Product, Services, and Branding Strategy

1. Product, Services, and Branding Strategy Chapter 9

2. 7 - 2 Road Map: Previewing the Concepts Define product and the major classifications of products and services. Describe the roles of product and service branding, packaging, labeling, and product support services. Explain the decisions companies make when developing product lines and mixes. Identify the four characteristics that affect the marketing of a service. Discuss the additional marketing considerations that services require.

3. 7 - 3 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.

4. 7 - 4 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.

5. 7 - 5 Levels of a Product Augmented product Actual product Core product

6. 7 - 6 Consumer Products Products and services bought by final consumers for personal consumption.

7. 7 - 7 Convenience Products Purchased frequently & immediately Low priced Mass advertising Many purchase locations Examples: candy, soda, newspapers

8. 7 - 8 Shopping Products Bought less frequently Higher price Fewer purchase locations Comparison shop Examples: furniture, clothing, cars, appliances

9. 7 - 9 Specialty Products Special purchase efforts High price Unique characteristics Brand identification Few purchase locations Examples: Lamborghini, Rolex Watch

10. 7 - 10 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

11. 7 - 11 Industrial Products Those purchased for further processing or for use in conducting business.

12. 7 - 12 Industrial Products Materials and Parts: Raw materials, manufactured materials and parts Capital Items: Products that aid in buyer’s production or operations Supplies and Services: Operating supplies, repair, and maintenance items

13. 7 - 13 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.

14. 7 - 14 Individual Product Decisions Product attributes Branding Packaging Labeling Product support services

15. 7 - 15 Product and Service Attributes Quality Features Style & Design

16. 7 - 16 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.

17. 7 - 17 Branding Advantages to buyers: Product identification Product quality Advantages to sellers: Basis for product’s quality story Provides legal protection Helps to segment markets

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

19. 7 - 19 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

20. 7 - 20 Product Support Services Assess the value of current services and obtain ideas for new services. Assess the cost of providing the services. Put together a package of services that delights the customers and yields profits for the company.

21. 7 - 21 Product Line Decisions Product Line Length Stretching Downward Upward Both directions Filling

22. 7 - 22 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.

23. 7 - 23 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

24. 7 - 24 Major Brand Strategy Decisions Brand positioning Brand name selections Brand sponsorship Brand development

25. 7 - 25 Brand Positioning Can position brands at any of three levels: Product attributes Product benefits Beliefs and values

26. 7 - 26 Brand Name Selection Desirable qualities for a brand name include: It should suggest product’s benefits and qualities It should be easy to pronounce, recognize, and remember It should be distinctive It should be extendable It should translate easily into foreign languages It should be capable of registration and legal protection

27. 7 - 27 Brand Sponsorship Manufacturer’s brands Private brands Licensed brands Co-branding

28. 7 - 28 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.

29. 7 - 29 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.

30. 7 - 30 Nature and Characteristics of a Service Intangibility Inseparability Variability Perishability

31. 7 - 31 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 & sacrifice quality, harness technology.

32. 7 - 32 International Product and Services Marketing Decide which products and services to introduce Decide how much to standardize or adapt Packaging presents new challenges Services marketers face special challenges Trend toward global service companies will continue

33. 7 - 33 Rest Stop: Reviewing the Concepts Define product and the major classifications of products and services. Describe the decisions companies make regarding their individual products and services, product lines, and product mixes. Discuss branding strategy—the decisions companies make in building and managing their brands.

34. 7 - 34 Rest Stop: Reviewing the Concepts Identify the four characteristics that affect the marketing of a service and the additional marketing considerations that services require. Discuss two additional product issues: socially responsible product decisions and international product and services marketing.