Marketing_Management_14th_Edition-min

Recommendations

Info

SETTING PRODUCT STRATEGY | CHAPTER 12 329 Product Differentiation FORM Many products can be differentiated in form—the size, shape, or physical structure of a product. Consider the many possible forms of aspirin. Although essentially a commodity, it can be differentiated by dosage size, shape, color, coating, or action time. FEATURES Most products can be offered with varying features that supplement their basic function. A company can identify and select appropriate new features by surveying recent buyers and then calculating customer value versus company cost for each potential feature. Marketers should consider how many people want each feature, how long it would take to introduce it, and whether competitors could easily copy it. 7 To avoid “feature fatigue,” the company must prioritize features and tell consumers how to use and benefit from them. 8 Companies must also think in terms of feature bundles or packages. Auto companies often manufacture cars at several “trim levels.” This lowers manufacturing and inventory costs. Each company must decide whether to offer feature customization at a higher cost or a few standard packages at a lower cost. CUSTOMIZATION Marketers can differentiate products by customizing them. As companies have grown proficient at gathering information about individual customers and business partners (suppliers, distributors, retailers), and as their factories are being designed more flexibly, they have increased their ability to individualize market offerings, messages, and media. Mass customization is the ability of a company to meet each customer’s requirements—to prepare on a mass basis individually designed products, services, programs, and communications. 9 Levi’s and Lands’ End were among the first to introduce custom jeans. Other firms have introduced mass customization into other markets. Online retailers such as Zazzle and CafePress allow users to upload images and create their own clothing and posters or buy merchandise created by other users. Customers must know how to express their personal product preferences, however, or be given assistance to best customize a product. 10 PERFORMANCE QUALITY Most products occupy one of four performance levels: low, average, high, or superior. Performance quality is the level at which the product’s primary characteristics operate. Quality is increasingly important for differentiation as companies adopt a value model and provide higher quality for less money. Firms should design a performance level appropriate to the target market and competition, however, not necessarily the highest level possible. They must also manage performance quality through time. Continuously improving the product can produce high returns and market share; failing to do so can have negative consequences. When Mercedes-Benz’s quality ratings took a dive, the automaker instituted a number of significant changes to bring them back up. Mercedes-Benz From 2003 to 2006, Mercedes-Benz endured one of its most painful stretches in its 127-year history. Its stellar quality reputation took a beating in J.D. Power and other surveys, and BMW surpassed it in global sales. To recoup, a new management team reorganized the company around functional elements—motors, chassis, and electronic systems—instead of by model lines. Engineers begin testing electronic systems a year earlier and put each new model through 10,000 tests that ran 24 hours a day for three weeks. Mercedes tripled its number of prototypes for new designs, allowing engineers to drive them 3 million miles before production. With these and other changes, the number of flaws in the cars dropped 72 percent from their 2002 peak and warranty costs decreased by 25 percent. As a side effect, Mercedes-Benz dealers have had to contend with a sizable drop in their repair and service businesses! 11 CONFORMANCE QUALITY Buyers expect a high conformance quality, the degree to which all produced units are identical and meet promised specifications. Suppose a Porsche 911 is designed to accelerate to 60 miles per hour within 10 seconds. If every Porsche 911 co<strong>min</strong>g off the assembly line does this, the model is
