Products, Services, & Branding

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Products, Services, & Branding

  1. 1. Chapter Seven<br />Product, Services, and Branding Strategy<br />
  2. 2. Copyright 2007, Prentice Hall, Inc. <br />7-2<br />Define product and the major classifications of products and services.<br />Describe the decisions companies make regarding their individual products and services, product lines, and product mixes.<br />Discuss branding strategy – the decisions firms make in building and managing their brands.<br />Identify the four characteristics that affect the marketing of a service and the additional marketing considerations that services require.<br />Discuss two additional product issues: socially responsible product decisions and international product and services marketing.<br />
  3. 3. Copyright 2007, Prentice Hall, Inc. <br />7-3<br />Case Study<br />FIJI Water – “The Taste of Paradise”<br />Product<br />Brand name: FIJI Natural Artesian Water.<br />Product source: comes from an underground location in Fiji islands.<br />Key benefits: ultra-clean taste, no impurities or pollutants.<br />Brand image: “The Taste of Paradise”<br />Promotion<br />It’s a brand experience!<br />Name, packaging, label, celebrity endorsers and places through which it is sold contributes to “Taste of Paradise” imagery. <br />Ads evoke exotic origins: tropical forest, volcanoes.<br />High price charged supports premium appeal.<br />
  4. 4. Copyright 2007, Prentice Hall, Inc. <br />7-4<br />What Is a Product?<br />Anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.<br />Includes: physical objects, services, events, persons, places, organizations, ideas, or some combination thereof.<br />
  5. 5. Copyright 2007, Prentice Hall, Inc. <br />7-5<br />What Is a Service?<br />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.<br />Examples: banking, hotel, airline, retail, tax preparation, home repairs.<br />
  6. 6. Copyright 2007, Prentice Hall, Inc. <br />7-6<br />Market Offerings<br />Continuum ranges from pure tangible goods (with no services) to pure services (with no good component) with many combinations in between.<br />Pure good: Camay soap.<br />Pure service: Legal representation.<br />Combination: Restaurant meal.<br />Creating and managing customer experiences differentiates offers.<br />
  7. 7. Copyright 2007, Prentice Hall, Inc. <br />7-7<br />Levels of a Product<br />Core benefit<br />What the consumer is really buying.<br />Actual product<br />Includes the brand name, features, design, packaging, quality level.<br />Augmented product<br />Additional services and benefits such as delivery and credit, instructions, installation, warranty, service. <br />
  8. 8. Copyright 2007, Prentice Hall, Inc. <br />7-8<br />Consumer Products<br />Products and services bought by final consumers for personal consumption.<br />Also includes other marketable entities.<br />Classified by how consumers buy them.<br />
  9. 9. Copyright 2007, Prentice Hall, Inc. <br />7-9<br />Convenience Products<br /> Purchased frequently and immediately<br /> Low priced<br /> Mass advertising<br /> Many purchase locations<br />Examples: candy, soda, newspapers<br />
  10. 10. Copyright 2007, Prentice Hall, Inc. <br />7-10<br />Shopping Products<br /> Bought less frequently<br /> Higher price<br /> Fewer purchase locations<br /> Comparison shop <br />Examples: furniture, clothing, cars, appliances<br />
  11. 11. Copyright 2007, Prentice Hall, Inc. <br />7-11<br />Specialty Products<br /> Special purchase efforts<br /> High price<br /> Unique characteristics<br /> Brand identification<br /> Few purchase locations<br />Example: Lamborghini, Rolex Watch<br />
  12. 12. Copyright 2007, Prentice Hall, Inc. <br />7-12<br />Unsought Products<br />New innovations<br />Products consumers do not want to think about<br />Require much advertising and personal selling<br />Examples: life insurance, cemetery plots, blood donation<br />
  13. 13. Copyright 2007, Prentice Hall, Inc. <br />7-13<br />Industrial Products<br />Those purchased for further processing or for use in conducting business.<br />Distinction between consumer and industrial products is based on the purpose for which an item is bought.<br />
