Product, Services, and Branding Strategies cont d

1. Product, Services, and Branding Strategies (cont’d) MGT 252 Lecture 7

2. 9-2 Learning Goals 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 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

3. 9-3 Individual Product andService Decisions

4. 9-4 Individual Product andService Decisions Product and Service Attributes Quality Lined to customer value and satisfaction The whole company needs to be involved (TQM) Features Competitive tool for differentiating product Should be valued by the customer as determined through market research Style and Design Good design contributes to product’s usefulness as well as looks

5. 9-5 Individual Product andService Decisions Branding Brand: a name, term, sign, symbol, or design that identifies the product Branding can add value to a product Branding helps buyers Identify products Determine quality Branding helps sellers Convey product quality Provide legal protection Segment markets

6. 9-6 Branding Click to Procter and Gamble Co. website to see how well you know their brands

7. 9-7 Individual Product andService Decisions Packaging Often includes primary, secondary and shipping packages Functions of packaging Contain and protect Promote the product Differentiate the product

8. 9-8 Packaging Can Differentiate POM brand Pomegranate juice used a distinctively shaped bottle to gain attention on the grocery shelf

9. 9-9 Individual Product andService Decisions Labelling serves to identify the product Describes the product Promotes the product Must be careful not to: Mislead customers Fail to describe ingredients Fail to include safety warnings

10. 9-10 Individual Product andService Decisions Product support services Survey customers regularly to assess current customer service Companies use a mix of phone, email, fax, Internet and interactive voice and data technologies

11. 9-11 Product Line Decisions Product line A group of products that are closely related because they may… function in a similar manner are sold to the same customer groups Market through the same types of outlets fall within given price ranges 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

12. 9-12

13. 9-13 Product Mix Decisions Product Mix Also known as product assortment Consists of all the product lines and items that a particular seller offers for sale Width: # of product lines Length: # of products in lines Depth: # of versions of each product carried Consistency: how closely related the product lines are

14. 9-14 Learning Goals 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 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

15. 9-15 Branding Strategy Brand equity is the positive differential effect that knowing the brand name has on customer response to the product or service One measure of equity is the extent to which customers are willing to pay more for the brand Brand valuation is the process of estimating the total financial value of a brand

16. 9-16 Branding Strategy Brands with strong equity have many competitive advantages: High consumer awareness Strong brand loyalty Helps when introducing new products Less susceptible to price competition

17. 9-17 Figure 9.3Building Strong Strategy

18. 9-18 Building Strong Strategy Brand Positioning Brand Name Selection Brand Sponsorship Brand Development Three levels of positioning: Product attributes Least effective Benefits Beliefs and values Taps into emotions

19. 9-19 Product Positioned on Emotions MasterCard positions its credit card based on consumer emotions

20. 9-20 Building Strong Strategy Brand Positioning Brand Name Selection Brand Sponsorship Brand Development 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

21. 9-21 Building Strong Strategy Brand Positioning Brand Name Selection Brand Sponsorship Brand Development 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

22. 9-22 Building Strong Strategy Brand Positioning Brand Name Selection Brand Sponsorship Brand Development Line extensions Minor changes to existing products Brand extensions Successful brand names help introduce new products Multibrands Multiple product entries in a product category New brands New product category

23. 9-23 Figure 9.4 Brand Development Strategies

24. 9-24 Managing Brands Brands are known through advertising, personal experience, word of mouth, the Internet Everyone in the company represents the brand Companies need to periodically run a brand audit

25. 9-25 Learning Goals 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 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

26. 9-26 Services Marketing Services Account for 68% of Canada’s GDP, almost 75% of employment, and nearly 90% of new job creation. Service industries include business organizations, government, and private not-for-profit organizations

27. 9-27 Figure 9.5Four Service Characteristics

28. 9-28 The Service-Profit Chain Internal Marketing Interactive Marketing Marketing Strategies forService Firms (Figure 9.6)

29. 9-29 Managing Service Differentiation Managing Service Quality Managing Service Productivity Marketing Strategies forService Firms

30. 9-30 High-quality service has made the Ritz-Carlton a favourite among conventioneers. Their Credo is more than just words on paper – Ritz-Carlton delivers on its promises.

31. 9-31 Learning Goals 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 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

32. 9-32 Additional Product Considerations Product Decisions and Social Responsibility Government regulation Food and product safety Pricing and advertising Labelling, weights, and measures Hazardous products Product liability International Product and Services Marketing Standardization versus local adaptation Electrical standards, packaging Cultural differences in meaning Barriers to trade

33. 9-33 Learning Goals 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 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