product, services, and branding strategies
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TRANSCRIPT
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Product, Services, and Branding Product, Services, and Branding StrategiesStrategies
Chapter 8
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The best way to hold customers is to constantly figure out how to give them more for less
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Don’t just develop a product turn it into a brand and customers will favor no matter it is more for
less or more for more.
Objectives
Be able to define product and know the major classifications of products and services.
Understand the decisions companies make regarding their individual products and services, product lines, and product mixes.
Objectives
Understand how firms build and manage their brands.
Know the four characteristics of services and the additional marketing considerations that services require.
Review additional product issues related to social responsibility and international marketing.
Definitions Product
Anything offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want. Salman, Kohinoor, Shirt, Sandwich, vacation, advice from doctor.
Service Any activity or benefit that one party can offer to
another that is essentially intangible and does not result in ownership of anything. Banking, hotel, airline, retail, tax preparation, home repair services, Bashir’s marketing class, and so on.
What is a Product? Products, Services, and Experiences
Market offerings, pure tangible goods, toothpaste, soap, salt; pure services, financial services, doctor’s exam, experiences, memorable, personal, take place in the consumer’s mind.
Levels (Each level adds more customer value) of Product and Services Core benefit (lipstick – hope), actual product
(Toyota), and augmented product (additional customer services and benefits)
Product and Service Classifications
What is a Product?
Convenience Shopping Specialty Unsought
Frequent purchases bought with minimal buying effort and little comparison shopping toothpaste, magazines, soap, newspapers.
Low price Widespread distribution Mass promotion by
producer
Types of Types of Consumer Consumer ProductsProducts
What is a Product?
Convenience Shopping Specialty Unsought
Less frequent purchases requiring more shopping effort and price, quality, and style comparisons. Furniture, clothing, used cars.
Higher than convenience good pricing
Selective distribution in fewer outlets
Advertising and personal selling by producer and reseller
Types of Types of Consumer Consumer ProductsProducts
What is a Product?
Convenience Shopping Specialty Unsought
Strong brand preference and loyalty, requires special purchase effort, little brand comparisons, and low price sensitivity designer clothes, services of medical or legal specialists.
High price Exclusive distribution Carefully targeted
promotion by producers and resellers
Types of Types of Consumer Consumer ProductsProducts
What is a Product?
Convenience Shopping Specialty Unsought
Little product awareness and knowledge (or if aware, sometimes negative interest) life insurance, cemetery plots
Pricing varies Distribution varies Aggressive advertising
and personal selling by producers and resellers
Types of Types of Consumer Consumer ProductsProducts
What is a Product? Product and Service Classifications
Consumer products Industrial products
Materials and parts: cotton, fruits, fish, lumber, crude petroleum, petroleum. Price and service are major marketing factors; branding and advertising tend to be less important.
Capital items: factories, offices, generators, large computer systems, elevators, office equipments.
Supplies and services: lubricants, coal, paper, pencils, brooms, nails, window cleaning, computer repair.
What is a Product? Product and Service Classifications
Organizations, persons, places, and ideas Organizational marketing makes use of corporate image
advertising. GE – “brings good things to life” Person marketing applies to political candidates,
entertainment sports figures, and professionals. Political leaders, doctors, professors, celebrities.
Place marketing relates to tourism. I love New York. Social marketing campaigns promote ideas. Reduce
smoking, alcoholism, drug abuse, overeating.
Product and Service (Development and Marketing) Decisions
Individual Product Product Line Product Mix
Product attributes Quality, features, style and
design Branding name, term, sign, symbol,
design. Helps in identifying and tells about product’s quality.
Packaging product’s primary container, secondary package, shipping package.
Labeling simple tags, complex graphics
Product support services
Key Key Decisions Decisions
Product and Service Decisions
Individual Product Product Line Product Mix
Product line length Line stretching: adding
products that are higher Lexus or lower Mercedes C-class cars. priced than the existing line
Line filling: adding more items within the present price range
Key Key Decisions Decisions
Product and Service Decisions
Individual Product Product Line Product Mix
Product mix width: number of different product
lines carried by company Product mix length:
Total number of items the company carries within its product lines.
Product line depth: Number of different versions
of each product in the line Product line consistency
Key Key Decisions Decisions
Branding Strategy
Brands are powerful assets that must be carefully developed / managed.
Brands with strong equity have many competitive advantages: High consumer awareness Strong brand loyalty Helps when introducing new products Less susceptible to price competition
Building Strong Brand
Brand Positioning Brand Name
Selection Brand Sponsorship Brand Development
Three levels of positioning: Product attributes
Least effective Benefits Beliefs and values
Taps into emotions
Key Key Decisions Decisions
Brand Positioning Brand Name
Selection Brand Sponsorship Brand Development
Good Brand Names: Suggest something about the
product or its benefits Are easy to say, recognize
and remember Are distinctive Are extendable Translate well into other
languages Can be registered and legally
protected
Key Key Decisions Decisions
Building Strong Brand
Brand Positioning Brand Name
Selection Brand Sponsorship Brand Development
Manufacturer brands Private (store) brands
Costly to establish and promote
Higher profit margins
Licensed brands Name and character licensing
has grown
Co-branding
Key Key Decisions Decisions
Building Strong Brand
Brand Positioning Brand Name
Selection Brand Sponsorship Brand Development
Line extensions Minor changes to existing products
flavors, forms, package sizes, colors, ingredients. Bombay chips.
Brand extensions Successful brand names help
introduce new products Dove deodorant, vitamins, body wash, facial tissues, bar soap, shampoo.
Multibrands Multiple product entries in a
product category Close up, Pepsodent.
New brands New product category Lexus
Key Key Decisions Decisions
Building Strong Brand
Managing BrandsManaging BrandsBrand Strategy
Continuously communicate: spend huge amounts. Brand experience; contacts and touch points.
Enthusiastic brand builders: everyone lives the brand; not only brand managers
Audit brands’ strength and weaknesses: ask?
Services Marketing
Services Account for 74% of U.S. gross domestic
product. Service industries include business
organizations (airlines, banks, hotels, insurance companies, consulting firms), government (postal service, schools, hospitals, military services), and private not-for-profit organizations (museums, charities, churches, colleges).
Services Marketing
Characteristics of Services Intangibility: airline passengers,
Consumers look for service quality signals Inseparability:
Services can’t be separated from providers Variability:
Employees and other factors result in variability Perishability:
Services can’t be inventoried for later sale
Services Marketing
Service Firm Marketing Strategies The Service-Profit Chain
Internal Marketing Interactive Marketing
Managing Service Differentiation Managing Service Quality Managing Service Productivity: McDonald’s
idea of technological hamburger and Bashir’s idea of e-(electronic) sandwich.
Product Decisions and Social Responsibility Acquisitions and mergers Legal compliance Product liability issues Warranties
Additional Product Considerations
International Product and Services Marketing Special challenges:
Which products should be marketed internationally?
Should the products be standardized or adapted for world markets?
How should packaging be adapted? How can other barriers be overcome?
Additional Product Considerations
Small is beautiful but large is powerful