MARKETING MANAGEMENT 13 th edition 2 Developing Marketing Strategies and Plans KotlerKeller.
MARKETING MANAGEMENT 14 th edition 12 Setting Product Strategy KotlerKeller.
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MARKETING MANAGEMENT 14 th edition 12 Setting Product Strategy Kotler Keller
Transcript of MARKETING MANAGEMENT 14 th edition 12 Setting Product Strategy KotlerKeller.
MARKETING MANAGEMENT14th edition
12 Setting Product
Strategy
Kotler Keller
CHP: 9&12&13&20-2
At the heart of a great brand is a great product
CHP: 9&12&13&20-3
Product
Anything that can be offered to a market to satisfy a want or need.
CHP: 9&12&13&20-4
BrandName
QualityLevel
Packaging
Design
Features
Delivery& Credit
Installation
Warranty
After-Sale
Service
CoreBenefit orService
CoreBenefit orService
Actual ProductActual Product Core ProductCore Product
Augmented ProductAugmented Product
Levels of Product
CHP: 9&12&13&20-5
Product Classification Schemes
Durability
Use
Tangibility
CHP: 9&12&13&20-6
Durability and Tangibility
Nondurable
goods
ServicesDurable
goods
CHP: 9&12&13&20-7
Unsought ProductsUnsought Products
New innovations Products consumers don’t want to think about these products Require much advertising &personal selling i.e Life insurance, blood donation
Product ClassificationsConsumer Products
Specialty ProductsSpecialty Products
Special purchase efforts High price Unique characteristics Brand identification Few purchase locations i.e can be anything
Shopping ProductsShopping Products
Buy less frequently Higher price Fewer purchase locations Comparison shop i.e Clothing, appliances
Convenience ProductsConvenience Products
Buy frequently & immediately Low priced Mass advertising Many purchase locations i.e Candy, newspapers
CHP: 9&12&13&20-8
Industrial Goods Classification
Materials and parts
Supplies/
business servicesCapital items
CHP: 9&12&13&20-9
Product Differentiation
• Product form• Features• Performance• Conformance• Durability• Reliability• Reparability
• Style• Design• Ordering ease• Delivery• Installation• Customer training• Customer consulting• Maintenance
CHP: 9&12&13&20-10
The Product Hierarchy
Need family
Product family
Product class
Product line
Product type
Item
CHP: 9&12&13&20-11
The Product Hierarchy
• Product line – A group of products
that are closely related because they may: • function in a similar
manner• be sold to the same
customer groups, • be marketed through the
same types of outlets • fall within given price
ranges
• Product line length
– Line stretching: adding products that are higher or lower priced than the existing line
– Line filling: adding more items within the present price range
CHP: 9&12&13&20-12
The Product Hierarchy
• Product mix– Also known as
product assortment– Consists of all the
product lines and items that a particular seller offers for sale
• Product mix width:– Number of different
product lines carried by company
• Product line/mix depth:– Number of different
versions of each product in the line
• Product mix consistency
CHP: 9&12&13&20-13
Line Stretching
Down-Market StretchDown-Market Stretch
Up-Market StretchUp-Market Stretch
Two-Way StretchTwo-Way Stretch
CHP: 9&12&13&20-14
Line Filling
CHP: 9&12&13&20-15
Packaging: The 5th P
All the activities of designing and producingthe container for a product.
CHP: 9&12&13&20-16
Packaging has been influenced by…
Self-serviceSelf-service
Consumer affluenceConsumer affluence
Company/brand imageCompany/brand image
Innovation opportunityInnovation opportunity
CHP: 9&12&13&20-18
Functions of Labels
Identifies
Grades
Describes
Promotes
MARKETING MANAGEMENT14th edition
13 Designing and
ManagingServices
Kotler Keller
CHP: 9&12&13&20-20
Service
Any act of performance that oneparty can offer another that is
essentially intangible and does notresult in the ownership of anything;
its production may or may notbe tied to a physical product.
CHP: 9&12&13&20-21
Service Sectors
GovernmentPrivate
nonprofit
Manufacturing
Business Retail
CHP: 9&12&13&20-22
Categories of Service Mix
Pure tangible goodPure tangible good
Good w/ accompanying servicesGood w/ accompanying services
HybridHybrid
Service w/ accompanying goodsService w/ accompanying goods
Pure servicePure service
CHP: 9&12&13&20-23
Continuum of Evaluation for Different Types of Products
CHP: 9&12&13&20-24
IntangibilityIntangibility
InseparabilityInseparability
VariabilityVariability
PerishabilityPerishability
Can’t be seen, tasted, felt, heard, or smelled before purchase.
Can’t be separated from service providers.
Quality depends on who provides them and when, where and how.
Can’t be stored for later sale or use.
