kotler pom13e student chapter 08-product

7/25/2019 Kotler POM13e Student Chapter 08-Product

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Chapter 8 - slide 1Copyright 2009 Pearson Education, Inc.

Publishing as Prentice all

Chapter Eight

Product, !er"ices, and #rands$

#uilding Custo%er &alue


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Publishing as Prentice all Adapted by Giang Nguyen

Product, !er"ices, and #randing!trategy

'hat Is a Product(

Product and!er"ices )ecisions

#randing !trategy$

#uilding !trong#rands

!er"ices *ar+eting

opic utline


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Chapter 8 - slide Copyright 2010 Pearson Education, Inc.


'hat Is a Product(

Productis anythingthat can be offered ina market for attention, acquisition, use,or consumption that might satisfy aneed or want

Products include more than just tangibleobjects. Broadly defined, products alsoinclude services, events, persons, places,

ideas or mixes of these.

A companys market offering often includesboth tangible goods and ser!ices.

Pure tangible goods Pure ser!ices

Goods"and"ser!ices combinations

Products, !er"ices, and E/periences

!er"iceis any acti!ity orbenefit that one party offers toanother that is essentiallyintangible and does not resultin the o#nership of anything.


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Chapter 8 - slide Copyright 2010 Pearson Education, Inc.


'hat Is a Product(

As products and ser!ices becomemore commoditi$ed, companiesare mo!ing to a ne# le!el increating !alue for customers. %odierentiatetheir offers, firmscreate and manage custo%ere/periences.

Products, !er"ices, and E/periences

E/periencesrepresent hatthe product or ser!ice ill

do orthe customer &rather than represent theproduct'ser!ices features(.

)or e*ample+ #hat are the e*periences that banks pro!ide to itscustomers

-afety, -uccess. hat else


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'hat Is a Product(

/*ample+

http+''###.youtube.com'#atch!0e#$1"

!23As4 + -ingapore airlines commercial http+''###.youtube.com'#atch!0lflsrPB5q6

+ %hai Air#ays commercial

http+''###.youtube.com'#atch!0BGtA*7ogP81 + 9ietnam airlines %9:

E/perience


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'hat Is a Product(Products, !er"ices, and E/periences

Product planners need tothink about products'ser!iceson ; le!els, each le!el addsmore customer !alue.< Core customer value+ #hat is

the buyer really buying :orebenefits customers seek.

< Actual product:product'ser!ice features,design, quality, brand name,packaging.

< Augmented product:additional consumer ser!icesand benefits.

Guarantee,installationser!ices

=G brand

name, =Gfridge, =Gdesign

-toringfoods tokeep themfresh andnutritious


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Copyright 2010 Pearson Education, Inc.


'hat Is a Product(

Product and !er"ice Classiications

:on!enienceproducts-hopping products

-pecialty products4nsought product

>aterials and parts

:apital items-upplies andser!ices





'hat Is a Product(

Consu%er products are products andser!ices for personal consumption

:lassified by ho# consumers buy them+

< :on!enience products

< -hopping products

< -pecialty products

< 4nsought products%hese products differ in the #ay consumers buy them and in

ho# they are marketed?






'hat Is a Product(

Con"enience products are consumer products andser!ices that the customer usually buys frequently,immediately, and #ith a minimumcomparison and

buying effort Ne#spapers

:andy

)ast food

=aundry detergent

6ocation+ marketers place them in many locations tomake them readily a!ailable #hen customers need.






'hat Is a Product(

!hopping products are less frequently purchased consumerproducts and ser!ices that the customer comparescarefullyon suitability, quality, price, and style

)urniture 4sed cars

Appliances

Airline ser!ices

:lothing6ocation+ marketers distribute them through fe#er outlets but

pro!ide deeper sales support.



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'hat Is a Product(

!pecialty products are consumerproducts and ser!ices #ithunique characteristics orbrand identification for #hich a

significant group of buyers is#illing to make a specialpurchase effort

>edical ser!ices

:ars 8esigner clothes

@igh"end electronics &e.g. high"priced photographic equipment(



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'hat Is a Product(

7nsought products are consumer products that the consumerdoes not kno# about or kno#s about but does not normally thinkof buying

=ife insurance )uneral ser!ices http+''###.youtube.com'#atch!0%5h2jBnC5

Blood donations

4nsought products require a lot of ad!ertising, personal selling andother marketing efforts



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*ar+eting considerations or Consu%er products

*ar+etingconsideration

ypes o consu%er product

Con"enience !hopping !pecialty 7nsought

:ustomer buyingbeha!iour

)requentpurchase, littleplanning, littlecomparison orshopping effort,lo# customerin!ol!ement

