Product, Services, and Branding Strategy

8 - 1 Definitions Product  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.

8 - 2 Three Levels of Product

8 - 3 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 Product Classifications Consumer Products Specialty Products  Special purchase efforts  High price  Unique characteristics  Brand identification  Few purchase locations i.e can be anything Shopping Products  Buy less frequently  Higher price  Fewer purchase locations  Comparison shop i.e Clothing, appliances Convenience Products  Buy frequently & immediately  Low priced  Mass advertising  Many purchase locations i.e Candy, newspapers

8 - 4 Product and Service Classifications Consumer products Industrial products  Materials and parts  Capital items  Supplies and services

8 - 5 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.

8 - 6 The Role of Brands Identify the maker Simplify product handling Organize accounting Offer legal protection

8 - 7 The Role of Brands Signify quality Create barriers to entry Serve as a competitive advantage Secure price premium

8 - 8 Brand Elements Elements Slogans Brand names URLs Logos Symbols Characters

8 - 9 Brand Elements

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.

Brand Element Choice Criteria Memorable Meaningful Likeability Transferable Protectible

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

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

Brand Strategy Brand Positioning Brand Name Selection Brand Sponsorship Brand Development 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

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

Packaging has been influenced by… Self-service Company/brand image Innovation opportunity

Innovations in Packaging

Functions of Labels Identifies Describes Promotes

Brand Strategy Brand Positioning Brand Name Selection Brand Sponsorship Brand Development 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 Key Decisions

Product and Service 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 Key Decisions Individual Product Product Line Product Mix

Personal Care(product category) Personal Wash Skin Care Hair Care Lux Fair & Lovely Sunsilk Lifebuoy Pond’s Clinic Breeze Vaseline Clear Dove

Food(Product category) Tea Ice cream Food Brook bond Wall’s Kissan Lipton Knorr

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

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

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

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

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

The 10 Most Valuable Brands (Source: Millward Brown) Brand2007 Brand Value (Billions) Google$86.06 GE$71.38 Microsoft$70.89 CocaCola$58.21 China Mobile IBM Apple $57.23 $55.33 $55.21 McDonald’s$49.50 Nokia$43.98 Marlboro$37.32

Line Extension Multi brands Brand Extension New Brands Brand Name ExistingNew Product Category Existing New Four Brand Strategies

Four Services Characteristics

Characteristics of Services Intangibility  Consumers look for service quality signals Inseparability  Services can’t be separated from providers Variability  Employees and other factors result in variability Perishability  Services can’t be inventoried for later sale