class 7.pptx

PRINCIPLES OF MARKETING Chapter 8 Products, Services, and Brands Building Customer Value Learning Outcomes 1. Define product and describe the major classifications of products and services. 2. Describe the decisions companies make regarding their individual products a...

PRINCIPLES OF MARKETING Chapter 8 Products, Services, and Brands Building Customer Value Learning Outcomes 1. Define product and describe the major classifications of products and services. 2. Describe the decisions companies make regarding their individual products and services, product lines, and product mixes. 3. Identify the four characteristics that affect the marketing of services and the additional marketing considerations that services require. 4. Discuss brand strategy: the decisions companies make in building and managing their brands. What is a Product? Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or a need. Includes: – Physical Products – Services – Events – Persons – Places – Organizations – Ideas – Combinations of the above What are Services? An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything.  Core Core Actual Actual Product Product Product Product Warranty Quality Design Level After- Benefit Benefit Delivery Sale Core & Credit Core Service Brand Features Name Packaging Installation Augmented Augmented Product Product Levels of Product and Services Product and Service Classifications Consumer Products Convenience Products Shopping Products > Buy frequently & immediately > Buy less frequently > Low priced > Gather product > Many purchase locations information > Includes: > Fewer purchase locations Staple goods > Compare for: Impulse goods Suitability & Quality Emergency goods Price & Style Specialty Products Unsought Products > Special purchase efforts > New innovations > Unique characteristics > Products consumers don’t > Brand identification want to think about buying > Few purchase locations > Require much advertising & personal selling Other Other Marketable Marketable Entities Entities Organizations  Organizational associations Person  Associating certain individuals to the product  Brand ambassadors Place  Idea  Product and service Decisions Product Individual line product decisions, and service decisions Product Support Services Labeling Labeling Labeling Packaging Packaging Packaging Branding Branding Branding Product Product Attributes ProductAttributes Attributes Individual Product Decisions Product Attribute Decisions Quality Quality Features Features Design Design  A name, term, sign, symbol, design, or a combination of these, that identifies the products or services of one Brand seller or group of sellers and differentiates them from those of competitors. Consistency Consistency Quality & Quality Value & Value Attributes Attributes Advantages Identification Identification of Brand Names Association Association Brand Loyalty Loyalty Equity Credibility Credibility Awareness Awareness Packaging Competitive Advantages Sales Product Tasks Packaging Packaging Safety Identifies Labeling Labeling Promotes Describes  Line Extensions Brand Extensions Multibrands New Brands Brand Development Manufacturer’s Brand Private Brand Licensed Brand Co-branding Brand Sponsorship Selection Brand Protection Name Selection Major Brand Decisions  Brand Strategy Product Category Existing New Brand Name Extension Extension Existing Line Brand Multibrands Brands New New Brand Strategy Line Extension – Existing brand names extended to new forms, sizes, and flavors of an existing product category. Brand Extension – Existing brand names extended to new product categories. Multibrand – New brand names introduced in the same product category. New Brands – New brand names in new product categories. Product Line Decisions A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. Eg. Old Navy, Gap, Banana Republic Product Line Decisions Product Product Line Line Length Length Number Number of of Items Items in in the the Product Product Line Line Stretching Filling Lengthen beyond Lengthen within current range current range Downward Downward or or Upward Upward Product Mix Decisions A product mix (or product portfolio) consists of all the product lines and items that a particular seller offers for sale.  Depth Depth -- number number of of versions versions of of each each product product Product Product MixMix -- Length Length -- total total all all the the product product number number of of items items lines lines offered offered within within the the lines lines Consistency Width Width -- number number of of different different product product lines lines Product Mix Decisions Characteristics of Services Intangibility Intangibility Can’t be seen, tasted, felt, heard, or smelled before purchase. Inseparability Inseparability Can’t be separated from service providers. Variability Variability Quality depends on who provides them and when, where and how. Perishability Perishability Can’t be stored for later sale or use.  Greater GreaterService Service Satisfied Satisfiedand andLoyal Loyal Value Value Customers Customers Satisfied Satisfiedand and Healthy HealthyService Service Productive ProductiveService Service Profits Profitsand andGrowth Growth Employees Employees Internal Internal Service Service Quality Quality The Service Profit Chain