UBI-GM-Presentation12.050112-product pptx

Products and Services for Consumers Chapter 12 McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. PowerPoint presentation prepared by: Alfred Lowey-Ball Associate Professor of Marketing UBI-United Business Institutes Brussels, Belgium Chapter Outline • Disney World-wide • Quality • Definition and maintaining • Physical or mandatory requirements and adaptations • Green marketing and product development • Products and culture • Innovative products & adaptation • Production and diffusion of innovations • Analyzing product components for adaptation • Core, packaging and core components • Marketing consumer services globally • Service opportunities & barriers • Brands in international markets • Global & national brands • Country effect • Private brands • Disney World-wide • Quality • Definition and maintaining • Physical or mandatory requirements and adaptations • Green marketing and product development • Products and culture • Innovative products & adaptation • Production and diffusion of innovations • Analyzing product components for adaptation • Core, packaging and core components • Marketing consumer services globally • Service opportunities & barriers • Brands in international markets • Global & national brands • Country effect • Private brands Chapter Learning Objectives 1. The importance of offering a product suitable for the intended market 1. The importance of offering a product suitable for the intended market 2. The relationship between product acceptance and the market into which it is introduced 2. The relationship between product acceptance and the market into which it is introduced 3. The importance of quality and how quality is defined 3. The importance of quality and how quality is defined 4. Country-of-origin effects on product image 4. Country-of-origin effects on product image 6. The need to sell all product attributes to over resistance to acceptance 6. The need to sell all product attributes to over resistance to acceptance 5. Physical, mandatory and cultural requirements for product adaptation 5. Physical, mandatory and cultural requirements for product adaptation McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Chocolate Confectionaries in Russia • Quality critical to gaining market share: in the 90’s, western chocolate products conquered Russia: Mars, Toblerone, Cadbury’s • Then, local Russian products eg « Red October » regained market leadership and ousted the western brands • Maintaining quality critical to keeping market share: • Product dumping by producers, • Product abuse in distribution (insufficient control) • Performance quality problem Introduction • The opportunities for international marketers of consumer goods and services today have never been greater • New consumers are springing up in many emerging markets, which promise to be huge markets in the future • In the more mature markets consumers’ tastes become more sophisticated and complex due to increases in purchasing power • The difference between tangible products and services • The difference between business-to-consumer and business-to- business markets Quality • Intense global competition is placing new emphasis on manufacturing quality products • Quality, as a competitive tool, is the deciding factor in world markets Quality can be defined on two dimensions: (1) performance quality: does the product meet specs and do the job? (2) Market perceived quality: the entire package of utility and experience that is provided • Quality is customer satisfaction: ie. the degree to which customer expectations have been met. • Quality is measured in many industries by objective third parties, in the US by agencies such as JD Power and Associates • Customer satisfaction indexes are now being used to measure satisfaction across a wide variety of consumer products and services • Quality is customer satisfaction: ie. the degree to which customer expectations have been met. • Quality is measured in many industries by objective third parties, in the US by agencies such as JD Power and Associates • Customer satisfaction indexes are now being used to measure satisfaction across a wide variety of consumer products and services • Global competition places a greater emphasis on product quality • Quality is the single most important attribute for marketing success Quality • Intense global competition is placing new emphasis on manufacturing quality products • Quality, as a competitive tool, is the deciding factor in world markets Quality can be defined on two dimensions: Performance quality: does the product meet specs and do the job? Market perceived quality: the entire package of utility and experience that is provided • Quality is customer satisfaction: ie. the degree to which customer expectations have been met. • Quality is measured in many industries by objective third parties, in the US by agencies such as JD Power and Associates • Customer satisfaction indexes are now being used to measure satisfaction across a wide variety of consumer products and services • Quality is customer satisfaction: ie. the degree to which customer expectations have been met. • Quality is measured in many industries by objective third parties, in the US by agencies such as JD Power and Associates • Customer satisfaction indexes are now being used to measure satisfaction across a wide variety of consumer products and services • Global competition places a greater emphasis on product quality • Quality is the single most important attribute for marketing success Physical or Mandatory Requirements and Adaptation • Products may have to change to meet the physical or mandatory requirements of a new market, ranging from simple package changes to total redesign of the physical core product • Examples: • Rewiring for local mains voltage • relabelling for local language • Special air filters and clutches for hot dusty countries in Mid East • Product homologation is used to describe the changes mandated by local product and service standards • Examples: • Video game content must meet local statutory requirements for sex violence (EU in general is very strict) • Special labelling for GM foods • Products may have to change to meet the physical or mandatory requirements of a new market, ranging from simple package changes to total redesign of the physical core product • Examples: • Rewiring for local mains voltage • relabelling for local language • Special air filters and clutches for hot dusty countries in Mid East • Product homologation is used to describe the changes mandated by local product and service standards • Examples: • Video game content must meet local statutory requirements for sex violence (EU in general is very strict) • Special labelling for GM foods Green Marketing and Product Development • EU is at the forefront of the “green movement,” with strong public opinion and specific legislation favoring environmentally friendly marketing and products. – Legislation controlling plastic packaging waste – Consumer demand for “environmentally” friendly products (Voluntary) – Examples: • aerosol propellants that do not affect the ozone layer • Biodegradable, non-polluting detergents • In some countries (in the EU) each level of the distribution chain is responsible for returning all packaging, packing, and other waste materials up the chain • These trends are transferring to the US and other countries Products and Culture (1) core component, the product “platform” (ie. its technology), design features and functional features. It is at this level that product variations are made to adapt to local differences. (2) packaging component, includes price, quality, the package itself, labelling, styling, brand name etc. (3) support services component, includes instructions, installation, warranties, deliveries, repair and maintenance, and availability of spare parts (1) core component, the product “platform” (ie. its technology), design features and functional features. It is at this level that product variations are made to adapt to local differences. (2) packaging component, includes price, quality, the package itself, labelling, styling, brand name etc. (3) support services component, includes instructions, installation, warranties, deliveries, repair and maintenance, and availability of spare parts A product is more than a physical item: It is a bundle of satisfactions (or utilities) that the buyer receives, including how it performs in use, its form, taste, color, odor and texture, its package and label, the warranty, the accompanying service and its prestige and image A product is more than a physical item: It is a bundle of satisfactions (or utilities) that the buyer receives, including how it performs in use, its form, taste, color, odor and texture, its package and label, the warranty, the accompanying service and its prestige and image