Chapter Eight Product and Branding Strategy With Duane Weaver Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada OUTLINE Products Branding Packaging Labeling Services Responsibility Marketing Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Products Defined Product: any market offering that is intended to satisfy a want or need. Service: a type of product that is intangible and does not result in the ownership of anything. Experience: a type of product that combines a service or physical product with a memorable experience. Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Levels of a Product Core product or benefit. Actual product. Packaging, features, design, quality level, brand name. Augmented product. Warranty, delivery, credit, installation, service. Copyright © 2007 Pearson Education Canada

Consumer Product Types Convenience — Frequent purchase, easy buy, highly available, mass promotion. Shopping — Less frequent, brand comparison, selective distribution and promotion. Specialty — Strong brand preference, special effort, low price sensitivity, exclusive distribution, targeted promotion. Unsought — Low awareness, new innovations, negative interest (don’t want to think about it), need lots of advertising and personal selling. PLEASE GET INTO YOUR GROUPS: provide one example for each of the above Types (explain why you chose that one). Copyright © 2007 Pearson Education Canada

Business Products Types Materials and parts. Raw and manufactured materials, parts. Capital items. Buildings and equipment used in buyer’s production or operations, long useful life. Supplies and services. Operating supplies, repair and maintenance items and services. Chapter 8, page 298-99 Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Product Decisions Individual product decisions. Product attributes. Branding. Packaging and labelling. Product support services. Product line decisions. Product mix. Line filling. Line stretching. Copyright © 2007 Pearson Education Canada

Product and Service Attributes Quality. Performance and satisfaction includes level and consistency. Features. Differentiates a product from the competition. Assessed based on value and cost. Style and design. Style equals appearance: design is the heart of the product. Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Branding Creating, maintaining, protecting and enhancing products and services. A brand is a name, term, sign, symbol, design or a combination of these that identifies the maker or seller of a product or service. Chapter 8, page 303-304 Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Branding Advantages to buyers. Product identification. Product quality. Advantages to sellers. Basis for product’s quality story. Provides legal protection. Helps to segment markets. Chapter 8, page 303-304 Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Packaging Designing and producing the container or wrapper for a product. Developing a good package. Packaging concept. Package elements. Product safety. Environmental concerns. Chapter 8, page 304 Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Labelling Printed information appearing on or with the package. Performs several functions: Identifies product or brand. Describes several things about the product. Promotes the product through attractive graphics. Chapter 8, page 305-06 Copyright © 2007 Pearson Education Canada

Product Support Services Assess the value of current services and obtain ideas for new services. Assess the cost of providing the services. Put together a package of services that delights the customers and yields profits for the company. IN YOUR GROUPS: think of a product you recently purchased. If you were the business, what other services could you bundle (without extra cost per se) that would have helped to “delight” the customer? Chapter 8, page 307 Copyright © 2007 Pearson Education Canada

Product Line Decisions Group of closely related products because they function in a similar manner and are sold to similar segments with similar marketing mixes. Product line length refers to the number of items in the product line. Line stretching. Adding products to the line outside of current range. Can stretch upwards, downwards or both ways. Line filling. Adding more products within current range. Customers must see a difference or they will get confused by too many choices. Chapter 8, page 307 Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Product Mix Decisions Product mix. All of the product lines and items that a particular seller offers for sale. Width. Number of different product lines the company carries. Depth. Number of versions offered of each product in the line. Consistency. How closely related the various lines are. Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Brand Equity The positive differential effect that knowing the brand name has on customer response to the product or service. Provides: More brand awareness and loyalty. Basis for strong, profitable customer relationships. Copyright © 2007 Pearson Education Canada

Major Brand Strategy Decisions Brand positioning. Attributes, benefits, beliefs and values. Brand name selection. Selection, protection. Brand sponsorship. Manufacturer’s brand, private brand, licensing, co-branding. Brand development. Line extension, brand extension, multi-brands, new brand. Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Brand Name Selection It should suggest product’s benefits and qualities. It should be easy to pronounce, recognize and remember. It should be distinctive. It should be extendable. It should translate easily into foreign languages. It should be capable of registration and legal protection. Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Four Brand Strategies Line extension Brand Multi- brands New brands Existing Product category Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Brand Management Managing long-term brand equity. Deliver a full brand experience to customers. Train employees to deliver the brand experience. Rebrand if needed to meet changing customer needs. Appoint brand equity managers. Chapter 8, page 318-19 Copyright © 2007 Pearson Education Canada

Service Characteristics Intangibility. Cannot be seen, tasted, felt or smelled before purchasing. Inseparability. Consumed when it is provided and cannot be separated from the provider. Variability. Quality depends on who provides. Perishability. Cannot be stored or resold. Copyright © 2007 Pearson Education Canada

Major Service Marketing Tasks Managing service differentiation. Develop a differentiated offer, delivery and image. Managing service quality. Be customer obsessed, set high service quality standards, have good service recovery, empower front-line employees. Managing service productivity. Train current employees or hire new ones, increase quantity and sacrifice quality, harness technology. Copyright © 2007 Pearson Education Canada

Responsible Product Decisions Social responsibility in product decisions. Things to consider: Competition Act. Hazardous Products Act. Food and Drug Act. Patent laws. Issues for discontinuing products. Legal and ethical dangers of defective product design. Chapter 8, page 326 Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Thank You for your time To Brand or NOT to Brand? Copyright © 2007 Pearson Education Canada