330 PART 5 SHAPING THE MARKET OFFERINGS said to have high conformance quality. A product with low conformance quality will disappoint some buyers. DURABILITY Durability, a measure of the product’s expected operating life under natural or stressful conditions, is a valued attribute for vehicles, kitchen appliances, and other durable goods. The extra price for durability must not be excessive, however, and the product must not be subject to rapid technological obsolescence, as personal computers, televisions, and cell phones have sometimes been. RELIABILITY Buyers normally will pay a premium for more reliable products. Reliability is a measure of the probability that a product will not malfunction or fail within a specified time period. Maytag has an outstanding reputation for creating reliable home appliances. Its longrunning “Lonely Repairman” ad campaign was designed to highlight that attribute. REPAIRABILITY Repairability measures the ease of fixing a product when it malfunctions or fails. Ideal repairability would exist if users could fix the product themselves with little cost in money or time. Some products include a diagnostic feature that allows service people to correct a problem over the telephone or advise the user how to correct it. Many computer hardware and software companies offer technical support over the phone, by fax or e-mail, or via real-time chat online. STYLE Style describes the product’s look and feel to the buyer. It creates distinctiveness that is hard to copy. Car buyers pay a premium for Jaguars because of their extraordinary looks. Aesthetics play a key role in such brands as Apple computers, Montblanc pens, Godiva chocolate, and Harley- Davidson motorcycles. 12 Strong style does not always mean high performance, however. A car may look sensational but spend a lot of time in the repair shop. Services Differentiation When the physical product cannot easily be differentiated, the key to competitive success may lie in adding valued services and improving their quality. Rolls-Royce PLC has ensured its aircraft engines are in high demand by continuously monitoring their health for 45 airlines through live satellite feeds. Under its TotalCare program, airlines pay Rolls a fee for every hour an engine is in flight, and Rolls assumes the risks and costs of downtime and repairs. 13 The main service differentiators are ordering ease, delivery, installation, customer training, customer consulting, and maintenance and repair. Cemex guarantees cement delivery as fast as placing a pizza order.
Page 2 and 3:
Marketing Management 14 PHILIP KOTL
Page 4 and 5:
This book is dedicated to my wife a
Page 6 and 7:
Kevin Lane Keller is widely recogni
Page 8 and 9:
Contents Preface PART 1 CHAPTER 1 x
Page 10 and 11:
Maximizing Customer Lifetime Value
Page 12 and 13:
PART 5 Expanding Total Market Deman
Page 14 and 15:
CHAPTER 16 Managing Retailing, Whol
Page 16 and 17:
Managing the Development Process: C
Page 18 and 19:
even part of the marketing vocabula
Page 20 and 21:
• Interactive Elements—A wealth
Page 22 and 23:
We are indebted to the following co
Page 24 and 25:
Marketing Management
Page 26 and 27:
Defining Marketing for the 21st Cen
Page 28 and 29:
DEFINING MARKETING FOR THE 21ST CEN
Page 30 and 31:
Page 32 and 33:
Page 34 and 35:
Page 36 and 37:
Page 38 and 39:
Page 40 and 41:
Page 42 and 43:
Page 44 and 45:
Page 46 and 47:
Page 48 and 49:
Page 50 and 51:
Page 52 and 53:
Page 54 and 55:
Page 56 and 57:
