Product, Services, and Product, Services, and Branding StrategyBranding Strategy

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ROAD MAP: Previewing the Concepts

• Define product and the major classifications Define product and the major classifications of products and services.of products and services.

• Describe the roles of product and service Describe the roles of product and service branding, packaging, labeling, and product branding, packaging, labeling, and product support services.support services.

• Explain the decisions companies make when Explain the decisions companies make when developing product lines and mixes.developing product lines and mixes.

• Identify the four characteristics that affect Identify the four characteristics that affect the marketing of a service.the marketing of a service.

• Discuss the additional marketing Discuss the additional marketing considerations that services require.considerations that services require.

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What is a Product?

• Anything that can be offered to a Anything that can be offered to a market for attention, acquisition, market for attention, acquisition, use, or consumption and that might use, or consumption and that might satisfy a want or need.satisfy a want or need.– Includes: physical objects, services, Includes: physical objects, services,

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

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What is a Service?

• A form of product that consists of A form of product that consists of activities, benefits, or satisfactions activities, benefits, or satisfactions offered for sale that are essentially offered for sale that are essentially intangible and do not result in the intangible and do not result in the ownership of anything.ownership of anything.– Examples: banking, hotel, airline, retail, Examples: banking, hotel, airline, retail,

tax preparation, home repairs.tax preparation, home repairs.

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The Product-Service Continuum

Sugar Restaurant College Education

Pure Tangible Good

Pure Service

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Krispy Kreme

A Krispy Kreme isn’t just a doughnut. It’s a truly sweet experience.

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Levels of a Product

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Consumer Products

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

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Convenience Products

•Purchased frequently and immediately

• Low priced

• Mass advertising

• Many purchase locations– Examples: candy, soda, newspapers

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Shopping Products

•Bought less frequently

• Higher price

• Fewer purchase locations

• Comparison shop – Examples: furniture, clothing, cars,

appliances

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Specialty Products

•Special purchase efforts

• High price

• Unique characteristics

• Brand identification

• Few purchase locations– Examples: Lamborghini, Rolex Watch

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Unsought Products

•New innovations

•Products consumers do not want to think about

•Require much advertising and personal selling

•Examples: life insurance, cemetery plots, blood donation

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Industrial Products

• Those purchased Those purchased for further for further processing or for processing or for use in conducting use in conducting business.business.

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Supplies and Services Operating supplies, repair,

and maintenance items

Supplies and Services Operating supplies, repair,

and maintenance items

Materials and PartsRaw materials, manufactured

materials, and parts

Materials and PartsRaw materials, manufactured

materials, and parts

Capital ItemsProducts that aid in

buyer’s production or operations

Capital ItemsProducts that aid in

buyer’s production or operations

Industrial Products

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Other Market Offerings

• Organizations: Profit (businesses) and Organizations: Profit (businesses) and nonprofit (schools and churches).nonprofit (schools and churches).

• Persons: Politicians, entertainers, sports Persons: Politicians, entertainers, sports figures, doctors, and lawyers.figures, doctors, and lawyers.

• Places: create, maintain, or change Places: create, maintain, or change attitudes or behavior toward particular attitudes or behavior toward particular places (e.g., tourism).places (e.g., tourism).

• Ideas (social marketing): Public health Ideas (social marketing): Public health campaigns, environmental campaigns, campaigns, environmental campaigns, family planning, or human rights.family planning, or human rights.

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Organization Marketing

Companies use corporate image advertising to market themselves to various publics. General Electric Stands for “imagination at work.”

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Individual Product Decisions

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Product and Service Attributes

Quality Quality

FeaturesFeatures

Style & DesignStyle & Design

Performance and Satisfaction Includes Level & ConsistencyPerformance and Satisfaction Includes Level & Consistency

Differentiates a product from the competition; assessed based on

value and cost

Differentiates a product from the competition; assessed based on

value and cost

Style = AppearanceDesign = heart of the product

Style = AppearanceDesign = heart of the product

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Product Design

The innovative Discover 2GO card is a gotta-have-it accessory for people who want to dash off to the gym, the mall, or a restaurant with nothing more than their keys and a credit card.

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Branding

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

• A brand is a name, term, sign, A brand is a name, term, sign, symbol, or design, or a combination symbol, or design, or a combination of these, that identifies the maker or of these, that identifies the maker or seller of a product or service.seller of a product or service.

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Branding

• Advantages to buyers:Advantages to buyers:– Product identificationProduct identification– Product qualityProduct quality

• Advantages to sellers:Advantages to sellers:– Basis for product’s quality storyBasis for product’s quality story– Provides legal protectionProvides legal protection– Helps to segment marketsHelps to segment markets

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Packaging

•Designing and producing the Designing and producing the container or wrapper for a container or wrapper for a product.product.

•Developing a good package:Developing a good package:– Packaging conceptPackaging concept– Package elementsPackage elements– Product safetyProduct safety– Environmental concernsEnvironmental concerns

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Innovative Packaging

Dutch Boy recently came up with a long overdue innovation—paint in plastic containers with twist-off caps.

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Labeling

•Printed information appearing on Printed information appearing on or with the package.or with the package.

•Performs several functions:Performs several functions:– IdentifiesIdentifies product or brand product or brand– DescribesDescribes several things about the several things about the

productproduct– PromotesPromotes the product through the product through

attractive graphicsattractive graphics

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Innovative Labeling

Innovative labeling can help to promote a product.

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Product Support Services

• Assess the value of current services Assess the value of current services and obtain ideas for new services.and obtain ideas for new services.

• Assess the cost of providing the Assess the cost of providing the services.services.

