1. Chapter 11
Products and Services
for Consumers

2. 11.1 product concepts and component Product Concepts
A product is a good, service, or idea
- Tangible Attributes
Intangible Attributes
Product classification
- Consumer goods
- Industrial goods
Life Span Based Product Classification
Durable
Non-Durable
Disposable

3. Product Component Model
SUPPORT SERVICES COMPONENT
PACKAGING
COMPONENT
 Repair and maintenance
 Deliveries
CORE
COMPONENT
 Trademark
 Price
 Product platform
 Design features
 Functional features
 Legal
 Installation
 Warranty
 Quality
 Brand name
 Package
 Instructions
 Spare parts
 Legal
 Styling
 Other related
services
 Legal

4. 11.2 Global Markets and Product Development
domestic market extension concept
Domestic Product extension
multi-domestic market concept
Differentiated products for each unique market
global market concept
Global products marketed worldwide

5. 11.3 Quality Market-Perceived Quality Performance Quality Swiss France
“Mad Cow”
Swiss
France

6. 4Rs - redesign, reduce,recycle,reuse
11.4 Packaging and Green Marketing
Packaging serves three major functions: protection, promotion, and user convenience.
Package aesthetics must be a consideration in terms of the promotional role of packaging: prudent choice of colors and package shapes、pattern; package size
Green Marketing
4Rs - redesign, reduce,recycle,reuse

7. 11.5 Brands Bundle of images and experiences in the customer’s mind
A promise made by a particular company about a particular product
A quality certification
Differentiation between competing products

8. A strong brand is a global marketing asset. The Most Valuable Brands
11.5a Brand Equity
A strong brand is a global marketing asset. The Most Valuable Brands

9. 11.5a Brand Equity
An asset that represents the value created by the relationship between the brand and customer over time.
The added value that accrues to a product as a result of investments in the marketing of the brand.

10. 11.5b Brand Strategies Global Brands National Brands
Global/National Brand Mix
Private Brand

11. Global brands worldwide use of: ‘brand equity’ name sign (logos)
symbols
‘brand equity’
the main asset of some corporations
use this equity to create worldwide image (which may proceed products)
e.g. Top 20 Global Brands

12. Global brands have the same name and
similar image and positioning throughout the world
Operated under the same global brand strategy
While flexible Marketing combination.

13. National brand Brand locally Importance of nationalistic pride
Be rebuilt as global brand

14. Global/National Brand Mix same or different names across borders ?
dual strategy
-Global brand
- many country-specific brands
Example:
Unilever
Nestlé

15. 1.1a Globalization
Jack Welch : 1990s
Globalization

16. brands local but technology global
Nestlé
Brand expansion strategy:
- acquiring well-established national brands
- using global brands
brands local but technology global
and people regional
Global/National Brand Mix
It depends-the market dicates.
‘global brands where possible, national brands where necessary’

17. Private brands private (distributor’s ) brands
owned by the retailers
increasingly common in many sectors (supermarkets)
Wal-Mart vs Proctor & Gamble
who controls channels?
source of their respective power?
which brand is better known?
private brands may enjoy significant competitive advantages
higher margins preferred shelf space
strong in-store promotion

18. Products and Culture A product is more than a physical item.
It is a bundle of satisfactions (or utilities) that the buyer receives.
Cultural Influences: A close study of the meaning of a product shows to what extent the culture determines an individual’s perception of what a product is and what satisfaction that product provides.
When analyzing a product for a second market, the extent of adaptation required depends on cultural differences in product use and perception between the market the product was originally developed for and the new market.
Irwin/McGraw-Hill

19. 11.6a Innovative Products and Adaptation
product life cycle and acceptance of new products
some examples: telegrams/ telex/ fax machines/ cellular phones/

20. In stageⅠof innovation, the technology of a new product is newly invented;the new product is really R&D intensive product;there is no export.
In stage Ⅱof technology diffusion, the technology is mature and the production process becomes standard;the product becomes capital and skilled-labor intensive product;the innovation country exports to other countries to satisfy the rapidly increased demands abroad.
In StageⅢ of technology stagnation, the technological cycle comes to the end;the product becomes labor intensive. The less developed countries take the advantage of low-wage labor and become the main producers and exporters

21. 1.1a Globalization
Jack Welch : 1990s
Globalization

22. 11.6b Diffusion of Innovations
starts with new products
distributed through channels
over a (variable) time period
among members of a social system
Three extraneous variables affecting the rate of diffusion of an object:
the degree of perceived newness
The perceived attributes of the innovation
The method used to communicate the idea

23. Degree of Newness -no real change for consumer
Congruent Innovations
-no real change for consumer
Continuous Innovation
- minor variations of existing product
Dynamically Continuous Innovation
- changes in life style
Discontinuous Innovation
- truly new product/ use/ behavior

24. Characteristics of Innovations
factors affecting adoption rate
Characteristics of Innovations
 Relative Advantage over older products
 Compatibility
 Complexity
 Trialability
Observability
(Kellogg is India - ‘breakfast’?)

25. 11.7 Marketing Consumer Services Globally
Product
- tangible goods
- intangible services
commercial services

26. 11.7a Services Opportunities in Global Market
Top Consumer Services Exports
Tourism Telecommunications
Transportation Entertainment
Financial Services 7. Information
Education Health Care

27. 11.7b Unique Characteristics of Services
Intangibility; Inseparability;
Heterogeneity; Perishability
Inseparable in that its creation cannot be separated from its consumption.
Heterogeneous in that it is individually produced and is thus virtually unique.
Perishable in that once created it cannot be stored but must be consumed simultaneously whit its creation.

28. 11.7c Four Barriers That Face Consumer Services Marketers
Protectionism
Controls on Transborder Data Flows
Protection of Intellectual Property
Cultural Requirements for Adaptation