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products, services & brands

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products, services & brands

  1. 1. Ainiezean Awang Jual (Dec 2013) JP-PKK 1 CHAPTER 5 PRODUCT, SERVICES & BRANDS
  2. 2. Anything tangible that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need 2Ainiezean Awang Jual (Dec 2013) JP-PKK
  3. 3. 3Ainiezean Awang Jual (Dec 2013) JP-PKK
  4. 4. Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything 4Ainiezean Awang Jual (Dec 2013) JP-PKK
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  6. 6. A name, term, sign, symbol, design or a combination of these that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors 6Ainiezean Awang Jual (Dec 2013) JP-PKK
  7. 7. BRANDS 7Ainiezean Awang Jual (Dec 2013) JP-PKK
  8. 8. BRANDS The use of slogan & logo to identify a brand 8Ainiezean Awang Jual (Dec 2013) JP-PKK
  9. 9. Amongst the many brand names, list five brand names that you remember best and explain why? 9Ainiezean Awang Jual (Dec 2013) JP-PKK
  10. 10. LEVELS OF PRODUCT 10Ainiezean Awang Jual (Dec 2013) JP-PKK 1) Core Product 2) Actual Product 3) Augmented Product Three (3) levels of product
  11. 11. LEVELS OF PRODUCTS 1) Core Product - Addresses the question “what is buyer really buying” and “what is the core benefit your product?” - Marketers must first define the core, problem solving benefits or services that consumers seek - The ultimate benefit that the customer will receive when they purchase your product - E.g. People who buy a Blackberry smart phone are buying more than a cell phone, e-mail device or personal organizer. They are buying freedom and on-the-go connectivity to people and resources. 11Ainiezean Awang Jual (Dec 2013) JP-PKK
  12. 12. LEVELS OF PRODUCTS 2) Actual Product - At this level, marketers must turn the core benefit into an actual product - They need to develop product & service features, design, quality level, brand name & packaging. - E.g. the Blackberry is an actual product. - Its name, parts, styling, features, packaging & other attributes have all been carefully combined to deliver the core customer value of staying connected. 12Ainiezean Awang Jual (Dec 2013) JP-PKK
  13. 13. LEVELS OF PRODUCTS 3) Augmented Product - Product planners must build augmented product around the core benefit & actual product by offering additional services & benefits - This includes the personal attention, after – sales services, warranty, money, back guarantee, delivery, credit facilities, etc. - E.g. The Blackberry solution offers more than just communication services. It provides consumers with a complete solution to mobile connectivity problems. Thus, when consumer buy Blackberry, the company & its dealers also might give warranty on parts & workmanship, instructions on how to use the device, quick repair, etc. 13Ainiezean Awang Jual (Dec 2013) JP-PKK
  14. 14. LEVELS OF PRODUCTS Consumers see products as complex bundles of benefits that satisfy their needs. When developing products, marketers must first identify the core customer value that consumers seek from the product. They must then design the actual product and find ways to augment it in order to create this value and the most satisfying customer experience 14Ainiezean Awang Jual (Dec 2013) JP-PKK
  15. 15. LEVELS OF PRODUCTS Can you describe level of products for these items? Pen Perfume MPV car 15Ainiezean Awang Jual (Dec 2013) JP-PKK
  16. 16. Product and services fall into two broad classes; Consumer Products and Industrial Products 16Ainiezean Awang Jual (Dec 2013) JP-PKK
  17. 17.  A product bought by final consumer for personal consumption  Consumer products include convenience products, shopping products, specialty products and unsought products  These product differs in the way consumer buy them and therefore, in how they are marketed Ainiezean Awang Jual (Dec 2013) JP-PKK 17
  18. 18. Ainiezean Awang Jual (Dec 2013) JP-PKK 18 CONSUMER PRODUCTS Convenience Products Shopping Products Specialty Products Unsought Products
  19. 19. 1. Convenience Product  A consumer product that customers usually buy frequently, immediately and with a minimum of comparison and buying effort  Usually low price and marketers place them in many locations to make them readily available when customers need them.  E.g. Newspapers, magazines, candies, snacks, etc. 19Ainiezean Awang Jual (Dec 2013) JP-PKK
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  21. 21. 2. Shopping Product  Less frequent purchased consumer product that customers carefully compare on stability, quality, price and style.  Consumers spend much time and effort in gathering information and making comparisons.  Marketers usually distribute their products through fewer outlets but provide deeper sales support to help customers in their comparison efforts  E.g. Furniture, TV set, electrical goods, cloths 21Ainiezean Awang Jual (Dec 2013) JP-PKK
