Mktg 4 Product Brand 1

8/8/2019 Mktg 4 Product Brand 1

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Product and Services


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What is a Product?

Goods

Services Experiences

Events

Persons

Places

Properties Organizations

Information

Ideas


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What Is a Product?

Products, Services, and Experiences

Product is anything that can be offered in amarket for attention, acquisition, use, orconsumption that might satisfy a need orwant

Soap Toothpaste

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What Is a Product?

Product and Service Classifications

Consumer products

Industrial products

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What Is a Product?


Consumer products are products andservices for personal consumption

Classified by how consumers buy them Convenience product

Shopping products Specialty products

Unsought products

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What Is a Product?


Convenience products are consumerproducts and services that the customerusually buys frequently, immediately, andwith a minimum comparison and buyingeffort

Newspapers Candy Fast food

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What Is a Product?


Shopping products are consumer productsand services that the customer comparescarefully on suitability, quality, price, andstyle

Furniture Cars

Appliances

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What Is a Product?


Specialty products are consumer products andservices with unique characteristics or brandidentification for which a significant group of buyersis willing to make a special purchase effort

Medical services Designer clothes

High-end electronics

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What Is a Product?


Unsought products are consumer productsthat the consumer does not know about orknows about but does not normally think ofbuying

Life insurance Funeral services

Blood donations

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What Is a Product?


Industrial products are products purchased forfurther processing or for use in conducting abusiness

Classified by the purpose for which the product ispurchased

Raw Materials and parts Capital Supplies and services

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What Is a Product?


Materials and parts include raw materialsand manufactured materials and partsusually sold directly to industrial users

Wheat

Lumber Iron

Cement

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What Is a Product?


Capital items are industrial products that aidin the buyers production or operations

Buildings

Elevators Computers

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What Is a Product?

Organization marketing consists ofactivities undertaken to create, maintain, orchange attitudes and behavior of targetconsumers toward an organization

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Organizations, Persons, Places, and Ideas


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What Is a Product?

Person marketing consists of activitiesundertaken to create, maintain, orchange attitudes and behavior of targetconsumers toward particular people

Rakhis swayamwar

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What Is a Product?


Place marketing consists of activitiesundertaken to create, maintain, or changeattitudes and behavior of target consumerstoward particular places

Tourism

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What Is a Product?


Social marketing is the use of commercialmarketing concepts and tools in programsdesigned to influence individuals behaviorto improve their well-being and that of

society Public health campaign

Tourism

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What Is a Product?

Experiences represent what buying the productor service will do for the customer

Treasure Land

Disney land

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What Is a Product?


Service is a form of product that consists ofactivities, benefits, or satisfactions offeredfor sale that are essentially intangible anddo not result in ownership

Doctors exam

Legal advice

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The Product and Product Mix Potential customers judge product

offerings according to three elements:

Product features and quality

Services mix and quality

Value-based prices


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The Product and Product Mix The customer value hierarchy:

Core benefit

Basic product

Expected product

Augmented product

Potential product


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What Is a Product?

Core benefits

Actual product

Augmented product

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Levels of Product and Services


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What Is a Product?

Levels of Product and Services

Core benefits represent what the buyer is reallybuying

Actual product represents the design, brand name,and packaging that delivers the core benefit to thecustomer

Augmented product represents additional services orbenefits of the actual product

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Product and Service Decisions

Product Mix Decisions

Product mix consists of all the products anditems that a particular seller offers for sale

Width

Length Depth

Consistency

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The Product and Product Mix Product mix dimensions:

Width: number of product lines

Length: total number of items in mix

Depth: number of product variants

Consistency: degree to which product lines

are related


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Product Mix Decisions

Product mix widthis the number of differentproduct lines the company carries

Product mix length is the total number of

items the company carries within its productlines

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ProductLine Decisions

Product line depth is the number of versionsoffered of each product in the line

Consistency is how closely the various productlines are in end use, productionrequirements, or distribution channels

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Product line lengthis the number of items inthe product line

Line stretching

Line filling

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Line stretching Down mkt stretch

Up mkt stretch

Two way stretch / combination linestretching


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Combination line stretching is used bycompanies in the middle range of themarket to achieve both goals of upward anddownward line stretching

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Product line filling occurs when companiesadd more items within the present range ofthe line

More profits

Satisfying dealers Excess capacity

Plugging holes to fend off competitors

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Brand is the name, term, sign, or design, ora combination of these, that identifies themaker or seller of a product or service

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Individual Product and Service Decisions


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Brand Decisions The AMA definition of a brand:

A name, term, sign, symbol, or design, or a

combination of these, intended to identifythe goods or services of one seller or groupof sellers and to differentiate them fromthe competition.


