Chapter 6 Products services and brands.pdf

Sport and leisure marketing 1 (SLM150S) Unit 4- Section 1- PRODUCTS SERVICES AND BRANDS CHAPTER 6 Lesson outcomes Define products and its major classifications. Describe what types of decisions companies make for individual products, services and product...

Sport and leisure marketing 1 (SLM150S) Unit 4- Section 1- PRODUCTS SERVICES AND BRANDS CHAPTER 6 Lesson outcomes Define products and its major classifications. Describe what types of decisions companies make for individual products, services and product lines. Identify the four characteristics that affect the marketing of services. Discuss branding strategy for a practical sport and leisure product, service, event, or company.  Key concepts to note… What is a product? How is this different from a service? How would you define an experience? How are each of these concepts branded? What does branding entail?  What is a product? A product can be defined as anything that can be offered to a market for attention, acquisition, use, or consumption that may satisfy a need or want. There are different levels of products: Each level adds to customer value Core product Actual product Augmented product  Products explained (core, actual, augmented) Core product refer to what the person is actually buying and is the primary motivation for the customer. E.g., a visit to an exhibition, fitness class or event. Or sport merchandise. The actual product develop customer features and wraps certain elements of the core product. E.g., quality level, packaging, changing facilities etc. Augmented product is what is optional for example, food, merchandise sales, and for companies it would be product support services, long-term customer support, warrantees. Product classifications Interactive activity- Questions for reflection Take 5 minutes to answer the following questions: 1. Name the four categories of the consumer product. 2. What is an example of a shopping product? 3. A rolex watch is an example of which consumer product category?  What is a service?/ Experience? A service can be defined as an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership in anything. E.g., installation, delivery (Leisure consumer doing online shopping) It is possible to incorporate a goods and services for example, purchasing an item that needs installation therefore the item is the product and the installation thereof is a service. More companies include experiences to their product offering.. E.g., theme parks, memories etc. Service characteristics What makes a service different from a product? Sportsvendo Marketing Marketing and profit strategies for services Much like products, services need to have a target audience. Clients should be happy and satisfied with service delivery. Value for money is a key element. As services are different from products, they need additional marketing approaches such as a profit chain that looks at: Internal service quality (superior employees) Satisfied & productive service employees which result in Greater service value, satisfied and loyal customers, healthy service profits & growth Services need to be… Differentiable Going the extra mile for customers i.e, where customers can get hands-on experience with the product before purchasing Manage service quality Service quality is more difficult to judge than product quality. But you can determine e.g., late deliveries, interactions with customers, slow and rude service. Customers are encouraged to provide feedback. Manage service productivity Cost rising impacts service productivity More skilful employees needed Hire or train current employees to work harder and faster Do not compromise productivity over quality Interactive activity- Questions for reflection Take 5 minutes to complete the following questions: 1. Name one difference of a service compared to a product. 2. Skilful employees are important of service delivery (TRUE or FALSE)? Brands/ Branding What are brands? It is more than just logos and symbols. It has high EQUITY: which is the effect of by just knowing the brand name, the customer will respond positively to its marketing. Think about your favourate brand for running shoes or if you are a musician, think about the brand of your instruments. The equity differentiate brands and it brings forth VALUE The brand value is the total financial value of a brand. Building strong brands 1. Brand positioning Marketers position the brand clearly in the minds of consumers by pointing to product attributes, beliefs, value systems etc. For example, an emotional positioning are brands that have become love marks i.e., 2. Brand name selection A good brand name is essential for different reasons A brand name should: suggest something about the product It should, be easy to pronounce, distinctive from others, it should be extendable i.e., developing new products, it should easily translate into foreign languages, it should be recognisable, and protected legally. Who can pronounce Huawei? It took me 30 seconds to write it by the way… 3. Brand sponsorship Battle of the brands reflect in sponsorship deals. Brands either decide to extend towards sponsorships or together with another brand (co-branding).  Meaning of Huawei name selection According to the company founder Ren Zhengfei, the name Huawei comes from a slogan he saw on a wall, Zhonghua youwei meaning "China has promise" (中华有为, Zhōnghuá yǒuwéi), when he was starting the company and needed a name. Zhonghua or Hua means China, while youwei means "promising/to show promise“ Due to the fact that the name was not easy to pronounce, the following article states how in 2018 this mobile company considered a name change, especially in South Africa. https://www.fin24.com/Companies/ICT/huawei-changes-name-to- wahway-20180401 4. Brand development When a company choses to develop its brand it can do one of the following: Introduce line extensions: extending existing brand (colours, size, ingredients of the product category. I.e. coca cola & vanilla/ cherry coke. Brand extensions: extending existing brand name to new product categories i.e., Mr Price fashion, home, etc. Multibrands: establish different features to reach larger market and segmentations New brands: new product development Example of mulitbrands Huawei reading Chinese smartphone maker Huawei on Tuesday entered into a partnership with Indian consumer electronics firm Micromax Informatics to boost its off-line sales in India. "We have partnered with Micromax to launch our smartphones at multibrand outlets in India," Rishi Kishor Gupta, Vice-President, (Huawei Brand), Consumer Business Group, Huawei India, told IANS. Huawei's online brand Honor phones are not part of this deal. "In Micromax brand stores, Micromax phones will be available. But as far as the distribution and retail network that we have, Huawei will be capitalising on that," said Deepti Mehra, Head, Marketing, Micromax Informatics. Reflection activity- Homework Instructions- Complete the following questions on the homework template on Blackboard. 1. In your own words, discuss at least two consumer product categories. (10) 2. What are the differences between a product and a service? (4) 3. What benefits do companies get from services? (2) 6. Mention which elements are important for companies in their branding process. (4) TOTAL (20 marks) Submission 12 hours before the next class time