Presentation on theme: "Objectives Be able to define product and know the major classifications of products and services. Understand the decisions companies make regarding their."— Presentation transcript:
0 Product, Services, and Branding Strategies Chapter 9
1 ObjectivesBe able to define product and know the major classifications of products and services.Understand the decisions companies make regarding their individual products and services, product lines, and product mixes.
2 Objectives Understand how firms build and manage their brands. Know the four characteristics of services and the additional marketing considerations that services require.Review additional product issues related to social responsibility and international marketing.
3 The Cosmetics Industry Case StudyThe Cosmetics IndustryCosmetics companies sell billions of dollars worth of productsConsumers buy more than just a particular smellThe “promise”, image, company, name, package, and ingredients are all part of the product, as are the stores where it is sold.
4 Definitions Product Service Anything offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want.ServiceAny activity or benefit that one party can offer to another that is essentially intangible and does not result in ownership of anything.
5 What is a Product? Products, Services, and Experiences Market offerings, pure tangible goods, pure services, experiencesLevels of Product and ServicesCore benefit, actual product, and augmented productProduct and Service Classifications
6 Types of Consumer Products What is a Product?Types of Consumer ProductsFrequent purchases bought with minimal buying effort and little comparison shoppingLow priceWidespread distributionMass promotion by producerConvenienceShoppingSpecialtyUnsought
7 Types of Consumer Products What is a Product?Types of Consumer ProductsLess frequent purchases requiring more shopping effort and price, quality, and style comparisons.Higher than convenience good pricingSelective distribution in fewer outletsAdvertising and personal selling by producer and resellerConvenienceShoppingSpecialtyUnsought
8 Types of Consumer Products What is a Product?Types of Consumer ProductsStrong brand preference and loyalty, requires special purchase effort, little brand comparisons, and low price sensitivityHigh priceExclusive distributionCarefully targeted promotion by producers and resellersConvenienceShoppingSpecialtyUnsought
9 Types of Consumer Products What is a Product?Types of Consumer ProductsLittle product awareness and knowledge (or if aware, sometimes negative interest)Pricing variesDistribution variesAggressive advertising and personal selling by producers and resellersConvenienceShoppingSpecialtyUnsought
10 What is a Product? Product and Service Classifications Consumer productsIndustrial productsMaterials and partsCapital itemsSupplies and services
11 What is a Product? Product and Service Classifications Organizations, persons, places, and ideasOrganizational marketing makes use of corporate image advertisingPerson marketing applies to political candidates, entertainment sports figures, and professionalsPlace marketing relates to tourismSocial marketing campaigns promote ideas
12 Product and Service Decisions Key DecisionsProduct attributesQuality, features, style and designBrandingPackagingLabelingProduct support servicesIndividual ProductProduct LineProduct Mix
13 Product and Service Decisions Key DecisionsProduct line lengthLine stretching: adding products that are higher or lower priced than the existing lineLine filling: adding more items within the present price rangeIndividual ProductProduct LineProduct Mix
14 Product and Service Decisions Key DecisionsProduct line width:number of different product lines carried by companyProduct line depth:Number of different versions of each product in the lineProduct line consistencyIndividual ProductProduct LineProduct Mix
15 Branding StrategyBrands are powerful assets that must be carefully developed / managed.Brands with strong equity have many competitive advantages:High consumer awarenessStrong brand loyaltyHelps when introducing new productsLess susceptible to price competition
16 Brand Strategy Key Decisions Three levels of positioning: Product attributesLeast effectiveBenefitsBeliefs and valuesTaps into emotionsBrand PositioningBrand Name SelectionBrand SponsorshipBrand Development
17 Brand Strategy Key Decisions Brand Positioning Brand Name Selection Good Brand Names:Suggest something about the product or its benefitsAre easy to say, recognize and rememberAre distinctiveAre extendableTranslate well into other languagesCan be registered and legally protectedBrand PositioningBrand Name SelectionBrand SponsorshipBrand Development
18 Brand Strategy Key Decisions Brand Positioning Brand Name Selection Manufacturer brandsPrivate (store) brandsCostly to establish and promoteHigher profit marginsLicensed brandsName and character licensing has grownCo-brandingAdvantages / disadvantagesBrand PositioningBrand Name SelectionBrand SponsorshipBrand Development
19 Brand Strategy Key Decisions Brand Positioning Brand Name Selection Line extensionsMinor changes to existing productsBrand extensionsSuccessful brand names help introduce new productsMultibrandsMultiple product entries in a product categoryNew brandsNew product categoryBrand PositioningBrand Name SelectionBrand SponsorshipBrand Development
20 Line Extensions May Feature Different: Brand StrategyLine Extensions May Feature Different:FlavorsColorsFormsIngredientsPackage Sizes
21 Services Marketing Services Account for 74% of U.S. gross domestic product.Service industries include business organizations, government, and private not-for-profit organizations.
22 Services Marketing Characteristics of Services Intangibility Consumers look for service quality signalsInseparabilityServices can’t be separated from providersVariabilityEmployees and other factors result in variabilityPerishabilityServices can’t be inventoried for later sale
23 Services Marketing Service Firm Marketing Strategies The Service-Profit ChainInternal MarketingInteractive MarketingManaging Service DifferentiationManaging Service QualityManaging Service Productivity
24 Additional Product Considerations Product Decisions and Social ResponsibilityAcquisitions and mergersLegal complianceProduct liability issuesWarranties
25 Additional Product Considerations International Product and Services MarketingSpecial 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?