...Chapter 7: Products, Services and Branding Strategy What is a product? Anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. - Includes: physical objects, services, events, persons, places, organizations, ideas, or some combination thereof. What is a service? Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything can referred as a Service. Eg: banking industry, tourism industry, Information Technology services etc. Levels of a Product ▪ Core benefit – What the consumer is really buying. ▪ Actual product – Includes the brand name, features, design, packaging, quality level. ▪ Augmented product – Additional services and benefits such as delivery and credit, instructions, installation, warranty, service. Core benefit:- Each level adds more customer value. The most basic level is the CORE BENEFIT which answers the question “What is the buyer really buying?” When designing the products, marketers must first define the core, problem solving benefits or services that consumers seek. People buying a SONY Handycam are buying more than a digital camcorder. They are buying a convenient, high quality way to capture important moments and memories. Actual product:- At this second level, product planners must turn the core benefit into actual product. They need to...
Words: 2372 - Pages: 10
...Executive Summary Focusing on the bottle design, Absolut Vodka launched their world famous advertising campaign, using the distinct differences combined with humor to reach out to their clients. Through joint direct sales activities in targeted bars and restaurants (strongly focussed on the “hot spots” within a city) Absolut quickly became renowned as hip brand in this community. Their sales force used high rotation in their sales visits with attractive promotional concepts and incentives, in order to tie in the bartender community into their image statement. Through time Absolut Vodka achieved the status of a lifestyle product, to the extent that it became a brand statement as such, with people ordering “Absolut and Tonic”. Originality combined with consistency in marketing were key elements in the achieved success, leading to repeated two-digit increases in sales, year after year and positioning Absolut as the 5th largest selling spirit brand in the world. In the past few years V&S Absolut Spirits has experienced a strong increase in demand from, among other places, the quickly growing Global Travel Retail market, which, combined, is the second biggest market for ABSOLUT VODKA. Background --: The name "Absolut" was introduced in 1879 by the entrepreneur Lars Olsson Smith. Smith introduced fractional distillation that produces liquor without fusel alcohol in Sweden. In 1917 the Swedish government monopolized the alcohol industry in Sweden. Vodka was then sold...
Words: 3750 - Pages: 15
...Pick Me: Slotting Product “Some have argued that slotting allowances – and a variant known as pay-to-stay fees, paid by manufacturers to keep existing products on retailers’ shelves – harm consumers by, among other things, excluding certain manufacturers and thereby impairing competition that otherwise would take place. Defenders of slotting allowances have asserted that, among other things, they cover the cost of introducing new products to the marketplace and thereby tend to foster entry and innovation”. (ftc.gov 2001) While the Department of Justice concludes that the practice of slotting allowance is not an antitrust issue there is a possibility that there may be issues in the future with anticompetitive exclusion. Slotting allowance is a practice used by manufacturers and retailer to stock certain products on the shelves. It was most prevalent in supermarkets but spread to other store i.e. electronic stores and computer stores. For example, Microsoft pays a fee to have an end cap (spot at the end of an aisle) to display their product only. Some feel that it is an exclusivity practice that leaves out smaller businesses that cannot compete with the fees required by retailers. The process was for manufactures to introduce new product to customers. But it is now a wide spread practice to charge a fee to keep their mature (older) products on the shelf. The practice allows for retailers to build their market power. Pros and cons of slotting allowances: 1) Pros ...
Words: 413 - Pages: 2
...understand how film presents the world of the past. Words aren’t fully up to the task of comprehending the film experience” (2006, p.1). Product placement (also sometimes referred to as“brand integration”) is the inclusion of branded products or identifiers through audio or visual means within mass-media programming (Balasubramanian 1994). This paper is aim to discuss the affect of product placement on film’s content and production company. With the development of society and technology, there is no denying that the film industry has formed its own unique business model in modern world. In order to product high quality films and obtain greater profits, the film production companies have to invested heavily in its films. In other words, it is impossible to product a high level and appealing film without the support of abundant capital in some extent. In this context, a large number of sponsorship of big brand company plays a significant role in film industry. As a typical representative of new advertisement, product placement is deeply affect films in terms of content, structure, production and so on. According to the data of PQ Media (2007), it spent $885.1 million on product placement embed into the film in the world in 2006. In the meantime, the product placement which means the combination of art and commerce. It is the existence of product placement that the film production team obtained sufficient funds to achieve their expected design plan rather than trade-off everything...
