basic07_ppt.ppt 211KB Apr 07 2011 01:18:20 AM
Chapter Seven
Product, Services, and Branding Strategy
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Copyright 2007, Prentice Hall, Inc. 7-2
Roadmap:
Previewing the Concepts
1. Define product and 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. Discuss branding strategy – the decisions firms make in building and managing their brands.
4. Identify the four characteristics that affect the marketing of a service and the additional
marketing considerations that services require.
5. Discuss two additional product issues: socially responsible product decisions and international product and services marketing.
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Product
Brand name: FIJI Natural
Artesian Water.
Product source: comes
from an underground location in Fiji islands.
Key benefits: ultra-clean
taste, no impurities or pollutants.
Brand image: “The Taste
of Paradise”
FIJI Water – “The Taste of Paradise”
FIJI Water – “The Taste of Paradise”
Case Study
Case Study
Promotion
It’s a brand experience! Name, packaging, label,
celebrity endorsers and places through which it is sold contributes to “Taste of Paradise” imagery.
Ads evoke exotic origins: tropical forest, volcanoes. High price charged
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What Is a Product?
Anything that can be offered to a
market for attention, acquisition, use, or consumption and that might satisfy a want or need.
– Includes: physical objects, services,
events, persons, places, organizations, ideas, or some combination thereof.
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What Is a 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.
– Examples: banking, hotel, airline, retail, tax
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Market Offerings
Continuum ranges from pure tangible
goods (with no services) to pure
services (with no good component) with many combinations in between.
– Pure good: Camay soap.
– Pure service: Legal representation.
– Combination: Restaurant meal.
Creating and managing customer
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Levels of a Product
Core benefit
– What the consumer is really buying.
Actual product
– Includes the brand name, features, design, packaging, quality level.
Augmented product
– Additional services and benefits such as
delivery and credit, instructions, installation, warranty, service.
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Consumer Products
Products and services bought by final
consumers for personal consumption. – Also includes other marketable entities.
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Convenience Products
Purchased frequently and immediately Low priced
Mass advertising
Many purchase locations
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Shopping Products
Bought less frequently Higher price
Fewer purchase locations Comparison shop
– Examples: furniture, clothing, cars,
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Specialty Products
Special purchase efforts High price
Unique characteristics Brand identification
Few purchase locations
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Unsought Products
New innovations
Products consumers do not want to
think about
Require much advertising and personal
selling
– Examples: life insurance, cemetery plots,
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Industrial Products
Those purchased for further
processing or for use in conducting business.
– Distinction between consumer and
industrial products is based on the purpose for which an item is bought.
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Industrial Products
Materials and parts:
– Raw materials, manufactured materials, and parts
Capital items:
– Products that aid in buyer’s production or operations
Supplies and services:
– Operating supplies, repair, and maintenance items
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Other Market Offerings
Organizations: Profit (businesses) and
nonprofit (schools and churches).
– Includes corporate image advertising.
Persons: Politicians, entertainers, sports
figures, doctors, and lawyers.
Places: Create, maintain, or change attitudes
or behavior toward particular places (e.g., tourism).
Ideas (social marketing): Public health
campaigns, environmental campaigns, family planning, or human rights.
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Individual Product Decisions
Product attributes Branding
Packaging
Labeling
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Product & Service Attributes
Product quality
– Performance quality
– Conformance quality
Features
– Value to consumer
– Cost to company
Style and design
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Branding
Creating, maintaining, protecting, and
enhancing products and services.
A brand is a name, term, sign, symbol,
or design, or a combination of these, that identifies the maker or seller of a product or service.
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Branding
Advantages to buyers:
– Product identification
– Product quality
Advantages to sellers:
– Basis for product’s quality story
– Provides legal protection
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Packaging
Designing and producing the container
or wrapper for a product.
Developing a good package:
– Market the brand
– Protect the elements
– Ensure product safety
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Labeling
Printed information appearing on or
with the package.
Performs several functions:
– Identifies product or brand
– Describes several things about the product
– Promotes the product through attractive
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Product Support Services
Assess the value of current services
and obtain ideas for new services.
Assess the cost of providing the
services.
Put together a package of services that
delights the customers and yields profits for the company.
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Product Line Decisions
Product line length:
– The number of items in a product line.
Adjust line length by:
– Stretching
• Downward
• Upward
• Both directions
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Product Mix Decisions
Product mix:
– all of the product lines and items that a particular seller offers for sale.
Product mix dimensions include:
– Length: the number of items in a line.
– Width: the number of different product lines the company carries.