Developing Marketing Strategies and
Page 58 and 59:
DEVELOPING MARKETING STRATEGIES AND
Page 60 and 61:
Page 62 and 63:
Page 64 and 65:
Page 66 and 67:
Page 68 and 69:
Page 70 and 71:
Page 72 and 73:
Page 74 and 75:
Page 76 and 77:
Page 78 and 79:
Page 80 and 81:
Page 82 and 83:
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
This page intentionally left blank
Page 90 and 91:
Collecting Information and Forecast
Page 92 and 93:
COLLECTING INFORMATION AND FORECAST
Page 94 and 95:
Page 96 and 97:
Page 98 and 99:
Page 100 and 101:
Page 102 and 103:
Page 104 and 105:
Page 106 and 107:
Page 108 and 109:
Page 110 and 111:
Page 112 and 113:
Page 114 and 115:
Page 116 and 117:
Page 118 and 119:
Page 120 and 121:
Conducting Marketing Research Good
Page 122 and 123:
CONDUCTING MARKETING RESEARCH | CHA
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
Page 132 and 133:
Page 134 and 135:
Page 136 and 137:
Page 138 and 139:
Page 140 and 141:
Page 142 and 143:
Page 144 and 145:
Page 146 and 147:
Creating Long-term Loyalty Relation
Page 148 and 149:
CREATING LONG-TERM LOYALTY RELATION
Page 150 and 151:
Page 152 and 153:
Page 154 and 155:
Page 156 and 157:
Page 158 and 159:
Page 160 and 161:
Page 162 and 163:
Page 164 and 165:
Page 166 and 167:
Page 168 and 169:
Page 170 and 171:
Page 172 and 173:
Page 174 and 175:
Analyzing Consumer Markets The aim
Page 176 and 177:
ANALYZING CONSUMER MARKETS | CHAPTE
Page 178 and 179:
Page 180 and 181:
Page 182 and 183:
Page 184 and 185:
Page 186 and 187:
Page 188 and 189:
Page 190 and 191:
Page 192 and 193:
Page 194 and 195:
Page 196 and 197:
Page 198 and 199:
Page 200 and 201:
Page 202 and 203:
Page 204 and 205:
Page 206 and 207:
Analyzing Business Markets Business
Page 208 and 209:
ANALYZING BUSINESS MARKETS | CHAPTE
Page 210 and 211:
Page 212 and 213:
Page 214 and 215:
Page 216 and 217:
Page 218 and 219:
Page 220 and 221:
Page 222 and 223:
Page 224 and 225:
Page 226 and 227:
Page 228 and 229:
Page 230 and 231:
Page 232 and 233:
Page 234 and 235:
Page 236 and 237:
Identifying Market Segments and Tar
Page 238 and 239:
IDENTIFYING MARKET SEGMENTS AND TAR
Page 240 and 241:
Page 242 and 243:
Page 244 and 245:
Page 246 and 247:
Page 248 and 249:
Page 250 and 251:
Page 252 and 253:
Page 254 and 255:
Page 256 and 257:
Page 258 and 259:
Page 260 and 261:
Page 262 and 263:
Page 264 and 265:
Creating Brand Equity One of the mo
Page 266 and 267:
CREATING BRAND EQUITY | CHAPTER 9 2
Page 268 and 269:
Page 270 and 271:
Page 272 and 273:
Page 274 and 275:
Page 276 and 277:
Page 278 and 279:
Page 280 and 281:
Page 282 and 283:
Page 284 and 285:
Page 286 and 287:
Page 288 and 289:
Page 290 and 291:
Page 292 and 293:
Page 294 and 295:
Page 296 and 297:
Page 298 and 299:
Crafting the Brand Positioning No c
Page 300 and 301:
CRAFTING THE BRAND POSITIONING | CH
Page 302 and 303: CRAFTING THE BRAND POSITIONING | CH
Page 322 and 323: Competitive Dynamics To be a long-t
Page 324 and 325: COMPETITIVE DYNAMICS | CHAPTER 11 3
Page 348 and 349: Setting Product Strategy At the hea
Page 350 and 351: SETTING PRODUCT STRATEGY | CHAPTER
Page 378 and 379: Designing and Managing Services As
Page 380 and 381: DESIGNING AND MANAGING SERVICES | C
Page 402 and 403:
DESIGNING AND MANAGING SERVICES | C
Page 404 and 405:
DESIGNING AND MANAGING SERVICES | C
Page 406 and 407:
Developing Pricing Strategies and P
Page 408 and 409:
DEVELOPING PRICING STRATEGIES AND P
Page 410 and 411:
Page 412 and 413:
Page 414 and 415:
Page 416 and 417:
Page 418 and 419:
Page 420 and 421:
Page 422 and 423:
Page 424 and 425:
Page 426 and 427:
Page 428 and 429:
Page 430 and 431:
Page 432 and 433:
Page 434 and 435:
Page 436 and 437:
Page 438 and 439:
Designing and Managing Integrated M
Page 440 and 441:
DESIGNING AND MANAGING INTEGRATED M
Page 442 and 443:
Page 444 and 445:
Page 446 and 447:
Page 448 and 449:
Page 450 and 451:
