Product, Services, and Branding Strategies PDF

Product, Services, and Branding Strategies Chapter 9  Objectives Be able to define product and know the major classifications of products and services. Understand the decisions companies make regarding their individual products and services, product lines, and product...

Product, Services, and Branding Strategies Chapter 9  Objectives Be able to define product and know the major classifications of products and services. Understand the decisions companies make regarding their individual products and services, product lines, and product mixes. 9-1  Objectives Understand how firms build and manage their brands. Know the four characteristics of services and the additional marketing considerations that services require. Review additional product issues related to social responsibility and international marketing. 9-2  Case Study The Cosmetics Industry Cosmetics The “promise”, companies sell image, company, billions of dollars name, package, and worth of products ingredients are all Consumers buy part of the product, more than just a as are the stores particular smell where it is sold. 9-3  Definitions Product ▪ Anything offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want. Service ▪ Any activity or benefit that one party can offer to another that is essentially intangible and does not result in ownership of anything. 9-4  What is a Product? Products, Services, and Experiences ▪ Market offerings, pure tangible goods, pure services, experiences Levels of Product and Services ▪ Core benefit, actual product, and augmented product Product and Service Classifications 9-5  What is a Product? Types of Consumer Frequent purchases Products bought with minimal buying effort and little Convenience comparison shopping Shopping Low price Widespread Specialty distribution Unsought Mass promotion by producer 9-6  What is a Product? Types of Consumer Less frequent purchases Products requiring more shopping effort and price, quality, and style comparisons. Convenience Higher than convenience Shopping good pricing Selective distribution in Specialty fewer outlets Unsought Advertising and personal selling by producer and reseller 9-7  What is a Product? Types of Consumer Strong brand preference Products and loyalty, requires special purchase effort, little brand comparisons, Convenience and low price sensitivity Shopping High price Exclusive distribution Specialty Carefully targeted Unsought promotion by producers and resellers 9-8  What is a Product? Types of Consumer Little product awareness Products and knowledge (or if aware, sometimes negative interest) Convenience Pricing varies Shopping Distribution varies Specialty Aggressive advertising and personal selling by Unsought producers and resellers 9-9  What is a Product? Product and Service Classifications ▪ Consumer products ▪ Industrial products ❖ Materials and parts ❖ Capital items ❖ Supplies and services 9 - 10  What is a Product? 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 campaigns promote ideas 9 - 11  Product and Service Decisions Key Decisions Product attributes ▪ Quality, features, style and design Individual Product Branding Product Line Packaging Product Mix Labeling Product support services 9 - 12  Product and Service Decisions Key Decisions Product line length ▪ Line stretching: adding Individual Product products that are higher or lower priced Product Line than the existing line ▪ Line filling: adding Product Mix more items within the present price range 9 - 13  Product and Service Decisions Key Decisions Product line width: ▪ number of different product lines carried Individual Product by company Product Line Product line depth: ▪ Number of different Product Mix versions of each product in the line Product line consistency 9 - 14  Branding Strategy Brands are powerful assets that must be carefully developed / managed. Brands with strong equity have many competitive advantages: ▪ High consumer awareness ▪ Strong brand loyalty ▪ Helps when introducing new products ▪ Less susceptible to price competition 9 - 15  Brand Strategy Key Decisions Three levels of positioning: Brand Positioning ▪ Product attributes Brand Name ❖ Least effective Selection ▪ Benefits Brand Sponsorship ▪ Beliefs and values Brand Development ❖ Taps into emotions 9 - 16  Brand Strategy Key Decisions Good Brand Names: ▪ Suggest something about the product or its benefits Brand Positioning ▪ Are easy to say, recognize Brand Name and remember ▪ Are distinctive Selection ▪ Are extendable Brand Sponsorship ▪ Translate well into other languages Brand Development ▪ Can be registered and legally protected 9 - 17  Brand Strategy Key Decisions Manufacturer brands Private (store) brands Brand Positioning ▪ Costly to establish and promote Brand Name ▪ Higher profit margins Selection Licensed brands Brand Sponsorship ▪ Name and character licensing has grown Brand Development Co-branding ▪ Advantages / disadvantages 9 - 18  Brand Strategy Key Decisions Line extensions ▪ Minor changes to existing products Brand Positioning Brand extensions Brand Name ▪ Successful brand names help introduce new Selection products Brand Sponsorship Multibrands ▪ Multiple product entries in Brand Development a product category New brands ▪ New product category 9 - 19  Brand Strategy Line Extensions May Feature Different: Flavors Forms Colors Ingredients Package Sizes 9 - 20  Services Marketing Services ▪ Account for 74% of U.S. gross domestic product. ▪ Service industries include business organizations, government, and private not-for-profit organizations. 9 - 21  Services Marketing Characteristics of Services ▪ Intangibility ❖ Consumers look for service quality signals ▪ Inseparability ❖ Services can’t be separated from providers ▪ Variability ❖ Employees and other factors result in variability ▪ Perishability ❖ Services can’t be inventoried for later sale 9 - 22  Services Marketing Service Firm Marketing Strategies ▪ The Service-Profit Chain ❖ Internal Marketing ❖ Interactive Marketing ▪ Managing Service Differentiation ▪ Managing Service Quality ▪ Managing Service Productivity 9 - 23  Additional Product Considerations Product Decisions and Social Responsibility ▪ Acquisitions and mergers ▪ Legal compliance ▪ Product liability issues ▪ Warranties 9 - 24  Additional Product Considerations International Product and Services Marketing ▪ Special challenges: ❖ Which products should be marketed internationally? ❖ Should the products be standardized or adapted for world markets? ❖ How should packaging be adapted? ❖ How can other barriers be overcome? 9 - 25