– Depth: the number of versions offered of each product in the line.
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Brand Equity
The positive differential effect that
knowing the brand name has on
customer response to the product or service.
Provides:
– More brand awareness and loyalty
– Basis for strong, profitable customer
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Major Brand Strategy
Decisions
Brands are assets that must be
carefully developed and managed via: – Brand positioning
– Brand name selections
– Brand sponsorship
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Brand Positioning
Can position brands at any of three
levels:
– Product attributes
– Product benefits
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Brand Name Selection
Desirable qualities for a brand name include: 1.It should suggest product’s benefits and qualities. 2.It should be easy to pronounce, recognize, and
remember.
3.It should be distinctive. 4.It should be extendable.
5.It should translate easily into foreign languages. 6.It should be capable of registration and legal
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Brand Sponsorship
Manufacturer’s brands
– Also called national brands
Private brands
– Also called store or distributor brands
Licensed brands Co-branding
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Brand Development
Line extension:
– introduction of additional items in a given product category under the same brand name (e.g., new flavors, forms, colors, ingredients, or package sizes).
Brand extension:
– using a successful brand name to launch a
new or modified product in a new category.
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Brand Development
Multibranding:
– offers a way to establish different features and appeal to different buying motives.
New brands:
– developed based on belief that the power of its existing brand is waning and a new brand name is needed. Also used for
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Nature and Characteristics
of a Service
Intangibility:
– Services cannot be seen, tasted, felt, heard, or smelled before purchase.
Inseparability:
– Services cannot be separated from their providers.
Variability:
– Quality of services depends on who provides them and when, where, and how they are
delivered. Perishability:
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The Service-Profit Chain
Internal service quality
Satisfied and productive service
employees
Great service value
Satisfied and loyal customers
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Services Marketing
External marketing:
– Traditional marketing via the 4 “P’s”
Internal marketing:
– Effective training and motivation of customer contact employees
Interactive marketing:
– Delivering interactions during the service encounter that are satisfying to the buyer
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Major Service Marketing Tasks
Managing service differentiation:
– Develop a differentiated offer, delivery, and image. Managing service quality:
– Be customer obsessed, set high service quality standards, have good service recovery, empower front-line employees.
Managing service productivity:
– Train current employees or hire new ones, increase quantity and sacrifice quality, harness technology.
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International Product and
Services Marketing
Decide which products and services to
introduce.
Decide how much to standardize or
adapt.
Packaging presents new challenges.
Services marketers face special
challenges.
Trend toward global service companies
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Copyright 2007, Prentice Hall, Inc. 7-37
Rest Stop:
Reviewing the Concepts
1. Define product and 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. Discuss branding strategy – the decisions firms make in building and managing their brands.
4. Identify the four characteristics that affect the marketing of a service and the additional
marketing considerations that services require.
5. Discuss two additional product issues: socially responsible product decisions and international product and services marketing.
(1)
Copyright 2007, Prentice Ha ll, Inc.
7-32
Nature and Characteristics
of a Service
Intangibility:
– Services cannot be seen, tasted, felt, heard, or smelled before purchase.
Inseparability:
– Services cannot be separated from their providers.
Variability:
– Quality of services depends on who provides them and when, where, and how they are
delivered.
Perishability:
(2)
The Service-Profit Chain
Internal service quality
Satisfied and productive service
employees
Great service value
Satisfied and loyal customers
(3)
Copyright 2007, Prentice Ha ll, Inc.
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Services Marketing
External marketing:
–
Traditional marketing via the 4 “P’s”
Internal marketing:
–
Effective training and motivation of
customer contact employees
Interactive marketing:
–
Delivering interactions during the service
encounter that are satisfying to the buyer
(4)
Major Service Marketing Tasks
Managing service differentiation:
– Develop a differentiated offer, delivery, and image.
Managing service quality:
– Be customer obsessed, set high service quality standards, have good service recovery, empower front-line employees.
Managing service productivity:
– Train current employees or hire new ones, increase quantity and sacrifice quality, harness technology.
(5)
Copyright 2007, Prentice Ha ll, Inc.
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International Product and
Services Marketing
Decide which products and services to
introduce.
Decide how much to standardize or
adapt.
Packaging presents new challenges.
Services marketers face special
challenges.
Trend toward global service companies
(6)
Rest Stop:
Reviewing the Concepts
1. Define product and 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. Discuss branding strategy – the decisions firms make in building and managing their brands.
4. Identify the four characteristics that affect the marketing of a service and the additional
marketing considerations that services require.