0. 08
The Product

1. At the heart of a great brand is a great product

2. Definitions Product Service
Anything offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want.
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.

3. What is a Product? Products, Services, and Experiences
Market offerings may consist of a combination of goods and services
Experiences are used to differentiate offerings
Levels of Product and Services
Core benefit, actual and augmented product
Product and Service Classifications
Consumer products and industrial products

4. Three Levels of Product

5. Product Classification Schemes
Durability
Tangibility
Use

6. Durability and Tangibility
Nondurable
goods
Durable
goods
Services

7. Product Classifications Consumer Products
Convenience Products
Buy frequently & immediately
Low priced
Mass advertising
Many purchase locations
i.e Candy, newspapers
Shopping Products
Buy less frequently
Higher price
Fewer purchase locations
Comparison shop
i.e Clothing, appliances
Specialty Products
Special purchase efforts
High price
Unique characteristics
Brand identification
Few purchase locations
i.e can be anything
Unsought Products
New innovations
Products consumers don’t
want to think about these products
Require much advertising &
personal selling
i.e Life insurance, blood donation

8. Product and Service Classifications
Consumer products
Industrial products
Materials and parts
Capital items
Supplies and services

9. Product and Service Decisions
Key Decisions
Product attributes
Quality, features, style and design
Branding
Packaging
Labeling
Product support services
Individual Product
Product Line
Product Mix

10. Packaging: The 5th P All the activities of designing and producing
the container for a product.

11. Packaging has been influenced by…
Self-service
Consumer affluence
Company/brand image
Innovation opportunity

12. Functions of Labels
Identifies
Grades
Describes
Promotes

13. Product and Service Decisions
Key Decisions
Product line
A group of products that are closely related because they may:
function in a similar manner
be sold to the same customer groups,
be marketed through the same types of outlets
fall within given price ranges
Individual Product
Product Line
Product Mix

14. Product and Service Decisions
Key Decisions
Product 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
Individual Product
Product Line
Product Mix

15. Product and Service Decisions
Key Decisions
Product mix
Also known as product assortment
Consists of all the product lines and items that a particular seller offers for sale
Individual Product
Product Line
Product Mix

16. Product and Service Decisions
Key Decisions
Product mix width:
Number of different product lines carried by company
Product line depth:
Number of different versions of each product in the line
Product mix consistency
Individual Product
Product Line
Product Mix

17. Product width/length PRODUCT MIX WIDTH PRODUCT LINE LENGTH
A company’s product mix has four dimensions: width, length, depth, and consistency.
Product mix width refers to the number of different product lines the company carries.
Product mix length refers to the total number of items the company carries within its product lines.
Product mix depth refers to the number of versions offered of each product in the line.
Product mix consistency refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way.
The company can increase its business in four ways.
1. It can add new product lines, widening its product mix.
2. It can lengthen its existing product lines.
3. It can add more versions of each product, deepening its product mix.
4. It can pursue more product line consistency.
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

18. Brand A name, term, sign, symbol or design, or a combination of them,
intended to identify the goods
or services of one seller or group
of sellers and to differentiate
them from those of competitors.

19. The Role of Brands Identify the maker Simplify product handling
Organize accounting
Offer legal protection

20. The Role of Brands Signify quality Create barriers to entry
Serve as a competitive advantage
Secure price premium

21. Brand Equity The differential effect that brand
knowledge has on consumer
response to the
marketing of that brand.

22. Branding Strategy
Brands with strong equity have many competitive advantages:
High consumer awareness
Strong brand loyalty
Helps when introducing new products
Less susceptible to price competition

23. The 10 Most Valuable Brands (Source: Millward Brown)
2011 Brand Value (Billions)
Apple
$153
Google
$115
IBM
$101
McDonalds
$78
CocaCola
AT&T
Marlboro
$74
$70
$68
China Mobile
$57 GE
$50
ICBC
$44

24. Brand Elements Brand names URLs Slogans Elements Logos Characters
Symbols

25. Brand Elements

26. Brand Elements
Companies often create product icons to develop an identity for their products. Many made-up creatures and personalities, such as Çelik, Sütaş İnek and Yumoş Ayı, are widely recognized figures in popular culture.

27. Brand Element Choice Criteria
Memorable
Meaningful
Likeability
Transferable
Adaptable
Protectible

28. Slogans Like a good neighbor, State Farm is there Just do it
Nothing runs like a Deere
Help is just around the corner
Save 15% or more in 15 minutes or less
We try harder
We’ll pick you up
Nextel – Done
Zoom Zoom
I’m lovin’ it
Innovation at work
This Bud’s for you
Always low prices

29. Slogans Adını unutabilirsiniz, tadını asla! “Hayaaaatın tadıııı!”
Farkı, fiyatı!
Yok aslında birbirimizden farkımız, ama biz Osmanlı Bankası’yız.
Ne biçim lastik buuu?
Honda, hayat onda.
Çakar çakmaz çakan çakmak.
Bira bu kapağın altındadır.
Citroen gelir, hayat değişir.
Türkiye’nin motosikleti.
Erkek sünnet olur, askerlik yapar, Permatik kullanır!
Philips hayatımızı kolaylaştıracak.
Kirlenmek güzeldir.
Tefal, ne varsa sende var.
Arçelik demek yenilik demek.
Kalebodur, seramik budur.

30. Brand Strategy Key Decisions Three levels of positioning:
Product attributes
Least effective
Benefits
Beliefs and values
Taps into emotions
Brand Positioning
Brand Name Selection
Brand Sponsorship
Brand Development

31. Brand Strategy Key Decisions Brand Positioning Brand Name Selection
Good 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 protected
Key Decisions
Brand Positioning
Brand Name Selection
Brand Sponsorship
Brand Development

32. Brand Strategy Key Decisions Manufacturer brands
Private (store) brands
Costly to establish and promote
Higher profit margins
Licensed brands
Name and character licensing has grown
Co-branding
Advantages / disadvantages
Brand Positioning
Brand Name Selection
Brand Sponsorship
Brand Development

33. Arçelik New Refrigerators
Four Brand Strategies
Line Extension
Arçelik New Refrigerators
Multibrands
Arçelik - Beko
Brand Extension
Arçelik TV-A/C
New Brands
OYAK - Tukaş
Brand Name
Existing
New
Product Category

34. Services Marketing Services
Account for 74% of U.S. gross domestic product.
Service industries include business organizations, government, and private not-for-profit organizations.

35. Four Services Characteristics

36. Nature and Characteristic of a Service
Intangibility
Inseparability
Can’t be seen, tasted, felt, heard, or smelled before purchase.
Can’t be separated from service
providers.
Quality depends on who provides them and when, where and how.
Can’t be stored for later sale or use.
Variability
Perishability