Unit-3

Product, Service, and

Branding Strategies
Marketing Mix
(4Ps of Marketing)

Set of marketing
tools used by a
firm to pursue its
marketing objectives
in a target market.
Or
Combination of a
number of policies
to realize profit
through customer
satisfaction.
 Marketing Mix Variables
Producing goods, services, or any
 Product that offering that satisfy customer
needs
Decisions and actions to establish
Pricing pricing objectives and policies and
set product prices

The ready, convenient, and timely

Place availability of products

Activities that inform customers

Promotion about the organization and its
products
 Product Levels
i. Core benefit- The fundamental
benefit or services that the
customer is really buying.
 The CORE product is NOT the
tangible, physical product. You
can't touch it. That's because the
core product is the BENEFIT of
the product that makes it
valuable to you. So with the car
example………..!
ii. Basic Product- Marketer turns
benefit into basic product.
iii. Expected product- A set of
attributes & conditions buyers
normally expect when they
purchase product according to
their purchasing power.
 Augmented product- Products that exceeds
consumers expectations. Competition usually takes
place in this level, for which you may or may not
pay a premium. So when you buy a car, part of the
augmented product would be the warranty, the
customer service support offered by the car's
manufacture, and any after-sales service.
v. Potential product- All possible augmentations
& transformations the product might undergo in
future.
 Product Classification
 Products are classified on the bases of durability,
tangibility & use (Consumer or Business).
 Durability & Tangibility

1. Nondurable- Tangible goods usually consumed in

one or few uses. Purchased quickly & consumed
frequently. FMCG (wide availability, small
markup, heavy advertisements)
2. Durable Goods- Tangibles that normally provide
long-term benefit. Require personal selling &
services, higher profit & seller guaranties.
 High
Involvement Durable Goods
Decisions Provide Long-Term Benefits
(cars, furniture, appliances)

Nondurable Goods
Low Provide Short-Term Benefits
Involvement (newspapers, food)
Decisions
3. Services- Intangible, inseparable & activities that are the
main objective of a transaction designed to provide want-
satisfaction to customers.
 Virtually all services require supporting goods & goods
require supporting services.
 A company may also sell a combination of goods &
services.
  Products involving frequent
(Use) purchases bought with
minimal buying effort,
Consumer without gathering extra
Goods information and little
comparison shopping
Classification
Goods purchased by  Low price
final consumer for
 Widespread distribution
personal consumption
 Mass promotion by producer

 Convenience goods are

 Convenience further divided
• Shopping
 Staples- regular bases
• Specialty
• Unsought  Impulse Goods- without
planning

 Impulse Goods
 Staples

 Emergency Goods  Staples

  Less frequent purchases
Consumer
Typepes requiring more shopping
ofoGoods
f effort and price, quality,
suitability and style
Cons nsum
u
Classification comparisons in several
mer stores or between brands.
• Convenience
Proroduducts  Prices higher than
 Shopping
s convenience goods
• Specialty
•  Selective distribution in
Unsought
fewer outlets
 Advertising and personal
selling by producer and
reseller
  Products having unique
Consumer
Typepes characteristics or brand identity
Goods
ofof for which a significant group of
buyers is willing to make a
Classification
Con onsum
u special purchase effort
(substantial time, price & in
mer locating product) .
• Convenience
•
P ro
r o du
Shopping
d uct s  High price

 s
Specialty
 Selected distribution even with
no convenient locations.
• Unsought
(although they must let
prospects & buyers about
location)
 Carefully targeted promotion by
producers and resellers
 • Consumer products
Consumer
Typepes
that the consumer
either doesn't know
Goods
ofof about or if knows about
Classification
Cons nsum
u even then doesn't
normally think of
mer buying right now.
• Convenience
•
Prorodu
Shopping ducts • Pricing varies
• s
Specialty • Distribution varies
 Unsought
• Aggressive advertising
and personal selling by
producers and resellers
Products that are usually purchased
due to adversity rather than desire
the coffin cost $25,000.
  Material & Parts
a. Raw Material- goods that
Product become the part of product prior
Classifications of being processed in anyway.
• Durability and tangibility b. Manufactured material and
parts-
• Consumer goods
 Capital items- long lasting goods
 Industrial goods that facilitates developing or

managing the finished product.
Products bought by
 Installations- buildings, heavy
organizations or
equipments
individuals for use in
 Equipment- portable
a business equipment &tools
 Supplies and business services
 Maintenance and repair
 Advisory services
 By-Product
 A by-product is a secondary or incidental product
deriving from a manufacturing process, a chemical
reaction or a biochemical pathway, and is not the
primary product or service being produced. A by-
product can be useful and marketable, or it can be
considered waste.

