Chapter 8 - Product, Services, and Branding Strategy

Market offerings may consist of a combination of goods and services Product: Anything offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want. 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. Experience: Experiences represent what buying the product or service will do for the customer. They are used to differentiate offerings.

Levels of Product and Services

  

Core benefit, Actual (Quality level , Features , Brand name, Packaging) Augmented product (Warranty, Customer Training, After Sales Service)

Product and Service Classifications

 Consumer products and industrial products Product Classification Schemes 1. Durability, 2. Tangibility, 3. Use Product Classifications 1. Consumer products: Products & Services for Personal Consumption. They are classified by how consumers buy them.
Convenience Products  Buy frequently & immediately  Low priced  Mass advertising  Many purchase locations i.e Candy, newspapers Specialty Products  Special purchase efforts  High price  Unique characteristics  Brand identification  Few purchase locations Shopping Products  Buy less frequently  Higher price  Fewer purchase locations  Comparison shop i.e Clothing, appliances, Furniture, Cars Unsought Products  New innovations  Products consumers don’t want to think about these products  Require much advertising & personal selling i.e Life insurance, blood donation

2. Industrial products: Purchased for further processing or for use in conducting a business

  

Materials and parts include raw materials and manufactured materials and parts usually sold directly to industrial users Capital items are industrial products that aid in the buyer’s production or operations

Supplies and services include operating supplies, repair and maintenance items, and business services Product and Service Decisions 1. Individual Product a. Product attributes: Describe the main product features, major benefits received by those who use the product : Quality, features, style and design Quality: Quality is when our customer come back and our products don’t Performance Quality Conformance Quality Features: are competitive tools for differentiating a product from competitors’ products Product features are assessed based on the value to the customer versus the cost to the company Design & Style:  Design is larger concept. It contributes to a product’s usefulness as well as to its looks  Style describes the appearance of the product  Good design starts with a good understanding of customer need  Examples: P& G’s Swiffer, Kryptonite

1

term. etc) 3M (60. intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. Labeling: Functions of Labels:  Identifiers  Grades  Describes  Promotes e. or a combination of them. Product line length 3.000). Branding Strategy: Brands with strong equity have many competitive advantages:   High consumer awareness Strong brand loyalty 2 . Consists of all the product lines and items that a particular seller offers for sale • Product mix width: Number of different product lines carried by company • For Example: Colgate offers personal care products-(4. benefits. Product line length  Line stretching: adding products that are higher or lower priced than the existing line  Line filling: adding more items within the present price range b. production requirement.000 to 120. Packaging 5th P: All the activities of designing and producing the container for a product. Packaging has been influenced by…  Self-service  Consumer affluence  Company/brand image  Innovation opportunity d. distribution Brand: Brand represents the consumer’s perceptions and feelings about a product and its performance. sign. Product Line A group of products that are closely related because they may: • function in a similar manner • be sold to the same customer groups. body wash. Product support services 2. Wal-Mart (100.000) • Product mix depth: Number of different versions of each product in the line (Lifebuoy) • Product mix consistency: How closely related various products lines-in use. and experiences consistently to the buyers (Old Definition) A name.b. GE (250.5) (soft-soap. Product Mix: Also known as product assortment. services. • be marketed through the same types of outlets • fall within given price ranges a. symbol or design. The Role of Brands  Identify the maker  Simplify product handling  Organize accounting  Offer legal protection  Signify quality  Create barriers to entry  Serve as a competitive advantage  Secure price premium Brand Equity: The differential effect that brand knowledge has on consumer response to the marketing of that brand.000). It is the company’s promise to deliver a specific set of features. Branding c.

recognize and remember • Are distinctive • Are extendable • Translate well into other languages • Can be registered and legally protected • Brand Sponsorship • Manufacturer brands • Private (store) brands • Costly to establish and promote • Higher profit margins • Licensed brands • Name and character licensing has grown • Co-branding • Advantages / disadvantages • Brand Development Four Brand Strategies Services Marketing Services: Service industries include business organizations. Likeability 6. State Farm is there • Just do it • Nothing runs like a Deere • Help is just around the corner • Save 15% or more in 15 minutes or less Brand Strategy • Brand Positioning: Three levels of positioning 1. URLs. gross domestic product. Companies often create product icons to develop an identity for their products.S. Meaningful 4. Transferable 5. Characters.  Helps when introducing new products Less susceptible to price competition Brand Elements: Brand Names. Protectible Slogans • Like a good neighbor. Symbols. Product attributes (Least effective) 2. Beliefs and values ( Taps into emotions) • Brand Name Selection: Good Brand Names: • Suggest something about the product or its benefits • Are easy to say. Accounts for more than 80% of UK GDP Characteristics of Services 3 . Slogans. Marinda these days is trying to create one Brand Element Choice Criteria 1. such as safeguard and Michelin.   Accounts for 74% of U. Memorable 2. government. Benefits 3. Many made-up creatures and personalities. are widely recognized figures in popular culture. and private not-for-profit organizations. Logos. Adaptable 3.

and training strategies • Service quantity and quality strategies   4 . or process • Image can include symbols and branding 2. Inseparability  Services can’t be separated from providers 3. Service productivity 1. Managing service quality provides a competitive advantage by delivering consistently higher quality than its competitors • Service quality always varies depending on interactions between employees and customers 3. Perish ability  Services can’t be stored/inventoried for later sale Marketing Strategies for Service Firms In addition to traditional marketing strategies. Managing service productivity refers to the cost side of marketing strategies for service firms • Employee recruiting.1.  Employees an d other factors result in variability 4. felt. service firms often require additional strategies • Service-profit chain links service firm profits with employee and customer satisfaction • Internal marketing means that the service firm must orient and motivate its customer contact employees and supporting service people to work as a team to provide customer satisfaction • Internal marketing must precede external marketing • Interactive marketing means that service quality depends heavily on the quality of the buyerseller interaction during the service encounter 1. Service quality 3. Service differentiation 2. Variability  Quality of service depends upon who provides them & when. or smelled before purchasing Consumers look for service quality signals 2. heard. delivery. tasted. environment. Intangibility Services can’t be seen. Managing service differentiation creates a competitive advantage from the offer. and image of the service • Offer can include distinctive features • Delivery can include more able and reliable customer contact people. hiring. where and how.

Sign up to vote on this title
UsefulNot useful