Nature and Characteristic of a Service
CHP: 9&12&13&20-25
Physical Evidence and Presentation
Place
People
Equipment
Communication material
Symbols
Price
CHP: 9&12&13&20-26
How to Increase Quality Control
Invest in good hiring and training procedures
Monitor customer satisfaction
Standardize the service-performance process
CHP: 9&12&13&20-27
Matching Demand and Supply
Demand side• Differential pricing• Nonpeak demand• Complementary
services• Reservation
systems
Supply side• Part-time employees• Peak-time efficiency• Increased consumer
participation• Shared services• Facilities for future
expansion
CHP: 9&12&13&20-28
Service-Quality Model
CHP: 9&12&13&20-29
Determinants of Service Quality
Reliability
Responsiveness
Assurance
Empathy
Tangibles
MARKETING MANAGEMENT14th edition
9 Creating
Brand Equity
Kotler Keller
CHP: 9&12&13&20-31
Brand
A name, term, sign, symbolor design, or a combination of them,
intended to identify the goodsor services of one seller or group
of sellers and to differentiatethem from those of competitors.
CHP: 9&12&13&20-32
The Role of Brands
Identify the makerIdentify the maker
Simplify product handlingSimplify product handling
Organize accountingOrganize accounting
Offer legal protectionOffer legal protection
CHP: 9&12&13&20-33
The Role of Brands
Signify qualitySignify quality
Create barriers to entryCreate barriers to entry
Serve as a competitive advantage
Serve as a competitive advantage
Secure price premiumSecure price premium
CHP: 9&12&13&20-34
Marketing Advantages of Strong Brands
• Improved perceptions of product performance
• Greater loyalty• Less vulnerable to
competition• Less vulnerable to crises• Larger margins• Inelastic consumer
response to price increases
• Elastic consumer response to price decreases
• Greater trade cooperation
• Increase in effectiveness of IMC
• Licensing opportunities
• Brand extension opportunities
CHP: 9&12&13&20-35
Brand Promise
The marketer’s vision of whatthe brand must be and do for
Consumers.
CHP: 9&12&13&20-36
Brand Elements
ElementsSlogans
Brand
names URLs
Logos
SymbolsCharacters
CHP: 9&12&13&20-37
Brand Elements
CHP: 9&12&13&20-38
Brand Elements
Companies often create product icons to develop an identity for their products. Many made-up creatures and personalities, such as Çelik (and now Çeliknaz), Sütaş İnek and Yumoş Ayı, are widely recognized figures in popular culture.
CHP: 9&12&13&20-39
Brand Element Choice Criteria
• Memorable
• Meaningful
• Likeability
• Transferable
• Adaptable
• Protectible
CHP: 9&12&13&20-40
Slogans
• Like a good neighbor, State Farm is there
• Just do it• Nothing runs like a
Deere• Help is just around the
corner• Save 15% or more in
15 minutes or less
• We try harder• We’ll pick you up• Nextel – Done• Zoom Zoom• I’m lovin’ it• Innovation at work• This Bud’s for you• Always low prices
CHP: 9&12&13&20-41
Slogans
• Adını unutabilirsiniz, tadını asla!
• “Hayaaaatın tadıııı!”• Farkı, fiyatı!• Yok aslında birbirimizden
farkımız, ama biz Osmanlı Bankası’yız.
• Ne biçim lastik buuu?• Honda, hayat onda.• Çakar çakmaz çakan
çakmak.• Bira bu kapağın altındadır.
• Citroen gelir, hayat değişir.
• Türkiye’nin motosikleti.• Erkek sünnet olur, askerlik
yapar, Permatik kullanır!• Philips hayatımızı
kolaylaştıracak.• Kirlenmek güzeldir.• Tefal, ne varsa sende var.• Arçelik demek yenilik
demek.• Kalebodur, seramik budur.
CHP: 9&12&13&20-42
Brand Equity
The differential effect that brandknowledge has on consumer
response to the marketing of that brand.
The 10 Most Valuable Brands(Source: Millward Brown)
Brand 2011 Brand Value (Billions)
Apple $153
Google $115
IBM $101
McDonalds $78
CocaCola
AT&T
Marlboro
$74
$70
$68
China Mobile $57
GE $50
ICBC $44
CHP: 9&12&13&20-44
Line ExtensionArçelik New Refrigerators
MultibrandsArçelik - Beko
Brand ExtensionArçelik TV-A/C
New BrandsOYAK - TukaşB
rand
Nam
e
Existing New
Product Category
Existing
New
Four Brand Strategies
MARKETING MANAGEMENT14th edition
20 Introducing New Market Offerings
Kotler Keller
CHP: 9&12&13&20-46
Categories of New Products
New-to-the-world
Cost reductions
New product lines
Additions
Improvements
Repositionings
CHP: 9&12&13&20-47
The New Product-Development Decision Process
CHP: 9&12&13&20-48
Consumer-Adoption Process
Adoption is an individual’s decision
to become a regular user
of a product.
CHP: 9&12&13&20-49
Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
CHP: 9&12&13&20-50
Adopter Categorization
CHP: 9&12&13&20-51
Characteristics of an Innovation
• Relative advantage
• Compatibility
• Complexity
• Divisibility
• Communicability