 Dried blood-from slaughterhouse operations

 Feathers - poultry processing
 Product Mix (also called Product Assortment)- Set of all
products offered for sale by a particular company. A
product mix consists of various product lines.

 Product Line- A group of products consist of all similar

items in one category. All products which are closely
related, having similar uses and similar physical
characteristics
 Number of items being offered by one product line is called
length of Product Line.
 The width of Product Mix refers to total number of product
lines offered by company
 Length of Product Mix refers to total number of items in
product mix
 The Depth of Product
Line refers to how many
variants( flavors, sizes,
colors etc.) are offered of
a product in the product
line .
 The Consistency of
Product Line refers to
how closely related the
various lines are in the
end use, production
requirement, distribution
channels or some other
way.
 Brands
Fabric & Food & Health care Baby care Feminine Beauty
Home care Beverages care care
Ariel Nutristar Actonel Always Olay
Pampers
Tide Sunny Didronel Alldays Safeguard
Dodot
Delight Tampax
Fairy Metamucil Luvs Pantene
Pringles Whisper
Dash Peptobismol Pert Plus
Bonux Crisco Vicks Max Factor
Lenor Jif Crest Cover Girl
MR Clean Olean Blend-a-mend Camay
Folgers PUR Zest

 marketing approximately 250 brands

 in over 130 countries.
 Product LiinneeDDecisions

Line Stretching Line Filling

When a company Adding more items
lengthens its product line within a product Line
LLininePruning
ePPrruunniningg
beyond its current market range to get more Dropping weak
range (making additional profits, fill missing Items from
products for upper or items in product line, product line
lower class users) utilize excess
capacity, try to be
leading as full line
Downward
company, to fill holes
to keep out
Upward competitors
Two-way
 Brand/Trade Mark
 A name, term, sign, symbol, or design, or a combination of these,
intended to identify the goods or services of one seller or group of
sellers and to differentiate them from those competitors
 A Brand Name consists of words, letters, or numbers that can be
vocalized
 Brand Mark is a part of brand that appears in the form of a symbol ,
design or distinctive color or lettering.
 A trademark is designated by the following symbols:
 ™ (for an unregistered trademark, that is, a mark used to promote or
brand goods);
 ℠ (for an unregistered service mark, that is, a mark used to promote
or brand services); and
 ® (for a registered trademark).
http://www.ipo.gov.pk
 Anyone who claims rights in a mark may use the
TM (trademark) or SM (service mark) designation
with the mark to alert the public to the claim. It is
not necessary to have a registration, or even a
pending application, to use these designations. The
claim may or may not be valid.

 The registration symbol, ®, may only be used when

the mark is registered in the PTO. It is improper to
use the registration symbol at any point before the
registration issues.
 Terms such as "mark", "brand" and "logo" are
sometimes used interchangeably with
"trademark". "Trademark", however, also
includes any device, brand, label, name,
signature, word, letter, numerical, shape of
goods, packaging, color or combination of
colors, smell, sound, movement or any
combination thereof which is capable of
distinguishing goods and services of one
business from those of others.
Desirable Qualities For A Brand Name
 Suggest something about the product’s benefits or
characteristics ( fair & Lovely, ufone, Compuclinic, Mr.
books, Cakes & Cookies, Telenor, Hijjab, Bugrer king,
Candyland)
 Easy to pronounce, recognize, and remember
 Capable of being registered and legally protected
 It should be distinctive
 It should not carry poor meanings in other
countries and languages
 Be adaptable to additions of product line or product
mix (McDonald vs. Burger King or Pizza Hut,
Alaska Airline vs. United Airlines)
 Advantages of Branding
 Brand name makes it easy for sellers to process
orders & track down problem
 Branding gives seller opportunity to attract a loyal
and profitable customer.
 Branding provides legal protection to seller
 Helps in segmentation
 Strong brands help to build corporate image, makes
it easy to launch new brands & gain acceptance of
distributors and consumers easily
 Brand Name Strategies
 Individual names/branding- Company gives separate
names to its all products. ( Unilever, P & G)
 Company doesn't tie its reputation to the product in case
products fails or appears to be of low standard.

