mktg 4 product_brand_1

Product and Services

What is a Product?

Goods Services Experiences Events Persons

Places Properties Organizations Information Ideas

What Is a Product?

Products, Services, and Experiences

Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want

• Soap• Toothpaste

8-4

What Is a Product?

Product and Service Classifications

• Consumer products• Industrial products

8-9

What Is a Product?


Consumer products are products and services for personal consumption

• Classified by how consumers buy them• Convenience product• Shopping products• Specialty products• Unsought products

8-10

What Is a Product?


Convenience products are consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort

• Newspapers• Candy• Fast food

8-11

What Is a Product?


Shopping products are consumer products and services that the customer compares carefully on suitability, quality, price, and style

• Furniture• Cars• Appliances

8-12

What Is a Product?


Specialty products are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort

• Medical services• Designer clothes• High-end electronics

8-13

What Is a Product?


Unsought products are consumer products that the consumer does not know about or knows about but does not normally think of buying

• Life insurance• Funeral services• Blood donations

8-14

What Is a Product?


Industrial products are products purchased for further processing or for use in conducting a business

Classified by the purpose for which the product is purchased

• Raw Materials and parts• Capital• Supplies and services

8-15

What Is a Product?


Materials and parts include raw materials and manufactured materials and parts usually sold directly to industrial users

• Wheat• Lumber• Iron• Cement

8-16

What Is a Product?


Capital items are industrial products that aid in the buyer’s production or operations

• Buildings• Elevators• Computers

8-17

What Is a Product?

Organization marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward an organization

8-18

Organizations, Persons, Places, and Ideas

What Is a Product?

Person marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people

• Rakhi’s swayamwar

8-19


What Is a Product?


Place marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places

• Tourism

8-20

What Is a Product?


Social marketing is the use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society

• Public health campaign• Tourism

8-21

What Is a Product?

Experiences represent what buying the product or service will do for the customer

• Treasure Land• Disney land

8-6


What Is a Product?


Service is a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in ownership

• Doctor’s exam• Legal advice

8-5

The Product and Product Mix

Potential customers judge product offerings according to three elements: Product features and quality Services mix and quality Value-based prices


The customer value hierarchy: Core benefit Basic product Expected product Augmented product Potential product

What Is a Product?

• Core benefits• Actual product• Augmented product

8-7

Levels of Product and Services

What Is a Product?

Levels of Product and Services

Core benefits represent what the buyer is really buying

Actual product represents the design, brand name, and packaging that delivers the core benefit to the customer

Augmented product represents additional services or benefits of the actual product

8-8

Product and Service Decisions

Product Mix Decisions

Product mix consists of all the products and items that a particular seller offers for sale

• Width• Length• Depth• Consistency

8-39


Product mix dimensions: Width: number of product lines Length: total number of items in mix Depth: number of product variants Consistency: degree to which product

lines are related


Product Line Decisions

Product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges

8-33


Product Mix Decisions

Product mix width is the number of different product lines the company carries

Product mix length is the total number of items the company carries within its product lines

8-40



Product line depth is the number of versions offered of each product in the line

Consistency is how closely the various product lines are in end use, production requirements, or distribution channels

8-41



Product line length is the number of items in the product line

• Line stretching• Line filling• Line pruning

8-34

Line stretching

Down mkt stretch Up mkt stretch Two way stretch / combination line

stretching



Combination line stretching is used by companies in the middle range of the market to achieve both goals of upward and downward line stretching

8-37



Product line filling occurs when companies add more items within the present range of the line

• More profits• Satisfying dealers• Excess capacity• Plugging holes to fend off competitors

8-38


Brand is the name, term, sign, or design, or a combination of these, that identifies the maker or seller of a product or service

8-29

Individual Product and Service Decisions

Brand Decisions

The AMA definition of a brand: “A name, term, sign, symbol, or

design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from the competition.”

Branding Strategy: Building Strong Brands

Brand represents the consumer’s perceptions and feelings about a product and its performance. It is the company’s promise to deliver a specific set of features, benefits, services, and experiences consistently to the buyers

8-42

Brand Decisions Brands can convey six levels of meaning:

Attributes Benefits Values Culture Personality User

Brand Decisions Aaker identified five levels of customer

attitudes toward brands: Will change brands, especially for price. No

brand loyalty. Satisfied -- has no reason to change. Satisfied -- switching would incur costs. Values brand, sees it as a friend. Devoted to the brand.

Brand Decisions Brand identity decisions include:

Name Logo Colors Tagline Symbol

Consumer experiences create brand bonding, brand advertising does not.

Brand name decision

Individual name – zen, esteem Blanket family name – GE,maruti,

tata Separate family names-

Pantaloons, Sears, Walmart Corporate+individual prod. Name –

Maruti800, honda city


Brand Name Selection

Desirable qualities • Suggests benefits and qualities• Easy to pronounce, recognize, and

remember• Distinctive• Extendable• Translatable for the global economy

8-48

Brand Decisions Marketers should attempt to create or

facilitate awareness, acceptability, preference, and loyalty among consumers.

Valuable and powerful brands enjoy high levels of brand loyalty.


Brand equity is the positive differential effect that knowing the brand name has on customer response to the product or service

8-43

Brand Decisions Brand equity refers to the positive

differential effect that a brand name has on customers.

Brand equity: is related to many factors. allows for reduced marketing costs. is a major contributor to customer equity.

