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CHAPTER 7 & 8, th-1-lit, images, la-ar-birkin-bag-20150729 - Coggle…

- - - - A bundle of attributes that provide value in many forms for exchange partners.
    - - Tangibility
        
        Goods: physical products
        
        Services: intangible products centering on an act/ performance that delivers value.
      - Durability
        
        Durable goods: get consumed over time.
        
        Nondurable goods: items get consumed more quickly.
      - End-users
        
        Business products: used by other businesses.
        
        Consumer products: used by individual persons/ families.
      - Consumer behaviors
        
        Convenience products
        
        Cheap, buying frequently, requires intensive distribution (receive little time & effort in purschasing)
        
        Special types
        
        Impulse products: items purchased spontaneously with no preplanning but bring enjoyment to consumers.
        
        Staples: regularly used and replenished products.
        
        Shopping products
        
        Consumers spend more time & effort comparing between brands & considering prices.
        
        Usually can be found in department stores and shopping malls.
        
        Higher prices, buying less frequently
        
        Specialty products
        
        Very expensive, rarely bought.
        
        Consumers go to great lengths to buy preferred one.
        
        Less likely to compare brands or accept substitutes.
        
        Focus in quality instead of prices
        
        Subcategory: luxuries - high prices & very exclusive
    - - Core product: satisfies/ remedies a basic need.
      - Packaging: communicative and protective elements.
      - Auxiliary dimensions: warranties, instructions, company contact infomartion, brand image.
        
        The potential base for differentiate among shopping products.
      - “Total value”: the complete set of values that customers receive from a product.
  - - - Product lines
        
        Groups of similar products within a particular category.
        
        Depth refers to the total number of products it carries.
      - Product mix
        
        The total number of products that a firm carries.
        
        Width/ breadth refers to he total number of product lines.
    - - Benefits
        
        Protect the items.
        
        Facilitate the movement of products
        
        An aspect of the brand’s identity & have impacts on brand-customer relationship.
        
        A potential driver of purchase & a place for innovation
      - Components
        
        Visual elements
        (shape, color, font usage, and pictorial)
        
        Benefits
        
        Communication.
        
        Differentiation.
        
        Sensory experiences
        
        Informational elements
        (vital and legal contents).
        
        The language used must be suitable to the selected target market & obedient to the laws.
        
        Can also provide brand associations.
        
        Protective elements
        
        Materials used need to suit
        
        Regional restrictions.
        
        Sustainability issues
        
        Product characteristics.
        
        Symbolic elements
        (shapes & features)
        
        Benefits
        Help customers
        
        Recognize the brands
        
        Appeal to their inner needs.
        
        Convey their desired images to others.
    - - Facilitate potential customers
        learn about and evaluate product attributes prior to buying.
  - - - Using recycled/ recyclable materials.
      - Identifying areas for utilize fewer materials.
      - Ensuring the most efficient production techniques possible.
    - - Benefits
        
        Help the environment.
        
        Improve consumer perceptions.
        
        Increased sales.
      - Practices
        
        Reducing excessive materials.
        
        Increasing use of biodegradable materials.
        
        Incorporating materials produced from energy-efficient operations & production techniques.
  - - - Natural resources (minerals, ore...)
      - Farm products (beef, cotton...)
    - - Used in production, operations...
      - E.g. Cleaning products, standard repair tools.
    - - Finished products that eventually become parts of other products
      - Common in the automotive industry...
    - - Facilitate the production
      - Computers, fax machines...
    - - Assist companies in normal business operations
      - Delivery, telecommunications, logistical services...
    - - A part of other products in an unidentifiable way
      - Food additives and resins
    - - Products used directly in the manufacturer
      - E.g. Heavy machinery and assembly line equipment
    - - Although distinctions have been made, businesses and consumers are offered same products
  - - - Demonstrating that a product meets a quality standard can become a key of success
  - - - Takes place before the product life cycle begins
      - Creating and testing a product concept
    - - Commences when the product has been initially released
      - Educating the target segment about the new product will be one key activity
    - - Takes place when sales begin to grow more rapidly and profits are realized
      - Competition begins to enter
    - - Takes place when sales begin to increase at a decreasing rate and market saturation begins
      - Obtain new customers by taking from competitors
    - - Occurs when sales drop rapidly
      - Marketers decide how long to stay
  - - - Market penetration
        
        Used when it attempts to increase sales
      - Product Development
        
        Take place when marketers attempt to introduce new products or enhance existing products
      - Diversification
        
        Marketing new products in new markets
      - Market Development
        
        Occurs when a firm attempts to market existing products in new markets.
      - Implications
        
        Presents an ongoing set of opportunities and obstacles
  - - - Family branding: products in a line or mix share the same brand name worldwide
      - Individual branding: create distinct brand names for the individual products
    - - A brand extension: takes the brand name and adds it to a new product.
      - A product line extension: products are in a related product category
    - - Ingredient Cobranding
        
        One brand becomes a “part” of another brand’s final product
      - Cooperative Cobranding
        
        Two brands receive equal attention and promotion
      - Complementary Branding
        
        Promoted to suggest they use both brands
  - - - E.g. Selling cigarettes to children
    - - E.g. Plastic bottles of water
    - - E.g. Treatment of animals
    - - E.g. Company denies customers access to benefits from medicines...
  - - - Place the brand in a consumer’s mind
    - - Includes perceptions of brand quality
      - Unique benefits gained due its brand name create brand equity
    - - Brand Preference
        
