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Product decisions and branding and services- notes.ppt
- 1. MARKETING MANAGEMENT Product Decisions- SettingProduct Strategy
- 2. 12-2 Product Anything that canbe offered to a market to satisfy a want or need.
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- 4. 12-4 • The COREproduct is NOT the tangible, physical product. You can't touch it. That's because the core product is the BENEFIT of the product that makes it valuable to you. • The ACTUAL product is the tangible, physical product. You can get some use out of it. • EXPECTED product • The AUGMENTED product usually consists of lots of added value, for which you may or may not pay a premium.
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- 8. What is aProduct? • Convenience • Shopping • Specialty • Unsought • Frequent purchases bought with minimal buying effort and little comparison shopping • Low price • Widespread distribution • Mass promotion by producer •Types of Consumer Products •Goal 1: Understand products and their classifications
- 9. 9 CONVENIENCE GOODS: • STAPLEGOODS: Routine purchase: Tooth paste, Rice etc. • IMPULSE GOODS: Purchased without any planning- Chocolates • EMERGENCY GOODS: Caters to urgent needs- Rain coats, umbrella
- 10. •8 - 10 Whatis a Product? • Convenience • Shopping • Specialty • Unsought • Less frequent purchases • More shopping effort for comparisons. • Higher than convenience good pricing • Selective distribution in fewer outlets, but provide sales support. • Advertising and personal selling •Types of Consumer Products •Goal 1: Understand products and their classifications
- 11. 11 SHOPPING GOODS • Duringthe process of selection and purchase, the customer checks on the suitability , quality, price , style. • Homogenous Shopping goods: The customer sees these products as basically same and wants lowest prices- TVs, washing machines etc. • Heterogeneous products: when customers sees as different and want to inspect quality, suitability- Furniture, suits.
- 12. •8 - 12 Whatis a Product? • Convenience • Shopping • Specialty • Unsought • Strong brand preference and loyalty, requires special purchase effort, little brand comparisons, and low price sensitivity • High price • Exclusive distribution • Carefully targeted promotions •Types of Consumer Products •Goal 1: Understand products and their classifications •Luxury goods, Rolex watch
- 13. •8 - 13 Whatis a Product? • Convenience • Shopping • Specialty • Unsought • Little product awareness and knowledge (or if aware, sometimes negative interest) • Pricing varies • Distribution varies • Aggressive advertising and personal selling by producers and resellers •Types of Consumer Products •Goal 1: Understand products and their classifications
- 14. •8 - 14 Productand Service Decisions • Individual Product • Product Line • Product Mix • Product attributes Quality, features, style and design • Branding • Packaging • Labeling • Product support services •Key Decisions •Goal 2: Learn decisions companies make regarding products
- 15. •8 - 15 Productand Service Decisions • Product line A group of products that are closely related because they may: • function in a similar manner • be sold to the same customer groups, • be marketed through the same types of outlets • fall within given price ranges •Key Decisions • Individual Product • Product Line • Product Mix •Goal 2: Learn decisions companies make regarding products
- 16. 12-16 H U L Product line- 1 Product line - 2 Product line - 3 Product line - 4 Bathing soaps Fabric Wash Beverages Dove Surf Bru Liril Rin Brooke Bond Pears Wheel Lipton Lifebuoy Sunlight Taj Mahal Hamam Ruby Dust
- 17. •8 - 17 Productand Service Decisions • Individual Product • Product Line • Product Mix • Product line length Line stretching: adding products that are higher or lower priced than the existing line Line filling: adding more items within the present price range •Key Decisions •Goal 2: Learn decisions companies make regarding products
- 18. •8 - 18 Productand Service Decisions • Individual Product • Product Line • Product Mix • Product mix Also known as product assortment Consists of all the product lines and items that a particular seller offers for sale •Key Decisions •Goal 2: Learn decisions companies make regarding products
- 19. •8 - 19 Productand Service Decisions • Individual Product • Product Line • Product Mix • Product mix width: Number of different product lines carried by company • Product mix depth: Number of different versions of each product in the line • Product mix consistency •Key Decisions •Goal 2: Learn decisions companies make regarding products
- 20. Organizations, persons, places, andideas • Organizational marketing makes use of corporate image advertising • Person marketing applies to political candidates, entertainment sports figures, and professionals • Place marketing relates to tourism • Social marketing promotes ideas- IDEA marketing
- 21. Brand A name, term,symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products.
- 22. Branding •Brand •Name •Brand •Mark •Brand •Equity •Master •Brand •That part ofa brand that can be spoken, including letters, words, and numbers. •The elements of a brand that •cannot be spoken. •The value of company and brand names. •A brand so dominant that it comes to •mind immediately when a product category, use, attribute, or benefit is mentioned.
