Product, Services, and Branding Strategy

Product, Services, and Branding Strategy

1. Product, Services, and
Branding Strategy
Chapter 8

2. 8 - 2
Learning Goals
1.Understand products and the major
classifications of products and services
2.Learn the decisions companies make
regarding their products and services
3.Understand branding strategy
4.Identify the four characteristics that
affect the marketing of a service
5.Realize additional product issues

3. 8 - 3
•Produce 7.5
million
doughnuts
each day
•Sell more than
doughnuts;
they sell an
experience
•New store openings
are eagerly
anticipated in part
due to extensive
promotion
Case Study
Krispy KremeKrispy Kreme

4. 8 - 4
Definitions
•Product
Anything offered to a market for attention,
acquisition, use, or consumption that might
satisfy a need or want.
•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.
Goal 1: Understand products and their classifications

5. 8 - 5
What is a Product?
•Products, Services, and Experiences
Market offerings may consist of a
combination of goods and services
Experiences are used to differentiate
offerings
•Levels of Product and Services
Core benefit, actual and augmented
product
•Product and Service Classifications
Consumer products and industrial products
Goal 1: Understand products and their classifications

6. 8 - 6
What is a Product?
•Convenience
•Shopping
•Specialty
•Unsought
•Frequent purchases
bought with minimal
buying effort and
little comparison
shopping
•Low price
•Widespread
distribution
•Mass promotion by
producer
Types of Consumer
Products
Goal 1: Understand products and their classifications

7. 8 - 7
What is a Product?
•Convenience
•Shopping
•Specialty
•Unsought
•Less frequent
purchases
•More shopping effort
for comparisons.
•Higher than
convenience good
pricing
•Selective distribution in
fewer outlets
•Advertising and
personal selling
Types of Consumer
Products
Goal 1: Understand products and their classifications

8. 8 - 8
What is a Product?
•Convenience
•Shopping
•Specialty
•Unsought
•Strong brand
preference and
loyalty, requires
special purchase
effort, little brand
comparisons, and low
price sensitivity
•High price
•Exclusive distribution
•Carefully targeted
promotions
Types of Consumer
Products
Goal 1: Understand products and their classifications

9. 8 - 9
What is a Product?
•Convenience
•Shopping
•Specialty
•Unsought
•Little product
awareness and
knowledge (or if aware,
sometimes negative
interest)
•Pricing varies
•Distribution varies
•Aggressive advertising
and personal selling by
producers and resellers
Types of Consumer
Products
Goal 1: Understand products and their classifications

10. 8 - 10
Product and Service
Classifications
•Consumer products
•Industrial products
 Materials and parts
 Capital items
 Supplies and services
Goal 1: Understand products and their classifications

11. 8 - 11
Product and Service
Classifications
•Organizations, persons, places,
and ideas
Organizational marketing makes use
of corporate image advertising
Person marketing applies to political
candidates, entertainment sports
figures, and professionals
Place marketing relates to tourism
Social marketing promotes ideas
Goal 1: Understand products and their classifications

12. 8 - 12
Product and Service
Decisions
•Individual
Product
•Product Line
•Product Mix
•Product attributes
Quality, features,
style and design
•Branding
•Packaging
•Labeling
•Product support
services
Key Decisions Key Decisions
Goal 2: Learn decisions companies make regarding products

13. 8 - 13
Product and Service
Decisions
•Product line
A group of products
that are closely
related because
they may:
•function in a similar
manner
•be sold to the same
customer groups,
•be marketed through
the same types of
outlets
•fall within given price
ranges
Key Decisions Key Decisions
•Individual
Product
•Product Line
•Product Mix
Goal 2: Learn decisions companies make regarding products

14. 8 - 14
Product and Service
Decisions
•Individual
Product
•Product Line
•Product Mix
•Product line length
Line stretching:
adding products
that are higher or
lower priced than
the existing line
Line filling: adding
more items within
the present price
range
Key Decisions Key Decisions
Goal 2: Learn decisions companies make regarding products

