Professor Takada Product, Services, and Branding Strategy ６a６a.

Professor TakadaProfessor Takada

Product, Services, and Product, Services, and Branding StrategyBranding Strategy

６ a

Professor TakadaProfessor Takada7-2

ROAD MAP: Previewing the Concepts

• ＭＭ ajor classifications of products and ajor classifications of products and services.services.

• Product decisions: Product decisions: – Individual product decisionsIndividual product decisions– Product line decisionsProduct line decisions– Product mix decisionsProduct mix decisions

• Branding strategy: Branding strategy: – brand positioning, name selection, brand positioning, name selection,

sponsorship, and development.sponsorship, and development.

• Four characteristics that affect the Four characteristics that affect the marketing of a service.marketing of a service.

• Other issues.Other issues.


At the heart of a great brand is a great product


ROAD MAP

• Product and the major classifications of Product and the major classifications of products and services.products and services.

• Describe the individual product decisions: Describe the individual product decisions: – product and service attributes, branding, product and service attributes, branding,

packaging, labeling, and product support services.packaging, labeling, and product support services.

• Discuss branding strategy: Discuss branding strategy: – brand positioning, name selection, sponsorship, brand positioning, name selection, sponsorship,

and development.and development.

• Identify the four characteristics that affect Identify the four characteristics that affect the marketing of a service.the marketing of a service.

• Discuss other issues.Discuss other issues.


What is a Product?• Anything that can be offered to a market for Anything that can be offered to a market for

attention, acquisition, use, or consumption attention, acquisition, use, or consumption and that might satisfy a want or need.and that might satisfy a want or need.– physical objects, services, events, persons, places, physical objects, services, events, persons, places,

organizations, ideas, or some combination.organizations, ideas, or some combination.

What is a Service? • A form of product that consists of activities, benefits, or A form of product that consists of activities, benefits, or

satisfactions offered for sale that are essentially intangible satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.and do not result in the ownership of anything.

– banking, hotel, airline, retail, tax preparation, home banking, hotel, airline, retail, tax preparation, home repairs.repairs.


The Product-Service Continuum

Sugar Restaurant College Education

Pure Tangible Good

Pure Service


Levels of a Product


Consumer Products

Convenience Products

• Purchased frequently and immediately

• Low priced

• Mass advertising

• Many purchase locations– Examples: candy, soda, newspapers

Shopping Products

• Bought less frequently

• Higher price

• Fewer purchase locations

• Comparison shop – Examples: furniture, clothing, cars,

appliancesUnsought Products

• New innovations

• Products consumers do not want to think about

• Require much advertising and personal selling•Examples: life insurance, cemetery plots, blood donation

Industrial Products

Materials and PartsRaw materials, manufactured

materials, and parts

Materials and PartsRaw materials, manufactured

materials, and parts

Capital ItemsProducts that aid in

buyer’s production or operations

Capital ItemsProducts that aid in

buyer’s production or operations

Supplies and Services Operating supplies, repair,

and maintenance items

Supplies and Services Operating supplies, repair,

and maintenance items


Other Market Offerings

• OrganizationsOrganizations: : – Profit (businesses) and nonprofit (schools and Profit (businesses) and nonprofit (schools and

churches).churches).

• PersonsPersons: : – Politicians, entertainers, sports figures, doctors, and Politicians, entertainers, sports figures, doctors, and

lawyers.lawyers.

• PlacesPlaces: : – Create, maintain, or change attitudes or behavior Create, maintain, or change attitudes or behavior

toward particular places (e.g., tourism).toward particular places (e.g., tourism).

• Ideas (social marketing)Ideas (social marketing): : – Public health campaigns, environmental campaigns, Public health campaigns, environmental campaigns,

family planning, or human rights.family planning, or human rights.