Words: 1888 - Pages: 8
...Course number Date Customized Products Product customizing can be defined as the process of producing products in response to specific demands of the customers. Customization of products is relevant because it makes distinctions between variety and customized products. Variety simply involves several choices from which a customer can choose (Hall 8). The aim of customization of products is to fulfil individual needs of customers. Basically, many customers do not want choice. Instead, a customer wants exactly what they require. The intention of making customized products is to increase the perceived customers’ values to a specific product. Advances in technology have made product customization economically feasible. This is because willingness to pay for customized products depends on the use of the product and the desire of the product. The willingness of the customers to pay more relies on the standard of products and its negative attributes that can only be avoided through customization mass. The aim of this paper is to examine product customization in different international companies (Darley 54). Petroleum companies are companies that operate within the oil and gas industry in the energy sector. These companies produce oil related products, gas, and petrochemical products. These products have high demands across the world because they form the basic necessities of transport, automobile, and industrial energy sectors. Customization of petroleum products can be better explained...
Words: 3284 - Pages: 14
...Automated Toilet Paper Dispenser - Product Development Proctor & Gamble, an international leader in the paper products industry is in development of an automatic toilet paper dispenser. This proposed product is a complimentary product to the already available, touch free soap and paper towel dispensers. The proposed toilet paper dispenser has both commercial and home use applications. Team C is in the process of developing a marketing plan for this product and is considering several factors to determine the validity of these continued efforts. Team C will consider the markets needs and growth potential, conduct a brief strength, weakness, opportunity and threat (S.W.O.T) analysis, evaluate the competition, define the product and justify the continued development. Market Needs Market Needs Analysis allows one to meet the needs of the market and prepare for future demands. Market needs depict what appeals to the target consumer and allows one to construct the marketing message to highlight the features that attract them. Analyzing the market needs also compares products and consumer experiences to competitors, allowing one to provide the consumer's market needs in a way the competition cannot. Market Needs Analysis would expose possible market risks, buyer behaviors, and pricing risks. One should always try to define the product offerings in terms of target market needs and understand the unmet needs of the consumers. Market Growth As the world moves forward in the age...
Words: 697 - Pages: 3
...Product red is one of the most iconic brands of the world that contributes towards combating HIV/Aids in Africa. It does so by partnering with renowned brands like Nike, Apple Inc. and American Express. Ever since its inception in 2006, the pR team has been working on engaging private organisations to own the designing, manufacturing and marketing of red products. Up to 50% of the profits from the sale of these products are given to the Global Fund. The main strategy Having paired up with reputed brands as well as taken measures to bring about transparency and accountability to the public, PR has instilled itself in the minds of many. The company has been successful in reaching a 25 million dollar mark and helping underprivileged Africans fight AIDS. Despite its success pr faces challenges concerning its sustainability and partnership. Further, the company needs to work on eliminating confusion regarding its business model and striking a balance between generation of money and its responsibility towards environment and society. The key issue would be a marriage of partnership and sustainability. And for solving this, the company needs to focus on choosing partners wisely. For instance, it should concentrate on pairing with brands producing products that require frequent purchase such as FMCG’s rather than electronics. Further, it should make sure that the products are innovative enough to keep the brand fresh in the eyes of the public. Most importantly, Red needs to choose...
Words: 262 - Pages: 2
...植入式广告对消费者行为影响研究评介 陈翠，宋思根 （安徽财经大学工商管理学院，安徽蚌埠 233030） 摘要：作为一种隐性广告，植入式广告策略性地融入各类载体中，以一种“润物细无声”的方式影响着受众对植入产品或服务的态度，继而通过“移情效应”或内隐启动影响消费者购买决策。通过梳理国外学者关于消费者对植入式广告的记忆认知、态度及购买行为的启动研究和植入式广告效果的评价标准研究，旨在为本土化研究提供理论基础和方法借鉴。植入式广告信息处理模式及其效果发生机制的探讨有助于理解我国消费者行为特征。 关键字：植入式广告；消费者行为；内隐记忆 A Critical Review on the Influence of Product Placement on Consumer Behavior Chen Cui, SONG Si-gen （School of Business Administration, Anhui University of Finance & Economics, Bengbu, Anhui 233030） Abstract:As a kind of recessive advertisement, product placement influences not only consumers' attitude to the branded products or services in a subtle way but also consumers' purchase decisions by means of empathy or implicit priming.This article critically reviews and summarizes the effects of product placement,including cosumers' awareness,recall,attitude and purchase behavior priming as well as evaluation standards offering the fundamental references for the empirical and localization research.Discussions on information processing of product placement and mechanisms of advertising effect are benefit to understand consumer behavior in our country. Key Words: product placement; consumer behavior; implicit memory 基金项目：安徽省自然科学基金“产品信号内隐认知对消费者决策的影响研究”（11040606M21）；安徽财经大学研究生科研创新基金项目“植入式广告对儿童购买决策的影响研究”(ACYC2010AL008)。 作者简介：陈翠（1987-），女，湖南岳阳人，安徽财经大学硕士研究生；宋思根（1972-），男，教授，管理学博士。研究方向为消费者行为。 通讯作者：陈翠 通信地址：安徽省蚌埠市安徽财经大学西校区224号信箱 邮政编码：233041 电子信箱：helencc001@126.com 植入式广告对消费者行为影响研究评介 ...