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  23. 23. 3. Specialty Product  Goods with unique and special characteristics or brand identification for which a significant group of buyers is habitually willing to make a special purchasing effort.  Buyer normally do not compare specialty products  Buyers usually are willing to spend time and more efforts to buy Specialty Product  E.g. Jewelries, high – end products 23Ainiezean Awang Jual (Dec 2013) JP-PKK
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  26. 26. 4. Unsought Product  Goods that consumer either does not know about or knows about but does not normally think of buying  Most new and recently introduced products will fall into this class until the consumer becomes aware of them through advertising  Aggressive and continuous promotion is necessary for them  E.g. Life- insurance, funeral services, coffin, etc. 26Ainiezean Awang Jual (Dec 2013) JP-PKK
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  28. 28. Marketing Considerations Type of Consumer Product Convenience Shopping Specialty Unsought Buying Behaviour Frequent purchase, less concern on brand Less frequent purchase, more concern on brand Seldom purchase, strong brand preferences Rare purchase, little product awareness Price Low price Moderate price High price Varies Distribution Widespread, convenient location Selective distribution in fewer outlets Exclusive distribution Varies Shopping Effort Low Moderate High Varies Promotion Mass promotion Advertising & personal selling Targeted promotion Aggressive advertising 28Ainiezean Awang Jual (Dec 2013) JP-PKK
  29. 29. What is industrial product?  A product bought by individuals and organizations for further processing or for use in conducting a business  The distinction between consumer and industrial goods is based on the purpose for which the particular product was bought.  The three (3) groups of industrial products and services are: Material & parts, capital items & supplies & services 29Ainiezean Awang Jual (Dec 2013) JP-PKK
  30. 30. Ainiezean Awang Jual (Dec 2013) JP-PKK 30 INDUSTRIAL PRODUCTS Material & Parts Capital Items Supplies & Services
  31. 31. 1. Materials & Parts  Include raw materials and manufactured material and parts  Raw materials consist of farm products (wheat, cotton, livestock, fruits and vegetables) and natural product (fish, lumber, iron, crude petroleum etc.)  Manufactured materials and parts consist of component material (iron, cement, wires) and component parts (small, motors, tires)  Most manufactured materials and parts are sold directly to industrial users 31Ainiezean Awang Jual (Dec 2013) JP-PKK
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  34. 34. 2. Capital Items  Industrial products that aids in the buyer’s production or operations, including installations and accessory equipment and form the main assets of production firms.  Installations consist of major purchase such as building (factories & offices) and fixed equipment (generators, elevators, computer system)  Accessory equipment include portable factory equipment and tools (lift trucks, hand tools) and office equipment (computers, fax)  They have a shorter life than installations and simply aid in the production process 34Ainiezean Awang Jual (Dec 2013) JP-PKK
  35. 35. 3. Supplies and Services  Supplies include operating supplies (lubricants, paper, pencils) and repair and maintenance items (paint, nails).  Supplies are the convenience products of the industrial field because they are usually purchased with a minimum effort or comparison  Business services include maintenance and repair services and business advisory (window cleaning, computer repair) 35Ainiezean Awang Jual (Dec 2013) JP-PKK
  36. 36.  The figure below shows the important decisions in the development and marketing of individual products and services.  We will focus on decisions about a) product attributes, b) branding, c) packaging, d) labeling and e) product support services 36Ainiezean Awang Jual (Dec 2013) JP-PKK
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  38. 38. Product Attributes Branding Packaging Labeling Product support services 38Ainiezean Awang Jual (Dec 2013) JP-PKK
  39. 39. Product attributes can be explain in three aspects: 1) Product Quality, 2) Product features, 3) Product Style & Design 39Ainiezean Awang Jual (Dec 2013) JP-PKK PRODUCT ATTRIBUTES Product Quality Product Features Product Style& Design
  40. 40. Ainiezean Awang Jual (Dec 2013) JP-PKK 40 A. PRODUCT QUALITY  The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs  Quality is one of the marketer's major positioning tools  In the narrower sense, quality can be defined ad “freedom from defects”
  41. 41. B. PRODUCT FEATURES  A product can be offered with varying features  The company can create higher-level models by adding more features.  Features are a competitive tool for differentiating the company's product from competitors' products  E.g. Product features:  Mobile phone – larger built in memories, variety of colours  Paint – anti rust  Personal organizer – local & international public holidays info, hard cover 41Ainiezean Awang Jual (Dec 2013) JP-PKK
  42. 42. 42Ainiezean Awang Jual (Dec 2013) JP-PKK