15. 8 - 15
Product and Service
Decisions
•Individual
Product
•Product Line
•Product Mix
•Product mix
Also known as
product assortment
Consists of all the
product lines and
items that a
particular seller
offers for sale
Key Decisions Key Decisions
Goal 2: Learn decisions companies make regarding products

16. 8 - 16
Product and Service
Decisions
•Individual
Product
•Product Line
•Product Mix
•Product mix width:
Number of different
product lines carried
by company
•Product mix depth:
Number of different
versions of each
product in the line
•Product mix
consistency
Key Decisions Key Decisions
Goal 2: Learn decisions companies make regarding products

17. 8 - 17
Branding Strategy
•Brand equity is the positive differential
effect that knowing the brand name has
on customer response to the product or
service
•One measure of equity is the extent to
which customers are willing to pay
more for the brand
•Brand valuation is the process of
estimating the total financial value of a
brand
Goal 3: Understand branding strategy

18. 8 - 18
Branding Strategy
•Brands with strong equity have
many competitive advantages:
High consumer awareness
Strong brand loyalty
Helps when introducing new products
Less susceptible to price competition
Goal 3: Understand branding strategy

19. 8 - 19
Brand Strategy
•Brand Positioning
•Brand Name
Selection
•Brand Sponsorship
•Brand Development
•Three levels of
positioning:
Product attributes
• Least effective
Benefits
Beliefs and values
• Taps into
emotions
Key Decisions Key Decisions
Goal 3: Understand branding strategy

20. 8 - 20
Brand Strategy
•Brand Positioning
•Brand Name
Selection
•Brand Sponsorship
•Brand Development
•Good Brand Names:
Suggest something
about the product or its
benefits
Are easy to say,
recognize and
remember
Are distinctive
Are extendable
Translate well into
other languages
Can be registered and
legally protected
Key Decisions Key Decisions
Goal 3: Understand branding strategy

21. 8 - 21
Brand Strategy
•Brand Positioning
•Brand Name
Selection
•Brand Sponsorship
•Brand Development
•Manufacturer brands
•Private (store) brands
Costly to establish and
promote
Higher profit margins
•Licensed brands
Name and character
licensing has grown
•Co-branding
Advantages /
disadvantages
Key Decisions Key Decisions
Goal 3: Understand branding strategy

22. 8 - 22
Brand Strategy
•Brand Positioning
•Brand Name
Selection
•Brand Sponsorship
•Brand Development
•Line extensions
Minor changes to existing
products
•Brand extensions
Successful brand names
help introduce new
products
•Multibrands
Multiple product entries
in a product category
•New brands
New product category
Key Decisions Key Decisions
Goal 3: Understand branding strategy

23. 8 - 23
Managing Brands
•Brands are known through
advertising, personal experience,
word of mouth, the Internet
•Everyone in the company
represents the brand
•Companies need to periodically run
a brand audit
Goal 3: Understand branding strategy

24. 8 - 24
Services Marketing
•Services
Account for 74% of U.S. gross
domestic product.
Service industries include
business organizations,
government, and private not-for-
profit organizations.
Goal 3: Understand branding strategy

25. 8 - 25
Characteristics of Services
•Intangibility
Consumers look for service quality signals
•Inseparability
Services can’t be separated from providers
•Variability
Employees and other factors result in
variability
•Perishability
Services can’t be inventoried for later sale
Goal 3: Understand branding strategy

26. 8 - 26
Service Firm Marketing
Strategies
•The Service-Profit Chain
 Internal Marketing
 Interactive Marketing
•Managing Service Differentiation
•Managing Service Quality
•Managing Service Productivity
Goal 4: Identify 4 characteristics that affect marketing a service

27. 8 - 27
Product Decisions and
Social Responsibility
•Acquiring and dropping
products
•Patent protection
•Product quality and safety
•Product warranties
Goal 5: Realize additional product issues

28. 8 - 28
International Product and
Services Marketing
•Special challenges:
Which products should be
marketed internationally?
Should the products be
standardized or adapted for
world markets? Packaging?
Goal 5: Realize additional product issues