1. Product Decisions
Chapter 10

2. Marketing Mix: Product
What is a Product?
Marketing Mix: Product

3. “Anything that can be offered to a market to satisfy a need or want”
Marketing Mix: Product

4. Marketing Mix: Product
A product is a ...
Good
Marketing Mix: Product

5. Marketing Mix: Product
A product is a ...
Service
Marketing Mix: Product

6. Marketing Mix: Product
A product is a ...
Event
Marketing Mix: Product

7. Marketing Mix: Product
A product is a ...
Experience
Marketing Mix: Product

8. Marketing Mix: Product
A product is a ...
Person
Marketing Mix: Product

9. Marketing Mix: Product
A product is a ...
Place
Marketing Mix: Product

10. Concordia Children’s Services
A product is a ...
Idea
Concordia Children’s Services
If you don’t help feed them, who will?
Marketing Mix: Product

11. 1 2 Product Types Durable Goods Nondurable Goods Services Disposable
Consumer Goods
Industrial Goods 2
Durability tangibility
Marketing Mix: Product

12. Brands
Anything that help you to identify and to differentiate your goods or services from those of competitors.
A variety of brand elements to enhance brand awareness or facilitate the formation of strong, favorable, and unique brand associations:
Brand Name
Logo
Symbol
Character
Packaging
Slogan

13. Brand Equity
The added value that accrues to a product as a result of investments in the marketing of the brand
An asset that represents the value created by the relationship between the brand and customer over time

14. Brand Equity
extent to which a consumer holds strong, favorable, and unique associations with a brand in memory
extent to which s/he is willing to pay more for the branded version of a product than for a nonbranded (generic) version

15. Brand Equity Benefits Greater loyalty
Less vulnerability to marketing actions
Less vulnerability to marketing crises
Larger margins
More inelastic consumer response to price increases
More elastic consumer response to price decreases
Increased marketing communication effectiveness
Source: Kevin Keller

16. Local Products and Brands
Coca-Cola
Sokenbicha
Brands that have achieved success in a single national market
Represent the lifeblood of domestic companies
Entrenched local products/brands can be a significant competitive hurdle to global companies

17. International Products and Brands
Offered in several markets in a particular region
‘Euro-brands’
Honda 5-door hatchback auto is known as Fit in Japan and Jazz in Europe

18. Global Products and Brands
Global products meet the wants and needs of a global market and are offered in all world regions
Global brands have the same name and similar image and positioning throughout the world
In any language Gillette’s trademarked brand promise is easy to understand.

19. Global Products and Brands
“A multinational has operations in different countries. A global company views the world as a single country. We know Argentina and France are different, but we treat them the same. We sell them the same products, we use the same production methods, we have the same corporate policies. We even use the same advertising—in a different language, of course.” - Alfred Zeien Former Gillette CEO

20. Global Brand Characteristics
Quality signal—allows a company to charge premium price in a highly competitive market
Global myth—marketers can use global consumer culture positioning to link the brand identity to any part of the world
Social responsibility—shows how a company addresses social problems

21. Global Products and Brands
Global brands are not the same as global products
iPod = brand
mp3 player= product

22. Which of the following statements is not an example of local products or brands?
A) Coca-Cola developed several branded drink products for Japan.
B) Coca-Cola markets Kinely brand bottled water in India.
C) BMW uses "the ultimate driving machine" slogan in India.
D) Diageo PLC markets Gordon's Edge, a gin-based ready-to-drink beverage in the United Kingdom.
E) Coca-Cola developed a noncarbonated, ginseng-flavored beverage for Japan.

23. Branding Strategies
Combination or tiered branding allows marketers to leverage a company’s reputation while developing a distinctive identity for a line of products
Sony Walkman
Co-branding or dual branding features two or more company or product brands

24. Brand Extension Brand acts as an umbrella for new products
Example: The Virgin Group
Virgin Entertainment: Virgin Mega-stores and MGM Cinemas
Virgin Trading: Virgin Cola and Virgin Vodka
Virgin Radio
Virgin Rail (UK only)
Virgin Media Group: Virgin Publishing, Virgin Television, Virgin Net (UK only)
Virgin Hotels
Virgin Travel Group: Virgin America Airways, Virgin Holidays, Virgin Galactic

25. Around the world, various brands of personal computers are sold with Pentium processors. This fact is often used as a selling point, with advertising that proclaims "Intel Inside." Which branding concept does such advertising reflect?
A) brand equity
B) co-branding
C) brand image
D) brand extension
E) tiered branding

26. World’s Most Valuable Brands, 2010

27. Global Brand Development
Questions to ask when management seeks to build a global brand:
Does this move fit the company and/or its markets?
How difficult will it be to develop a global brand team?
Can a single brand be imposed on all markets successfully?