• Put together a package of services Put together a package of services that delights the customers and that delights the customers and yields profits for the company.yields profits for the company.

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Stretching

Lengthen beyond current range.

Can be:

Downward

Upward

Both Directions

Product Line LengthProduct Line LengthNumber of Items in the Product Line

Product Line LengthProduct Line LengthNumber of Items in the Product Line

Filling

Lengthen within current range

Product Line Decisions

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Two-Way Stretch

Marriott added the Renaissance Hotels line to serve the upper end of the market and the TownePlace Suites line to serve the moderate and lower ends.

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Line Extension

Click the picture above to play video

As Marriott’s As Marriott’s product extension product extension grew in grew in popularity, it popularity, it extended the extended the product further.product further.

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Product Mix Decisions

• Product MixProduct Mix: all of the product lines and : all of the product lines and items that a particular seller offers for items that a particular seller offers for sale.sale.

• WidthWidth: the number of different product : the number of different product lines the company carries.lines the company carries.

• DepthDepth: the number of versions offered of : the number of versions offered of each product in the line.each product in the line.

• ConsistencyConsistency: how closely related the : how closely related the various lines are.various lines are.

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Brand Equity

• The positive differential effect that The positive differential effect that knowing the brand name has on knowing the brand name has on customer response to the product or customer response to the product or service.service.

• Provides:Provides:– More brand awareness and loyaltyMore brand awareness and loyalty– Basis for strong, profitable customer Basis for strong, profitable customer

relationshipsrelationships

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Major Brand Strategy Decisions

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Brand Positioning

• Can position brands at any of three levels.Can position brands at any of three levels.

Product Attributes

Product Benefits

Beliefs and Values

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Brand Name Selection

• Desirable qualities for a brand name Desirable qualities for a brand name include:include:

1.1. It should suggest product’s benefits and It should suggest product’s benefits and qualitiesqualities

2.2. It should be easy to pronounce, recognize, and It should be easy to pronounce, recognize, and rememberremember

3.3. It should be distinctiveIt should be distinctive

4.4. It should be extendableIt should be extendable

5.5. It should translate easily into foreign languagesIt should translate easily into foreign languages

6.6. It should be capable of registration and legal It should be capable of registration and legal protectionprotection

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Brand Sponsorship

Four OptionsCo-Branding PrivateBrands

Manufacturer’s Brands

Licensed Brands

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Line Extensions

Morton sells an entire line of salts and seasonings for every occasion.

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Brand Development

• Line ExtensionLine Extension: introduction of : introduction of additional items in a given product additional items in a given product category under the same brand category under the same brand name (e.g., new flavors, forms, name (e.g., new flavors, forms, colors, ingredients, or package colors, ingredients, or package sizes).sizes).

• Brand ExtensionBrand Extension: using a successful : using a successful brand name to launch a new or brand name to launch a new or modified product in a new category.modified product in a new category.

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•Choose a partner and go to the Choose a partner and go to the following website:following website:

Tide ProductsTide Products

• Look at the various line extensions (e.g., Look at the various line extensions (e.g., liquid, powder, etc.) and determine why liquid, powder, etc.) and determine why they were developed.they were developed.

Interactive Student Assignment

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Brand Development

• MultibrandingMultibranding: offers a way to : offers a way to establish different features and establish different features and appeal to different buying motives.appeal to different buying motives.

• New BrandsNew Brands: developed based on : developed based on belief that the power of its existing belief that the power of its existing brand is waning and a new brand brand is waning and a new brand name is needed. Also used for name is needed. Also used for products in new product category.products in new product category.

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Nature and Characteristics of a Service

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•How can an airline deal with the How can an airline deal with the intangibility, inseparability, intangibility, inseparability, variability, and perishability of its variability, and perishability of its service offering?service offering?

Discussion Question

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The Service-Profit Chain

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Major Service Marketing Tasks

• Managing Service Differentiation:Managing Service Differentiation:– Develop a differentiated offer, delivery, and Develop a differentiated offer, delivery, and

image.image.

• Managing Service Quality:Managing Service Quality:– Be customer obsessed, set high service quality Be customer obsessed, set high service quality

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

• Managing Service Productivity:Managing Service Productivity:– Train current employees or hire new ones, Train current employees or hire new ones,

increase quantity and sacrifice quality, harness increase quantity and sacrifice quality, harness technology.technology.

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Decide Which Products & Services to IntroduceDecide Which Products & Services to Introduce

Decide How Much to Standardize or Adapt Decide How Much to Standardize or Adapt

Packaging Presents New ChallengesPackaging Presents New Challenges

Service Marketers Face Special ChallengesService Marketers Face Special Challenges

Trend Toward Global Service Companies Will ContinueTrend Toward Global Service Companies Will Continue

International Product and Services Marketing

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Rest Stop: Reviewing the Concepts

1.1. Define product and the major Define product and the major classifications of products and services.classifications of products and services.

2.2. Describe the decisions companies make Describe the decisions companies make regarding their individual products and regarding their individual products and services, product lines, and product services, product lines, and product mixes.mixes.

3.3. Discuss branding strategy—the decisions Discuss branding strategy—the decisions companies make in building and companies make in building and managing their brands.managing their brands.

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Rest Stop: Reviewing the Concepts

4.4. Identify the four characteristics that affect Identify the four characteristics that affect the marketing of a service and the the marketing of a service and the additional marketing considerations that additional marketing considerations that services require.services require.

5.5. Discuss two additional product issues: Discuss two additional product issues: socially responsible product decisions and socially responsible product decisions and international product and services international product and services marketing.marketing.