Product Differentiation• Product formProduct form

• FeaturesFeatures

• PerformancePerformance

• ConformanceConformance

• DurabilityDurability

• ReliabilityReliability

• ReparabilityReparability

• StyleStyle

• DesignDesign

• Ordering easeOrdering ease

• DeliveryDelivery

• InstallationInstallation

• Customer trainingCustomer training

• Customer Customer consultingconsulting

• MaintenanceMaintenance


Dunkin’ Donuts’ Differentiation


Design Differentiation


Maintenance and Repair


ROAD MAP

• Define product and the major classifications Define product and the major classifications of products and services.of products and services.

• Product decisions: Product decisions: – Individual product decisionsIndividual product decisions– Product line decisionsProduct line decisions– Product mix decisionsProduct mix decisions






Individual Product Decisions


Product and Service Attributes

Quality Quality

FeaturesFeatures

Style & DesignStyle & Design

Performance and Satisfaction Includes Level & ConsistencyPerformance and Satisfaction Includes Level & Consistency

Differentiates a product from the competition; assessed based on

value and cost

Differentiates a product from the competition; assessed based on

value and cost

Style = AppearanceDesign = heart of the product

Style = AppearanceDesign = heart of the product


Branding• Creating, maintaining, protecting, and enhancing Creating, maintaining, protecting, and enhancing

products and services.products and services.

• A brand is a name, term, sign, symbol, or design, A brand is a name, term, sign, symbol, or design, or a combination of these, that identifies the or a combination of these, that identifies the maker or seller of a product or service.maker or seller of a product or service.

• Advantages to buyers:Advantages to buyers:– Product identificationProduct identification– Product qualityProduct quality

• Advantages to sellers:Advantages to sellers:– Basis for product’s quality storyBasis for product’s quality story– Provides legal protectionProvides legal protection– Helps to segment marketsHelps to segment markets


Packaging

•Designing and producing the Designing and producing the container or wrapper for a container or wrapper for a product.product.

•Developing a good package:Developing a good package:– Packaging conceptPackaging concept– Package elementsPackage elements– Product safetyProduct safety– Environmental concernsEnvironmental concerns


Labeling• Printed information appearing on or with the package.Printed information appearing on or with the package.

• Performs several functions:Performs several functions:– IdentifiesIdentifies product or brand product or brand– DescribesDescribes several things about the product several things about the product– PromotesPromotes the product through attractive graphics the product through attractive graphics

Innovative Labeling


Product Support Services

• Assess the value of current services Assess the value of current services and obtain ideas for new services.and obtain ideas for new services.

• Assess the cost of providing the Assess the cost of providing the services.services.

• Put together a package of services Put together a package of services that delights the customers and that delights the customers and yields profits for the company.yields profits for the company.


Stretching

Lengthen beyond current range.

Can be:

Downward

Upward

Both Directions

Product Line LengthProduct Line LengthNumber of Items in the Product Line

Product Line LengthProduct Line LengthNumber of Items in the Product Line

Filling

Lengthen within current range

Product Line Decisions


Two-Way Stretch

Marriott added the Renaissance Hotels line to serve the upper end of the market and the TownePlace Suites line to serve the moderate and lower ends.

7-23Professor TakadaProfessor Takada

Two-Way Product-Line Stretch: Marriott HotelsTwo-Way Product-Line Stretch: Marriott Hotels

Quality

Pri

ceP

rice

High

Economy Superior

Fairfield Inn(Vacationers)

Standard Good

Aboveaverage

Average

Low

Courtyard(Salespeople)

Marriott(Middle

managers)

MarriottMarquis

(Topexecutives)


Line Stretching

Down-Market StretchDown-Market Stretch

Up-Market StretchUp-Market Stretch

Two-Way StretchTwo-Way Stretch


Line Filling


Product Mix Decisions

• Product MixProduct Mix – all of the product lines and items that a particular seller all of the product lines and items that a particular seller

offers for sale. offers for sale.

• Four important dimensions:Four important dimensions:– WidthWidth

• the number of different product lines the company carries.the number of different product lines the company carries.

– LengthLength• the total number of items the company carries within its the total number of items the company carries within its

product line.product line.

