product, services and branding strategies

Products, Services, and

Branding Strategy

Marketing Mix (4P’s of Marketing)

• Product• Price• Place• Promotion

Product• Refers to the goods and services offered by

the organization. • Consumers purchased products because it

satisfies one or more of their needs. • When consumers are paying, they are not

paying for the tangible products, but for the benefit it will provide.

• Thus, product can be described as a bundle of benefits which marketers offered to the consumer for price.

It is anything that can be offered to a mark for attention, acquisition, use, or consumptions and that might satisfy a want or need.

Physical Objects

Ipod Shuffle Iphone & Ipad

Kinds of Product

EventsKinds of Product

PersonsKinds of Product

PoliticianProfessionalCelebrityAthlete

PlacesKinds of Product

OrganizationKinds of Product

IdeasKinds of Product

ServicesForm of product that consist of activities, benefits, or satisfaction offered for sale that are essentially intangible and do not result in ownership of anything.

Kinds of Product

Hotel Service Dermatologist

Foot SpaBanking Service

Example of Services

Products- Service Continuum

• Pure tangible goods – Physical items that can be touched and seen.

• Tangible goods with accompanying services - It consists of a tangible good accompanied by one or more services. These types of offering are more dependent on quality and available services such as delivery time, after-sale services, warrantees and guarantees, etc.

RefrigeratorCar Aircon

Products- Service Continuum

• Hybrid offers – consist of equal parts of goods and services.

Products- Service Continuum

• Services with accompanying minor goods – It consists of major service along with additional services or supportive goods.

Products- Service Continuum

• Pure Services- represent the highest

level of customer contact.

Products- Service Continuum

• Total Customer Experience- “Experiences are memorable while some products and services are not.”

Products- Service Continuum

Levels of Product

1. Core Product – problem-solving service, or core benefit that consumers are really buying when they obtain a product or service.

2. Actual Producta. Quality Level

b. Features

c. Design

d. Brand Name

e. Packaging

Levels of Product

3. Augmented Product – includes any additional consumer services and benefits built around for the core and actual products.

Levels of Product

“Consumers tend to see products as bundles of benefits that satisfy

their needs.”

When developing products, marketers must:

1. Identify the core consumer needs that the product will satisfy.

2. Design the actual product.

3. Find ways to augment the product.

Product classifications• Consumer Products

• Industrial Products

• Marketable Entities

Consumer Products bought by final consumers for personal

consumption.

Classifications:• Convenience Products• Shopping Products• Specialty Products• Unsought Products

Product Classification

Convenience ProductsConsumer products and services that the

consumer usually buys frequently, immediately, and with a minimum of comparison and buying effort. They are usually low priced, and marketers place them in many outlets to make them readily available when customers need them.

Classification of Consumer Products

Example of Convenience Products

Shopping ProductsConsumer products that the consumer,

in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price, and style. These products are usually distributed through fewer outlets but have deeper sales support.

Classification of Consumer Products

Example of Shopping Products

Specialty ProductsUnique characteristics or brand

identification. Buyers do not normally compare specialty products; instead, they only invest the time to reach the outlet that carries the goods.

Classification of Consumer Products

Example of Specialty Products

Unsought ProductsConsumer either does not know about or

knows about but does not normally think of buying. These products require a lot of promotional support to be successful.

Classification of Consumer Products

Example of Unsought Products

Industrial Products Bought by individuals and organization for

further processing or for use of conducting a business. Purpose of purchase is the chief distinction between industrial products and consumer products.

Classifications:• Material and parts• Capital items• Supplies and services

Product Classification

Materials and Parts• Most are sold directly to the industrial users

Classification of Industrial Products

Capital Items• These products aid in the buyer’s

production or operations, including installations and accessory equipment.

Classification of Industrial Products

Supplies and Services• These could be operational or repair

and maintenance. Many of these services are supplied under contract.

Classification of Industrial Products

Marketable Entities Are entities other than products and

services that marketing covers.

Classification:• Organization marketing• Person Marketing• Place Marketing• Idea Marketing

Product Classification

Organizati on Marketi ng• Activities undertaken to create, maintain,

or change attitudes and behavior of target audiences towards an organization.

• A major tool to market organization is corporate image advertising.

Classification of Marketable Entities

Person Marketing• Activities undertaken to create,

maintain or change attitudes or behavior toward particular person.

Classification of Marketable Entities

Place Marketing• Activities undertaken to create, maintain, or

change attitudes towards a particular place.

Example:

Business Site Marketing

Tourism Marketing

Classification of Marketable Entities

Idea Marketi ng (Social Marketi ng)

• It is the marketing of social ideas.• It includes the design, implementation, and

control of programs seeking to increase the acceptability of social idea, cause, or practice within targeted groups.

