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Setting the product and Branding Strategy,Chapter 6,8 - 1,Chapter Objectives, What are the characteristics of products? How can a company build and manage its product mix and product lines? How can a company make better brand decisions? How can packaging and labeling be used as marketing tools?,8 - 2,1. The product and the product mix,Product A product is anything that can be offered to a market to satisfy a want or need. Products that are marketed include physical goods, services, experiences, events, persons, places, prosperities, organizations, information, and ideas.,8 - 3,8 - 4,Five Product Levels,8 - 5,8 - 6,Product hierarchy,We can identify six levels of the product hierarchy (here for life insurance): Need family Product family Product class Product line Product type Item (also called stock keeping unit or product variant),8 - 7,Product Classifications,Durability and tangibility Nondurable goods: tangible Durable goods: tangible Service : intangible Consumer products Industrial products Materials and parts Capital items Supplies and services,8 - 8,Consumer Products Classification,Convenience Shopping Specialty Unsought,Frequent purchases bought with minimal buying effort and little comparison shopping Low price Widespread distribution Mass promotion by producer,Types of Consumer Products,8 - 9,Consumer Products Classification,Convenience Shopping Specialty Unsought,Less frequent purchases More shopping effort for comparisons. Higher than convenience good pricing Selective distribution in fewer outlets Advertising and personal selling,Types of Consumer Products,8 - 10,Consumer Products Classification,Convenience Shopping Specialty Unsought,Strong brand preference and loyalty, requires special purchase effort, little brand comparisons, and low price sensitivity High price Exclusive distribution Carefully targeted promotions,Types of Consumer Products,8 - 11,Consumer Products Classification,Convenience Shopping Specialty Unsought,Little product awareness and knowledge (or if aware, sometimes negative interest) Pricing varies Distribution varies Aggressive advertising and personal selling by producers and resellers,Types of Consumer Products,8 - 12,Product Decisions,Individual Product Product Mix Product Line,Product attributes Quality, features, style and design Branding Packaging Labeling Product support services,Key Decisions,8 - 13,Product Decisions,Individual Product Product Mix Product Line,Product mix Also known as product assortment Consists of all the product lines and items that a particular seller offers for sale,Key Decisions,8 - 14,Product Decisions,Individual Product Product Mix Product Line,Product mix width: Number of different product lines carried by company Product mix length: the total number of items in the mix Product mix depth Number of different versions of each product in the line Product mix consistency,Key Decisions,8 - 15,8 - 16,8 - 17,Product Decisions,Product line A group of products that are closely related because they may: function in a similar manner be sold to the same customer groups, be marketed through the same types of outlets fall within given price ranges,Key Decisions,Individual Product Product Mix Product Line,8 - 18,Product Decisions,Individual Product Product Mix Product Line,1、Product line analysis 2、Product line length Line stretching: adding products that are higher or lower priced than the existing line Line filling: adding more items within the present price range 3、line modernization, featuring and pruning,Key Decisions,8 - 19,What is a Brand?,2、Branding decisions,8 - 20,Branding equity,Brand equity is the positive differential effect that knowing the brand name has on customer response to the product or service,8 - 21,2009年度全球品牌价值排行榜,8 - 22,互联网巨头谷歌以1000亿美元价值荣登榜首,比去年的860亿美元飙升16%。微软排名第二位,品牌价值是762亿美元。中国移动较去年下降2位,但仍以612.8亿美元高居电信行业首位。 其他著名的上榜科技企业包括:IBM公司666亿美、苹果661亿美元、沃达丰537亿美元、诺基亚351亿美元、黑莓274亿美元、惠普267亿美元、SAP236亿美元、英特尔228亿美元和Oracle214亿美元。 GE:597.93亿美元通用电气下滑幅度最大,从第6位跌至第8位 。,8 - 23,2009年中国500最具价值品牌前10名,世界品牌实验室(World Brand Lab): 1工商银行:中国工商银行股份有限公司1250.86亿元金融 2国家电网:国家电网公司1193.65亿元能源 3CCTV:中国中央电视台1085.29亿元传媒 4中国移动:中国移动通信集团公司1068.33亿元通信服务 5中国人寿:中国人寿保险(集团)公司824.37亿元金融 6中国航天:中国航天科技集团公司716.28亿元航天 7中国中化:中国中化集团公司693.28亿元石油、化工 8中国中铁:中国中铁股份有限公司687.36亿元建筑 9海尔:海尔集团公司641.13亿元家电 10中国银行:中国银行股份有限公司637.19亿元金融,8 - 24,Brand Strategy,Brand Positioning Brand Name Selection Brand Sponsorship Brand Development,Three levels of positioning: Product attributes Least effective Benefits Beliefs and values Taps into emotions,Key Decisions,8 - 25,Brand Strategy,Brand Positioning Brand Name Selection Brand Sponsorship Brand Development,Good Brand Names: Suggest something about the product or its benefits Are easy to say, recognize and remember Are distinctive Are extendable Translate well into other languages Can be registered and legally protected,Key Decisions,8 - 26,8 - 27,Brand Strategy,Brand Positioning Brand Name Selection Brand Sponsorship Brand Development,Individual names Blanket family names Separate family names for all products Corporate name combined with individual product names,Key Decisions,8 - 28,Brand Strategy,Brand Positioning Brand Name Selection Brand Sponsorship Brand Development,Manufacturer brands Distributor (store) brands Costly to establish and promote Higher profit margins Licensed brands Name and character licensing has grown,Key Decisions,8 - 29,Brand Strategy,Brand Positioning Brand Name Selection Brand Sponsorship Brand Development,Line extensions Minor changes to existing products Brand extensions Successful brand names help introduce new products Multi-brands Multiple product entries in a

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