Page 452 and 453:
Page 454 and 455:
Page 456 and 457:
Page 458 and 459:
Page 460 and 461:
Page 462 and 463:
Page 464 and 465:
Page 466 and 467:
Page 468 and 469:
Page 470 and 471:
Managing Retailing, Wholesaling, an
Page 472 and 473:
MANAGING RETAILING, WHOLESALING, AN
Page 474 and 475:
Page 476 and 477:
Page 478 and 479:
Page 480 and 481:
Page 482 and 483:
Page 484 and 485:
Page 486 and 487:
Page 488 and 489:
Page 490 and 491:
Page 492 and 493:
Page 494 and 495:
Page 496 and 497:
Page 498 and 499:
Designing and Managing Integrated M
Page 500 and 501:
Page 502 and 503:
Page 504 and 505:
Page 506 and 507:
Page 508 and 509:
Page 510 and 511:
Page 512 and 513:
Page 514 and 515:
Page 516 and 517:
Page 518 and 519:
Page 520 and 521:
Page 522 and 523:
Page 524 and 525:
Page 526 and 527:
Managing Mass Communications: Adver
Page 528 and 529:
MANAGING MASS COMMUNICATIONS | CHAP
Page 530 and 531:
Page 532 and 533:
Page 534 and 535:
Page 536 and 537:
Page 538 and 539:
Page 540 and 541:
Page 542 and 543:
Page 544 and 545:
Page 546 and 547:
Page 548 and 549:
Page 550 and 551:
Page 552 and 553:
Page 554 and 555:
Page 556 and 557:
Page 558 and 559:
Managing Personal Communications: D
Page 560 and 561:
MANAGING PERSONAL COMMUNICATIONS |
Page 562 and 563:
Page 564 and 565:
Page 566 and 567:
Page 568 and 569:
Page 570 and 571:
Page 572 and 573:
Page 574 and 575:
Page 576 and 577:
Page 578 and 579:
Page 580 and 581:
Page 582 and 583:
Page 584 and 585:
Page 586 and 587:
Page 588 and 589:
Page 590 and 591:
Introducing New Market Offerings Ne
Page 592 and 593:
INTRODUCING NEW MARKET OFFERINGS |
Page 594 and 595:
Page 596 and 597:
Page 598 and 599:
Page 600 and 601:
Page 602 and 603:
Page 604 and 605:
Page 606 and 607:
Page 608 and 609:
Page 610 and 611:
Page 612 and 613:
Page 614 and 615:
Page 616 and 617:
Page 618 and 619:
Tapping into Global Markets With ev
Page 620 and 621:
TAPPING INTO GLOBAL MARKETS | CHAPT
Page 622 and 623:
Page 624 and 625:
Page 626 and 627:
Page 628 and 629:
Page 630 and 631:
Page 632 and 633:
Page 634 and 635:
Page 636 and 637:
Page 638 and 639:
Page 640 and 641:
Page 642 and 643:
Page 644 and 645:
Managing a Holistic Marketing Organ
Page 646 and 647:
MANAGING A HOLISTIC MARKETING ORGAN
Page 648 and 649:
Page 650 and 651:
Page 652 and 653:
Page 654 and 655:
Page 656 and 657:
Page 658 and 659:
Page 660 and 661:
Page 662 and 663:
Page 664 and 665:
Page 666 and 667:
Page 668 and 669:
Page 670 and 671:
Page 672 and 673:
Page 674 and 675:
Page 676 and 677:
APPENDIX | CHAPTER 22 653 • Marke
Page 678 and 679:
APPENDIX | CHAPTER 22 655 Step 1: I
Page 680 and 681:
APPENDIX | CHAPTER 22 657 keeping a
Page 682 and 683:
Appendix SONIC MARKETING PLAN AND E
Page 684 and 685:
Targeted Segment Customer Need Corr
Page 686 and 687:
Samsung Galaxy S - Captivate Apple
Page 688 and 689:
in February. Also, we will create b
Page 690 and 691:
Chapter 4 Your next task is to cons
Page 692 and 693:
• As a start-up company, what com
Page 694 and 695:
Chapter 20 Knowing that the smart p
Page 696 and 697:
Endnotes Chapter 1 1. Michael Learm
Page 698 and 699:
Harvard Business School Press, 2004
Page 700 and 701:
30. Queena Sook Kim, “Fisher-Pric
Page 702 and 703:
Tabor, “Contributing Factors; Sev
Page 704 and 705:
29. For an empirical comparison of
Page 706 and 707:
75. Michael D. Johnson, and Fred Se
Page 708 and 709:
Perspectives in Consumer Behavior (
Page 710 and 711:
Theory and Measurement (New York: J
Page 712 and 713:
25. Piet Levy, “Reeling in the Hu
Page 714 and 715:
Chapter 8 1. Jonathan Schneider,
Page 716 and 717:
57. Jerry Harkavy, “Colgate Buyin
Page 718 and 719:
in-depth examination of how brand n
Page 720 and 721:
79. John Milewicz and Paul Herbig,
Page 722 and 723:
22. Kerry Capell, “Thinking Simpl
Page 724 and 725:
29. Theodore Levitt, “Innovative
Page 726 and 727:
Chapter 12 1. John Frank, “Beep!