=ess frequentpurchase, muchplanning andshopping effort,comparison ofbrands on price,quality, style

-trong brandpreference andloyalty, specialpurchase effort,little comparison ofbrands, lo# pricesensiti!ity

=ittle producta#areness,kno#ledge &or, ifa#are, little ore!en negati!einterest(

Price =o# price @igher price @igh price 9aries

8istribution idespreaddistribution,con!enientlocations

-electi!edistribution infe#er outlets

/*clusi!edistribution in onlyfe# outlets permarket area

9aries

Promotion >ass promotionby the producer

Ad!ertising andpersonal selling byboth producer andretailer

>ore carefullytargetedpromotion by bothproducer Dresellers

Aggressi!ead!ertising andpersonal selling byproducer Dresellers

/*amples %oothpaste,maga$ines,

laundrydetergent

>ajor appliances,t!, furniture,

clothing

=u*ury goods&Eole* #atches(

=ife insurance,Eed :ross

donation


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'hat Is a Product(

Industrial products are products purchased forfurther processing or for use in conducting a

business :lassified by the purpose for #hich the

product is purchased< >aterials and parts

< :apital items

< -upplies and ser!ices



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'hat Is a Product(

*aterials and parts include ra# materialsand manufactured materials and partsusually sold directly to industrial users./*ample " Ea# material products+ farm products,natural products &fish, fruits, iron ore(.>anufactured products+ component materials

&iron, cement( D component parts &motors(

Capital ite%s are industrial products that aidin the buyers production or operations,including installation and accessoryequipment. /.G < 5nstallations are majorpurchase &buildings, factories, fi*ed equipment(.Accessory equipment are factory equipment &lifttrucks( and office equipment &computers, fa*machies(.



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'hat Is a Product(

*aterials and parts Capital ite%s

!upplies and ser"ices include operating supplies &paper,pencils, coal(, repair and maintenance items &paint, nails(, andbusiness D repair ser!ices indo#n cleaning, computer repair(

and business ad!isory ser!ices &legal, management orad!ertising consultance(. -upplies are the con!enience product ofthe industrial field. %hey are usually purchased #ith minimum effort.



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'hat Is a Product(

5n addition to tangible products D ser!ices, marketers also broadensthe concept of a product to include other marketing offerings any big"name companies use %igeroods to link themsel!es #ith, including Nike, American /*press,

Gillette.Place %ar+eting$ acti!ities to create, maintain or change attitudes

to#ard particular places. -uch as F8isco!er :hina no# or F>alaysia< %ruly Asia or F9ietnam < the hidden :harm.

http+''###.youtube.com'#atch!0H=@cg3/ylI5

http+''###.youtube.com'#atch!0Bku!:p:gJoJ

rganiations, Persons, Places, and Ideas


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Chapter 8 - slide 19Copyright 2010 Pearson Education, Inc.Publishing as Prentice all Adapted by Giang Nguyen

'hat Is a Product(

rganiation %ar+eting

Person %ar+eting

Place %ar+eting

!ocial %ar+eting is the use of

commercial marketingconcepts and tools inprograms designed toinfluence indi!idualsbeha!ior to impro!e their#ell"being and that of

society.

Eemember anti"smoking adsHr Ktraffic accident#arning outdoor boards

rganiations, Persons, Places, and Ideas

P d t d ! i ) i i


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Product and !er"ices )ecisions

Product attributesare the benefits of the product or ser!ice. %hey are+

ualityhas I dimensions+ le!el and consistency. Performance quality &le!el(+ the

ability of a product to perform its functions, this supports the positioning. )or e*ample a>ercedes has higher performance quality than a :he!rolet+ smoother ride and bettershock"resistant. Conformance quality &consistency(+ free from defects and consistent indeli!ering a le!el of performance. /.g+ )uel consumption of the car must be consistent.Apple !s -amsung #hile -amsung screen is not consistent in quality.

:eatures+ dimensions, source ingredients, ser!ices, structures, aesthetic characteristics,

performance, components, materials. )eatures are competiti!e tool for differentiating. !tyle and design$ style is the appearance of a product, design is more than justappearance, its include architecture and building of product. 5t contributes to theusefulness as #ell as the look. /.g+ the ne# design of chilly sauce bottle helps to squee$ethe bottle to final drops

1. Indi"idual Product and !er"ice )ecisions

>arketers make product and ser!ice decisions at threele"els+ indi!idualproduct decisions, product line decisionand product mi* decision

Productattributes

Branding Packaging =abelling Productsupportser!ices


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#rand is the name, term, sign, ordesignLor a combination oftheseLthat identifies the makeror seller of a product or ser!ice.

