Marketing - Products and Brands

Products & Brands

What is a Product?A product is anything that is capable of satisfying customer needs

The Importance of Product Products are at the heart of marketingThe product needs to exist for the other elements of the mix to happen

Parts of a Product• Specifications and materials• Design or styling• Functions and benefits• Packaging• Range (options & accessories)

Product Range• Product range – a collection of similar products offered by the same business• Helps spread risk – a decline in one product may be offset by sales of other products• A range can be sold to different segments of market e.g. family & activity holidays• Selling a single product may not generate enough returns for business (e.g. market segment may be too small to earn a living)

Product Differentiation• Products that are the same – tend to get the same price• Challenges for a business – To make products different from competitors – Ensure that customers recognise that product is different!• Ways of differentiating a product – Distinctive design– e.g. Dyson; Apple iPod – Branding - e.g. Nike, Reebok – Performance - e.g. Mercedes, BMW

Marketing Services• Services are mainly marketed through product differentiation• Similar products are adjusted to target audience• Businesses then use heavy promotion to highlight these differences.• Differs from goods marketing, because goods have greater opportunity to use packaging and physical product design

Brands

Brands• A product with a unique character for instance in design or image• It is consistent and well-recognised.• Benefits – Inspires customer loyalty leading to repeat sales – Can charge higher prices, especially if brand is market leader – Retailers or service sellers want to stock brands• Own label brands – A retailer which uses their own name on product rather than manufacturer’s – Examples: Tesco tea or Sainsbury Cola

Brand Extension• Brand extension – When a business uses a brand name on a new product that has some of brand’s characteristics – Examples include: • Dove soap and Dove shampoo (both contain moisturiser) • Mars Bar and Mars Ice Cream • Lucozade & Lucozade Sport

Brand Stretching• Where brand is used for a diverse range of products, not necessarily connected.• Virgin is perhaps the best example of how far a brand can be stretched into distinct markets

Role of Packaging• Packaging has several functions: – Protection of contents – Distribution – getting product from manufacturer to customer – Selling – design and labelling provides information and also conveys a certain image – Customer convenience – e.g. multi-pack• Packaging plays important role in “selling” – If a product cannot be differentiated by its features or designs, then packaging becomes really important – Help to advertise and promote brand image – Help maintain quality standards (important) – Designed to encourage impulse buying (e.g. crisps, snacks) – Packaging also needs to appeal to distributors (e.g. shops)

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Marketing - Products and Brands

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