– DepthDepth• the number of versions offered of each product in the line.the number of versions offered of each product in the line.

– ConsistencyConsistency• how closely related the various lines are.how closely related the various lines are.


ROAD MAP




• Branding strategy: Branding strategy: – brand positioning, name selection, sponsorship, brand positioning, name selection, sponsorship,





Brand Equity

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

• Provides:Provides:– More brand awareness and loyaltyMore brand awareness and loyalty– Basis for strong, profitable customer Basis for strong, profitable customer

relationshipsrelationships


Major Brand Strategy Decisions


Brand Positioning

• Can position brands at any of three levels.Can position brands at any of three levels.

Product Attributes

Product Benefits

Beliefs and Values


Brand Name Selection

• Desirable qualities for a brand name Desirable qualities for a brand name include:include:

1.1. It should suggest product’s benefits and It should suggest product’s benefits and qualitiesqualities

2.2. It should be easy to pronounce, recognize, and It should be easy to pronounce, recognize, and rememberremember

3.3. It should be distinctiveIt should be distinctive

4.4. It should be extendableIt should be extendable

5.5. It should translate easily into foreign languagesIt should translate easily into foreign languages

6.6. It should be capable of registration and legal It should be capable of registration and legal protectionprotection


Brand Sponsorship

Four OptionsCo-Branding PrivateBrands

Manufacturer’s Brands

Licensed Brands


Brand Development• Line ExtensionLine Extension

introduction of additional items in a given product category under introduction of additional items in a given product category under the same brand name the same brand name

(e.g., new flavors, forms, colors, ingredients, or package sizes).(e.g., new flavors, forms, colors, ingredients, or package sizes).

• Brand ExtensionBrand Extensionusing a successful brand name to launch a new or modified using a successful brand name to launch a new or modified

product in a new category.product in a new category.

• MultibrandingMultibrandingto establish different features and appeal to different to establish different features and appeal to different

buying motives.buying motives.

• New BrandsNew Brandsthe power of its existing brand is waning and a new brand the power of its existing brand is waning and a new brand

name is needed. Also used for products in new product name is needed. Also used for products in new product category.category.


Line Extensions

Morton sells an entire line of salts and seasonings for every occasion.


Brand Development Strategies

LineExtension

Multibrands

BrandExtension

NewBrands

Bra

nd

Nam

e

Existing New

Product Category

Existing

New


ROAD MAP






• Four characteristics that affect the marketing Four characteristics that affect the marketing of a service.of a service.



Nature and Characteristics of a Service


The Service-Profit Chain


Major Service Marketing Tasks

• DifferentiationDifferentiation– Develop a differentiated offer, delivery, and Develop a differentiated offer, delivery, and

image.image.

• QualityQuality– Be customer obsessed, set high service quality Be customer obsessed, set high service quality

standards, have good service recovery, standards, have good service recovery, empower front-line employees.empower front-line employees.

• ProductivityProductivity– Train current employees or hire new ones, Train current employees or hire new ones,

increase quantity and sacrifice quality, harness increase quantity and sacrifice quality, harness technology.technology.


ROAD MAP







• Other issues.Other issues.


Decide Which Products & Services to IntroduceDecide Which Products & Services to Introduce

Decide How Much to Standardize or Adapt Decide How Much to Standardize or Adapt

Packaging Presents New ChallengesPackaging Presents New Challenges

Service Marketers Face Special ChallengesService Marketers Face Special Challenges

Trend Toward Global Service Companies Will ContinueTrend Toward Global Service Companies Will Continue

International Product and Services Marketing


Rest Stop: Reviewing the Concepts

1.1. Define product and the major classifications of products Define product and the major classifications of products and services.and services.

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

3.3. Discuss branding strategy—the decisions companies make Discuss branding strategy—the decisions companies make in building and managing their brands. in building and managing their brands.

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

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

Professor Takada Product, Services, and Branding Strategy ６a６a.

Documents

Transcript of Professor Takada Product, Services, and Branding Strategy ６a６a.