Mkting Ch. 13

Core component changes

Alterations in features, design etc. to adapt product. Add or delete functional features

Innovation

Any idea perceived as new by a group of people.

Country-of-origin effect (COE)

Any influence that the country of manufacture, assembly, or design has on a consumer's positive or negative perception of a product

Product Component Model

By using this, the impact of the cultural, physical, and mandatory factors (discussed previously) that affect a market's acceptance of a product can be focused on the core component, packaging component, and support services component. These components include all a product's tangible and intangible elements and provide the bundle of utilities the market receives from use of the product.

The power is shifting from seller to the buyer

Customers have more choices with more companies competing for their attention. More competition and more choices means more power in the hands of the customer, driving the need for quality

Packaging component changes

Discretionary and legal requirements, Single language or bi-lingual? Symbolic meanings, names, Quality perceptions, Labeling laws

National brand

Increases national pride, May be more affordable and keeping with local tastes and values

Changes

Products may have to change in a number of ways to meet the legal, economic, political, technological requirements of a new market. Changes may also have to be made to accommodate climatic differences. The less economically developed a market is, the greater degree of change a product may need for acceptance

Product life cycles are becoming shorter, focusing on:

Quality products, Competitive prices and Innovative products.

Support services component changes

Repair and maintenance Educational levels

Quality

The essential character of something, such as a good or service; defined in two dimensions: market-perceived quality and performance quality. Consumer perception of a product's quality often has more to do with market-perceived quality than performance quality.

Relative Advantage

The perceived marginal value of the new product relative to the old.

Diffusion

The process by which innovation spreads

Product homologation

Used to describe the changes mandated by local product and service standards.

Green marketing

Used to identify concern with the environmental consequences of a variety of marketing activities.

Store brands

are particularly important in Europe: captured nearly 30 percent of the British and Swiss markets and more than 20 percent of the French and German markets.

Culture

determines an individual's perception of what a product is and what satisfaction that product provides.

Many consumer services are distinguished by four unique characteristics

intangibility, inseparability, heterogeneity or variability, perishability

Compatibility

its compatibility with acceptable behavior, norms, values, and so forth.

Quality can be defined on two dimensions

market-perceived quality and performance quality.

Product

more than a physical item. It is a bundle of satisfactions (or utilities) that the buyer receives. Include form, taste, color, odor, and texture; its functions, the package, the label, the warranty, after sales service, the prestige enjoyed by the brand and the manufacturer's reputation, country of origin and other symbolic utilities The meaning and value imputed to the psychological attributes of a product can vary among cultures and are perceived as negative or positive.

Private brands

owned by retailers are growing as challengers to manufacturers' brands. Private brands provide the retailer with high margins

Globally, consumer services marketers face the following four barriers

protectionism, controls on transborder data flows, protection of intellectual property, cultural requirements for adaptation.

Complexity

the degree of complexity associated with product use.

Trialability

the degree of economic and/or social risk associated with product use.

Observability

the ease with which the product benefits can be communicated.

Global brand

uniformly positive worldwide brand associations, Economies of scale: enhance efficiency and cost savings when introducing other products with the brand name