
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Carbone and Haeckel purpose the following for customer experience engineering
Performance and context clues
Humanics Mechanics
Experience blueprint
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Process
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Managing differentiation
Offering
Primary service package Secondary service features
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Image
FedEx and UPS have taken over much of the US Postal Services business, mostly through flexibility and innovation that the USPS cant match. Can you think of another governmental service (anywhere in the world) where a private company has been able to take the profitable segment of a service, and leave the less profitable or more risky segment for a government agency? www.bookfiesta4u.blogspot.com
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Strategic Concept TopTop-Management Commitment High Standards Self- www.bookfiesta4u.blogspot.com Self-Service Technologies (SSTS)
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Myalert.com provides access to services that users can perform themselves Table 15.1 Customer Importance and Performance Ratings for an Auto Dealership
Mean Mean
Attribute Number
1 2 3 4
Rating
3.83 3.63 3.60 3.56
Rating
2.63 2.73 3.15 3.00
Managing Productivity
Seven approaches to improving service productivity:
Have service providers work more skillfully Increase the quantity of service by surrendering some quality Industrialize the service by adding equipment and standardizing production Reduce or make obsolete the need for a service by inventing a product solution Design a more effective service Present customers with incentives to substitute their own labor for company labor Harness the power of technology to give customers access to better service and make service workers more productive
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LifeLife-cycle cost
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Kotler on Marketing
Sell value, not price.
Chapter Objectives
In this chapter, we focus on three questions:
How should a price be set on a product or service for the first time? How should the price be adapted to meet varying circumstances and opportunities? When should the company initiate a price change, and how should it respond to a competitors price change?
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Figure 16.2: Price Should Align with Value Figure 16.1: Nine Price-Quality Strategies
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MarketMarket-penetration pricing
Best when:
Market is highly price-sensitive, and a low price pricestimulates market growth, Production and distribution costs fall within accumulated production experience, and Low price discourages actual and potential competition
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Many companies engage in market skimming, offering new products at whatever price the market will bear, then over time decreasing the price in order to gain the maximum profit from each market segment. Can you think of any products that wouldnt fit this pricing model? Why not?
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Target costing
Accumulated Production
Experience curve (Learning curve)
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PerceivedPerceived-Value Pricing
Perceived value Price buyers Value buyers Loyal buyers Value-inValue-in-use price
Figure 16.8: Break-Even Chart for Determining Target-Return Price and Break-Even Volume
Markup price
Markup price= unit cost/ (1 desired return on sales)
TargetTarget-Return Pricing
TargetTarget-return price = unit cost + (desired return X investment capital)/unit sales
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Companys Bid
Companys Profit
Expected Profit
$ 81 216 99 16
Group Pricing
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Some large entities, both public and private, currently bid online for many products and services. Do you think there will be a market for consumers to bid on electrical power, like major corporate electricity users do? What about oil for heating? Can you think of any other products or services with a potential online auction market for home users?
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