Escolar Documentos
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Cultura Documentos
Brand and product concepts Local, international, and global brands Product design issues Attitudes toward foreign products Strategic alternatives New product issues
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Product classification
Consumer goods Industrial goods
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Product Types
Buyer orientation
Amount of effort expended on purchase Convenience Preference Shopping Specialty
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Brands
Bundle of images and experiences in the customers mind A promise made by a particular company about a particular product A quality certification Differentiation between competing products The sum of impressions about a brand is the brand image
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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
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The Smart car was developed by DaimlerChrysler for the European market.
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Branding Strategies
Combination or tiered branding allows marketers to leverage a companys reputation while developing a distinctive identity for a line of products
Sony Walkman
Brand Extension
Brand acts as an umbrella for new products
Ex: The Virgin Group
Virgin Entertainment: Virgin Mega-stores and MGM Cinemas Virgin Trading: Virgin Cola and Virgin Vodka Virgin Radio Virgin Media Group: Virgin Publishing, Virgin Television, Virgin Net Virgin Hotels Virgin Travel Group: Virgin Atlantic Airways, Virgin Holidays
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Big brand requires less brain work (top) than weaker one.
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Slide 11-90
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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
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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
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Aesthetics
Global marketers must understand the importance of visual aesthetics Aesthetic styles (degree of complexity found on a label) differ around the world
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Product Warranties
Express warranty is a written guarantee that assures the buyer is getting what he or she paid for or provides a remedy in case of a product failure Warranties can be used as a competitive tool
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Communication
Different
Same
Product Invention
Strategy 5
Important for reaching mass markets in less industrialized nations and certain segments industrialized countries
Hand-cranked radios for areas with no electricity Total toothpaste by Colgate uses global benefit segmentation
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Test could simply be observing the product being used within the market
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Lets Discuss . . .
1. What is the difference between a product and a brand?
A product can be defined as a collection of tangible and intangible attributes. The former include physical features, design attributes, and packaging. The chrome on a Harley-Davidson motorcycle is a physical attribute, as are cup holders in a minivan. Intangible product attributes include such things as reputation, mystique, or a distinguished heritage. A brand is defined in the text as a symbol about which consumers have beliefs or perceptions. A more complete definition would describe a brand as a complex bundle of images, promises, and experiences in the customers mind that represent a promise by a particular company about a particular product. In other words, brand represents the relationship that marketing has established with a customer.
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Lets Discuss . . .
2. How do local, international, and global products differ? Cite examples.
A local product or brand is perceived to have potential in a single national or regional market. Coca-Colas Georgia-brand canned coffee is an example cited in the text. Vegemite is a vegetable food spread popular only in Australia. I
home-country market or a specific geographic region; however, marketers are aware of extension possibilities. For example, GE recently experienced success in exporting full-sized refrigerators to Japan where consumers have responded favorably to the simple designs. A typical Japanese refrigerator from Matsushita has three doors and a special chilling compartment for fish. The Smart car is an example of an international product; it was specifically designed for the needs of the European market. Once the European launch was successful, Smart was exported to the U.S. and other markets.
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Lets Discuss . . .
3. What are some of the elements that make up a brand? Are these elements tangible or intangible?
The components of a brand image are shown in Figure 10-1. At the heart of the brand is a persons expertise with it. In addition, the brand name and logo, company name, packaging, after-sales service, and attitudes of family and friends help define the brand. These elements are intangible; however, many brands include tangible aspects. Examples include the contoured Coke bottle, the three-pronged Mercedes hood ornament.
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Brands
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Lets Discuss . . .
4. What criteria should global marketers consider when making product design decisions?
A standardized global product platform can offer potential cost savings. Customer preferences, costs, country laws and regulations, and environmental compatibility are all noted in the text as factors affecting design decisions. For example, Europes Single Market means a common harmonized standard for many products. This creates an opportunity for many companies to design pan-European products, subject to remaining cultural differences between European countries. However, product safety provisions in Europe are still established on a country-by-country basis.
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Lets Discuss . . .