- 23. Benefits of Branding •Product Identification •RepeatSales •New Product Sales •Branding distinguishes products from competition
- 24. •8 - 24 BrandingStrategy • Brands with strong equity have many competitive advantages: High consumer awareness Strong brand loyalty Helps when introducing new products Less susceptible to price competition Goal 3: Understand branding strategy
- 25. 25 Family Branding/Umbrella branding • Underthis branding approach new products are placed under the umbrella of an existing brand. • The principle advantage of this approach is that it enables the organization to rapidly build market awareness and acceptance since the brand is already established and known to the market.
- 26. 26 • Individual ProductBranding – Under this branding approach new products are assigned new names with no obvious connection to existing brands offered by the company. • Under individual product branding the marketing organization must work hard to establish the brand in the market since it cannot ride piggyback on previously introduced brands.
- 27. 27 • Under anindividual branding approach, each brand builds its own separate equity which allows the company, if they choose, to sell off individual brands without impacting other brands owned by the company. • The most famous marketing organization to follow this strategy is Procter and Gamble, which has historically introduced new brands without any link to other brands or even to the company name.
- 28. 28 What is thedisadvantage of a Umbrella branding strategy • The potential disadvantage is that the market has already established certain perceptions of the brand. For instance, a company that sells low-end, lower priced products may have a brand that is viewed as an economy brand. • A firm that wishes to exit a business will not be able to get good value from another business that wants to buy it. • No-Name or Generic Branding
- 29. Sub brands • Thecorporate brand or umbrella brand comes on top below which the sub brand comes. • Sometimes the reverse can also happen. 29
- 30. •8 - 30 BrandStrategy • Brand Positioning • Brand Name Selection • Brand Sponsorship • Brand Development • Line extensions Minor changes to existing products-new flavours, colour, size. • Brand extensions Successful brand names help introduce new products- • Multibrands Multiple product entries in a product category • New brands New product category Key Decisions Goal 3: Understand branding strategy
- 31. 12-31 Packaging: The 5thP All the activities of designing and producing the container for a product.
- 32. 12-32 Packaging has beeninfluenced by… Self-service Consumer affluence Company/brand image Innovation opportunity
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- 34. Learning Objective 3 Identifythe four characteristics that affect the marketing of services and the additional marketing considerations that services require.
- 35. Value Added byTangible vs Intangible Elements in Goods and Services •Fast food restaurant •Plumbing repair •Office cleaning •Health club •Airline flight •Retail banking •Insurance •Weather forecast •Salt •Soft drinks •CD Player •Golf clubs •New car •Tailored clothing •Furniture rental •Lo •Hi •Hi •Intangible Elements
- 36. Services Marketing Four ServiceCharacteristics
- 37. Differences Between Goods andServices •Intangibility- 2 •Simultaneous •Production •and •Consumption- •4 •Heterogeneity- •3 •Perishability- • 1
- 38. Implications of Intangibility Services cannot be inventoried Services cannot be patented Services cannot be readily displayed or communicated Pricing is difficult No physical features of services
- 39. Implications of Heterogeneity Service delivery and customer satisfaction depend on employee actions Service quality depends on many uncontrollable factors There is no sure knowledge that the service delivered matches what was planned and promoted Services varies from employees to employees and to different customers
- 40. Implications of SimultaneousProduction and Consumption Customers participate in and affect the transaction Customers affect each other Employees affect the service outcome Decentralization may be essential Mass production is difficult
- 41. Implications of Perishability It is difficult to synchronize supply and demand with services Services cannot be returned or resold
- 42. Table 1.3 Services areDifferent Goods Services Resulting Implications Tangible Intangible Services cannot be inventoried. Services cannot be patented. Services cannot be readily displayed or communicated. Pricing is difficult. Standardized Heterogeneous Service delivery and customer satisfaction depend on employee actions. Service quality depends on many uncontrollable factors. There is no sure knowledge that the service delivered matches what was planned and promoted. Production separate from consumption Simultaneous production and consumption Customers participate in and affect the transaction. Customers affect each other. Employees affect the service outcome. Decentralization may be essential. Mass production is difficult. Nonperishable Perishable It is difficult to synchronize supply and demand with services. Services cannot be returned or resold. •Source: Adapted from Valarie A. Zeithaml, A. Parasuraman, and Leonard L. Berry, “Problems and Strategies in Services Marketing,” •Journal of Marketing 49 (Spring 1985): 33-46.