Strategic Marketing: Product and Service Decisions

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the main purpose of a product or service?

To create a brand image

To increase profit margins

To differentiate from competitors

To satisfy a want or need (correct)

What are the four differences between products and services?

Brand, Product, Service, and Marketing

Intangibility, Variability, Inseparability, and Perishability (correct)

Tangibility, Consistency, Separability, and Durability

Quality, Style, Design, and Features

What is branding, according to the text?

The name, term, sign, or design that identifies a product or service (correct)

The quality of a product or service

The process of creating a product or service

The marketing strategy used to promote a product

Where do brands exist, according to the text?

In minds Signup and view all the answers

What is brand equity, according to the text?

The positive differential effect that knowing the brand name has on consumer response to marketing actions Signup and view all the answers

What does the size or strength of a node in the Associative Network Memory Model of Brand Equity represent?

Brand awareness Signup and view all the answers

What is the Associative Network Memory Model used to describe?

How brands work Signup and view all the answers

What is the first step in building brand equity according to the Associative Network Memory Model?

Building awareness Signup and view all the answers

What do the words in blue represent in the Associative Network Memory Model of Brand Equity?

Marketing strategies Signup and view all the answers

What is the primary goal of building brand awareness according to the Associative Network Memory Model?

To provide an anchor point for the brand Signup and view all the answers

What does the line thickness in the Associative Network Memory Model of Brand Equity represent?

Tie strength between nodes Signup and view all the answers

According to the model, what is the ultimate goal of brand strategy?

To establish an identity that matches target customers’ needs in a cost-efficient manner Signup and view all the answers

What is a key advantage of having high brand equity?

Price insensitivity Signup and view all the answers

What is an important consideration when selecting a brand name?

The name should be easy to pronounce, recognize, and remember Signup and view all the answers

What is an example of a brand extension strategy?

Levi's Tailored Classics Signup and view all the answers

What is brand positioning based on?

Beliefs and attributes Signup and view all the answers

What is a key step in building a brand?

Selecting a brand name Signup and view all the answers

What is a brand development strategy that involves creating a new brand name?

New brands Signup and view all the answers

What is one of the advantages of brand extension?

Leveraging existing brand awareness Signup and view all the answers

What is a risk of brand extension?

Dilute value of the brand Signup and view all the answers

What is the term for the number of product lines a company markets?

Product portfolio width Signup and view all the answers

What is the purpose of product support services?

To take care of customers and keep them happy Signup and view all the answers

What is the term for a group of products that are closely related?

Product line Signup and view all the answers

What is packaging?

Designing and producing the container or wrapper for a product Signup and view all the answers

What is a product portfolio?

All the products and items that a particular seller offers for sale Signup and view all the answers

What is the term for the number of versions offered for each product in the line?

Product line depth Signup and view all the answers

What is the main goal of brand development strategy?

To leverage existing brand awareness and enhance the core brand Signup and view all the answers

What is the term for a single master brand used for all products?

Branded house Signup and view all the answers

Study Notes

Product and Service Decisions

A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
There are four differences between products and services:
- Intangibility
- Variability
- Inseparability
- Perishability

Product and Service Attributes

Features
Quality
Style
Design

Branding

Brand is the name, term, sign, or design—or a combination of these—that identifies the maker or seller of a product or service.
Products exist on shelves, but brands exist in minds.
Brand Equity: the positive differential effect that knowing the brand name has on consumer response to marketing actions.
Brand awareness or familiarity reflects the customer's ability to identify a brand.
Brand image, or customers' perceptions and associations with the brand, are represented by the links of the brand name node to other informational nodes in the model.

Associative Network Memory Model of Brand Equity

The human mind is a network of nodes and connecting links.
The key characteristics of a brand, which influence its brand equity, are captured as nodes and linkages.
Brand strategy involves building awareness to provide an anchor point, then building linkages to positive, unique memory nodes to establish an identity that matches target customers' needs in a cost-efficient manner.

Awareness

Awareness is the first step in building brand equity.
It is essential to build awareness to provide an anchor point for the brand.

Brand Equity Advantages

High loyalty
Price insensitivity
Strong associations – clear meaning

Brand Positioning

Brand positioning by benefits
Brand positioning by attributes
Brand positioning by beliefs

How to Build Strong Brands

Brand name selection should be desirable, easy to pronounce, recognize, and remember, distinctive, extendable, translatable, and capable of registration and legal protection.

Brand Development Strategy

Product category
Existing brand name
New brand name
Line extension
Brand extension
Multibrands
New brands
Risks of line extensions: brand name losing its meaning, consumer confusion, and cannibalizing other items in the line.
Risks of brand extensions: diluting value of the brand, confusing image/positioning of the main brand, and harming attitudes towards other products of the same brand.

Brand Architecture

Spectrum of brand architecture:
- Single master brand
- House of brands
- Endorsed brands
- Sub-brands

Packaging

Packaging involves designing and producing the container or wrapper for a product.
Firms want unique or different packaging to differentiate their products.

Product Support Services

Take care of customers and keep them happy, before, during, and after the sale.

Product Portfolio Decisions

Product hierarchy: need, family, product class, product line, and product type
Product portfolio (product mix): all the products and items that a particular seller offers for sale
Product line: a group of products that are closely related
Product mix decisions:
- Product portfolio width: the number of product lines a company markets
- Product portfolio length: the number of brands within each product line
- Product portfolio depth: the number of versions offered for each product in the line

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge on product and service decisions in marketing, including branding, product portfolio decisions, and the differences between products and services. Learn about the marketing strategy and what constitutes a product.