Chapter 9 Product, Services, and Branding Strategies
Objectives <ul><li>Objective 1:  Define product and the major classifications of products and services </li></ul><ul><li>O...
Cosmetics Industry
<ul><li>Cosmetics companies sell billions of dollars worth of products </li></ul><ul><li>Consumers buy more than just a pa...
What is a Product? <ul><li>Product   </li></ul><ul><li>Anything that can be offered to a market for attention, acquisition...
Products, Services and Experiences <ul><li>Market Offering   </li></ul><ul><li>Brings value to target customers and satisf...
Figure 9-1:   Three Levels of Product
Levels of Product and Services <ul><li>Core Benefit   </li></ul><ul><li>The basic level of a product—addresses the questio...
Discussion Question <ul><li>Describe the  core benefit, actual product,  and  augmented product  aspects of an automobile ...
Consumer Products <ul><li>Consumer Products:  products and services bought by final consumers for personal consumption </l...
What is a Product? <ul><li>Convenience </li></ul><ul><li>Shopping </li></ul><ul><li>Specialty </li></ul><ul><li>Unsought <...
 
What is a Product? <ul><li>Convenience </li></ul><ul><li>Shopping </li></ul><ul><li>Specialty </li></ul><ul><li>Unsought <...
Shopping
What is a Product? <ul><li>Convenience </li></ul><ul><li>Shopping </li></ul><ul><li>Specialty </li></ul><ul><li>Unsought <...
Specialty
Performance  480 hp @ 6,000 rpm 0-60 mph: 3.7 sec. Top Track Speed: 193 mph MSRP $ 122,900.00 Porsche 911 Turbo Ed’s Car
What is a Product? <ul><li>Convenience </li></ul><ul><li>Shopping </li></ul><ul><li>Specialty </li></ul><ul><li>Unsought <...
<ul><li>The Goal:   Sell plots to baby boomers prior to an actual death in the family – “preneed policies”. </li></ul><ul>...
<ul><li>Unusual Promotions: </li></ul><ul><ul><li>Buy one plot get a second for a penny </li></ul></ul><ul><ul><li>“ Heave...
Product & Service Classification:  Industrial Products <ul><li>Industrial Products   </li></ul><ul><li>Those products purc...
Organizations, Persons, Places, and Ideas <ul><li>Organization Marketing:  activities undertaken to create, maintain, or c...
Social marketing  promotes ideas or causes for the purpose of improving an   individual’s well-being   or the   well-being...
Social Marketing
Marketing a City
Product and Service Decisions <ul><li>Individual Product </li></ul><ul><li>Product Line  </li></ul><ul><li>Product Mix </l...
Design
Brands and Logos
Packaging
Labels
Product & Service Decisions <ul><li>Many aspects of a food product’s label are dictated by law </li></ul>
Individual Product and Service Decisions <ul><li>Product and Service Attributes:  developing a product or service involves...
Individual Product and Service Decisions <ul><li>Product Features:  a competitive tool for differentiating the company’s p...
Branding Strategy: Individual Product and Service Decisions <ul><li>Packaging:  involves designing and producing the conta...
Product and Service Decisions <ul><li>Individual Product </li></ul><ul><li>Product Line  </li></ul><ul><li>Product Mix </l...
Product Line Decisions <ul><li>Product Line Stretching:   </li></ul><ul><ul><li>Occurs when a company lengthens its produc...
Branding Strategies: Product Line Decisions <ul><li>Product Line:   </li></ul><ul><ul><li>A group of products that are clo...
Product and Service Decisions <ul><li>Individual Product </li></ul><ul><li>Product Line  </li></ul><ul><li>Product Mix </l...
Product Mix Decisions <ul><li>Product Mix:  consists of all the product lines and items that a particular seller offers fo...
Proctor & Gamble
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  • Objective 1: Define product
  • Click figure 9.1 – for the quick message
  • Objective 1: Classification of products and services
  • Source: “Pay now, die later: Consumers urged not to delay that final decision,” Marketing News ; Chicago; Oct 24, 1994; by Shermach , Kelly ; Volume: 28 Issue: 22 Start Page: 1
  • Source: “Pay now, die later: Consumers urged not to delay that final decision,” Marketing News ; Chicago; Oct 24, 1994; by Shermach , Kelly ; Volume: 28 Issue: 22 Start Page: 1
  • Objective 1: Classification of Products Industrial products also include business services, such as landscaping, technology, food services, or custodial.