28. Global Brand Development
Create a compelling value proposition
Think about all elements of brand identity and select names, marks, and symbols that have the potential for globalization
Research the alternatives of extending a national brand versus adopting a new brand identity globally
Develop a company-wide communication system
Both this slide and the next offer eight suggestions for managers that are seeking to develop global brand leadership.

29. Global Brand Development
Develop a consistent planning process
Assign specific responsibility for managing branding issues
Execute brand-building strategies
Harmonize, unravel confusion, and eliminate complexity
Coke is the world’s most valuable brand. It is positioned similarly worldwide as being part of fun, enjoyment, and good times. However, the product is changed to suit local taste. Price and distribution varies globally. In 2009, Coke adopted the global advertising theme “One Happiness.” The global campaign will be supplemented with local ads. The previous slogan, “The Coke Side of Life,” was also global but required adaptation in emerging markets such as Russia and China.

30. Local versus Global Products and Brands: A Needs-Based Approach
Maslow’s Hierarchy of Needs

31. Country of Origin as Brand Element
Perceptions about and attitudes toward particular countries often extend to products and brands known to originate in those countries
Germany
France
Italy
French perfume

32. Packaging
Consumer Packaged Goods refers to products whose packaging is designed to protect or contain the product during shipping, at retail, or point of use
Eco-Packaging is key because package designers must address environmental issues
Offers communication cues that provide consumers with a basis for making a purchase decision

33. Labeling Provides consumers with various types of information
Regulations differ by country regarding various products
Health warnings on tobacco products
American Automobile Labeling Act clarifies the country of origin, and final assembly point
European Union requires labels on all food products that include ingredients from genetically modified crops
US COOL requires supermarkets and other food retailers to display information that identifies the country that meat, poultry, and certain other food products come from

34. Global Product Planning: Strategic Alternatives

35. Product Invention Strategy 5:
Important for reaching mass markets in less industrialized nations and certain segments in industrialized countries
Hand-cranked radios for areas with no electricity

36. How to Choose a Strategy?
Two errors that management makes in choosing a strategy
NIH (Not invented here) syndrome means managers ignore the advancements of subsidiaries overseas
Managers impose policies upon subsidiaries because they assume what is right for customers in one market is right in every market

37. How to Choose a Strategy?
The product itself, defined in terms of the function or need it serves
The market, defined in terms of the conditions under which the product is used, preferences of potential customers, and ability to buy the product
Adaptation and manufacturing costs the company will incur
This slide sums up the section regarding choosing a product-communication strategy. It is important to note that only after analysis of the product-market fit and of company capabilities and costs can executives choose the most profitable strategy.

38. Prior to 2004, Nokia launched different cell phone products in different countries at different times. Nokia also used different advertising images and messages in different countries. Which approach to the world marketplace was Nokia using?
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) product-communication adaptation
E) product invention

39. Before Ben & Jerry's launched their ice cream in the United Kingdom, the company conducted extensive research to determine whether the package design was appropriate. The research indicated that British consumers perceived the colors differently than U.S. consumers. The package design was changed accordingly. This type of strategy can be defined as:
A) product-communications extension.
B) product extension-communications adaptation.
C) product adaptation-communications extension.
D) product-communication adaptation.
E) product invention.

40. Colgate's Total is a new toothpaste brand whose formulation, imagery, and consumer appeal were designed from the beginning to translate across national boundaries. Which strategy did Colgate use with Total?
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) dual adaptation
E) product innovation

41. Dry soup mixes that have long been popular in Europe are marketed as sauces or dips in the U.S. This is an example of the ________ strategy. A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product invention