5. How can buyer attitudes about a products country of origin affect marketing strategy?
If buyers feel positive about a country, a company should consider playing up the country-of-origin in its marketing communications. For example, Volkswagens Fahrvehrgnugen campaign from the early 1990s proclaimed the companys German roots, even though many of the cars it sells are assembled in low-wage countries like Mexico.
Made in U.S.A. is part of the appeal of Harley-Davidson; similarly, Switzerland is synonymous with high-quality watches in various price ranges.
Russia and the South Africa are two countries in which policy makers and business leaders have an uphill battle in combating negative country-of-origin perceptions. While Russia is synonymous with high-quality vodka (a fact played up in ads for Stolichnaya), few other consumer products benefit from an association with the former Communist country. Similarly, South Africa produces very fine wines at attractive prices, but American consumers have been unresponsive even though apartheid has ended. 10-42
Lets Discuss . . .
6. Identify several global brands. What are some of the reasons for the global success of the brands you chose?
Coca-Cola, Kodak, Sony, Toyota, Adidas, Mercedes-Benz, or Nike. As discussed in the text, Nike has tremendous brand vitality, due in part to the use of celebrity athletes in its ads. Was there potential long-term damage to the Coke brand stemming from the product recalls in Europe during summer 1999?
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Lets Discuss . . .
7. Compare and contrast the three categories of innovation discussed in the chapter;
Products that create new markets and consumption patterns are called discontinuous innovations (e.g., the VCRs impact is explained by time shifting: it freed viewers from programming schedules). Dynamically continuous innovations refer to products that share certain features with earlier generations while incorporating new features (e.g., Sony's Walkman). Such products cause relatively smaller disruptions of previously existing consumption patterns. Continuous innovation refers to products that are new and improved versions of existing ones and require less R&D expenditure to develop than dynamically continuous innovations. Continuous innovations cause minimal disruption of existing consumption patterns and require the least amount of learning.
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Lets Discuss . . .
7. Which type of innovation do flat panel widescreen HDTVs represent?
The Flat-screen TV is a continuous innovation although it represents a departure from the cathode-ray tube (CRT) technology. Thanks to innovative liquid-crystal display (LCD) and plasma-gas technologies used to manufacture screens for personal computers, TV sets are sleek, sexy, and cool. With their sharper, brighter pictures, they enhance the enjoyment of viewing widescreen DVD movies at home.
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Headlines
U.S. Repels British Invasion
Immigration policy collides with surge of U.K. bands, scuttling fall concert plans
This fall, the British aren't coming. Immigration restrictions are stopping some popular United Kingdom acts from reaching U.S. borders. Part of the problem, immigration specialists say: The traditional visa system isn't set up to cope with the new face of popular music. To get into the U.S., many foreign music acts need to secure a document known as the "P-1"-class visa. This visa requires acts to prove that they have been "internationally recognized" for a "sustained and 10-46 substantial" amount of time.
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A web-based campaign seemed the most effec way for BMW to minimize waste coverage and concentrate on its target audience.
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They researched target consumers and discovered that the average time a potential customer pays attention to any given advertisement, and discovered WHAT?
Prospective BMW consumers would spend mor paying attention to a product-related web site advertisement on television.
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The site was to focus on targeting the global customer: one uniform campaign for all 10-53 markets of the world.
The first segment The Ambush was shown f first time over a high-speed Internet connect would take the average consumer ten minute download the segment - is this a concern? 10-54
68% of the audience is male 33% of surfers fall between 35-49 years of age average time spent on the site: 6 minutes
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Based on the above figures for the BMWFilms.com campaign, do you believe that the program was a 10-57 success or not?
periodicals writing about the campaign and its new form of product advertisement, which further sparked the curiosity of consumers.
Additionally, showroom traffic increased as present
owners and suspects visited dealerships to obtain their own copies of the DVD. 10-58
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Two million people registered with the website and a large majority of users who registered to the site sent film links to their friends and family causing the site to go
viral.
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And, now . . .
where the rubber meets the road
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