  • Objective 1 : Classification of Products and Services In addition to tangible products and services, in recent years marketers have broadened the concept of a product to include other market offerings—organizations, persons, places, and ideas. Organizations often carry out activities to &amp;quot;sell&amp;quot; the organization itself People can also be thought of as products Today&apos;s presidents market themselves Place marketing involves activities undertaken to create, maintain, or change attitudes or behavior toward particular places. Ideas can also be marketed
  • Marketers make product and service decisions at three levels: Individual product decisions Product line decisions Product mix decisions
  • Objective 2 : Company decisions regarding their individual products and services Product Quality is one of the marketer&apos;s major positioning tools Siemans defines quality this way: &amp;quot;Quality is when our customers come back and our products don&apos;t.&amp;quot; Total quality management (TQM) is an approach in which all the company&apos;s people are involved in constantly improving the quality of products, services, and business processes See Active Figure 9.2
  • Objective 3: Branding Strategy
  • Objective 3: Branding Strategy Primary function of the package was to contain and protect the product If you can’t make the product better – improve the packaging Labeling The Federal Trade Commission Act of 1914 held that false, misleading, or deceptive labels or packages constitute unfair competition. Can’t promise everything
  • For example, Nike produces several lines of athletic shoes BMW wants to move customers up from it&apos;s 3-series models to 5- and 7-series models
  • Objective 4: 4 characteristics that affect the marketing of a service For example, the beauty line breaks down into makeup, skin care, bath and beauty, fragrance, and outdoor protection products Width: Procter &amp; Gamble markets a fairly wide product mix consisting of 250 brands organized into many product lines.
  • Chapter 7 first hall eln

    1. 1. Chapter 9 Product, Services, and Branding Strategies
    2. 2. Objectives <ul><li>Objective 1: Define product and the major classifications of products and services </li></ul><ul><li>Objective 2: Describe the decisions companies make regarding their individual products and services, product lines, and product mixes </li></ul><ul><li>Objective 3: Discuss branding strategy—the decisions companies make in building and managing their brands </li></ul><ul><li>Objective 4: Identify the four characteristics that affect the marketing of a service and the additional marketing considerations that services require </li></ul>
    3. 3. Cosmetics Industry
    4. 4. <ul><li>Cosmetics companies sell billions of dollars worth of products </li></ul><ul><li>Consumers buy more than just a particular smell </li></ul><ul><li>The “promise”, image, company, name, package, and ingredients are all part of the product, as are the stores where it is sold. </li></ul>Case Study The Cosmetics Industry
    5. 5. What is a Product? <ul><li>Product </li></ul><ul><li>Anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need </li></ul><ul><ul><li>Products include physical objects, services, events, persons, places, organizations, ideas, or mixes of these entities </li></ul></ul><ul><li>Services </li></ul><ul><li>A form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything </li></ul>
    6. 6. Products, Services and Experiences <ul><li>Market Offering </li></ul><ul><li>Brings value to target customers and satisfies their needs—the basis upon which the company builds profitable relationships with consumers </li></ul><ul><li>Pure Tangible Good </li></ul><ul><li>One extreme of the market offering spectrum—no services accompany the product </li></ul><ul><li>Pure Services </li></ul><ul><li>The other extreme of the market offering spectrum—no tangible good accompanies the service </li></ul><ul><li>Experiences </li></ul><ul><li>They are memorable and personal, taking place in the minds of individual consumers </li></ul><ul><ul><li>consumers purchase experiences for what those offers will do for them </li></ul></ul>
    7. 7. Figure 9-1: Three Levels of Product
    8. 8. Levels of Product and Services <ul><li>Core Benefit </li></ul><ul><li>The basic level of a product—addresses the question “What is the buyer really buying?” </li></ul><ul><li>Actual Product </li></ul><ul><li>The product and service features, design, a quality level, a brand name, and packages—the physical product or service that the customer is buying </li></ul><ul><li>Augmented Product </li></ul><ul><li>Additional consumer services and benefits built around the core product </li></ul><ul><li>Marketers must: </li></ul><ul><ul><li>Identify the core consumer needs, </li></ul></ul><ul><ul><li>Design the actual product to satisfy those needs, and </li></ul></ul><ul><ul><li>Find ways to augment it in order to create the bundle of benefits that will provide the most satisfying customer experience </li></ul></ul>
    9. 9. Discussion Question <ul><li>Describe the core benefit, actual product, and augmented product aspects of an automobile purchase. </li></ul>