  43. 43. C. PRODUCT STYLE & DESIGN  Another way to add customer value is through distinctive product style and design  Style simply describes the appearance of a product  A sensational style may grab attention and produce pleasing aesthetics, but it does not necessarily make the product perform better.  Design is more than skin deep—it goes to the very heart of a product  Good design contributes to a product's usefulness as well as to its looks.  Good style and design can attract attention, improve product performance, cut production costs, and give the product a strong competitive advantage in the target market 43Ainiezean Awang Jual (Dec 2013) JP-PKK
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  45. 45. Ainiezean Awang Jual (Dec 2013) JP-PKK 45
  46. 46. Ainiezean Awang Jual (Dec 2013) JP-PKK 46
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  50. 50. Good product design bring benefits to consumers Ainiezean Awang Jual (Dec 2013) JP-PKK 50 Play me Play me
  51. 51.  A brand is a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service  Consumers view a brand as an important part of a product, and branding can add value to a product  For example, most consumers would perceive a bottle marked with DKNY Perfume as a high-quality, expensive product. But the same perfume in an unmarked bottle would likely be viewed as lower in quality, even if the fragrance were identical  Brand names help consumers identify products that might benefit them and also tell the buyer something about product quality 51Ainiezean Awang Jual (Dec 2013) JP-PKK
  52. 52. 52Ainiezean Awang Jual (Dec 2013) JP-PKK
  53. 53. 53Ainiezean Awang Jual (Dec 2013) JP-PKK BRAND helps in differentiating identical products
  54. 54.  Malaysia Top 10 Brands 2011: 1) Google 2) 100 Plus 3) Gardenia 4) Sony 5) Air Asia 6) Panasonic 7) Milo 8) Shell 9) Maggi 10) Colgate BRANDING STRATEGY – Building Strong Brands 54Ainiezean Awang Jual (Dec 2013) JP-PKK
  55. 55.  Packaging involves designing and producing the container or wrapper for a product  Primary function of packaging is to hold & protect the product  However recently, packaging has become one of the important marketing tools as well  Attractive packaging may catch consumer’s attention to buy  Packaging can also be used as seasonal marketing tools 55Ainiezean Awang Jual (Dec 2013) JP-PKK
  56. 56. 56Ainiezean Awang Jual (Dec 2013) JP-PKK
  57. 57. Seasonal Packaging 57Ainiezean Awang Jual (Dec 2013) JP-PKK
  58. 58.  Labels may range from simple tags attached to products to complex graphics that are part of the package  Labels perform several functions: a. Label identifies the product (label on Sunkist orange) b. Provide description of products (ingredients, manufacturer, manufacture & expiry date, etc.) 58Ainiezean Awang Jual (Dec 2013) JP-PKK
  59. 59. PRODUCT SUPPORT SERVICES  Customer service is another element of product strategy  Especially applied to technical products i.e. cars, computers, mobile phone, electrical appliances. 59Ainiezean Awang Jual (Dec 2013) JP-PKK
  60. 60.  Usually known as PLC  The course of a product’s sales and profits over its lifetime.  It involves five (5) stages: 1) Product Development 2) Introduction 3) Growth 4) Maturity 5) Decline 60Ainiezean Awang Jual (Dec 2013) JP-PKK
  61. 61. 61Ainiezean Awang Jual (Dec 2013) JP-PKK
  62. 62. 1) Product Development  Begins when the company finds & develops a new- product idea.  During product development stage, sales are zero & the company’s investment cost mount 62Ainiezean Awang Jual (Dec 2013) JP-PKK
  63. 63. 2) Introduction Stage  Period of slow sales growth as the product is introduced in the market  Profits are non existent in this stage because of heavy expenses of product introduction  E.g. HDTV, instant coffee & private colleges lingered for several years before they entered a stage of more rapid growth 63Ainiezean Awang Jual (Dec 2013) JP-PKK
  64. 64. 3) Growth Stage  A period of rapid market acceptance and increasing profits  Product sales are climbing quickly  Profits increase as unit manufacturing cost fall  E.g. HDTV is on this stage currently 64Ainiezean Awang Jual (Dec 2013) JP-PKK
  65. 65. 4) Maturity Stage  A period of slowdown in sales growth because the product has achieved acceptance by most potential buyers  Profits level off or decline because of increased marketing outlays to defend the product against competition  This stage normally last longer  Most products are in the maturity stage therefore most marketing management deals with the mature product  E.g. Maggi instant noodles, Kicap Cap Ayam, Ayam Brand’s canned foods 65Ainiezean Awang Jual (Dec 2013) JP-PKK
  66. 66. 5) Decline Stage  Period when sales fall off and profits drop  The decline may be slow (e.g. oatmeal cereal) or rapid (e.g. cassette and VHS tapes)  Sales may plunge to zero or they may drop to a low level where they continue for many years 66Ainiezean Awang Jual (Dec 2013) JP-PKK
  67. 67. End of Chapter Five 67Ainiezean Awang Jual (Dec 2013) JP-PKK

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