product, services, and branding strategies

28
1 Product, Services, and Branding Product, Services, and Branding Strategies Strategies Chapter 8

Upload: sajidb

Post on 18-Jan-2015

3.410 views

Category:

Business


0 download

DESCRIPTION

 

TRANSCRIPT

Page 1: Product, services, and branding strategies

1

Product, Services, and Branding Product, Services, and Branding StrategiesStrategies

Chapter 8

Page 2: Product, services, and branding strategies

2

The best way to hold customers is to constantly figure out how to give them more for less

Page 3: Product, services, and branding strategies

3

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.

Page 4: Product, services, and branding strategies

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.

Page 5: Product, services, and branding strategies

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.

Page 6: Product, services, and branding strategies

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.

Page 7: Product, services, and branding strategies

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

Page 8: Product, services, and branding strategies

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

Page 9: Product, services, and branding strategies

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

Page 10: Product, services, and branding strategies

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

Page 11: Product, services, and branding strategies

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

Page 12: Product, services, and branding strategies

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.

Page 13: Product, services, and branding strategies

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.

Page 14: Product, services, and branding strategies

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

Page 15: Product, services, and branding strategies

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

Page 16: Product, services, and branding strategies

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

Page 17: Product, services, and branding strategies

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

Page 18: Product, services, and branding strategies

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

Page 19: Product, services, and branding strategies

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

Page 20: Product, services, and branding strategies

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

Page 21: Product, services, and branding strategies

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

Page 22: Product, services, and branding strategies

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?

Page 23: Product, services, and branding strategies

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).

Page 24: Product, services, and branding strategies

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

Page 25: Product, services, and branding strategies

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.

Page 26: Product, services, and branding strategies

Product Decisions and Social Responsibility Acquisitions and mergers Legal compliance Product liability issues Warranties

Additional Product Considerations

Page 27: Product, services, and branding strategies

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

Page 28: Product, services, and branding strategies

Small is beautiful but large is powerful