    10. 10. Consumer Products <ul><li>Consumer Products: products and services bought by final consumers for personal consumption </li></ul><ul><li>Types of Consumer Products : </li></ul><ul><li>Convenience Products: consumer products and services that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort </li></ul><ul><li>Shopping Products: less-frequently-purchased consumer products and services that customers compare carefully on suitability, quality, price, and style </li></ul><ul><li>Specialty Products: consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort </li></ul><ul><li>Unsought Products: consumer products that the consumer either does not know about or knows about but does not normally think of buying (innovative products) </li></ul>
    11. 11. What is a Product? <ul><li>Convenience </li></ul><ul><li>Shopping </li></ul><ul><li>Specialty </li></ul><ul><li>Unsought </li></ul><ul><li>Frequent purchases bought with minimal buying effort and little comparison shopping </li></ul><ul><li>Low price </li></ul><ul><li>Widespread distribution </li></ul><ul><li>Mass promotion by producer </li></ul>Types of Consumer Products
    12. 13. What is a Product? <ul><li>Convenience </li></ul><ul><li>Shopping </li></ul><ul><li>Specialty </li></ul><ul><li>Unsought </li></ul><ul><li>Less frequent purchases requiring more shopping effort and price, quality, and style comparisons. </li></ul><ul><li>Higher than convenience good pricing </li></ul><ul><li>Selective distribution in fewer outlets </li></ul><ul><li>Advertising and personal selling by producer and reseller </li></ul>Types of Consumer Products
    13. 14. Shopping
    14. 15. What is a Product? <ul><li>Convenience </li></ul><ul><li>Shopping </li></ul><ul><li>Specialty </li></ul><ul><li>Unsought </li></ul><ul><li>Strong brand preference and loyalty, requires special purchase effort, little brand comparisons, and low price sensitivity </li></ul><ul><li>High price </li></ul><ul><li>Exclusive distribution </li></ul><ul><li>Carefully targeted promotion by producers and resellers </li></ul>Types of Consumer Products
    15. 16. Specialty
    16. 17. Performance 480 hp @ 6,000 rpm 0-60 mph: 3.7 sec. Top Track Speed: 193 mph MSRP $ 122,900.00 Porsche 911 Turbo Ed’s Car
    17. 18. What is a Product? <ul><li>Convenience </li></ul><ul><li>Shopping </li></ul><ul><li>Specialty </li></ul><ul><li>Unsought </li></ul><ul><li>Little product awareness and knowledge (or if aware, sometimes negative interest) </li></ul><ul><li>Pricing varies </li></ul><ul><li>Distribution varies </li></ul><ul><li>Aggressive advertising and personal selling by producers and resellers </li></ul>Types of Consumer Products
    18. 19. <ul><li>The Goal: Sell plots to baby boomers prior to an actual death in the family – “preneed policies”. </li></ul><ul><li>Special Challenges : Emotional – marketing done at the wrong time could boomerang. </li></ul>Pay Now . . . Die Later Selling Cemetery Plots <ul><li>Opportunities: Many states treat preneed policies as tax exempt, and now allow cemeteries to have funeral homes. On-site funeral homes provide greater convenience. </li></ul>
    19. 20. <ul><li>Unusual Promotions: </li></ul><ul><ul><li>Buy one plot get a second for a penny </li></ul></ul><ul><ul><li>“ Heaven Can Wait” cemetery run </li></ul></ul><ul><ul><li>Boy Scout campouts at cemeteries </li></ul></ul><ul><li>Other Advertising: </li></ul><ul><ul><li>Freestanding inserts </li></ul></ul><ul><ul><li>“ Penny pincher” bags </li></ul></ul>Pay Now . . . Die Later Selling Cemetery Plots <ul><li>Lakeview Cemetery: </li></ul><ul><ul><li>Brochure direct mail with map and open plots designated </li></ul></ul><ul><ul><li>Stresses need to preplan as a method of sparing loved ones </li></ul></ul><ul><li>Other Sales Methods: </li></ul><ul><ul><li>Grief information </li></ul></ul><ul><ul><li>Via clergy members </li></ul></ul>
    20. 21. Product & Service Classification: Industrial Products <ul><li>Industrial Products </li></ul><ul><li>Those products purchased for further processing or for use in conducting a business </li></ul><ul><li>Materials and Parts: include raw materials and manufactured materials and parts </li></ul><ul><li>Capital Items: industrial items that aid in the buyer’s production or operations, including installations and accessory equipment </li></ul><ul><li>Supplies and Services: supplies include operating supplies and repair and maintenance items— </li></ul><ul><ul><li>Services include maintenance and repair services and business advisory services </li></ul></ul>
    21. 22. Organizations, Persons, Places, and Ideas <ul><li>Organization Marketing: activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization </li></ul><ul><li>Corporate Image Advertising: a major tool companies use to market themselves in various publics </li></ul><ul><li>Person Marketing: activities undertaken to create, maintain, or change attitudes or behavior toward particular people </li></ul><ul><li>Place Marketing: activities undertaken to create, maintain, or change attitudes or behavior toward particular places </li></ul><ul><li>Social Marketing: the use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society </li></ul>
    22. 23. Social marketing promotes ideas or causes for the purpose of improving an individual’s well-being or the well-being of society .