Words: 2121 - Pages: 9
...Discipline of Product Management Product development is the process of designing, building, operating, and maintaining a good or service. Software and Internet companies use a product development process to ensure that they are not just manufacturing a technology, but creating a product that people will want to buy and continue to use. To be sure, a base technology is at the heart of the product, but product development ensures that the customer’s voice is not lost in the rush to an exciting technology. Product development adds things like pricing, marketing, and customer support to the technology to create a complete product. Without a product management philosophy and discipline, an IT organization becomes focused on the technology instead of the customers and is often organized along technology lines rather than in ways that benefit the customer. Ultimately, an IT organization must serve its customers or it will go out of business, either because the customers go away or because they complain to executive management until the organization is changed. Product Development: Product development is performed by a multi-disciplinary team whose goal is building, operating, and maintaining the product. Team members may include product managers, software developers, project managers, product operations engineers, customer support managers, software quality assurance engineers, user interface design engineers, marketers, financial personnel, and graphic artists. The product manager...
Words: 3905 - Pages: 16
...Natural product From Wikipedia, the free encyclopedia Jump to: navigation, search | This article needs additional citations for verification. Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (January 2009) | Paclitaxel (Taxol) is a natural product derived from the Yew tree.[1] A natural product is a chemical compound or substance produced by a living organism - found in nature that usually has a pharmacological or biological activity for use in pharmaceutical drug discovery and drug design. A natural product can be considered as such even if it can be prepared by total synthesis. These small molecules provide the source or inspiration for the majority of FDA-approved agents and continue to be one of the major sources of inspiration for drug discovery. In particular, these compounds are important in the treatment of life-threatening conditions.[2] Contents[hide] * 1 Natural sources * 2 Screening of natural products * 2.1 The plant kingdom * 2.2 The microbial world * 2.3 The marine world * 2.4 Animal sources * 2.5 Venoms and toxins * 3 Traditional Medicine * 4 Isolation and purification * 5 Synthesis * 6 See also * 7 References * 8 External links * 9 Further reading | [edit] Natural sources Natural products may be extracted from tissues of terrestrial plants, marine organisms or microorganism fermentation broths. A crude (untreated) extract from any one of...
Words: 3118 - Pages: 13
...Marketing Research Product placement effectiveness: revisited and renewed Kaylene Williams California State University, Stanislaus Alfred Petrosky California State University, Stanislaus Edward Hernandez California State University, Stanislaus Robert Page, Jr. Southern Connecticut State University ABSTRACT Product placement is the purposeful incorporation of commercial content into noncommercial settings, that is, a product plug generated via the fusion of advertising and entertainment. While product placement is riskier than conventional advertising, it is becoming a common practice to place products and brands into mainstream media including films, broadcast and cable television programs, computer and video games, blogs, music videos/DVDs, magazines, books, comics, Broadway musicals and plays, radio, Internet, and mobile phones. To reach retreating audiences, advertisers use product placements increasingly in clever, effective ways that do not cost too much. The purpose of this paper is to examine product placement in terms of definition, use, purposes of product placement, specific media vehicles, variables that impact the effectiveness of product placement, the downside of using product placement, and the ethics of product placement. Keywords: Product placement, brand placement, branded entertainment, in-program sponsoring Product placement effectiveness, Page 1 Journal of Management and Marketing Research INTRODUCTION In its simplest form, product placement consists...