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Branding Strategy:

Building Strong Brands

Brand represents the consumers perceptions

and feelings about a product and itsperformance. It is the companys promise todeliver a specific set of features, benefits,services, and experiences consistently to the

buyers

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Brand Decisions Brands can convey six levels of meaning:

Attributes

Benefits Values

Culture

Personality

User


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Brand Decisions Aaker identified five levels of customer

attitudes toward brands:

Will change brands, especially for price. No brandloyalty.

Satisfied -- has no reason to change.

Satisfied -- switching would incur costs.

Values brand, sees it as a friend. Devoted to the brand.


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Brand Decisions Brand identity decisions include:

Name

Logo Colors

Tagline

Symbol

Consumer experiences create brand bonding,brand advertising does not.


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Brand name decision Individual name zen, esteem

Blanket family name GE,maruti, tata

Separate family names- Pantaloons,Sears, Walmart

Corporate+individual prod. Name Maruti800, honda city


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Branding Strategy:


Brand Name Selection

Desirable qualities Suggests benefits and qualities Easy to pronounce, recognize, and

remember

Distinctive Extendable Translatable for the global economy

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Brand Decisions Marketers should attempt to create or facilitate

awareness, acceptability, preference, and

loyalty among consumers. Valuable and powerful brands enjoy high levels

of brand loyalty.


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Branding Strategy:


Brand equity is the positive differential

effect that knowing the brand name hason customer response to the product orservice

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Brand Decisions Brand equity refers to the positive differential

effect that a brand name has on customers.

Brand equity: is related to many factors.

allows for reduced marketing costs.

is a major contributor to customer equity.


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Branding Strategy:


Customer equity is the value of the customer

relationships that the brand creates

Brand valuation is the process of estimating

the total financial value of the brand

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Brand DecisionsKey Challenges

To brand or not Brand sponsor

Brand name

Brand strategy

Brand repositioning

Advantages of branding: Facilitates order processing

Trademark protection

Aids in segmentation Enhances corporate image

Branded goods are desiredby retailers and distributors


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Brand name

Brand strategy

Brand repositioning

Options include: Manufacturer (national)

brand

Distributor (reseller,store, house, private)brand

Licensing the brand

name


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Brand name

Brand strategy

Brand repositioning

Strong brand names: Suggest benefits

Suggest product qualities

Are easy to say, recognize,and remember

Are distinctive

Should not carry poormeanings in otherlanguages


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Brand name

Brand strategy

Brand repositioning

Varies by type of brand

Functional brands Maruti 800( fuel efficient)

Image brands raymondsuitings

Experiential brands-barista,disneyland

Line extensions

Brand extensions

Multibrands

New brands

Co-branding


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Line ext. Brandextension

Multi-brands New Brands

Product categoryExisting New

Existing

New

BrandName


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Branding Strategy:


Brand Development

Line extensions occur when a companyextends existing brand names to new forms,colors, sizes, ingredients, or flavors of anexisting product category

Brand extensions extend a brand name to anew or modified product in a new category

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Branding Strategy:


Brand Development

Multibrands are additional brands in the samecategory

New brands are used when existing brandsare inappropriate for new products in newproduct categories or markets

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Branding Strategy:


Brand Development

Line extensions e.g: surf excel, excelmatic

Brand extensions e.g:nature fresh sunfloweroil, fresh flour, honda motorcycle

Multibrands, e.g:Maruti zen, titan sonata New brands

Co-brands e.g:TATA-IBM, Birla AT&T etc.