Classification of Marketable Entities

Individual Product Decisions

ProductAttributes

Branding Packaging Labeling

Product Support Services

Product Att ributesDeveloping a product or service

involves defining the benefits that it will offer.

1. Product Quality

2. Product Features

3. Product Style and Design

Individual Product Decision

Product Quality Ability of the product to perform its

functions. It has two dimensions: level and consistency.

• Quality level• Performance Quality• Product Consistency or Conformance• Return on Quality• Improve customer satisfaction and value

Product Attributes

Product FeaturesIt helps to differentiate the product

from those of the competition.

Product Attributes

Product Style and DesignAnother way to add distinctiveness. It

is the process of designing a product’s style and function.

a. Style – appearance of a product.

b. Design – heart of the product. It contributes to the product’s usefulness as well as its looks.

Product Attributes

Example of Product Style and Design

Branding• Brand – is a name, sign, symbol, or design

that identifies the maker or seller of the product or service.

Individual Product Decision

Advantages of BrandingBuyer• It helps buyers to identify the

product that might benefit them.• It tells the buyer something about

quality and value.

Advantages of BrandingSeller• Make it easier for the sellers to process

order and track down problems.• It provide legal protection for unique

product features.• It promotes loyalty and helps in

segmenting markets.

Brand Equity(Value of a brand)

• Higher brand loyalty• Name awareness• Perceived quality• Strong brand associations• Patents, trademarks, channel

relationships

Brand Equity(Value of a brand)

Powerful brand names command strong consumer preference.

It is a very valuable asset.

Advantages ofBrand Name Equity

1. High consumer awareness and loyalty

2. Greater ease in launching brand extensions because of high brand credibility

3. A good defense against fierce price competition

4. Belief in being the company’s most enduring asset

Major Branding Decisions

Brand Name

Selection

BrandSponsor

BrandStrategy

Qualiti es ofGood Brand Name

It should suggest something about the product’s benefits and qualities.

It should be easy to pronounce, recognize, and remember.

It should be distinctive.

Qualiti es of Good Brand Name

It should be extendible.

It should translate easily into foreign languages.

It should be capable of registration and legal protection.

Brand Sponsor• Manufacturer's Brand or National

Brand- brand created and owned by the producer of a product or service.

• Private Brand or distributor or store brand- brand created and owned by a reseller of a product or service.

Major Branding Decisions

Brand Sponsor• Licensed Brand- company sells it output

under another brand name.

• Co-branding- occurs when two companies go together and manufacture one product. It is the practice of using the established brand names of two different companies on the same product.

Major Branding Decisions

Co-brandingAdvantages• Create broader customer appeal and

greater brand equity.• Allow a company to expand its existing

brand into a category it might otherwise have difficulty entering alone.

Co-brandingDisadvantages• Complex legal contracts and licenses

are involve.• Coordination efforts are often difficult.• Trust is essential between partners.

• The Battle of the Brands – the competition between manufacturer's and private brand. It causes resellers to have advantages, they charge manufacturer's slotting fees.

• Slotting fees- payments demanded by retailers from producer before they will accept new products and find slots for them on the shelves.

Brand Strategy1. Introduce Line-extensions – Existing

brand names are extended to new forms, sizes, and flavors of an existing product category.

a. Meet consumer desires for variety

b. Meet excess manufacturing capacity

c. Simply command more shelf space

Major Branding Decisions

Brand Strategy2. Introduce Brand Extension – Existing brand names are extended to new or modified product categories.

a. They help a company enter new product categories more easily.

b. They aid in new product recognition.

c. They save on advertising cost.

Major Branding Decisions

Brand Strategy3. Introduce Multi-brands – new brand names are introduce in the same product categories.

a. They gave more shelf space.

b. They offer several brands to capture “brand switchers”.

c. It helps to develop healthy competition within the organization.

d. Each brand can have a separate following.

Major Branding Decisions

Brand Strategy4. Introduce New Brands - new brand names in new categories are introduced.

a. They help move away from a brand that is failing.

b. They can get new brands in new categories by corporate acquisitions.

c. Weaker brand weeded out and resources are focused achieving number one or two market share position.

Major Branding Decisions

PackagingIs the activity of designing and

producing the container or wrapper for a product.

Traditionally, packaging decisions are based on cost and production factors. Now, it has promotional value.

Individual Product Decision

Packaging

Primary Package

Packaging

Secondary Package

Packaging

Shipping Package

Enhancing promotional value of the packaging

a. Establish packaging concept

b. Decide on specific elements of the package

c. Tie together elements to support the positioning and marketing strategy.

Labeling Part of Packaging and consists of printed

information appearing on or with the package.

Functions1. It identifies the product or brand.