#rand e;uity is the differentialeffect that the brand name hason customer response to theproduct and its marketing.

Branding helps buyer in+

" Identifying products that mightbenefit them

" Distinguish product quality andconsistency


Branding helps sellers in some #ays+

" 5t is the basis on #hich a #holestorycan be built about a products

special qualities." 5tprotectsand distinguish the

sellers from their competitors.

" Brands also help seller to segmentmarkets. /.g+ %oyotas =e*us,

Prius, =and :ruiser, etc.


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Pac+agingin!ol!es designingandproducingthe container or #rapper fora product.

%raditionally, main function of the package

is to hold and protect the product. @o#about no#

Packaging helps topromotethe product onshel!es. 5t also gi!es a company ad!antageo!er competitors and boost sales.

Packaging helps to attractcustomers attention,and describe the product .

/*ample+ @ein$s ketchup bottle+ quickly squee$eand better fit #ith the fridges door.

9ideo of 5nno!ati!e Packaging &NPP(



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6abeling6abelsidentifythe product or brand,

describe attributes, and pro!idepromotion. =abels range fromsimple tags to products to comple*

graphics that are part of thepackage.

%he label describes some things about theproduct+ homade it, hereit #asmade, henit #as made, its contents,

hoit is to be used, etc.=abels also help to identify products or

brands and to promote the brand,support its positioning and connect #ithcustomers.


@o#e!er, there are someissues#ith labels+ labels can

mislead customers, fail todescribe importantingredients, fail to includeneeded safety #arnings.


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Product and !er"ices )ecisions1. Indi"idual Product and !er"ice )ecisions

Product support ser"ices$ a companys offerusually includes some support ser!ices.

)or e*ample+ after"sale ser!ice of many products,

including mobile phones, cars, printers, laptops, etc.


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Product lineis a group ofproducts that are closelyrelated because theyfunction in a similar manner,are sold to the samecustomer groups, aremarketed through the sametypes of outlets, or fall #ithin

gi!en price ranges/*ample+ :lassic :oke, Easberry 8iet

:oke, =emon 8iet :oke, =ime 8iet:oke, Black :herry M 9anilla :oke

2. Product 6ine )ecisions


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Product linelength is the number of items in the product line.%he line is too short #hen the manager can increase profits by adding items. %he line

is too long #hen the manager can increase profits by dropping items.

%he firm can e*pand its product line in t#o #ays+ 6ine illing$ adding more items #ithin the present range of the

line. /.g+ :okes !arious fla!or products. 6ine stretching+ lengthen a firms product beyond its current

range, by do#n#ard, up#ard or both #ays.

< /.g+ %oyota launched =e*us as up#ard #hile launched its 1arisith the price of O6,OO( as do#n#ard.

Product 6ine )ecisions

4p#ard 8o#n#ard


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Product %i/ =or product portolio> consists of all the products anditems that a particular seller offers for sale. )or e*ample+ -onysdi!erse portfolio of 6 primary product businesses+ -ony :omputer/ntertainment &games(, -ony Pictures /ntertainment &mo!ies, %9sho#s, music, 898(, -ony /lectronics, -ony )inancial ser!ices &lifeinsurance, banking(, etc.

)our important dimensions for a companys product %i/ are+

'idth+ refers to the num!er of different product lines the company carries.-onys #ide range of consumer D industrial products.

6ength+ total number of itemsthe company carries ithin its product lines.-ony carries many products #ithin each line.

)epth+ the number of !ersions offered of each product in the line. /.g+-ony has a !ery deep product mi*, it can offer any kind of %9+ tube, flat,@8, =:8, etc.

Consistency+ refers to ho# closely related the !arious product lines arein end use, production requirements, distribution channels.

Product *i/ )ecisions


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#randrepresents theconsumers perceptionsand eelingsabout a

product and itsperformance. 5t is thecompanys promise todeli!er a specific set of

features, benefits,ser!ices, and e*periencesconsistently to the buyers

#randing !trategy$ #uilding !trong #rands


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#rand e;uity$ the differential effect that kno#ing the brand

name has on customer response to the product or itsmarketing. It"s a measure of the !rand"s a!ility tocapture consumer preference and loyalty.

A brand #ith high brand equity is a !ery !aluable asset.

Brands such as :oca":ola, Nike, 8isney, >c8onaldsbecome larger"than"life icons that maintain their po#erin the market for years. Brands such as Google,1ou%ube, Apple create fresh consumer e*citement.