  14. 14. Copyright 2007, Prentice Hall, Inc. <br />7-14<br />Industrial Products<br />Materials and parts:<br />Raw materials, manufactured materials, and parts<br />Capital items:<br />Products that aid in buyer’s production or operations<br />Supplies and services:<br />Operating supplies, repair, and maintenance items<br />
  15. 15. Copyright 2007, Prentice Hall, Inc. <br />7-15<br />Other Market Offerings<br />Organizations: Profit (businesses) and nonprofit (schools and churches).<br />Includes corporate image advertising.<br />Persons: Politicians, entertainers, sports figures, doctors, and lawyers.<br />Places: Create, maintain, or change attitudes or behavior toward particular places (e.g., tourism).<br />Ideas (social marketing): Public health campaigns, environmental campaigns, family planning, or human rights.<br />
  16. 16. Copyright 2007, Prentice Hall, Inc. <br />7-16<br />Individual Product Decisions<br />Product attributes<br />Branding<br />Packaging<br />Labeling<br />Product support services<br />
  17. 17. Copyright 2007, Prentice Hall, Inc. <br />7-17<br />Product & Service Attributes<br />Product quality<br />Performance quality<br />Conformance quality<br />Features<br />Value to consumer<br />Cost to company<br />Style and design<br />Influences experience<br />
  18. 18. Copyright 2007, Prentice Hall, Inc. <br />7-18<br />Branding<br />Creating, maintaining, protecting, and enhancing products and services.<br />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.<br />
  19. 19. Copyright 2007, Prentice Hall, Inc. <br />7-19<br />Branding<br />Advantages to buyers:<br />Product identification<br />Product quality<br />Advantages to sellers:<br />Basis for product’s quality story<br />Provides legal protection<br />Helps to segment markets<br />
  20. 20. Copyright 2007, Prentice Hall, Inc. <br />7-20<br />Packaging<br />Designing and producing the container or wrapper for a product.<br />Developing a good package:<br />Market the brand<br />Protect the elements<br />Ensure product safety<br />Address environmental concerns<br />
  21. 21. Copyright 2007, Prentice Hall, Inc. <br />7-21<br />Labeling<br />Printed information appearing on or with the package.<br />Performs several functions:<br />Identifies product or brand<br />Describes several things about the product<br />Promotes the product through attractive graphics<br />
  22. 22. Copyright 2007, Prentice Hall, Inc. <br />7-22<br />Product Support Services<br />Assess the value of current services and obtain ideas for new services.<br />Assess the cost of providing the services.<br />Put together a package of services that delights the customers and yields profits for the company.<br />
  23. 23. Copyright 2007, Prentice Hall, Inc. <br />7-23<br />Product Line Decisions<br />Product line length:<br />The number of items in a product line.<br />Adjust line length by:<br /> Stretching<br />Downward<br />Upward<br />Both directions<br />Filling<br />
  24. 24. Copyright 2007, Prentice Hall, Inc. <br />7-24<br />Product Mix Decisions<br />Product mix: <br />all of the product lines and items that a particular seller offers for sale.<br />Product mix dimensions include:<br />Length: the number of items in a line.<br />Width: the number of different product lines the company carries.<br />Depth: the number of versions offered of each product in the line.<br />Consistency: how closely related various lines are.<br />
  25. 25. Copyright 2007, Prentice Hall, Inc. <br />7-25<br />Brand Equity<br />The positive differential effect that knowing the brand name has on customer response to the product or service.<br />Provides:<br />More brand awareness and loyalty<br />Basis for strong, profitable customer relationships<br />
  26. 26. Copyright 2007, Prentice Hall, Inc. <br />7-26<br />Major Brand Strategy Decisions<br />Brands are assets that must be carefully developed and managed via:<br />Brand positioning<br />Brand name selections<br />Brand sponsorship<br />Brand development<br />
  27. 27. Copyright 2007, Prentice Hall, Inc. <br />7-27<br />Brand Positioning<br />Can position brands at any of three levels:<br />Product attributes<br />Product benefits<br />Beliefs and values<br />