Page 728 and 729:
Room for Growth in Printer Market,
Page 730 and 731:
23. W. Earl Sasser, “Match Supply
Page 732 and 733:
Jaishankar Ganesh, Mark J. Arnold,
Page 734 and 735:
Cosmetics,” Journal of Economic P
Page 736 and 737:
72. For an interesting discussion o
Page 738 and 739:
29. “Nike Says No to Blue-Light S
Page 740 and 741:
80. Susan Fournier and Lara Lee,
Page 742 and 743:
43. Ben Paynter, “Happy Hour,”
Page 744 and 745:
22. Michael R. Solomon, Consumer Be
Page 746 and 747:
Tribune, May 12, 2007; Avery Johnso
Page 748 and 749:
Split Cable T.V. Advertising Experi
Page 750 and 751:
29. Julia Angwin and Tom McGinty,
Page 752 and 753:
Marketing?” Marketing NPV 3 (2006
Page 754 and 755:
9. Stefan Wuyts, Shantanu Dutta, an
Page 756 and 757:
Innovations,” Journal of Marketin
Page 758 and 759:
89. Jordan Robertson, “How Nike G
Page 760 and 761:
41. For some research method issues
Page 762 and 763:
Global Strategies: A Contingency Mo
Page 764 and 765:
Takes on Coffee Giants Cup by Cup,
Page 766 and 767:
Metrics: 50+ Metrics Every Executiv
Page 768 and 769:
Glossary A activity-based cost (ABC
Page 770 and 771:
customer lifetime value (CLV) the n
Page 772 and 773:
J jobbers small-scale wholesalers w
Page 774 and 775:
personal communications channels tw
Page 776 and 777:
target market the part of the quali
Page 778 and 779:
Image Credits Chapter 1 page 2: New
Page 780 and 781:
Free; page 619: Lou Linwei/Alamy Im
Page 782 and 783:
Index Name Aaker, David A., 203 Aak
Page 784 and 785:
McCausland, Tom, 7 McDonald, Bob, 6
Page 786 and 787:
Andersen Consulting, 208, 209 Andro
Page 788 and 789:
Disney Channel, 44, 178, 179 Disney
Page 790 and 791:
IKEA, 5, 35, 37, 83, 179-80, 219, 2
Page 792 and 793:
Nordstrom Rack, 148 North American
Page 794 and 795:
StubHub, 73, 74, 412 Suave, 306 Sub
Page 796 and 797:
African Americans, 77, 224 Age in d
Page 798 and 799:
Channel integration and systems, 41
Page 800 and 801:
Customer relationship in services,
Page 802 and 803:
Family of procreation, 154 Farm pro
Page 804 and 805:
Legal issues in advertising campaig
Page 806 and 807:
Master brand, 260 Master franchisee
Page 808 and 809:
Price, selecting final, 402-3 compa
Page 810 and 811:
Retail sector, 356 Retail store, de
Page 812:
Telemarketers, 558 Telemarketing, 5
show all

Marketing_Management_14th_Edition-min

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?