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Lecture Basic Marketing: A global-managerial approach: Chapter 9 - William D. Perreault, E. Jerome McCarthy

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In this chapter you will learn: Understand what product really means, know the key differences between goods and services, know the differences among the various consumer and business product classes, understand how the product classes can help a marketing manager plan marketing strategies,...

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Elements of Product

Planning for Goods

and Services

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Chapter 9 Objectives

1.  Understand what  “Product” 

really means.

2.  Know the key differences 

between goods and services.

3.  Know the differences among 

the various consumer and 

business product classes.

4.  Understand how the product 

classes can help a marketing 

manager plan marketing 

strategies.

5.  Understand what branding is  and how to use it in strategy  planning.

6.  Understand the importance of  packaging in strategy 

planning.

7.  Understand the role of  warranties in strategy  planning

8. Understand the important new  terms.

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Place Product Promotion Price

Brand

Type of Brand:

Individual or family

Manufacturer or dealer

Product

Idea

Physical

good/service

Features

Quality level

Accessories

Installation

Warranty

None, full, or limited

Package

Protection, Promotion,

or both

Target Market

Defining “Product”

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Product

Classes

Convenience

Specialty

Unsought Shopping

Consumer Product Classes

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Business Product Classes

Installations

Component Parts and

Accessories

Professional Services

Raw Materials

MRO Supplies

Business Products

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Rejection

Nonrecognition

Recognition

Preference

Insistence

Change Position

Increase Awareness

Continue Education

Maintain Availability

Develop High Brand Equity

Focus:

Focus:

Focus:

Focus :

Focus :

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What Kind of Brand to Use?

Family Brand

Individual Brand

Brand Choices

?

?

?

?

?

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are easier to use, 

making purchase 

decisions easier for 

the customer as well.

The Strategic Importance of Packaging

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A warranty says the  company stands behind  the product.  Consumers  often feel more 

comfortable with  products they know  come with assurances.

Warranty

Using Warranties to Improve the

Marketing Mix

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Expense Item Capital Item Installations Accessories Raw Materials Farm Products Natural Products Components

Supplies Professional Services Branding

Brand Name Trademark Service Mark Brand Familiarity Rejection

Nonrecognition  Recognition

Preference     Insistence

Product

Quality

Service

Product Assortment

Product Line

Individual Product

Consumer Products

Business Products

Convenience Products

Staples

Impulse Products

Emergency Products

Shopping Products

Homogeneous

Heterogeneous

Specialty Products

Unsought Products

New Unsought 

Regularly Unsought

Derived Demand

Brand Equity Lanham Act Family Brand Licensed Brand Individual Brands Generic Products Manufacturer Brand Private/Dealer Brands Battle of the Brands Packaging

UPC Federal Fair Packaging and Labeling Act

Warranty Magnuson­Moss Act

Key Terms

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