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Brand name

Brand strategy

Brand repositioning

A brand report card canbe used to audit a brandsstrengths and

weaknesses. Changes in preferences or

the presence of a newcompetitor may indicate aneed for brand

repositioning.


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Branding Strategy:


Brand Sponsorship

Manufacturers brand-Merchandisebearing a manufacturer's brand name,rather than a private label brand

Private brand - Product brands owned bya retailer or a wholesaler rather thanthe manufacturer; also called house

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Branding Strategy:


Private brands provide retailers withadvantages

Product mix control

Slotting fees for manufacturers

brands

Higher margins

Exclusivity

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Brand Sponsorship


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Brand Sponsorship

Licensed brand - A product or serviceusing a registered brand name offered

by the brand owner to a licensee for anagreed fee or royalty.

Co-branding is a process when twocompanies form an alliance to worktogether, creating marketing synergy.


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Co-branding According to Prof.Chang there are three

levels of co-branding:

Level 1 includes joining with anothercompany to penetrate the market

Level 2 is working to extend the brand basedon the company's current market share

Level 3 tries to achieve a global strategy bycombining the two brands


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Types of co-branding Ingredient co-branding This involves

creating brand equity for materials,

components or parts that are containedwithin other products. E.g:

Pillsbury Brownies with NestleChocolate, Dell Computers with IntelProcessors


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Types of co-branding Joint venture co-branding two or

more companies going for a strategic

alliance to present a product to thetarget audience. British Airways andCitibank formed a partnership offering a

credit card where the card owner willautomatically become a member of theBritish Airways Executive club


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Types of co-branding multiple sponsor co-branding

involves two or more companies workingtogether to form a strategic alliance intechnology, promotions, sales, etc. e.g:Citibank/American Airlines/Visa credit card

partnership


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Branding Strategy:


ManagingBrands

Requires:

Continuous brand communication

Customer-centered training

Brand audits

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Individual Product and Service Decisions

Packaging involves designing and producingthe container or wrapper for a product

Label identifies the product or brand, describesattributes, and provides promotion

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Packaging and Labeling Packaging includes:

The primary package

The secondary package The shipping package

Many factors have influenced theincreased use of packaging as amarketing tool.


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Packaging and Labeling Developing an effective package:

Determine the packaging concept

Determine key package elements Testing:

Engineering tests

Visual tests

Dealer tests

Consumer tests


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Packaging and Labeling Labeling functions:

Identifies the product or brand

May identify product grade May describe the product

May promote the product

Legal restrictions impact packaging formany products.


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Services Marketing

Nature and Characteristics of a Service

Intangibility

Inseparability

Variability

Perishability

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Services Marketing


Intangibility refers to the fact that servicescannot be seen, tasted, felt, heard, orsmelled before they are purchased

Inseparability refers to the fact that servicescannot be separated from their providers

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Services Marketing


Variability refers to the fact that servicequality depends on who provides it as wellas when, where, and how it is provided

Perishability refers to the fact that servicescannot be stored for later sale or use

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Services Marketing

Types of Service Industries

Government Private not-for-profit organizations

Business services

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Services MarketingMarketing Strategies for Service Firms

Managing service quality provides acompetitive advantage by deliveringconsistently higher quality than itscompetitors

Service quality always varies depending oninteractions between employees andcustomers

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Services Marketing

Marketing Strategies for Service Firms

Service recovery can turn disappointedcustomers into loyal customers

Empower employees

Responsibility

Authority

Incentive

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Marketing Strategies for ServiceFirms

M gi g S iM gi g S i


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Managing ServiceManaging Service

DifferentiationDifferentiation

Develop offer, delivery and image withcompetitive advantages.

Managing Se ice Q alitManaging Se ice Q alit


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Managing Service QualityManaging Service Quality

Empower employees

Become Customer obsessed

Develop high service qualitystandards

Watch service performanceclosely

M i S i P d i iM i S i P d i i


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Managing Service ProductivityManaging Service Productivity

Train current or new employees

Increase quantity by decreasingquality

Utilize technology

Mktg 4 Product Brand 1

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