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Chapter 8 Product, Services, and Branding Strategy

8 - 2. Learning Goals. Define product and the major classifications of products and servicesDescribe the decisions companies make regarding their products and servicesDiscuss branding strategyIdentify the four characteristics that affect the marketing of a serviceDiscuss additional product issue

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Chapter 8 Product, Services, and Branding Strategy

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    1. Chapter 8 Product, Services, and Branding Strategy

    2. 8 - 2 Learning Goals Define product and the major classifications of products and services Describe the decisions companies make regarding their products and services Discuss branding strategy Identify the four characteristics that affect the marketing of a service Discuss additional product issues

    3. Produce 7.5 million doughnuts each day Sell more than doughnuts; they sell an experience New store openings are eagerly anticipated in part due to extensive promotion Case Study Krispy Kreme

    4. 8 - 4 Learning Goals Define product and the major classifications of products and services Describe the decisions companies make regarding their products and services Discuss branding strategy Identify the four characteristics that affect the marketing of a service Discuss additional product issues

    5. 8 - 5 Definitions 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.

    6. 8 - 6 What is a Product? Products, Services, and Experiences Market offerings may consist of a combination of goods and services Experiences are used to differentiate offerings Core benefit, actual and augmented product

    7. Levels of Product and Services Figure 8.1

    8. Discussion Question Consider Starbucks What goods and services do they offer? How do they differentiate through experience? What is their core, actual and augmented product offering?

    9. 8 - 9 What is a Product? Convenience Shopping Specialty Unsought Frequent purchases bought with minimal buying effort and little comparison shopping Low price Widespread distribution Mass promotion by producer

    10. Convenience Product Convenience Shopping Specialty Unsought

    11. 8 - 11 What is a Product? Convenience Shopping Specialty Unsought Less frequent purchases More shopping effort for comparisons Higher than convenience good pricing Selective distribution in fewer outlets Advertising and personal selling

    12. Shopping Product Convenience Shopping Specialty Unsought

    13. 8 - 13 What is a Product? Convenience Shopping Specialty Unsought Strong brand preference and loyalty, requires special purchase effort, little brand comparisons, and low price sensitivity High price Exclusive distribution Carefully targeted promotions

    14. Specialty Product Convenience Shopping Specialty Unsought

    15. 8 - 15 What is a Product? Convenience Shopping Specialty Unsought Little product awareness and knowledge (or if aware, sometimes negative interest) Pricing varies Distribution varies Aggressive advertising and personal selling by producers and resellers

    16. 8 - 16 Product and Service Classifications Consumer products Industrial products Materials and parts Capital items Supplies and services Organization, Person, Places and Ideas

    17. 8 - 17 Product and Service Classifications Organizations, persons, places, and ideas Organizational marketing makes use of corporate image advertising Person marketing applies to political candidates, entertainment sports figures, and professionals Place marketing relates to tourism Social marketing promotes ideas

    18. Marketing a City

    19. 8 - 19 Learning Goals Define product and the major classifications of products and services Describe the decisions companies make regarding their products and services Discuss branding strategy Identify the four characteristics that affect the marketing of a service Discuss additional product issues

    20. Individual Product and Service Decisions Figure 8.2

    21. 8 - 21 Attributes Branding Packaging Labeling Product Support 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 Individual Product and Service Decisions

    22. 8 - 22 Attributes Branding Packaging Labeling Product Support 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 Individual Product and Service Decisions

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

    24. 8 - 24 Attributes Branding Packaging Labeling Product Support Often includes primary, secondary and shipping packages Functions of packaging Contain and protect Promote the product Differentiate the product Individual Product and Service Decisions

    25. Packaging can Differentiate POM brand Pomegranate juice used a distinctively shaped bottle to gain attention on the grocery shelf

    26. 8 - 26 Attributes Branding Packaging Labeling Product Support 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 Individual Product and Service Decisions

    27. 8 - 27 Attributes Branding Packaging Labeling Product Support Survey customers regularly to assess current customer service Companies use a mix of phone, email, fax, Internet and interactive voice and data technologies Individual Product and Service Decisions

    28. 8 - 28 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

    29. 8 - 29 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

    30. 8 - 30 Product Mix Decisions Product mix width: number of different product lines carried by a company Product mix depth: Number of different versions of each product in the line Product mix consistency

    31. 8 - 31 Learning Goals Define product and the major classifications of products and services Describe the decisions companies make regarding their products and services Discuss branding strategy Identify the four characteristics that affect the marketing of a service Discuss additional product issues

    32. 8 - 32 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

    33. 8 - 33 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

    34. 8 - 34 Brand 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

    35. Product Positioned on Emotions MasterCard positions its credit card based on consumer emotions

    36. 8 - 36 Brand 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

    37. 8 - 37 Brand 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

    38. 8 - 38 Brand 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

    39. 8 - 39 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

    40. 8 - 40 Learning Goals Define product and the major classifications of products and services Describe the decisions companies make regarding their products and services Discuss branding strategy Identify the four characteristics that affect the marketing of a service Discuss additional product issues

    41. 8 - 41 Services Marketing Services Account for 74% of U.S. gross domestic product Service industries include business organizations, government, and private not-for-profit organizations

    42. Characteristics of Services Figure 8.5

    43. 8 - 43 Service Firm Marketing Strategies The Service-Profit Chain Internal Marketing Interactive Marketing Managing Service Differentiation Managing Service Quality Managing Service Productivity

    44. 8 - 44 Learning Goals Define product and the major classifications of products and services Describe the decisions companies make regarding their products and services Discuss branding strategy Identify the four characteristics that affect the marketing of a service Discuss additional product issues

    45. 8 - 45 Product Decisions and Social Responsibility Acquiring and dropping products Patent protection Product quality and safety Product warranties

    46. 8 - 46 International Product and Services Marketing Special challenges: Which products should be marketed internationally? Should the products be standardized or adapted for world markets? Packaging?

    47. 8 - 47 Learning Goals Define product and the major classifications of products and services Describe the decisions companies make regarding their products and services Discuss branding strategy Identify the four characteristics that affect the marketing of a service Discuss additional product issues

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