Ch8 Product, Services & Branding Strategy

7/30/2019 Ch8 Product, Services & Branding Strategy

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Product, Services, andBranding Strategy

Chapter 8


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Definitions

Product Anything offered to a market for attention,

acquisition, use, or consumption that mightsatisfy a need or want.

Service A form of product that consists of

activities, benefits or satisfactions offeredfor sale that are essentially intangible anddo not result in the ownership of anything.


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What is a Product?

Products, Services, and Experiences Market offerings may consist of a

combination of goods and services

Experiences are used to differentiateofferings

Levels of Product and Services Core benefit, actual and augmented

product Product and Service Classifications

Consumer products and industrial products


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Three Levels of Product


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Product ClassificationSchemes

Durability

Use

Tangibility


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Durability and Tangibility

Nondurable

goods

Services

Durable

goods


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Unsought Products

New innovationsProducts consumers dontwant to think about these products Require much advertising &personal selling

i.e Life insurance, blood donation

Product Classifications

Consumer Products

Specialty Products

Special purchase efforts High price Unique characteristics Brand identification Few purchase locations

i.e can be anything

Shopping Products

Buy less frequently Higher price Fewer purchase locations Comparison shopi.e Clothing, appliances

Convenience Products

Buy frequently & immediately

Low priced Mass advertising Many purchase locationsi.e Candy, newspapers


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Product and Service

Classifications Consumer products

Industrial products Materials and parts

Capital items

Supplies and services


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Product and Service

Decisions

IndividualProduct

Product Line Product Mix

Product attributes

Quality, features,style and design

Branding

Packaging

Labeling

Product supportservices

Key Decisions


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Packaging: The 5th P

All the activities of designing and producingthe container for a product.


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Packaging has been influencedby

Self-service

Consumer affluence

Company/brand image

Innovation opportunity


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Innovations in Packaging
http://www.webpackaging.com/


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Functions of Labels

Identifies

Grades

Describes

Promotes


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Product and Service

Decisions Product line

A group of products

that are closelyrelated becausethey may: function in a similar

manner be sold to the same

customer groups, be marketed through

the same types ofoutlets

fall within given priceranges

Key Decisions

IndividualProduct



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Product and Service

Decisions

IndividualProduct


Product line length

Line stretching:adding productsthat are higher orlower priced thanthe existing line

Line filling: addingmore items withinthe present pricerange

Key Decisions


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Product and Service

Decisions

IndividualProduct


Product mix

Also known asproduct assortment

Consists of all theproduct lines anditems that a

particular selleroffers for sale

Key Decisions


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Product and Service

Decisions

IndividualProduct


Product mix width:

Number of differentproduct lines carriedby company

Product mix depth:

Number of differentversions of eachproduct in the line

Product mix

consistency

Key Decisions


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Brand

A name, term, sign, symbol

or design, or a combination of them,intended to identify the goods

or services of one seller or group

of sellers and to differentiatethem from those of competitors.


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The Role of Brands

Identify the maker

Simplify product handling

Organize accounting

Offer legal protection


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The Role of Brands

Signify quality

Create barriers to entry

Serve as a competitive

advantage

Secure price premium


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Brand Equity

The differential effect that brandknowledge has on consumer

response to the

marketing of that brand.


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Branding Strategy

Brands with strong equity havemany competitive advantages:

High consumer awareness

Strong brand loyalty

Helps when introducing new

products Less susceptible to price competition


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The 10 Most Valuable Brands(Source: Millward Brown)

Brand 2007 Brand Value (Billions)

Google $86.06

GE $71.38

Microsoft $70.89

CocaCola $58.21China Mobile

IBM

Apple

$57.23

$55.33

$55.21

McDonalds $49.50

Nokia $43.98

Marlboro $37.32


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Brand Elements

ElementsSlogans

Brand

names URLs

Logos

SymbolsCharacters


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Brand Elements


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Brand Elements

Companies often create product icons to develop anidentity for their products. Many made-up creaturesand personalities, such as elik, Sta nekand

Yumo Ay, are widely recognized figures in popularculture.


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Brand Element Choice

Criteria

Memorable

Meaningful

Likeability

Transferable

Adaptable

Protectible


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Slogans

Like a good neighbor,State Farm is there

Just do it

Nothing runs like aDeere

Help is just around thecorner

Save 15% or more in 15minutes or less

We try harder

Well pick you up

Nextel Done

Zoom Zoom

Im lovin it

Innovation at work

This Buds for you

Always low prices


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Slogans Adn unutabilirsiniz,

tadn asla!

Hayaaaatn tad!

Fark, fiyat!

Yok aslndabirbirimizden farkmz,ama biz OsmanlBankasyz.

Ne biim lastik buuu?

Honda, hayat onda.

akar akmaz akanakmak.

Bira bu kapanaltndadr.

Citroen gelir, hayatdeiir.

Trkiyenin motosikleti.

Erkek snnet olur,askerlik yapar, Permatik

kullanr!

Philips hayatmzkolaylatracak.

Kirlenmek gzeldir.

Tefal, ne varsa sendevar.

Arelik demek yenilikdemek.

Kalebodur, seramikbudur.


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Brand Strategy

Brand Positioning

Brand NameSelection

Brand Sponsorship

Brand Development

Three levels ofpositioning:

Product attributes

Least effective

Benefits

Beliefs and values Taps into

emotions

Key Decisions


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Brand Strategy

Brand Positioning

Brand NameSelection

Brand Sponsorship

Brand Development

Good Brand Names:

Suggest somethingabout the product or its

benefits Are easy to say,

recognize andremember

Are distinctive

Are extendable

Translate well intoother languages

Can be registered andlegally protected

Key Decisions


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Brand Strategy

Brand Positioning

Brand NameSelection

Brand Sponsorship

Brand Development

Manufacturer brands

Private (store) brands Costly to establish and

promote

Higher profit margins

Licensed brands

Name and characterlicensing has grown

Co-branding Advantages /

disadvantages

Key Decisions


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Line ExtensionArelik New Refrigerators

MultibrandsArelik - Beko

Brand ExtensionArelik TV-A/C

New BrandsOYAK - TukaB

rand

Name

Existing New

Product Category

Existing

New

Four Brand Strategies


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Services Marketing

ServicesAccount for 74% of U.S. gross

domestic product.

Service industries includebusiness organizations,government, and private not-for-profit organizations.


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Four ServicesCharacteristics


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Characteristics of Services

Intangibility Consumers look for service quality signals

Inseparability Services cant be separated from providers

Variability Employees and other factors result in

variability Perishability

Services cant be inventoried for later sale

Ch8 Product, Services & Branding Strategy

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