  28. 28. Copyright 2007, Prentice Hall, Inc. <br />7-28<br />Brand Name Selection<br />Desirable qualities for a brand name include:<br />It should suggest product’s benefits and qualities.<br />It should be easy to pronounce, recognize, and remember.<br />It should be distinctive.<br />It should be extendable.<br />It should translate easily into foreign languages.<br />It should be capable of registration and legal protection.<br />
  29. 29. Copyright 2007, Prentice Hall, Inc. <br />7-29<br />Brand Sponsorship<br />Manufacturer’s brands<br />Also called national brands<br />Private brands<br />Also called store or distributor brands<br />Licensed brands<br />Co-branding<br />
  30. 30. Copyright 2007, Prentice Hall, Inc. <br />7-30<br />Brand Development<br />Line extension: <br />introduction of additional items in a given product category under the same brand name (e.g., new flavors, forms, colors, ingredients, or package sizes).<br />Brand extension: <br />using a successful brand name to launch a new or modified product in a new category.<br />
  31. 31. Copyright 2007, Prentice Hall, Inc. <br />7-31<br />Brand Development<br />Multibranding: <br />offers a way to establish different features and appeal to different buying motives.<br />New brands: <br />developed based on belief that the power of its existing brand is waning and a new brand name is needed. Also used for products in new product category.<br />
  32. 32. Copyright 2007, Prentice Hall, Inc. <br />7-32<br />Nature and Characteristics of a Service<br />Intangibility:<br />Services cannot be seen, tasted, felt, heard, or smelled before purchase. <br />Inseparability:<br />Services cannot be separated from their providers.<br />Variability:<br />Quality of services depends on who provides them and when, where, and how they are delivered.<br />Perishability:<br />Services cannot be stored for later sale or use.<br />
  33. 33. Copyright 2007, Prentice Hall, Inc. <br />7-33<br />The Service-Profit Chain<br />Internal service quality<br />Satisfied and productive service employees<br />Great service value<br />Satisfied and loyal customers<br />Healthy service profits and growth.<br />
  34. 34. Copyright 2007, Prentice Hall, Inc. <br />7-34<br />Services Marketing<br />External marketing:<br />Traditional marketing via the 4 “P’s”<br />Internal marketing:<br />Effective training and motivation of customer contact employees<br />Interactive marketing:<br />Delivering interactions during the service encounter that are satisfying to the buyer<br />
  35. 35. Copyright 2007, Prentice Hall, Inc. <br />7-35<br />Major Service Marketing Tasks<br />Managing service differentiation:<br />Develop a differentiated offer, delivery, and image.<br />Managing service quality:<br />Be customer obsessed, set high service quality standards, have good service recovery, empower front-line employees.<br />Managing service productivity:<br />Train current employees or hire new ones, increase quantity and sacrifice quality, harness technology.<br />
  36. 36. Copyright 2007, Prentice Hall, Inc. <br />7-36<br />International Product and Services Marketing<br />Decide which products and services to introduce.<br />Decide how much to standardize or adapt.<br />Packaging presents new challenges.<br />Services marketers face special challenges.<br />Trend toward global service companies will continue.<br />
  37. 37. Copyright 2007, Prentice Hall, Inc. <br />7-37<br />Define product and the major classifications of products and services.<br />Describe the decisions companies make regarding their individual products and services, product lines, and product mixes.<br />Discuss branding strategy – the decisions firms make in building and managing their brands.<br />Identify the four characteristics that affect the marketing of a service and the additional marketing considerations that services require.<br />Discuss two additional product issues: socially responsible product decisions and international product and services marketing.<br />

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