Lecture Principles of Marketing - Chapter 7: Product, services, and branding strategy

Chapter 7 define product and the major classifications of products and services; describe the decisions companies make regarding their individual products and services, product lines, and product mixes; discuss branding strategy – the decisions firms make in building and managing their brands; identify the four characteristics that affect the marketing of a service and the additional marketing considerations that services require; discuss two additional product issues: socially responsible product decisions and international product and services marketing.

Chapter Seven

Product, Services, and Branding

Strategy

Roadmap: Previewing the Concepts

1. Define product and the major classifications of

products and services.

2 Describe the decisions companies make

regarding their individual products and

services, product lines, and product mixes.

3 Discuss branding strategy – the decisions firms

make in building and managing their brands.

4 Identify the four characteristics that affect the

marketing of a service and the additional

marketing considerations that services require.

location in Fiji islands.

 Key benefits: ultra-clean

taste, no impurities or

FIJI Water – “The Taste of Paradise”

Case Study

Promotion

 It’s a brand experience!

 Name, packaging, label, celebrity endorsers and places through which it is sold contributes to “Taste

of Paradise” imagery

 Ads evoke exotic origins:

What Is a Product?

 Anything that can be offered to a

market for attention, acquisition, use,

or consumption and that might satisfy

a want or need.

– Includes: physical objects, services,

events, persons, places, organizations, ideas, or some combination thereof.

What Is a 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.

– Examples: banking, hotel, airline, retail, tax

preparation, home repairs.

Market Offerings

 Continuum ranges from pure tangible goods (with no services) to pure

services (with no good component)

with many combinations in between.

– Pure good: Camay soap.

– Pure service: Legal representation.

– Combination: Restaurant meal.

 Creating and managing customer

Levels of a Product

 Core benefit

– What the consumer is really buying.

 Actual product

– Includes the brand name, features, design,

packaging, quality level.

 Augmented product

– Additional services and benefits such as

Consumer Products

 Products and services bought by final consumers for personal consumption.

– Also includes other marketable entities.

 Classified by how consumers buy them.

Convenience Products

 Purchased frequently and immediately

 Low priced

 Mass advertising

 Many purchase locations

– Examples: candy, soda, newspapers

 Few purchase locations

– Example: Lamborghini, Rolex Watch

Industrial Products

 Those purchased for further

processing or for use in conducting business.

– Distinction between consumer and

industrial products is based on the

Industrial Products

 Materials and parts:

– Raw materials, manufactured materials,

and parts

 Capital items:

– Products that aid in buyer’s production or

operations

 Supplies and services:

– Operating supplies, repair, and

Other Market Offerings

nonprofit (schools and churches).

– Includes corporate image advertising.

figures, doctors, and lawyers.

or behavior toward particular places (e.g.,

tourism).

Individual Product Decisions

Product & Service Attributes

 Creating, maintaining, protecting, and enhancing products and services.

 A brand is a name, term, sign, symbol,

or design, or a combination of these, that identifies the maker or seller of a product or service.

 Designing and producing the container

or wrapper for a product.

 Developing a good package:

– Market the brand

– Protect the elements

– Ensure product safety

 Printed information appearing on or with the package.

 Performs several functions:

– Identifies product or brand

– Describes several things about the

product

Product Support Services

 Assess the value of current services

and obtain ideas for new services.

 Assess the cost of providing the

Product Line Decisions

 Product line length:

– The number of items in a product line.

 Adjust line length by:

– Stretching

• Downward

• Upward

Product Mix Decisions

 Product mix:

– all of the product lines and items that a particular seller offers for sale.

 Product mix dimensions include:

company carries.

Brand Equity

 The positive differential effect that

knowing the brand name has on

customer response to the product or service.

 Provides:

– More brand awareness and loyalty

Major Brand Strategy Decisions

 Brands are assets that must be

carefully developed and managed via:

– Brand positioning

– Brand name selections

– Brand sponsorship

– Brand development

Brand Name Selection

 Desirable qualities for a brand name include:

1.It should suggest product’s benefits and qualities 2.It should be easy to pronounce, recognize, and remember.

3.It should be distinctive.

4.It should be extendable.

5.It should translate easily into foreign languages 6.It should be capable of registration and legal

Brand Development

 Line extension:

– introduction of additional items in a given

product category under the same brand

name (e.g., new flavors, forms, colors,

ingredients, or package sizes).

 Brand extension:

– using a successful brand name to launch a

Brand Development

 Multibranding:

– offers a way to establish different features

and appeal to different buying motives.

 New brands:

– developed based on belief that the power

of its existing brand is waning and a new brand name is needed Also used for

Nature and Characteristics

The Service-Profit Chain

 Internal service quality

 Satisfied and productive service

employees

 Great service value

 Satisfied and loyal customers

 Healthy service profits and growth.

Services Marketing

 External marketing:

– Traditional marketing via the 4 “P’s”

 Internal marketing:

– Effective training and motivation of

customer contact employees

 Interactive marketing:

– Delivering interactions during the service

Major Service Marketing Tasks

 Managing service differentiation:

– Develop a differentiated offer, delivery, and image.

 Managing service quality:

– Be customer obsessed, set high service quality

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

 Managing service productivity:

International Product and Services Marketing

 Decide which products and services to introduce.

 Decide how much to standardize or

adapt.

 Packaging presents new challenges.

 Services marketers face special

challenges.

Rest Stop: Reviewing the Concepts

1. Define product and the major classifications of

products and services.

2 Describe the decisions companies make

regarding their individual products and

services, product lines, and product mixes.

3 Discuss branding strategy – the decisions firms

make in building and managing their brands.

4 Identify the four characteristics that affect the

marketing of a service and the additional

marketing considerations that services require.