1 Chapter 7 Product, Services, and Branding Strategy

Jian Hong SHAO USTB Concept Connections Define Product and the major classifications of products and services. Describe the decision companies make regarding their individual products, product lines and product mixes. Discuss branding strategy - building and managing brands. Identify the four characteristics that affect the marketing of a service.

Jian Hong SHAO USTB What’s a product? Product Anything offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want.

Jian Hong SHAO USTB Products Experiences Persons Places Organizations Ideas Information

Jian Hong SHAO USTB Levels of Product and Services

Jian Hong SHAO USTB Product and Service Classifications Products and services fall into two broad classes based on the types of consumers that use them: - Consumer products ( Convenience, Shopping, Specialty, Unsought) - Industrial products

Jian Hong SHAO USTB Types of Consumer Products - Convenience Frequent purchases bought with minimal buying effort and little comparison Low price Widespread distribution Mass promotion by producer

Jian Hong SHAO USTB Types of Consumer Products -Shopping Less frequent purchases requiring more shopping effort and comparisons. Higher than convenience goods Selective distribution in fewer outlets Advertising and personal selling by producer and reseller

Jian Hong SHAO USTB Types of Consumer Products -Specialty Strong brand loyalty, requires special purchase effort, little brand comparisons, and price sensitivity High price Exclusive distribution Carefully targeted promotion by producers and resellers

Jian Hong SHAO USTB Types of Consumer Products - Unsought Little product awareness and knowledge (or if aware, sometimes negative interest) Pricing varies Distribution varies Aggressive advertising and personal selling

Jian Hong SHAO USTB Individual Product Decisions

Jian Hong SHAO USTB Product Attributes Quality - Customer value and satisfaction - TQM Features - Value to consumer - Competitive tool for differentiation Style and Design - Style describes the appearance - Design is more than skin deep

Jian Hong SHAO USTB What is a Brand? A brand is a name, term, sign, symbol, or design, or a combination of these, that identify the maker or seller of a product or service.

Jian Hong SHAO USTB Brand Equity Satisfied & Switching Cost Satisfied Customer (no reason to change) Satisfied Customer (no reason to change) No Brand Loyalty (customer will change) No Brand Loyalty (customer will change) Values the Brand Devoted to Brand (brand as a friend) Devoted to Brand (brand as a friend)

Jian Hong SHAO USTB Brand Strategy - Brand Name Selection Good Brand Names : Suggest something about the product, or its benefits Are easy to pronounce, recognize and remember Are distinctive and unique Translate well into other languages Can be registered and legally protected

Jian Hong SHAO USTB Brand Strategy - Brand Sponsorship Manufacturer brands Private (store) brands Higher profit margins Licensed brands Name and character licensing has grown Co-branding Advantages / disadvantages

Jian Hong SHAO USTB Brand Strategy - Brand Development Brand Name Product Category Line Extension Existing Brand Extension New Multibrands New New Brands

Jian Hong SHAO USTB Packaging Includes primary, secondary and shipping packages. Functions -Contain and protect -Promote -Differentiate

Jian Hong SHAO USTB Labeling Functions Identifies Grades Describes Promotes

Jian Hong SHAO USTB Product Line Decisions Product line A group of products that are closely related because they may… function in a similar manner are sold to the same customer groups Market through the same types of outlets fall within given price ranges

Jian Hong SHAO USTB Product Mix (Product Assortment) Consistency Width Width - # of different product lines Length Length - # of items within the lines Length Length - # of items within the lines Depth Depth - # of versions of each product carried Product Mix - all the product lines offered by a seller Product Mix - all the product lines offered by a seller

Jian Hong SHAO USTB Services Marketing

Jian Hong SHAO USTB Service Firm Marketing Strategies The Service-Profit Chain Internal Marketing Interactive Marketing

Jian Hong SHAO USTB Additional Product Considerations Product Decisions and Social Responsibility International Product and Services Marketing Special challenges: Which products should be marketed internationally? Should the products be standardized or adapted for world markets? How should packaging be adapted? How can other barriers be overcome?

Jian Hong SHAO USTB Review of Concept Connections Define Product and the major classifications of products and services. Describe the decision companies make regarding their individual products, product lines and product mixes. Discuss branding strategy -building and managing brands. Identify the four characteristics that affect the marketing of a service.