Words: 12521 - Pages: 51
...Marketing the product The marketing mix The marketing mix is the set of controllable marketing variables that the firm blends to produce the response it wants in the target market. Also known as the 4P’s. 1. Product – goods and services combination the offers to the target market. 2. Price – the amount of money customer’s pay to obtain the product. 3. Place – activities that make the product available to target customers. Eg dealership 4. Promotion – activities that communicate the merits of the product and persuade target customers to buy. *Discuss how each can be effectively manipulated to meet customer’s needs profitably. The Product A product is anything that can be offered to a market for attention , acquisition use, or consumption that might satisfy a need or want. Physical products or services. A product is more than a set of tangible features. Product levels - (i ) core benefits – the fundamental service or benefit that the customer is really buying. Meet need. (ii) basic product (iii) expected product – a set of attributes and conditions buyers normally expect (iv) augmented product – that exceeds customer expectation (v) potential product – encompasses all the possible augmentations and transformations the product or offering might undergo in the future. Product classifications 1. Durability and tangibility 2. Consumer goods 3. Industrial goods *Identify the different good within each classification. Product decisions 1. Product attribute decisions ...
Words: 651 - Pages: 3
...describe how a product interacts with the consumer Breaks down into 3 Areas, within each are 2 subgroups: Attributes – What is the product? * Concrete: Tangible aspects? * Abstract: Intangible aspects? Benefits – What it delivers to the consumer? * Functional: What does it do? * Psycho-Social: Consumers thoughts on it? What they think others will think of it? Values – What does it aid the consumer in doing? * Instrumental: Short term goals, does it helps consumer to achieve these? * Terminal: Long term or life goals, does it help consumer to achieve these? Not only allows marketers to see how a product interacts with the consumer but where advantages may exist in relation to similar products. There are different models which could be used to analyse the Unilever’s brand performance. Such as the means-end chain might be used to analyse which brand appeals to customers and which benefits them. This might also be used to see which brand/product has good communication with customers and which one is weak. New Product Development Model * Idea stage (Ready) * Development stage (Aim) * Implementation stage (Fire) The Boston Consulting Group (BCG) Matrix Helps to analyse portfolio of their products, brands or business overall performance Analyses a product using two dimensions – first looks at relative market share of product compared to competitors – Second, uses rate of market growth to identify whether the product is in a fast or...
Words: 1809 - Pages: 8
...Running Head: Products Liability Assignment 4: Products Liability Name Law and Ethics in the Business Environment Professor February 17, 2013 Products Liability Johnson & Johnson Johnson & Johnson started out making surgical dressing for hospitals and then that progressed into what Johnson & Johnson is best known for is the Band-Aid brand band aid. They added tape to the dressing and the product was convenient for hospitals as well as mending cuts and scrapes that people get, targeting kids because they are accident prone. In later years Johnson & Johnson explored other opportunities mainly in the over-the-counter medicinal products. Over the years they have been subject to many lawsuits but the one this paper will focus on is the product liability lawsuit on the DePuy ASR hip implant. DePuy is a company that specializes in orthopedic products and was acquired by Johnson & Johnson in 1998. The metal on metal hip replacement DePuy ASR was approved by the FDA for use by surgeons on patients that were in need of a hip replacement in 2005. (Meier, 2010). The DePuy ASR hip replacement should have a life of at least 10 years. The device was being used on patients, soon after the DePuy dividion of Johnson & Johnson started receiving complaints of the device with the largest spike of complaints in 2009. (Meier, 2010). Many of the complaints resulted in the patient having to receive another hip replacement only a few years...
Words: 1869 - Pages: 8
...Marginal product From Wikipedia, the free encyclopedia Average and marginal product curves small.png In economics and in particular neoclassical economics, the marginal product or marginal physical product of an input (factor of production) is the change in output resulting from employing one more unit of a particular input (for instance, the change in output when a firm's labor is increased from five to six units), assuming that the quantities of other inputs are kept constant. [1] The marginal product of a given input can be expressed [2] as MP = \frac{\Delta Y}{\Delta X} where \Delta X is the change in the firm's use of the input (conventionally a one-unit change) and \Delta Y is the change in quantity of output produced (resulting from the change in the input). Note that the quantity Y of the "product" is typically defined ignoring external costs and benefits. If the output and the input are infinitely divisible, so the marginal "units" are infinitesimal, the marginal product is the mathematical derivative of the production function with respect to that input. Suppose a firm's output Y is given by the production function Y=F(K,L) where K and L are inputs to production (say, capital and labor). Then the marginal product of capital (MPK) and marginal product of labor (MPL) are given by: MPK=\frac{\partial F}{\partial K} MPL=\frac{\partial F}{\partial L} In the "law" of diminishing marginal returns, the marginal product initially...
Words: 533 - Pages: 3