2. It describes several things about the product.

3. It promote the product through attractive graphics.

Individual Product Decision

Labeling

Legal Concerns About Labels

• There are numerous laws enacted to regulate labeling and protect the public.

• The aspects of nit pricing, open dating and nutritional labeling have effects on labeling practices.

Product Support ServicesServices that augment actual products. • Good customer service is good for

business.• Monitor customer complaints.• Work at designing products that need-

less service.

Individual Product Decision

Suggestion BoxSafety LabelsWarranty

Product Support Services

• Determine the best way to deliver product support services.

• Set up strong customer service departments.

• One of the keys to successful internet marketing is to have excellent support services.

Individual Product Decision

Product Support Services

1. Survey customers2. Assess cost of providing desired

services.3. Develop a package of services to

delight customers and yield profit to the company.

Major Tool in Gaining Comparati ve Advantage

Product Decision and Social Responsibility

Areas of Concern• Acquiring or dropping products• Patents protection• Product quality and safety• Product warranties

Product Line• A group of products that are closely related

because they function in similar manner.• They are sold to the same group.• Marketed through the same type of outlet.• Fall within given price ranges.• Tend to lengthen over time.

Product Line Decisions

Product line length- number of items in the product line. As new products are added to the line, costs begin to rise.

Product line stretching- increasing the product line by lengthening it beyond its current range.

Product Line Decisions

Product Line Stretchinga. Downward Stretch- Occurs when the company moves from the high end of the market to lower end.

1. Faster growth is occurring at the lower end.

2. The quality image established at the upper end can be moved downward.

3. They need a low product to fill a hole.

4. A retaliation against attack on their upper end product.

Product Line Decisions

Product Line Stretchingb. Upward Stretch- This is done when companies at the lower end of the market want to enter the higher end.

1. They are attracted by faster growth rates or higher margins at the upper end.

2. They may want to position themselves as a full-line company.

Product Line Decisions

Product Line Stretching

c. Two-way Stretch- Occurs when companies in the middle range of the market may decide to stretch their lines in both direction.

Product Line Decisions

Product-Line Filling Increasing the product line by adding more items

within the present range of the line.

Reasons:

a. Extra profit

b. Attempting to satisfy dealers

c. Trying to use excess capacity

d. Trying to be the leading full-line company

e. Trying to plug holes to keep out competition.

Product Line Decisions

Product Mix DecisionAn organization with several product lines has a product mix.• Width – number of different product lines

the company carries.• Length – total number of items the

company carries within its product lines.• Depth – the number of versions offered of

each product line.• Consistency of the Product Mix – how

closely related the various product lines.

Ways to Increase Business1. It can add new product lines thus widening

its product mix.

2. The company can lengthen its existing product lines to become a more full-line company.

Product Mix Decision

3. It can add more versions of each product and thus deepen its product mix.

4. The company can pursue more product line consistency, or less depending whether it wants a strong reputation in a single or in several fields.

Product Mix Decision

Ways to Increase Business

Services MarketingBecause of the demand generated by the time-pressed consumer, service industry immensely grow.

Nature and Characteristics of a Service

• Service Intangibility - Services cannot be seen, tasted, felt, heard, or smelled before they are bought.

• Service Inseparability - Services are produced and consumed at the same time and cannot be separated from their providers.

Provider-customer – interaction is a special feature of services marketing.

Nature and Characteristics of a Service

• Service Variability- quality may vary greatly depending on who provides them and when, where and how.

• Service Perishability- Service cannot be stored for later sale or use.

Marketing Strategies for Services Firms

Interaction must be controlled and constantly improved.

Service-profit Chain- Chain that links service firm profits with employees and customer satisfaction.

Links of Service-profit Chain

1. Internal service quality

2. Satisfied and productive service employees

3. Greater service value

4. Satisfied and loyal customers

5. Healthy service profits and growth

Internal service quality

Satisfied and productive service employees

Greater service value

Profit

Company

Internal Marketing

External Marketing

EmployeesInternal

Marketing Customers

The Service Profit Chain

Internal Marketing Train and effectively motivate its customer-

contact employees and all the supporting service people to work as a team to provide customer satisfaction.

a. Everyone in the organization must practice customer orientation.

b. Internal marketing must precede external marketing.

Interactive Marketing Recognizes that perceived service

quality depends heavily on the quality of buyer- seller interaction.

The marketer cannot assume that they will satisfy the customer simply by providing good technical service.

Major Marketing Tasks• Competitive Differentiation – Occur by

differentiating the offer, the delivery and their images.

• Service Productivity- Increase productivity by training employees better. Work on quality and quantity of service. Utilize technology.

• Service Quality- Delivering higher quality than the competition.

Good Service System Empower front-line employees Customer obsessed Set high quality standards Watch service performance

closely.