 Blanket family name/Corporate branding- Company

give same names to its all products/ company's name is used
as a product brand name
 less expenditures on brand name recognition
LG TV, LG radio, LG DVD, LG Fridge etc
 Separate family names for all products- When company
produces quite different products from each other then
gives separates names (Product line name) to all similar
products.
 Company Trade name combined with individual
product names-
 Simultaneously product & company recognition
 Co-brand- Brands bearing two or more well known brand
names (two separate companies or with two product line
names)
 multiple sponsor co-branding.
 Joint venture co-branding

 A fighting brand is a brand created specifically to counter

a competitive threat either by a company or by joint jenture
with other companies.
 Nestea is a brand of iced tea manufactured by Nestle & distributed by
The Coca-Cola Company. It competes with Unilever/Pepsi's Lipton
Iced Tea.
 A Premium Brand typically costs more than other
products in the category or which is the most widely
admired brands of the firm.

 When large Retailers buy products in bulk from

manufacturers and put their own brand name on
them, this is called private branding , store brand,
or private label.

 When a company sells the rights to use a brand

name to another company for use on a non-
competing product or in another geographical area,
this is referred to as Brand licensing.
 Derived brands
In this case the supplier of a key component, used by a
number of suppliers of the end-product, may wish to
guarantee its own position by promoting that component as
a brand in its own right.
 
Brand Strategy decision
 Line Extension- Adding new sizes, styles, colors &
flavors to existing product

 Brand Extension (Sub-Brand)- famous Brand

name extended to new products.

An existing brand that gives birth to a brand extension is often referred to as the parent brand
 Multibrands- New brand name in existing product
line ( Dove, Lux, Lifebuoy)
 New Brand- new brand name for a newly established
product line
Brand equity
 Brand equity refers to the marketing effects or outcomes that a product
enjoys with its brand name compared with those that would be if the same
product did not have the brand name.. In other words, consumers'
knowledge about a brand makes manufacturers/advertisers respond
differently or adopt appropriately adept measures for the marketing of the
brand.
 The brand can add significant value when it is well
recognized and has positive associations in the mind of the
consumer. This concept is referred to as brand equity.
 Measures of Brand Equity
i. Brand awareness
ii. Perceived quality
iii. Brand Association
iv. Brand loyalty
v. Extra price payment
 List of some famous protected trademarks
frequently used as generic terms
 Coke- (Coca-Cola Company) Popularly used to refer to any soft
drink; Also used for rival brands of cola (e.g., Pepsi)
 Formica- (Formica Corporation) Wood or plastic laminate
 Google- As a verb, to use a web search engine.
 Jeep- (Chrysler) Compact sport utility vehicle
 Vaseline- Petroleum jelly
 Walkman- often used generically for any portable stereo player
 Aspirin- Still a Bayer trademark name for acetylsalicylic acid in
about 80 countries, including Canada and many countries in Europe,
but declared generic in the U.S.
 Xerox- Photocopier or to make a photocopy
 TCS-
 Surf- a brand of laundry detergent made by Unilever
 Advertising slogans are short, often memorable
phrases used in advertising campaigns. They are
claimed to be the most effective means of drawing
attention to one or more aspects of a product. A
strapline is a British term used as a secondary
sentence attached to a brand name.

Rishta wahi, Soch nai

 Packaging
 Activity of designing and producing the container or wrapper for a
product.
 3 levels
I. Primary Packing- Contains core product
II. Secondary package- Contains primary packaging
III. Shipping Package- contains products in bulk quantity.
 •Protection against damage,
spoilage, tampering etc.

•Assistance in marketing
the product
•ProvidesSelf service
opportunity in stores

•Portability
 Labeling
 Simple tag attached to the product or elaborately designed 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.
Features of Labeling
 Product & company name
 Features of Product
 Open dating- product manufacturing & expiry dates
 Unit pricing- simple or through UPC
 Grade labeling- quality level
 Ingredients
 A bar code on a product’s package that provides
information read by optical scanners.
 UPC codes provide several advantages: labor saving,
improve inventory control, and help with marketing
research.
 The Green Dot is the license symbol of a European
network of industry-funded systems for recycling the
packaging materials of consumer goods

79400 80740
POLYTHENE TEREPHTHALATE (PET) is a
material widely used for packaging, especially
drinks containers. It is 90% recyclable

The CE marking
certifies that a
product has met
EU consumer
safety, health or
environmental
requirements.
CE stands for
Conformité
Européenne,
"European
conformity" in
French.
 Competitive
Advantages
Sales Product
Tasks Safety
Packaging

Labeling
Identifies Promotes

Describes