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Chapter10
Productand
BrandDecisionsPowerPointbyKristopherBlanchardNorthCentralUniversity©2005PrenticeHall12/21/202210-1BasicProductConceptsAproductisagood,service,orideaTangibleAttributesIntangibleAttributesProductclassificationConsumergoodsIndustrialgoods©2005PrenticeHall12/21/20222ProductTypesBuyerorientationAmountofeffortexpendedonpurchaseConveniencePreferenceShoppingSpecialty©2005PrenticeHall12/21/20223BrandsBundleofimagesandexperiencesinthecustomer’smindApromisemadebyaparticularcompanyaboutaparticularproductAqualitycertificationDifferentiationbetweencompetingproductsThesumofimpressionsaboutabrandistheBrandImage©2005PrenticeHall12/21/20224Brands©2005PrenticeHall12/21/20225BrandsTheaddedvaluethataccruestoaproductasaresultofinvestmentsinthemarketingofthebrandAnassetthatrepresentsthevaluecreatedbytherelationshipbetweenthebrandandcustomerovertime©2005PrenticeHall12/21/20226Brands“Wehavetoshifttohighvalue-addedproducts,andtodothatweneedtoimproveourbrand.”-NoboruFujimoto,PresidentSharpElectronicsCorporation©2005PrenticeHall12/21/20227LocalProductsandBrandsBrandsthathaveachievedsuccessinasinglenationalmarketRepresentthelifebloodofdomesticcompaniesEntrenchedlocalproducts/brandscanbeasignificantcompetitivehurdletoglobalcompanies©2005PrenticeHall12/21/20228InternationalProductsandBrandsOfferedinseveralmarketsinaparticularregion‘Euro-brands’©2005PrenticeHall12/21/20229GlobalProductsandBrandsGlobalproductsmeetthewantsandneedsofaglobalmarketandisofferedinallworldregionsGlobalbrandshavethesamenameandsimilarimageandpositioningthroughouttheworld©2005PrenticeHall12/21/202210GlobalProductsandBrandsAmultinationalhasoperationsindifferentcountries.Aglobalcompanyviewstheworldasasinglecountry.WeknowArgentinaandFrancearedifferent,butwetreatthemthesame.Wesellthemthesameproducts,weusethesameproductionmethods,wehavethesamecorporatepolicies.Weevenusethesameadvertising——inadifferentlanguage,ofcourse.-AlfredZeienFormerGilletteCEO©2005PrenticeHall12/20/202211BrandingStrategiesCombinationortieredbranding:allowsmarketerstoleverageacompany’sreputationwhiledevelopingadistinctiveidentityforalineofproductsSonyWalkmanCo-brandingfeaturestwoormorecompanyorproductbrandsNutraSweetandCoca-ColaIntelInside©2005PrenticeHall12/20/202212BrandingStrategiesBrandactsasanumbrellafornewproductsExample:TheVirginGroupVirginEntertainment:VirginMega-storesandMGMCinemasVirginTrading:VirginColaandVirginVodkaVirginRadioVirginMediaGroup:VirginPublishing,VirginTelevision,VirginNetVirginHotelsVirginTravelGroup:VirginAtlanticAirways,VirginHolidays©2005PrenticeHall12/20/202213GlobalBrandDevelopmentQuestionstoaskwhenmanagementseekstobuildaglobalbrand:Willanticipatedscaleeconomiesmaterialize?Howdifficultwillitbetodevelopaglobalbrandteam?Canasinglebrandbeimposedonallmarketssuccessfully?©2005PrenticeHall12/20/202214GlobalBrandDevelopmentGlobalBrandLeadershipUsingorganizationalstructures,processes,andculturestoallocatebrand-buildingresourcesglobally,tocreateglobalsynergies,andtodevelopaglobalbrandstrategythatcoordinatesandleveragescountrybrandstrategies©2005PrenticeHall12/20/202215GlobalBrandDevelopmentCreateacompellingvaluepropositionThinkaboutallelementsofbrandidentityandselectnames,marks,andsymbolsthathavethepotentialforglobalizationResearchthealternativesofextendinganationalbrandversusadoptinganewbrandidentitygloballyDevelopacompany-widecommunicationsystem©2005PrenticeHall12/20/202216GlobalBrandDevelopmentDevelopaconsistentplanningprocessAssignspecificresponsibilityformanagingbrandingissuesExecutebrand-buildingstrategiesHarmonize,unravelconfusion,andeliminatecomplexity©2005PrenticeHall12/20/202217LocalversusGlobalProductsandBrands:ANeeds-BasedApproachPhysiologicalSafetySocialExternal/InternalEsteemSelf-actualization©2005PrenticeHall12/20/202218CountryofOriginasBrandElementPerceptionsaboutandattitudestowardparticularcountriesoftenextendtoproductsandbrandsknowntooriginateinthosecountriesJapanGermanyFranceItaly©2005PrenticeHall12/20/202219PackagingConsumerPackagedGoodswhenthepackagingisdesignedtoprotectorcontaintheproductduringshippingEco-PackagingbecausepackagedesignersmustaddressenvironmentalissuesOfferscommunicationcuesthatprovideconsumerswithabasisformakingapurchasedecision©2005PrenticeHall12/20/202220LabelingProvidesconsumerswithvarioustypesofinformationRegulationsdifferbycountryregardingvariousproductsHealthwarningsontobaccoproductsAmericanAutomobileLabelingActclarifiesthecountryoforigin,andfinalassemblypointEuropeanUnionrequireslabelsonallfoodproductsthatincludeingredientsfromgeneticallymodifiedcrops©2005PrenticeHall12/20/202221AestheticsGlobalmarketersmustunderstandtheimportanceofvisualaestheticsAestheticStyles(degreeofcomplexityfoundonalabel)differaroundtheworld©2005PrenticeHall12/20/202222ProductWarrantiesExpressWarrantyisawrittenguaranteethatassuresthebuyerisgettingwhattheypaidfororprovidesaremedyincaseofaproductfailureWarrantiescanbeusedasacompetitivetool©2005PrenticeHall12/20/202223Extend,Adapt,Create:StrategicAlternativesinGlobalMarketingExtension––offeringproductvirtuallyunchangedinmarketsoutsideofhomecountryAdaptation––changingelementsofdesign,function,andpackagingaccordingtoneedsofdifferentcountrymarketsCreation––developingnewproductsfortheworldmarket©2005PrenticeHall12/20/202224©2005PrenticeHall12/20/202225GlobalProductPlanning:StrategicAlternativesProductSameDifferentCommunicationDifferentSameStrategy1:DualExtensionStrategy2:ProductExtensionCommunicationAdaptationStrategy4:DualAdaptationStrategy3:ProductAdaptationCommunicationExtension©2005PrenticeHall12/20/202226HowtoChooseaStrategy?TwoerrorsthatmanagementmakesinchoosingastrategyNIH(Notinventedhere)syndromemeansmanagersignoretheadvancementsofsubsidiariesoverseasManagersimposepoliciesuponsubsidiariesbecausetheyassumewhatisrightforcustomersinonemarketisrightineverymarket©2005PrenticeHall12/20/202227HowtoChooseaStrategy?CaveDweller––newproductslaunchedinternationallytodisposeofexcessproductionNaïveNationalist–companyrecognizesgrowthopportunitiesoutsideofhomemarketGloballysensitive–companyviewsworldascompetitivemarketplace©2005PrenticeHall12/20/202228HowtoChooseaStrategy?Theproductitself,definedintermsofthefunctionorneeditservesThemarket,definedintermsoftheconditionsunderwhichtheproductisused,preferencesofpotentialcustomers,andabilitytobuytheproductAdaptationandmanufacturingcoststhecompanywillincur©2005PrenticeHall12/20/202229NewProductsinGlobalMarketingPursueopportunitiesincompetitivearenasofglobalmarketplaceFocusononeoronlyafewbusinessesActiveinvolvementfromseniormanagementAbilitytorecruitandretainbestemployeesUnderstandtheimportanceofspeedinbringingproducttomarket©2005PrenticeHall12/20/202230IdentifyingNewProductIdeasWhatisanewProduct?NewtothosewhouseitorbuyitNewtotheorganizationNewtoamarket©2005PrenticeHall12/20/202231TheInternationalNewProductDepartmentHowbigisthemarketforthisproductatvariousprices?Whatarethelikelycompetitivemovesinresponsetoouractivity?Canwemarkettheproductthroughexistingstructure?Canwesourcetheproductatacostthatwillyieldanadequateprofit?Doesproductfitourstrategicdevelopmentplan©2005PrenticeHall12/20/202232TestingNewProductsWhendoyoutestanewproduct?Wheneveraproductinteractswithhuman,mechanical,orchemicalelementsbecausethereisthepotentialforasurprisingandunexpectedincompatibilityTestcouldsimplybeobservingtheproductbeingusedwithinthemarket©2005PrenticeHall12/20/202233LookingAheadChapter11Pricingdecisions©2005PrenticeHall12/20/2022349、静夜四无邻邻,荒居旧业业贫。。12月-2212月-22Tuesday,December20,202210、雨雨中中黄黄叶叶树树,,灯灯下下白白头头人人。。。。17:13:0117:13:0117:1312/20/20225:13:01PM11、以我独独沈久,,愧君相相见频。。。12月-2217:13:0117:13Dec-2220-Dec-2212、故人江江海别,,几度隔隔山川。。。17:13:0117:13:0117:13Tuesday,December20,202213、乍见翻翻疑梦,,相悲各各问年。。。12月-2212月-2217:13:0117:13:01December20,202214、他乡生白白发,旧国国见青山。。。20十二二月20225:13:01下下午17:13:0112月-2215、比比不不了了得得就就不不比比,,得得不不到到的的就就不不要要。。。。。。十二二月月225:13下下午午12月月-2217:13December20,202216、行行动动出出成成果果,,工工作作出出财财富富。。。。2022/12/2017:13:0117:13:0120December202217、做前前,能能够环环视四四周;;做时时,你你只能能或者者最好好沿着着以脚脚为起起点的的射线线向前前。。。5:13:01下下午5:13下下午午17:13:0112月月-229、没有失失败,只只有暂时时停止成成功!。。12月-2212月-22Tuesday,December20,202210、很多事事情努力力了未必必有结果果,但是是不努力力却什么么改变也也没有。。。17:13:0117:13:0117:1312/20/20225:13:01PM11、成功就就是日复复一日那那一点点点小小努努力的积积累。。。12月-2217:13:0117:13Dec-2220-Dec-2212、世间成成事,不不求其绝绝对圆满满,留一一份不足足,可得得无限完完美。。。17:13:0117:13:0117:13Tuesday,December20,202213、不知香积积寺,数里里入云峰。。。12月-2212月-2217:13:0117:13:01December20,202214、意志坚强强的人能把把世界放在在手中像泥泥块一样任任意揉捏。。20十二二月20225:13:01下下午17:13:0112月-2215、楚楚塞塞三三湘湘接接,,荆荆门门九九派派通通。。。。。。十二二月月225:13下下午午12月月-2217:13December20,202216、少少年年十十五五二二十十时时,,步步行行夺夺得得胡胡马马骑骑。。。。2022/12/2017:13:0117:13:0120December202217、空山新雨雨后,天气气晚来秋。。。5:13:
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