1. Products, Services and Brands

2. The Product-Service Continuum
Sugar
Restaurant
Education
Pure Tangible Good
Pure Service
Offer another example of a pure service.

3. What Is a Product?
Anything offered to a market that satisfies a want or need.
Includes: physical objects, services, events, persons, places, organizations, ideas, or some combination thereof.

4. What Is a Service?
Activities, benefits, or satisfactions offered to a market that are essentially intangible and do not result in the ownership of anything.
Examples: banking, hotel, airline, retail, tax preparation, home repairs.

5. Consumer Experiences In-store Theater is more important than ever
Consider ALL consumer touch-points
Eliminate shopping drudgery
Work fun into the shopping experience, but don’t overdo it
Knot Tying Clinic
Art Gallery Entrance

6. Three Levels of Product

7. Convenience & Shopping Products
Convenience Goods
Bought frequently and immediately
Low price
Many purchase locations
Examples: candy, soda, newspapers
Shopping Goods
Bought less frequently
High price
Fewer purchase locations
Comparison shop
Examples: cars, furniture, appliances

8. Specialty & Unsought Products
Specialty Products
Special purchase efforts
High price
Unique characteristics
Brand importance
Few purchase locations
Example: Rolex watches, Ferrari cars
Unsought Products
New innovations
Consumers may not want to purchase or think about them
Examples: blood donation, cemetery plots, insurance

9. Individual Product Decisions

10. Product & Service Attributes
Quality
Performance quality
Conformance quality
Benefits vs. Features
Consumers generally value benefits, not features
Style and design
Influences product choice and experience

11. Branding
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.
Product = “Body”
Brand = “Soul”

12. Branding - Advantages Advantages to buyers: Advantages to sellers:
Eases product identification
Simplifies the purchase process
Signal of quality
“Repository of Trust” (- Jordan)
Advantages to sellers:
Drive loyalty to company and its products
Provides legal protection
Helps segment markets (i.e. “Branded Variants”)

13. How Branding Happens

14. Packaging Container, wrapper or “external face” for a product.
Good packages
market the brand effectively
protect the internal elements
protect the external elements
don’t become “stale” over time
ensure product safety
are responsive to local environmental and social concerns

15. Innovative Packaging
Dutch Boy’s packaging innovation offers paint in plastic containers with twist-off tops. The paint container is easy to carry, doesn’t need a screwdriver to pry open, doesn’t dribble when poured, and doesn’t take a hammer to bang the lid shut.

16. Labeling Printed information appearing on or with the package.
Performs several functions:
Identifies or reinforces identification of product/brand
Provides “valuable” information about product contents or ingredients
Co-promotes the product along with packaging

17. Labeling
The FDA now requires food manufacturers to list trans fat on the Nutrition Facts portion of product labels.

18. The Ethics and Legality of Labeling

19. Product Line Decisions
Group of products with slight variations (flavors).
Product Line Stretching
Downward
Upward
Both directions
Product Line Filling
Examples
Ice Tea
Pet Foods

20. Product Line Stretching - Marriott
Marriott offers a full line of hotel brands, each aimed at a different market.

21. Product Mix Decisions Product mix: Product mix decisions:
What combination of products do we carry?
Product mix decisions:
Product Line Length: the number of items in a line.
Product Line Width: the number of different product lines the company carries. (i.e. Wal-Mart has toys, food, cards, clothes, music, etc.)
Product Line Depth: the number of versions offered of each product in the line. ( 2 or 3 different sizes)

22. Is variety a consumer blessing or curse?
Question du Jour
Is variety a consumer blessing or curse?

23. Brand Loyalty & Brand Equity
Definition: Willingness to re-purchase due to favorable brand impressions
How measured?
Brand Equity
Definition: The positive effect that knowing the brand name has on consumer response to the product.
Psychological Value
Financial Value
The Link between Brand Loyalty & Brand Equity

24. Major Brand Strategy Decisions

25. Brand Positioning Brands can be positioned at three levels:
Product features/ attributes
Least desirable
Easily copied
Brand benefits
Beliefs and values
Hits consumers on a deeper level, tapping “universal” emotions.

26. Brand Name Selection Good Brand Names:
Straightforwardly suggest the product’s benefits and qualities.
Are easy to spell, pronounce, recognize, and remember.
Are distinctive and memorable.
Are extendable into different product lines (i.e. facilitate brand extensions).
Translate easily into foreign languages.
Provide the maximum legal protection from infringement.

27. Brand Name Selection
Boudreaux’s Butt Paste is a real product used in the treatment of diaper rash.
Is this a good brand name?
Good Brand Names:
Straightforwardly suggest the product’s benefits and qualities.
Are easy to spell, pronounce, recognize, and remember.
Are distinctive and memorable.
Are extendable into different product lines (i.e. facilitate brand extensions).
Translate easily into foreign languages.
Provide the maximum legal protection from infringement.

28. Brand Sponsorship Manufacturer’s brands Private-label brands
Also called “National Brands” (Tide, Coke, Pringles, etc.)
Private-label brands
Also called “Store” or “Distributor” Brands (Stop & Shop’s “Mi Casa”, Costco’s “Kirkland”)
Store vs. Private Label Trends
Co-branding – “Tag-team Branding” (Waffle House and Minute Maid OJ)
Ingredient Branding (“Intel Inside”)
Mi Casa brand products are only available at Stop & Shop stores.

29. Brand Development Strategies

30. Line Extensions

31. Brand Development – Multibranding & New Brands
appeal to different buying motives and segments
Example: Toyota sells Corolla, Camry, Scion, Yarris
New brands:
waning power of existing brands
products in new product category
Can develop (Black & Decker develops De Walt) or buy (i.e. Wendy’s buys Baja Fresh)

32. Services

33. Four Service Characteristics

34. Four Service Characteristics – Restaurant Example
How do the service characteristics of intangibility, variability, inseparability, and perishability relate to restaurants?