Branding Strategy:Building Strong Brands

Customer equity is the value of the customer relationships that the brand creates

Brand valuation is the process of estimating the total financial value of the brand

8-45

Brand Decisions

Key Challenges

To brand or not Brand sponsor Brand name Brand strategy Brand repositioning

Advantages of branding:

Facilitates order processing

Trademark protection Aids in segmentation Enhances corporate

image Branded goods are

desired by retailers and distributors

Brand Decisions

Key Challenges


Options include: Manufacturer

(national) brand Distributor (reseller,

store, house, private) brand

Licensing the brand name

Brand Decisions

Key Challenges


Strong brand names: Suggest benefits Suggest product

qualities Are easy to say,

recognize, and remember

Are distinctive Should not carry poor

meanings in other languages

Brand Decisions

Key Challenges


Varies by type of brand Functional brands – Maruti

800 ( fuel efficient) Image brands – raymond

suitings Experiential brands-barista,

disneyland Line extensions Brand extensions Multibrands New brands Co-branding

Line ext. Brand extension

Multi-brands New Brands

Product categoryExisting New

Existing

New

Brand Name


Brand Development

Line extensions occur when a company extends existing brand names to new forms, colors, sizes, ingredients, or flavors of an existing product category

Brand extensions extend a brand name to a new or modified product in a new category

8-52


Brand Development

Multibrands are additional brands in the same category

New brands are used when existing brands are inappropriate for new products in new product categories or markets

8-53


Brand Development

• Line extensions e.g: surf excel, excelmatic• Brand extensions e.g:nature fresh

sunflower oil, fresh flour, honda motorcycle

• Multibrands, e.g:Maruti zen, titan sonata• New brands• Co-brands e.g:TATA-IBM, Birla –AT&T etc.

8-51

Brand Decisions

Key Challenges


A brand report card can be used to audit a brand’s strengths and weaknesses.

Changes in preferences or the presence of a new competitor may indicate a need for brand repositioning.


Brand Sponsorship

• Manufacturer’s brand-Merchandise bearing a manufacturer's brand name, rather than a private label brand

• Private brand - Product brands owned by a retailer or a wholesaler rather than the manufacturer; also called house brands.

8-49


Private brands provide retailers with advantages

• Product mix control• Slotting fees for manufacturers’

brands• Higher margins• Exclusivity

8-50

Brand Sponsorship

Brand Sponsorship

• Licensed brand - A product or service using a registered brand name offered by the brand owner to a licensee for an agreed fee or royalty.

• Co-branding is a process when two companies form an alliance to work together, creating marketing synergy.

Co-branding According to Prof.Chang there are three

levels of co-branding: Level 1 includes joining with another

company to penetrate the market Level 2 is working to extend the brand

based on the company's current market share

Level 3 tries to achieve a global strategy by combining the two brands

Types of co-branding Ingredient co-branding – This

involves creating brand equity for materials, components or parts that are contained within other products. E.g:

Pillsbury Brownies with Nestle Chocolate, Dell Computers with Intel Processors

Types of co-branding

same-company co-branding This is when a company with more than one product promotes their own brands together simultaneously. E.g; cosmetics, shampoo+conditioner .


Joint venture co-branding two or more companies going for a strategic alliance to present a product to the target audience. British Airways and Citibank formed a partnership offering a credit card where the card owner will automatically become a member of the British Airway’s Executive club


multiple sponsor co-branding involves two or more companies working

together to form a strategic alliance in technology, promotions, sales, etc. e.g: Citibank/American Airlines/Visa credit card partnership


Managing Brands

Requires:• Continuous brand communication• Customer-centered training• Brand audits

8-54


Individual Product and Service Decisions

Packaging involves designing and producing the container or wrapper for a product

Label identifies the product or brand, describes attributes, and provides promotion

8-31

Packaging and Labeling Packaging includes:

The primary package The secondary package The shipping package

Many factors have influenced the increased use of packaging as a marketing tool.

Packaging and Labeling Developing an effective package:

Determine the packaging concept Determine key package elements Testing:

Engineering tests Visual tests Dealer tests Consumer tests

Packaging and Labeling Labeling functions:

Identifies the product or brand May identify product grade May describe the product May promote the product

Legal restrictions impact packaging for many products.

Services Marketing

Nature and Characteristics of a Service

• Intangibility• Inseparability• Variability• Perishability

8-56

Services Marketing


Intangibility refers to the fact that services cannot be seen, tasted, felt, heard, or smelled before they are purchased

Inseparability refers to the fact that services cannot be separated from their providers

8-57

Services Marketing


Variability refers to the fact that service quality depends on who provides it as well as when, where, and how it is provided

Perishability refers to the fact that services cannot be stored for later sale or use

8-58

Services Marketing

Types of Service Industries

• Government• Private not-for-profit organizations• Business services

8-55

Services Marketing

Marketing Strategies for Service Firms

Managing service quality provides a competitive advantage by delivering consistently higher quality than its competitors

Service quality always varies depending on interactions between employees and customers

8-64

Services Marketing

Marketing Strategies for Service Firms

Service recovery can turn disappointed customers into loyal customers

• Empower employees• Responsibility• Authority• Incentive

8-65

Marketing Strategies for ServiceFirms

Managing Service Managing Service DifferentiationDifferentiation

Develop offer, delivery and image with competitive advantages.

Managing Service Managing Service QualityQuality

Empower employees Become “Customer obsessed”

Develop high service quality standards

Watch service performance closely

Managing Service Managing Service ProductivityProductivity

Train current or new employees

Increase quantity by decreasing quality

Utilize technology

mktg 4 product_brand_1

Documents

levels of product

customeraugmented product

product features

buyingactual product

form of product

product linesare

number of product lines

group of products