• 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