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#rand e;uity

>arketers can measure !rand strength along 6 consumerperception dimensions+

)ierentiation+ #hat makes the brand stand out

?ele"ance+ ho# consumers feel it meets their needs

@noledge+ ho# much consumers kno# about the brand

Estee%+ ho# highly consumers regard and respect the brand.

Brands #ith strong brand equity rate high on all of thesedimensions.

hen company ha!e a high brand e;uity, it #ill achie!e+

#rand Aareness, #rand Associations, #rand 6oyalty and

Percei"ed ;uality.



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#randing !trategy$ #uilding !trong#rands

*aBor #rand !trategy )ecisions

#rand positioning

AttributesBenefitsBeliefs and !alues

#rand na%e

selection

-electionProtection

#rand sponsorship

>anufacturers brandPri!ate brand=icensing:o"branding

#rand de"elop%ent

=ine e*tensionsBrand e*tensions>ultibrandsNe# brands


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Chapter 8 - slide Copyright 2010 Pearson Education, Inc.Publishing as Prentice all Adapted by Giang Nguyen


Brand strategy decisions include+

Product attributes$ position the brand on product attribute. %his

shouldnt be used much because competitors can easily copyattributes. /.g+ using 8@A in ad!ertising milk po#er products+ Nestle, 8ielacAlpha, /nphaGro#.

Product beneits$A brand can be better positioned by associating itsname #ith a desirable benefit. /.g+ Nike on performance, =e*us on quality,)ed/* on guaranteed on time deli!ery, Apple on user"friendliness.

Product belies and "alues$ the strongest brand goes beyondattribute or benefit positioning. %hey are positioned on strong beliefsand !alues. -uccessful brands engage customers on a deep,emotional le!el. /.g+ insurance brands, :anon < 8elighting you al#ays,

#rand Positioning

>arketers can position their brands at three le!elsdescribed belo#.


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#randing acti"ity

9ideo of Air Ne# Qealand Ks special


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8esirable qualities for a brand name include+

1. !uggest beneits and ;ualities+ =and:ruiser,9ietnam#orks, @otjobs, =ean :uisine, =otte 2ylitol,etc.

2. Easy to pronounce, recognie, and re%e%ber$

iPod, 3et-tar, Nike, Ama$on.com, >ekong, -umo

BBR, etc.. )istincti"e+ =e*us, 5nno!a, Gala*y, etc.

. E/tendable =to other categories>$5B>,Ama$on.com, -ony

3. ranslatable or the global econo%y$

Eemember 5rish >ist &>ist means fertili$er in

German( G>s No!a means F8oesnt Go in-panishS Pi$$a @ut PTQone+ FPe Qon meansFnipple in -panish.

4. Capable o registration and legal protection$ abrand name cannot be protected if it reuses or issimilar to e*isting brand names.

#rand a%e !election

i+eoffended>uslims in 3une,O77 #hen theUflaming airU logo forits Nike Air sneakerslooked too similar to

the Arabic form ofGodTs name, UAllahU.Nike pulled morethan ;J,VVV pairs ofsneakers from themarket

#randing !trategy$ #uilding !trong


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*anuacturer


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>anufacturers brand &or national brand( !ersusPri!ate brand

=icensed brand+ some companies license namesor symbols pre!iously created by othermanufacturers, names of #ell"kno#n celebrities

or characters from popular mo!ies D books.< )or e*ample+ sellers of childrens products use famous

character names #ith their items, such as innie thePooh, -cooby 8oo, @arry Porter, etc.

:o"brand+ occurs #hen t#o established brand

names of different companies are used on thesame product.< /.g+ -ony /ricsson, NikeMiPod -port Wit,

9irgin >aster :ard, )iat < >attel created Barbie car

< hat are disa!antages and ad!antages of :o"branding

#rand !ponsorship

#randing !trategy$ #uilding !trong


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6ine e/tensions$ e*tends e*isting brand names to ne# forms, colors, si$es,ingredients or fla!ors of e*isting product category. /.g+ Ninh %huan -ea salt,Ninh %huan chilly salt, Ninh %huan pepper salt, Ninh %huan fi!e"spices salt.

#rand e/tensions$ e*tends current brand name to ne# or modified

products in a ne# category. Wimberly :lark e*tended its @uggies brand fromdiapers to a full line of toiletries for toddlers, including+ shampoos, lotions,etc.

*ultibrands+ additional brands in the same category. PDGs laundrydetergents, remember Hr 4nile!ers soaps+ 8o!e, =ifebuoy, =u* .

e brands$ Pepsi introduced its ne# snacks )rito =ay.

