Product, Services, and Branding Strategy 7 7-2 What is a Product? Anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. Anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. Includes: physical objects, services, events, persons, places, organizations, ideas, or some combination thereof. 7-3 What is a Service? 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. 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. 7-4 The Product-Service Continuum Sugar Restaurant College Education Pure Tangible Good Pure Service 7-5 Levels of a Product 7-6 Consumer Products Products and services bought by final consumers for personal consumption. Products and services bought by final consumers for personal consumption. 7-7 Convenience Products Purchased frequently and immediately Low priced Mass advertising Many purchase locations 7-8 Shopping Products Bought less frequently Higher price Fewer purchase locations Comparison shop 7-9 Specialty Products Special purchase efforts High price Unique characteristics Brand identification Few purchase locations 7-10 Unsought Products New innovations Products consumers do not want to think about Require much advertising and personal selling 7-11 Industrial Products Those purchased for further processing or for use in conducting business. Those purchased for further processing or for use in conducting business. 7-12 Supplies and Services Operating supplies, repair, and maintenance items Supplies and Services Operating supplies, repair, and maintenance items Materials and Parts Raw materials, manufactured materials, and parts Materials and Parts Raw materials, manufactured materials, and parts Products that aid in buyers production or operations Products that aid in buyers production or operations Industrial Products 7-13 Other Market Offerings Organizations: Profit (businesses) and nonprofit (schools and churches). Organizations: Profit (businesses) and nonprofit (schools and churches). Persons: Politicians, entertainers, sports figures, doctors, and lawyers. Persons: Politicians, entertainers, sports figures, doctors, and lawyers. Places: create, maintain, or change attitudes or behavior toward particular places (e.g., tourism). Places: create, maintain, or change attitudes or behavior toward particular places (e.g., tourism). Ideas (social marketing): Public health campaigns, environmental campaigns, family planning, or human rights. Ideas (social marketing): Public health campaigns, environmental campaigns, family planning, or human rights. 7-14 Organization Marketing Companies use corporate image advertising to market themselves to various publics. General Electric Stands for imagination at work. 7-15 Individual Product Decisions 7-16 Product and Service Attributes Style & Design Performance and Satisfaction Includes Level & Consistency Differentiates a product from the competition; assessed based on value and cost Style = Appearance Design = heart of the product Style = Appearance Design = heart of the product 7-17 Branding Creating, maintaining, protecting, and enhancing products and services. Creating, maintaining, protecting, and enhancing products and services. 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. 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. 7-18 Branding Advantages to buyers: Advantages to buyers: Product identification Product quality Advantages to sellers: Advantages to sellers: Basis for products quality story Provides legal protection Helps to segment markets 7-19 Packaging Designing and producing the container or wrapper for a product. Designing and producing the container or wrapper for a product. Developing a good package: Developing a good package: Packaging concept Package elements Product safety Environmental concerns 7-20 Labeling Printed information appearing on or with the package. Printed information appearing on or with the package. Performs several functions: Performs several functions: Identifies product or brand Describes several things about the product Promotes the product through attractive graphics 7-21 Product Support Services Assess the value of current services and obtain ideas for new services. Assess the value of current services and obtain ideas for new services. Assess the cost of providing the services. Assess the cost of providing the services. Put together a package of services that delights the customers and yields profits for the company. Put together a package of services that delights the customers and yields profits for the company. 7-22 Lengthen beyond current range. Can be: Downward Upward Both Directions Product Line Length Number of Items in the Product Line Product Line Length Number of Items in the Product Line Lengthen within current range Product Line Decisions 7-23 Two-Way Stretch Marriott added the Renaissance Hotels line to serve the upper end of the market and the TownePlace Suites line to serve the moderate and lower ends. 7-24 Product Mix Decisions Product Mix: all of the product lines and items that a particular seller offers for sale. Product Mix: all of the product lines and items that a particular seller offers for sale. Width: the number of different product lines the company carries. Width: the number of different product lines the company carries. Depth: the number of versions offered of each product in the line. Depth: the number of versions offered of each product in the line. Consistency: how closely related the various lines are. Consistency: how closely related the various lines are. 7-25 Brand Equity The positive differential effect that knowing the brand name has on customer response to the product or service. The positive differential effect that knowing the brand name has on customer response to the product or service. Provides: Provides: More brand awareness and loyalty Basis for strong, profitable customer relationships 7-26 Major Brand Strategy Decisions 7-27 Brand Positioning Can position brands at any of three levels. Can position brands at any of three levels. Product Attributes Product Benefits Beliefs and Values 7-28 Brand Name Selection Desirable qualities for a brand name include: Desirable qualities for a brand name include: 1.It should suggest products benefits and qualities 2.It should be easy to pronounce, recognize, and remember 3.It should be distinctive 4.It should be extendable 5.It should translate easily into foreign languages 6.It should be capable of registration and legal protection 7-29 Brand Sponsorship Four Options Co-Branding Private Brands 7-30 Brand Development Line Extension: introduction of additional items in a given product category under the same brand name (e.g., new flavors, forms, colors, ingredients, or package sizes). Line Extension: introduction of additional items in a given product category under the same brand name (e.g., new flavors, forms, colors, ingredients, or package sizes). Brand Extension: using a successful brand name to launch a new or modified product in a new category. Brand Extension: using a successful brand name to launch a new or modified product in a new category. 7-31 Brand Development Multibranding: offers a way to establish different features and appeal to different buying motives. Multibranding: offers a way to establish different features and appeal to different buying motives. New Brands: 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. New Brands: 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. 7-32 Nature and Characteristics of a Service 7-33 The Service-Profit Chain 7-34 Major Service Marketing Tasks Managing Service Differentiation: Managing Service Differentiation: Develop a differentiated offer, delivery, and image. Managing Service Quality: Managing Service Quality: Be customer obsessed, set high service quality standards, have good service recovery, empower front-line employees. Managing Service Productivity: Managing Service Productivity: Train current employees or hire new ones, increase quantity and sacrifice quality, harness technology. 7-35 Decide Which Products & Services to Introduce Decide How Much to Standardize or Adapt Packaging Presents New Challenges Service Marketers Face Special Challenges Trend Toward Global Service Companies Will Continue International Product and Services Marketing