    23. 24. Social Marketing
    24. 25. Marketing a City
    25. 26. Product and Service Decisions <ul><li>Individual Product </li></ul><ul><li>Product Line </li></ul><ul><li>Product Mix </li></ul><ul><li>Product attributes </li></ul><ul><ul><li>Quality, features, style and design </li></ul></ul><ul><li>Branding </li></ul><ul><li>Packaging </li></ul><ul><li>Labeling </li></ul><ul><li>Product support services </li></ul>Key Decisions
    26. 27. Design
    27. 28. Brands and Logos
    28. 29. Packaging
    29. 30. Labels
    30. 31. Product & Service Decisions <ul><li>Many aspects of a food product’s label are dictated by law </li></ul>
    31. 32. Individual Product and Service Decisions <ul><li>Product and Service Attributes: developing a product or service involves defining the benefits that it will offer—these benefits are delivered through product attributes </li></ul><ul><li>Product quality: quality can be defined as “freedom from defects”—or we can define quality in terms of customer satisfaction </li></ul><ul><ul><li>Two dimensions: level and consistency </li></ul></ul><ul><ul><ul><li>Quality Level: performance quality—the ability of a product to perform its functions </li></ul></ul></ul><ul><ul><ul><li>Quality Consistency: conformance quality—freedom from defects and consistency in delivering a targeted level of performance </li></ul></ul></ul>
    32. 33. Individual Product and Service Decisions <ul><li>Product Features: a competitive tool for differentiating the company’s product from competitor’s products </li></ul><ul><li>Product Style and Design: Style simply describes the appearance of a product, design contributes to a product’s usefulness as well as to its looks </li></ul><ul><li>Branding: 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 </li></ul><ul><li>Consumers view a brand as an important part of a product, and branding can add value to a product </li></ul>
    33. 34. Branding Strategy: Individual Product and Service Decisions <ul><li>Packaging: involves designing and producing the container or wrapper for a product—may include a primary container and a secondary container </li></ul><ul><li>Packaging, today, must perform certain sales tasks from attracting attention to describing the product, to making the sale. </li></ul><ul><li>Labeling: ranging from simple tags attached to the products to complex graphics that are part of the package, the labels identify the product or brand—they may also describe the product and may promote the product through attractive graphics </li></ul><ul><li>Product Support Services: customer service is another element of product strategy—it can be a minor or major part of the total offer </li></ul>
    34. 35. Product and Service Decisions <ul><li>Individual Product </li></ul><ul><li>Product Line </li></ul><ul><li>Product Mix </li></ul><ul><li>Product line length </li></ul><ul><ul><li>Line stretching: adding products that are higher or lower priced than the existing line </li></ul></ul><ul><ul><li>Line filling: adding more items within the present price range </li></ul></ul>Key Decisions
    35. 36. Product Line Decisions <ul><li>Product Line Stretching: </li></ul><ul><ul><li>Occurs when a company lengthens its product line beyond its current range </li></ul></ul><ul><ul><ul><li>Can stretch downward to plug a market hole that otherwise would attract a new competitor or to respond to a competitor’s attack on the upper end </li></ul></ul></ul><ul><ul><ul><li>Can stretch upward in order to add prestige to their current product or to take advantage of faster growth rate or higher margins at the higher end—or </li></ul></ul></ul><ul><ul><ul><li>It can stretch in both directions </li></ul></ul></ul><ul><li>Product Line Filling: adding more items within the present range of the line </li></ul>
    36. 37. Branding Strategies: Product Line Decisions <ul><li>Product Line: </li></ul><ul><ul><li>A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges </li></ul></ul><ul><li>Product Line Length: </li></ul><ul><ul><li>The number of items in the product line </li></ul></ul><ul><ul><ul><li>Line is too short if the manager can increase profits by adding items—line is too long if the manager can increase profits by dropping items </li></ul></ul></ul>
    37. 38. Product and Service Decisions <ul><li>Individual Product </li></ul><ul><li>Product Line </li></ul><ul><li>Product Mix </li></ul><ul><li>Product line width: </li></ul><ul><ul><li>number of different product lines carried by company </li></ul></ul><ul><li>Product line depth: </li></ul><ul><ul><li>Number of different versions of each product in the line </li></ul></ul><ul><li>Product line consistency </li></ul>Key Decisions
    38. 39. Product Mix Decisions <ul><li>Product Mix: consists of all the product lines and items that a particular seller offers for sale—also known as product assortment—has four important dimensions: width, length, depth, and consistency </li></ul><ul><ul><li>Product mix width: refers to the number of different product lines the company carries </li></ul></ul><ul><ul><li>Product Mix Length: refers to the total number of items the company carries within its product lines </li></ul></ul><ul><ul><li>Product Line Depth: refers to the number of versions offered of each product in the line </li></ul></ul><ul><ul><li>Product Mix Consistency: refers to how closely related the various product lines are in end us, production requirements, distribution channels, or some other way </li></ul></ul>
    39. 40. Proctor & Gamble

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