C HAPTER 7 Product, Services, and Branding Strategy.

CCHAPTER HAPTER 77

Product, Services, Product, Services, and Branding and Branding

StrategyStrategy

Copyright 2007, Prentice-Hall Inc. 7-2

Define product and the major classifications of products and services.

Describe the decisions companies make regarding their individual products and services, product lines, and product mixes.

Discuss branding strategy – the decisions firms make in building and managing their brands.

Identify the four characteristics that affect the marketing of a service and the additional marketing considerations that services require.

Discuss two additional product issues: socially responsible product decisions and international product and services marketing.

Roadmap: Previewing the Concepts


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.”

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 supports premium appeal.

FIJI WATERFIJI WATER – “The Taste of Paradise” – “The Taste of Paradise”


The Product-Service Continuum

Sugar Restaurant Education

Pure Tangible

Good

Pure Service

Offer another example of a pure service.


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.


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 preparation, home repairs.


Consumer Experiences

Creating / managing customer experiences differentiates offers from each other.– All Bass Pro Shop stores

offer hunting and fishing skill clinics. The home store in Springfield, Missouri, has an art gallery, archery and pistol range, wildlife museum, and arcade.

Knot Tying Clinic

Art GalleryEntrance


Figure 7-1Three Levels of Product


Consumer Products

Products and services bought by final consumers for personal consumption.– Also includes other marketable entities.

Classified by how consumers buy them:– Convenience goods– Shopping goods– Specialty goods– Unsought goods


Convenience & Shopping Products

Convenience Goods– Bought frequently

and immediately– Low priced– Mass advertising– Many purchase

locations– Examples: candy,

soda, newspapers

Shopping Goods– Bought less

frequently– Higher price– Fewer purchase

locations– Comparison shop – Examples: cars,

furniture, appliances


Specialty & Unsought Products

Specialty Products– Special purchase

efforts– High price– Unique

characteristics– Brand identification– Few purchase

locations– Example: Rolex

watches, Ferrari cars

Unsought Products– New innovations– Are often products

consumers do not want to think about

– Require a lot of advertising and personal selling

– Examples: blood donation, cemetery plots, insurance


Let’s Talk!

Why might a tropical fish be classified by different consumers as a convenience good, a shopping good, OR a specialty good? Explain.


Industrial Products

Those purchased for further processing or for use in conducting business.– Includes materials and

parts, capital items, supplies, and services. Distinction between

consumer and industrial products is based on the purpose for which an item is bought.


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.


Place and Person Marketing

A montage of place and person marketing images.

Marketing in Action


Figure 7-2Individual Product Decisions


Product & Service Attributes

Product quality– Performance quality– Conformance quality

Features– Value to consumer– Cost to company

Style and design– Influences

experience


Branding

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.


Branding

Advantages to buyers:– Product identification– Product quality

Advantages to sellers:– Basis for product’s quality– Provides legal protection– Helps to segment markets


Packaging

Designing and producing the container or wrapper for a product.

Developing a good package:– Market the brand– Protect the elements– Ensure product safety– Address environmental

concerns


Marketing in Action

Dutch Boy’s packaging innovation offers paint in plastic containers with twist-off tops. The paint container is easy to carry, doesn’t need a screwdriver to pry open, doesn’t dribble when poured, and doesn’t take a hammer to bang the lid shut.

Innovative Packaging


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

graphics.


Marketing in Action

As Americans become increasingly concerned about cholesterol, the FDA (Food and Drug Administration) has responded by requiring food manufacturers to list trans fat (i.e., trans fatty acids) on the Nutrition Facts portion of product labels, effective 1/1/06.

Labeling


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.


Product Line Decisions

Product line length:– The number of items in a product line.

Adjust line length by:– Stretching

Downward Upward Both directions

– Fillingiams.com


Marketing in Action

Marriott offers a full line of hotel brands, each aimed at a different market.

Product Line Stretching


Choose a partner in class and discuss your favorite products.

How could the existing product line be stretched or filled? Explain.

Let’s Talk!


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.– Consistency: how closely related various lines are.


Brand Equity

The positive differential effect that knowing the brand name has on customer response to the product or service.

Provides:– Greater brand awareness and loyalty– Basis for strong, profitable customer

relationships


Figure 7-3Major Brand Strategy Decisions


Brand Positioning

Can position brands at any of three levels:– Product attributes

Least desirable; easily copied.

– Product benefits– Beliefs and values

Hits consumers on a deeper level, touching universal emotions.


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 protection.


Let’s Talk!

Boudreaux’s Butt Paste is a real product that is used in the treatment of diaper rash.

Evaluate this brand name against the criteria for a good brand name that were previously discussed.

How does it fare? Explain.


Brand Sponsorship

Manufacturer’s brands– Also called national

brands

Private brands– Also called store or

distributor brands

Licensed brands Co-branding

Mi Casa brand products are only available at Stop & Shop stores.


Figure 7-4Brand Development Strategies


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.

Swiss Army’s successful brand name has been instrumental in launching

brand extensions. Watch the snippet to see what they’ve done.

Video Snippet


Marketing in Action

Liquid-Plumr Power Jet is the latest offering in the line of Liquid Plumr brand products.

Line Extensions

Liquid-plumr.com


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 products in new product category.


Figure 7-5Four Service Characteristics


Let’s Talk!

How do the service characteristics of intangibility, variability,

inseparability, and perishability relate to restaurants?

Explain.


Internal service quality. Satisfied and productive service

employees. Great service value. Satisfied and loyal customers. Healthy service profits and growth.

The Service-Profit Chain


Figure 7-6Three Types of Service Marketing


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.

Major Service Marketing Tasks


Product Decisions and Social Responsibility

International Product and Service Marketing– Which products & services to introduce?– Whether to standardize or adapt?– Packaging presents challenges.– Services marketers face special

challenges; growth will continue.

Additional Product Considerations


Define product and the major classifications of products and services.

Describe the decisions companies make regarding their individual products and services, product lines, and product mixes.

Discuss branding strategy – the decisions firms make in building and managing their brands.

Identify the four characteristics that affect the marketing of a service and the additional marketing considerations that services require.

Discuss two additional product issues: socially responsible product decisions and international product and services marketing.

Rest Area: Reviewing the Concepts

C HAPTER 7 Product, Services, and Branding Strategy.

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Transcript of C HAPTER 7 Product, Services, and Branding Strategy.