1. Product, Services, and Branding StrategiesChapter 90
2. ObjectivesBe able to define product and know the major classifications of products and services.
Understand the decisions companies make regarding their individual products and services, product lines, and product mixes.1
3. ObjectivesUnderstand how firms build and manage their brands.
Know the four characteristics of services and the additional marketing considerations that services require.
Review additional product issues related to social responsibility and international marketing.2
4. Cosmetics companies sell billions of dollars worth of products
Consumers buy more than just a particular smellThe “promise”, image, company, name, package, and ingredients are all part of the product, as are the stores where it is sold.
The Cosmetics IndustryCase Study3
5. DefinitionsProduct
Anything offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want.
Service
Any activity or benefit that one party can offer to another that is essentially intangible and does not result in ownership of anything.4
6. What is a Product?Products, Services, and Experiences
Market offerings, pure tangible goods, pure services, experiences
Levels of Product and Services
Core benefit, actual product, and augmented product
Product and Service Classifications5
7. What is a Product?Convenience
Shopping
Specialty
UnsoughtFrequent purchases bought with minimal buying effort and little comparison shopping
Low price
Widespread distribution
Mass promotion by producerTypes of Consumer Products 6
8. What is a Product?Convenience
Shopping
Specialty
UnsoughtLess frequent purchases requiring more shopping effort and price, quality, and style comparisons.
Higher than convenience good pricing
Selective distribution in fewer outlets
Advertising and personal selling by producer and resellerTypes of Consumer Products 7
9. What is a Product?Convenience
Shopping
Specialty
UnsoughtStrong brand preference and loyalty, requires special purchase effort, little brand comparisons, and low price sensitivity
High price
Exclusive distribution
Carefully targeted promotion by producers and resellersTypes of Consumer Products 8
10. What is a Product?Convenience
Shopping
Specialty
UnsoughtLittle product awareness and knowledge (or if aware, sometimes negative interest)
Pricing varies
Distribution varies
Aggressive advertising and personal selling by producers and resellersTypes of Consumer Products 9
11. What is a Product?Product and Service Classifications
Consumer products
Industrial products
Materials and parts
Capital items
Supplies and services10
12. What is a Product?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 campaigns promote ideas11
13. Product and Service DecisionsIndividual Product
Product Line
Product MixProduct attributes
Quality, features, style and design
Branding
Packaging
Labeling
Product support services
Key Decisions 12
14. Product and Service DecisionsIndividual Product
Product Line
Product MixProduct 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 13
15. Product and Service DecisionsIndividual Product
Product Line
Product MixProduct line width:
number of different product lines carried by company
Product line depth:
Number of different versions of each product in the line
Product line consistencyKey Decisions 14
16. Branding StrategyBrands are powerful assets that must be carefully developed / managed.
Brands with strong equity have many competitive advantages:
High consumer awareness
Strong brand loyalty
Helps when introducing new products
Less susceptible to price competition15
17. Brand StrategyBrand Positioning
Brand Name Selection
Brand Sponsorship
Brand DevelopmentThree levels of positioning:
Product attributes
Least effective
Benefits
Beliefs and values
Taps into emotions
Key Decisions 16
18. Brand StrategyBrand Positioning
Brand Name Selection
Brand Sponsorship
Brand DevelopmentGood 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 protectedKey Decisions 17
19. Brand StrategyBrand Positioning
Brand Name Selection
Brand Sponsorship
Brand DevelopmentManufacturer brands
Private (store) brands
Costly to establish and promote
Higher profit margins
Licensed brands
Name and character licensing has grown
Co-branding
Advantages / disadvantagesKey Decisions 18
20. Brand StrategyBrand Positioning
Brand Name Selection
Brand Sponsorship
Brand DevelopmentLine 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 categoryKey Decisions 19
21. Line Extensions May Feature Different:Brand StrategyFlavors
ColorsForms
IngredientsPackage Sizes
20
22. Services MarketingServices
Account for 74% of U.S. gross domestic product.
Service industries include business organizations, government, and private not-for-profit organizations.21
23. Services MarketingCharacteristics 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 sale22
24. Services MarketingService Firm Marketing Strategies
The Service-Profit Chain
Internal Marketing
Interactive Marketing
Managing Service Differentiation
Managing Service Quality
Managing Service Productivity23
25. Product Decisions and Social Responsibility
Acquisitions and mergers
Legal compliance
Product liability issues
WarrantiesAdditional Product Considerations24
26. International Product and Services Marketing
Special challenges:
Which products should be marketed internationally?
Should the products be standardized or adapted for world markets?
How should packaging be adapted?
How can other barriers be overcome?Additional Product Considerations25