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Unit 7
Product, Services and Brandin
Strategy
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Road Ma : Previewin the
Concepts
Define product and the major classifications of productsand services.
Describe the roles of product and service branding,packaging, labeling, and product support services.
product lines and mixes.
Identify the four characteristics that affect the marketing of
.Discuss the additional marketing considerations forservices.
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a s a ro uc
A PRODUCT is anything that can be offered to amarket for attention, acquisition, use, or consumptionand that mi ht satisf a want or need.
Includes:
Physical Objects erv ces
Events
Persons
Places Organisations
Ideas
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Combinations of the above
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a s a erv ce
A SERVICE is a form of product that consistof activities, benefits, or satisfactions offeredfor sale that are essentially intangible and do
not result in the ownership of anything.xamp es nc u e:
Banking
Tax preparation
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oo s, erv ces, an xper ences
Purean ible
PureService
angible GoodWith HybridOffer
erviceWith
Accom an in
Good
Services Minor Goods
Soap
Auto WithAccompanying Restaurant
Airline TripWith Doctors
Services Snacks x
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Nature and Characteristic of aService
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Illustrate how a movie theatre can dealwith the intangibility, inseparability,
variabilit , and erishabilit of theservices it provides.
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eve s o ro uc
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Product Classifications: Consumer
Shopping ProductsShopping Products Buy less frequently
Convenience ProductsConvenience Products Buy frequently & immediately
g er pr ce Fewer purchase locations
Comparison shopi.e Clothin cars a liances
Low price Mass advertising
Many purchase locations
Unsought ProductsUnsought ProductsSpecialty ProductsSpecialty Products
Products consumers dontwant to think about Require much advertising &
High price Unique characteristics Brand identification
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personal selling
i.e Life insurance, blood donation
Few purchase locations
i.e Lamborghini, Rolex
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Product Classifications: Industrial
Materials and PartsRaw materials manufactured
Materials and PartsRaw materials manufactured
materials, and partsmaterials, and parts
ap a emsIndustrial products that aid in
buyers production or operations
ap a emsIndustrial products that aid in
buyers production or operations
Supplies and ServicesSupplies and Services
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,maintenance items
,maintenance items
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Product Classifications:Other Marketable Entities
Activities undertaken to create, maintain, or change the attitudesand behaviour toward the followin :
Organisations - Profit (businesses) and non profit (schools andchurches).
, , , ,lawyers.
Places - Business sites, new residents, and tourism.
,environmental campaigns, and others such as family planning, orhuman rights.
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n v ua ro uc ec s ons
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ro uc r u es
Developing a Product or Service Involves Definingthe Benefits that it Will Offer Such as:
Product QualityProduct Quality
Ability of a Product to Perform Its
Functions; Includes Level &
Ability of a Product to Perform Its
Functions; Includes Level &
Product FeaturesProduct FeaturesDifferentiates the Product from
Differentiates the Product from
Product StyleProduct Style Process of Designing a ProductsProcess of Designing a Products
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es gnes gn y e se u nessy e se u ness
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Branding
What is a ood brand?
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ran ng
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ran ng
Advantages toBranding
Brand Equity Hi her brand lo alt
Buyers:
Identification
Name awareness
Perceived quality ua y an va ue
Sellers Tells a stor
Strong brandassociations
Provides legal protection
Helps segments , ,channel relationships
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ran s an ran ym o s
Powerful brands such
equity:
Eg. Coca-Cola brand -$69 billion
Offers defense
aga ns erce pr cecompetition.
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a or ran ng ec s ons
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ene s o ran ng
Brandingdistin uishesproducts from
competitionProduct
IdentificationNew Product
Sales
Repeat Sales
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n ec ve ran ame
Is easy to pronounce
Is short, distinctive, and unique
, ,benefits
Has a positive connotation
Reinforces the product image
Is legally protectable
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as er ran s
M o b i l e p h o n e
Nokia
n e r n e e a r c
Co m p u t e r DellCa r
A i r l i n e
BMW
Air Asia
T e l e v i s i o n
Sony
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ran ng ra eg es
Brand No Brand
Manufacturersran
IndividualBrand
FamilyBrand
Combi-nation
IndividualBrand
FamilyBrand
Combi-nation
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ran ng ra eg es
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Four Brand Strategies
Existing New
Product Category
Line Extension Brand ExtensionExisting nam ogur avours ar e ec ron cs
Name
u ran sToyota and Lexus
New BrandsBran New
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ran ra egy
ne x ens on Existing brand names extended to new forms, sizes,
and flavours of an existin roduct cate or .
Brand Extension
Existing brand names extended to new or modifiedpro uc ca egor es.
Multibrands
category.
New Brands
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New brand names in new product categories.
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We can find Coke in six or more varieties in some countries.
Coke
Classic Coke
Vanilla Coke
Cherry Coke
Diet Coke
Diet Coke with Lime
Diet Coke Decaffeinated
List some of the issues these line extensions raise for themanufacturers, retailers, and consumers.
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ac ag ng
Designing and producing thecontainer or wrapper for a
.
Steps in developing a good
Packaging concept,
Develo s ecific elements of the
package, Elements must support products
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pos on an mar e ng s ra egy.
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a e ng
Printed informationappearing on or with thepackage.
Performs several functions: Identifies product or brand Describes several things
Promotes the product
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ro uc uppor erv ces
Companies use product support services as a majortool in gaining competitive advantage.
How?
Step 1. Survey customers to assess the value ofcurrent services and to obtain ideas for newservices.
ep . .Step 3. Develop a package of services to delight
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u r y r y.
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Service Firms
Managing ServiceDifferentiation
Managing ServiceProductivity
Develop differentiated offer,delivery, and image.
Mana in Service Qualit
Train current or newemployees better,
Work on ualit as well
Empower front-line employees,
Become Customer obsessed,
as quantity,
Utilize technology
Well-designed Web site
standards, Watch service performance
closel .
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IntroductoryIntroductory GrowthGrowth MaturityMaturity Decline
Product
categorysales
categoryprofits
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Time
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Full-scale launch of new products
High failure rates Little competition
Frequent product modification
Limited distribution High marketing and production costs
Negative profits
Promotion focuses on awareness andinformation
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n ens ve persona se ng o c anne s
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Second stage
Increasing rate of sales
Initial healthy profits
romo on emp as ses ran a s
Goal is wider distribution
Prices normally fall Development costs are recovered
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Maturit sta eA period during which sales increase
at an decreasing rate
Declining sales growth
Extending product line
Stylistic product changes Heavy promotions to dealers and
consumers
r r r u Prices and profits fall
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A long run drop in sales
Lon -run dro in sales
Large inventories of unsold
Elimination of all nonessential
marketing expenses
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Awareness
Evaluation
Trial
Decision
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the adoption of aninnovation spreads.
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a egor es o a op ers
Categories of adopters in the
Innovators
ar y a opters
Early majority
Late majority La ards
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pters
e
ofad
rcentag
P
e
Innovators
Earlyadopters
Latemajority
Earlymajority Laggards
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. .
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Diffusion rocess and roductlife cycle curve
Introduction Growth Maturity Decline
ProductProductlife cyclelife cycle
curvecurvees
Earl ado ters
Early majorityLate majority
Sa
InnovatorsLaggards
DiffusionDiffusion
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es op: ev ew ng e oncep s
Define product and the major classifications of productsand services.
Describe the roles of product and service branding,packaging, labelling, and product support services.
product lines and mixes.
Identify the four characteristics that affect the marketing of.
Discuss the additional marketing considerations forservices.
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