        An important concept
      - Brand Insistence
        
        Instill it to maintain brand loyalty
    - - Emerge as a problem smaller firms experience
    - - Include brand equity and brand loyalty
      - The process of estimating the financial value
    - - Brand management involves a consistent effort in conjunction with manufacturing, sales...
- - - - Service quality: “RATER” acronym
      - Adaptation and service quality:
        cultural differences
  - - - Restrictions on Live Performances
        
        National government also limit dissent
        produced in the form of music
        
        Performances are also scrutinized by governments
      - Packaging and Labeling Requirements
        
        Local restrictions
      - Legal adaptation
        
        Musical content
        
        Local cultural norms and the legal system
        
        Theocratic law
      - Intellectual Property Protection
        
        The practice of TRIPS
        
        Individual countries can still take actions for
        downloading within their borders
        
        “graduated-response” approach
  - - - Law and
        adaptation
        
        Organizational structure
        
        Be required or limits on ownership for foreign
        companies targeting specific industries
        
        Antitrust regulation prevent companies from becoming monopolies and preserving competition
        
        Packaging and labels
        
        Consumed differently in other cultures
        
        Various shapes or materials
        
        Legal requirements regarding product size,
        materials used, and other components
        
        Each country enacts its own labeling requirements
        
        Warranties differ substantially from one country to another
        
        Cultural and aesthetic factors
        
        Product attributes
        
        Focus on safety
        
        Product attributes are allowed but claims
        about those attributes may be limited
        
        Different regulations in different countries
        
        Green marketing and labels
        
        Regulate green marketing claims on labels
        
        Marketing communications
        
        Legal restrictions on advertising to children or for
        advertising of potentially unhealthy or addictive substances
        
        False advertising and medicines are also often regulated or prohibited
  - - - Product and
        Communication Extension
        
        Standardization of everything possible
        becomes the marketing goals
        
        The dual extension strategy
        may be found in exporting
      - Product Extension-Communication
        Adaptation
        
        Keep the same product but make
        changes to the communication
        (Coca-Cola & Pepsi Cola)
      - Product Adaptation-Communication
        Extension
        
        Adapting the product but remaining
        the same communications program
        
        It is a common strategy for large
        consumer goods companies
      - Product-Communication
        Adaptation
        
        Adapting the product and communication
        
        Communication for the product adapted to
        use local models, languages, and appeals
        
        Large demand and large target markets
  - - - Strengths
        
        Can lead to more satisfied consumers,
        build brand image, and increase sales
      - Weaknesses
        
        Incurs costs may be higher
        than the potential return
  - - - Adaptation of the product
      - The product process: designed manufacturing
        plants and office building to save energy
  - - - Less responsive to consumer
        needs in a given country
    - - Many services are offered in standardized form
      - Standardization, and the efficiencies associated with it, can be a powerful marketing force
    - - It decreases costs
      - Increases efficiency
  - - - Types of adopters
        
        Targeting the different
        categories of adopters
        
        Consumer innovators
        
        Early adopters
        
        Early majority
        
        Late majority
        
        Laggards
      - Global product diffusion: The process by which an innovation slowly spreads through a culture or group is diffusion
        
        The innovation itself
        
        The effectiveness of communication
        about the innovation
        
        Time represents the third key
        component of diffusion
        
        Emerges from members of the society
        within which the product is introduced
  - - - Conciliation
        
        The proceedings are confidential
        
        An effective approach in emerging markets
        
        The forms of mediation or conflict resolution companies before resorting to a more formal arbitration process
      - Arbitration
        
        The conflict resolution process in which both parties agree to abide by the decision of a third-party arbitrator
        
        Declare a binding decision. The proceedings are confidential, protecting industry secrets and keeping the conflict private
        
        Make a case to an impartial third-party,
        much like a legal proceeding
        
        The arbitrator's binding decision will normally be followed
      - Litigation
        
        A legal proceeding through a judicial system
        
        The course of last resort for companies
        
        Company secrets and “dirty laundry” may be publicly aired
        
        Jurisdiction creates a major concern during litigation
    - - Legal systems contribute a major unique circumstances
      - Where little protection from counterfeiting exists, careful consideration will be given as to whether a strategic investment in a new country would be worthwhile
      - Offer a product in its current form or to adapt
    - - The power to apply the law or local statutes
      - A point of contention during negotiations
  - - - Ethics and laws
        
        Ethics may differ from laws
        
        A company operates in many dissimilar legal environments, conflicts can arise between the company’s values and the laws of the country
  - - - Corporate Spying
        
        Stealing the designs or business
        processes of a competitor
      - Reverse Engineering
        
        Creating a replica by breaking down the
        original and deducing how to manufacture it
      - Intellectual Property Piracy
        
        The form of a close replication of
        existing products, or counterfeiting
        
        Many Western nations work
        vigorously to prevent counterfeiting
      - Country Development
        
        A complicated relationship between intellectual property protection and a country's development
        
        Intellectual property protection may aid countries shift to a more innovation-focused economy
        
        Increased intellectual property protection
        attracts higher levels of investment
  - - - statutes based on written words or a legal code
    - - religious writings practice theocratic law
    - - legal precedents and usage traditions
        to form the basis of law