#rand de"elop%ent


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)iscussion

%hink of any brand and analy$e #hichstrategy in the brand de!elopment it

might be.


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!er"ices *ar+eting

-er!ice industry is gro#ing !ery fast and !ary greatly+

Do"ern%ent+ offer ser!ice through courts,employment ser!ices, hospitals, military ser!ices,polic and fire departments, postal ser!ice and schools

Pri"ate not-or-proit organiations$ museums,charities, churches, colleges, foundations andhospitals.

#usiness ser"ices$ banks, airlines, hotels, insurancecompanies, consulting firms, medical and legalpratice, entertainment companies, real"estate firms,retailers and others.

ypes o !er"ice Industries

!er"ices *ar+eting


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!er"ices *ar+eting

A company must consider 6 special ser!ice characteristics #hendesigning marketing programs

Intangibility+ ser!ices cannot be seen, tasted, felt, heard,touched or smelled before the purchase.

Inseparability$ ser!ices cannot be separated from the pro!iders,

#hether the pro!iders are people or machines. Pro!ider"customer interaction is a special feature of ser!ices marketing.

&ariability$ the quality of ser!ice depends on #ho pro!ides themas #ell as #hen, #here and ho# they are pro!ided, thus, it is!ariable from situation to situation.

Perishability$ ser!ices cannot be stored for later sale or use. 5nforeign countries, if you missed a doctors appointment, you arestill charged for the fees because at your appointment time, thedoctor has to cancel other patients booking.

ature and Characteristics o a !er"ice


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!er"ices *ar+eting

5n addition to traditional marketingstrategies, ser!ice firms often require

additional strategies -er!ice"profit chain

5nternal marketing

5nteracti!e marketing

*ar+eting !trategies or !er"ice :ir%s


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!er"ices *ar+eting

!er"ice-proit chain links ser!ice firm profits #ith employeeand customer satisfaction. %he chain consist links+

Internal ser"ice ;uality$ superior employee selectionand training, quality #ork en!ironment

!atisied and producti"e ser"ice e%ployees$ moresatisfied, loyal and hard#orking employees

Dreater ser"ice "alue$ more effecti!e and efficientcustomer !alue creation and ser!ice deli!ery

!atisied and loyal custo%ers$ satisfied customer #horemain more loyal, repeat purchase and refer other

customers. ealthy ser"ice proits and groth$ superior ser!ice

firm performance



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!er"ices *ar+eting

Internal %ar+eting means that the ser!ice firm mustorient and moti!ate its customer contact employeesand supporting ser!ice people to #ork as a team topro!ide customer satisfaction

5nternal marketing must precede e*ternal marketing



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!er"ices *ar+eting

Interacti"e %ar+eting means that ser!ice qualitydepends hea!ily on the quality of the buyer"sellerinteraction during the ser!ice encounter

-er!ice differentiation

-er!ice quality

-er!ice producti!ity



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!er"ices *ar+eting

*anaging ser"ice dierentiationcreates acompetiti!e ad!antage from the offer, deli!ery, andimage of the ser!ice

ercan include distincti!e features

)eli"erycan include more able and reliable

customer contact people, en!ironment, or process I%agecan include symbols and branding



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!er"ices *ar+eting

*anaging ser"ice ;ualitypro!ides acompetiti!e ad!antage by deli!ering

consistently higher quality than itscompetitors

-er!ice quality al#ays !aries depending on

interactions bet#een employees andcustomers

Marketing Strategies for Service Firms


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!er"ices *ar+eting

*anaging ser"ice producti"ity refers to the

cost side of marketing strategies for ser!icefirms

/mployee recruiting, hiring, and training

strategies -er!ice quantity and quality strategies

Marketing Strategies for Service Firms


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*id-ter% E/a% tips 7V minutes

Eead the multiple choice questions carefully. ;Vquestions for this part.

-pread out the time e!enly for each part D each

question. =ea!e it there to continue to ne*t part ifyou are not so sure about the ans#er.

:omplete all t#o essay questions, usinge*amples to illustrate your ans#ers and opinions

:hapter O, ;, , ,

Good =uck to All?


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mechanical, photocopying, recording, or other#ise, #ithout the prior #ritten

permission of the publisher. Printed in the 4nited -tates of America.

:opyright X IVOV Pearson /ducation, 5nc.:opyright X IVOV Pearson /ducation, 5nc.

Publishing as Prentice @allPublishing as Prentice @all

kotler pom13e student chapter 08-product

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