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23. Couplend’s classification of products.

  • Consumer goods

  • Convenience (soap, tobacco, newspapers).

    • Shopping (clothing).

  • Specialty (cars)

  • Unsought (life assurance)

  • Industrial goods: which organizations buy

  • Services:

    • Pure tangible - no service accompanied as car warranty

    • Major services

    • Pure services

    • People and equipment based

    • Client's presence

    • Personal need or business need

    • Private or public

24. Kotler’s Multi-attribute model of 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, properties, organizations, information, and ideas.

In planning its market offering, the marketer needs to think through 5 levels of the product. Each level adds more customer value, and the five constitute the customer value hierarchy.

  1. core benefit – the fundamental service or benefit the customer is really buying

  2. benefit is turned into a basic product

  3. expected product – a set of attributes and conditions buyers normally expect when buying this product

  4. Augmented product – exceed customer expectations

  5. Potential product – encompasses all possible augmentations and transformations the product might undergo in the future.

25. The goals and main tools of Advertising and pr- campaigns. Methods of Advertising campaigns effectiveness evaluation

The four most commonly used measures of advertising effectiveness are changes in sales, number of inquiries received, increases in knowledge of the product and attitude changes.

Methods available to measure advertising elasticity include controlled experiments and econometric procedures. Fields tests can provide good data, but they are expensive. Econometric methods are more popular for studying the impact of advertising on the sales of existing products.

26. Relationship marketing. Consumer loyalty development. Partner relationships

Relationship marketing aims to build mutually satisfying long-term relationships with key constituents in order to earn and retain their business. Relationship is a part of added value.

Four key constituents for relationship marketing are customers, employees, marketing partners (channels, suppliers, distributors, dealers, agencies), and members of the financial community (shareholders, investors, analysts).

Loyalty.

  • Customers are value maximizers.

  • A buyer’s satisfaction is a function of the product’s perceived performance and the buyer’s expectations.

  • Recognizing that high satisfaction leads to high customer loyalty, companies must ensure that they meet and exceed customer expectations.

  • Losing profitable customers can dramatically affect a firm’s profits. The key to retaining customers is relationship marketing.

  • Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

  • Companies are also becoming skilled in customer relationship management (CRM), which focuses on developing programs to attract and retain the right customers and meeting the individual needs of those valued customers.

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