Lesson 5: PRODUCT (All about Product & Service Strategies) PRODUCT It is a bundle of physical, service, and symbolic attributes

s designed to satisfy a customers wants and needs Categorized as CONSUMER PRODUCTS & BUSINESS PRODUCTS CONSUMER PRODUCTS - Merchandise or other item of common or daily use, ordinary bought by individuals or households for private consumption. (businessdictionary.com)

Business Product - Business products are sold to other businesses, as opposed to convenience, shopping and specialty products, which are sold to consumers. (businessdictionary.com)

PRODUCTS MIX the assortment of product lines and individual product offerings Product mix width (Number of product lines a firm offers) Product mix length (Number of different products a firm sells) Product mix depth (Variations in each product that the firm markets) BENCHMARKING measuring quality by comparing performance against industry leaders

Service - Intangible tasks that satisfy the needs of consumer and business users Intangible Inseparable from the service providers Perishable Cannot be standardized Buyers play important roles in the creation and distribution of services Wide variations in service standards Goods - Tangible products that customers can see, hear, smell, taste, or touch

Goodsservices continuum (Product Continuum) - Spectrum along which goods and services fall according to their attributes, from pure good to pure service Understanding the concept of Product Life Cycle 1. Introduction a. Seek to build product awareness and develop a market for the product. 2. Growth a. Seek to build brand preference and increase market share. 3. Maturity a. Defend market share while maximizing profit. 4. Decline a. Adding new features b. Reduce costs c. Discontinue

Lesson 6: Brand - For the American Marketing Association (AMA), a brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition. How the concept of branding has evolved.. Comes from Old Norse word BRANDR, which means, To BURN. Historically, brands were used by livestock owners to mark and differentiate their animals. Branding Perception A brand is the DNA that brings life and uniqueness to your products and services. A brand is your REPUTATION that creates good and bad images for your products and services. A brand is your EMOTIONAL CONNECTION to consumers. Branding Elements 1. BRAND NAMES a. Brand names must be chosen with the six criteria of memorability, meaningfulness, likability, transferability, adaptability, & protectability. 2. URLs a. URLs (uniform resource locators) specify locations of pages on the web and are also commonly referred to as domain names. 3. LOGOS & SYMBOLS a. Play a critical role in building brand equity and especially brand awareness. 4. CHARACTERS a. A special type of brand symbolone that takes on human or real-life characteristics 5. SLOGANS a. Slogans are short phrases that communicate descriptive or persuasive information about the brand. 6. JINGLES a. Jingles are musical messages written around the brand. PACKAGING 7. PACKAGING a. Convey descriptive and persuasive information. Facilitate product transportation and protection

Six Criteria for Choosing Brand Elements 1. Memorability 2. Meaningfulness 3. Likability 4. Transferability 5. Adaptability 6. Protectability Branding Strategy

Marketers offensive strategy and build brand equity Defensive role for leveraging and maintaining brand equity

Others: 1. Corporate Umbrella Branding the organization and its products are branded under the same company name. 2. Family Umbrella Branding - the organization has a corporate brand and separate brand for its products. 3. Range Branding- a number of related products are group together under one brand name. 4. Individual Branding each product is branded separately. The Four Truths in Branding 1. The Right Positioning Strategy Works 2. Delivering Your Message Counts 3. Sustaining is Essential 4. A Bond Must Be Established Between the Brand and its Customers Seven Deadly Sins of Brand Management 1. Failure to understand the full meaning of the brand 2. Failure to live up to the brand promise 3. Failure to adequately support the brand 4. Failure to be patient with the brand 5. Failure to adequately control the brand 6. Failure to properly balance consistency and change with the brand 7. Failure to understand complexity of brand equity measurement and management Lesson 6: PLACE Marketing Channels & Supply Chain Management Marketing Channels 1. Producer -Wholesaler-Retailer Customer = traditional channel for consumer goods, gives small producers access to hundreds of retailers.

2. Producer- Agent -Wholesaler-Retailer-Customer = common in markets served by small companies. 3. Producer -Wholesaler-Business User = industrial distributorintermediaries in the business market that take title to goods. 4. Producer-Agent-Wholesaler-Business User = agent/broker, often called a manufacturers representative, markets a producers offerings to wholesalers. 5. Producer -Agent -Business User =independently owned wholesaler takes title to the goods. Common in transactions with large unit sales in which transportation is small percentage of total cost. Supply-chain Management Control of the activities of purchasing, processing and delivery through which raw materials are transformed into products and made available to final consumers. - Distribution- Movement of goods and services from producers to customers. - Logistics- Process of coordinating the flow of information, goods, and services among members of the distribution channel.

Types of Distribution Channels 1. Intensive distribution - distribution of a product through all available channels. Common for items with wide appeal across broad consumer categories. 2. Selective distribution - distribution of a product through a limited number of channels. Can reduce total marketing costs and give manufacturers more control over product advertising, pricing, and display. 3. Exclusive distribution -distribution of a product through a single wholesaler or retailer in a specific geographic region. Supply Chain Management Technology Enabler Bar code is a method of automatic identification and data collection, also a computer coding system that uses a printed pattern of lines or bars to identify products, mail and packages, customer accounts, and the like. Radio Frequency Identification is a technology which uses tags as a component in an integrated supply chain solution set that is currently in use by leading supply chain firms. RFID tags contain a chip which holds an electronic product code (EPC) number that points to additional data detailing the contents of the package.

Retailing - Activities involved in selling merchandise to ultimate consumers. Retailers are the contact point between channel members and the ultimate customers. Retailers act as both customers and marketers in their channels. 5 Types of Retailers 1. Department Stores 2. Shopping Centers 3. Convenient Stores 4. Specialty Stores 5. Lifestyle Centers The Concept of Wheel Retailing Wheel of retailing Hypothesis that each new type of retailer gains a competitive foothold by offering lower prices than current suppliers charge; the result of reducing or eliminating services.