Product, Services, and Branding Strategy

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.
– Includes: physical objects, services, events, persons, places, organizations, ideas, or some combination thereof.

7-2

What is a Product?
• Product and Service
Classifications
– Consumer products – Industrial products • Materials and parts • Capital items • Supplies and services

7-3

Consumer Products
• Products and
services bought by final consumers for personal consumption.

7-4

Convenience Products
• Purchased frequently and
immediately • Low priced • Mass advertising • Many purchase locations

– Examples: candy, soda, newspapers

7-5

Shopping Products
• Bought less frequently • Higher price • Fewer purchase locations • Comparison shop
– Examples: furniture, clothing, cars, appliances

7-6

Specialty Products
• Special purchase efforts • High price • Unique characteristics • Brand identification • Few purchase locations
– Examples: Lamborghini, Rolex Watch

7-7

Unsought Products
• New innovations • Products consumers do not want to
think about • Require much advertising and personal selling • Examples: life insurance, cemetery plots, blood donation

7-8

Industrial Products
• Those purchased
for further processing or for use in conducting business.

7-9

Industrial Products
Materials and Parts Materials and Parts

Raw materials, manufactured Raw materials, manufactured materials, and parts materials, and parts

Products that aid in Products that aid in buyer’s production or operations buyer’s production or operations

Capital Items Capital Items

Supplies and Services Supplies and Services

Operating supplies, repair, Operating supplies, repair, and maintenance items and maintenance items
7-10

Product and Service Decisions
Key Decisions
• Product attributes
– Quality, features, style and design

• Individual Product • Product Line • Product Mix

• Branding • Packaging • Labeling • Product support
services

7-11

Product and Service Decisions
Key Decisions
• 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

• Individual Product • Product Line • Product Mix

7-12

Product and Service Decisions
Key Decisions
• Product line width:
– number of different product lines carried by company

• Individual Product • Product Line • Product Mix

• Product line depth:
– Number of different versions of each product in the line

• Product line
consistency

7-13

Levels of a Product

7-14

Additional Product Considerations
• Product Decisions and Social
Responsibility
– – – – Acquisitions and mergers Legal compliance Product liability issues Warranties
7-15

Product Mix Decisions
• 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. • Depth: the number of versions offered of each product in the line. • Consistency: how closely related the various lines are.

7-16

Individual Product Decisions

7-17

Packaging
• Designing and producing the
container or wrapper for a product. • Developing a good package:
– Packaging concept – Package elements – Product safety – Environmental concerns
7-18

Labeling
• Printed information appearing on
or with the package. • Performs several functions:
– Identifies product or brand – Describes several things about the product – Promotes the product through attractive graphics
7-19

Branding
• 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.

7-20

Branding
• Advantages to buyers:
– – – – – Product identification Product quality Basis for product’s quality story Provides legal protection Helps to segment markets

• Advantages to sellers:

7-21

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
7-22

Brand Strategy
Key Decisions Brand Positioning
• Three levels of
positioning:
– Product attributes • Least effective – Benefits – Beliefs and values • Taps into emotions

• • Brand Name Selection • Brand Sponsorship • Brand Development

7-23

Brand Strategy
Key Decisions Brand Positioning
• 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 7-24

• • Brand Name Selection • Brand Sponsorship • Brand Development

Brand Strategy
Key Decisions Brand Positioning
• Manufacturer brands • Private (store) brands
– Costly to establish and promote – Higher profit margins

• • Brand Name Selection • Brand Sponsorship • Brand Development

• Licensed brands
– Name and character licensing has grown

• Co-branding
– Advantages / disadvantages
7-25

Brand Strategy
Key Decisions Brand Positioning
• Line extensions
– Minor changes to existing products

• • Brand Name Selection • Brand Sponsorship • Brand Development

• Brand extensions
– Successful brand names help introduce new products

• Multibrands
– Multiple product entries in a product category

• New brands
– New product category
7-26

Brand Equity
• The positive differential effect that
knowing the brand name has on customer response to the product or service. • Provides:
– More brand awareness and loyalty – Basis for strong, profitable customer relationships

7-27

Brand Positioning
• 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:
1. It should suggest product’s 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
Manufacturer’s Brands

Co-Branding

Four Options

Private Brands

Licensed Brands
7-30

Line Extensions

Morton sells an entire line of salts and seasonings for every occasion.
7-31

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). • Brand Extension: using a successful brand name to launch a new or modified product in a new category.
7-32

Brand Development
• 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.
7-33

Services Marketing
• Services
– Account for 70%of India gross domestic product. – Service industries include business organizations, government, and private not-for-profit organizations.

7-34

Services Marketing
• Characteristics of Services
– Intangibility • 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
7-35

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.
– Examples: banking, hotel, airline, retail, tax preparation, home repairs.

7-36

The Product-Service Continuum
Sugar Restaurant College Education

Pure Tangible Good

Pure Service

7-37

Other Market Offerings
• Organizations: Profit (businesses) and
nonprofit (schools and churches). • Persons: Politicians, entertainers, sports figures, doctors, and lawyers. • 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.
7-38

Product and Service Attributes
Quality Quality Features Features Style & Design Style & Design
Performance and Satisfaction Performance and Satisfaction Includes Level & Consistency Includes Level & Consistency Differentiates a product from the Differentiates a product from the competition; assessed based on competition; assessed based on value and cost value and cost Style = Appearance Style = Appearance Design = heart of the product Design = heart of the product
7-39

Nature and Characteristics of a Service

7-40

The Service-Profit Chain

7-41

Major Service Marketing Tasks
• Managing Service Differentiation:
– Develop a differentiated offer, delivery, and image.

• Managing Service Quality:
– Be customer obsessed, set high service quality standards, have good service recovery, empower front-line employees.

• Managing Service Productivity:
– Train current employees or hire new ones, increase quantity and sacrifice quality, harness technology.
7-42

THANK YOU

7-43