Presentation on theme: "Marketing Management (MKT 261)"— Presentation transcript:
1 Marketing Management (MKT 261) Dr. Mohammed AlmossawiChapter SevenProduct, Services, and Branding StrategyCopyright 2007 Prentice Hall Inc.
2 What Is a Product?Anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.Includes: physical objects, services, events, persons, places, organizations, ideas, or some combination thereof.Copyright 2007, Prentice Hall, Inc.
3 What Is a 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.Examples: banking, hotel, airline, retail, tax preparation, home repairs.Copyright 2007, Prentice Hall, Inc.
4 Market OfferingsContinuum ranges from pure tangible goods (with no services) to pure services (with no good component) with many combinations in between.Pure good: Camay soap.Pure service: Legal representation.Combination: Restaurant meal.Creating and managing customer experiences differentiates offers.Copyright 2007, Prentice Hall, Inc.
5 Levels of a Product (Fig 7.1, page 201) Core benefitWhat the consumer is really buying.Actual productIncludes the brand name, features, design, packaging, quality level.Augmented productAdditional services and benefits such as delivery and credit, instructions, installation, warranty, service.Copyright 2007, Prentice Hall, Inc.
6 Product and Service Classifications Consumer ProductsIndustrial ProductsCopyright 2007, Prentice Hall, Inc.
7 1. Consumer ProductsProducts and services bought by final consumers for personal consumption.Also includes other marketable entities.Classified by how consumers buy them (Table 7.1,page 201).Copyright 2007, Prentice Hall, Inc.
8 Convenience Products Purchased frequently and immediately Low priced Mass advertisingMany purchase locationsExamples: candy, soda, newspapersCopyright 2007, Prentice Hall, Inc.
9 Shopping Products Bought less frequently Higher price Fewer purchase locationsComparison shopExamples: furniture, clothing, cars, appliancesCopyright 2007, Prentice Hall, Inc.
10 Specialty Products Special purchase efforts High price Unique characteristicsBrand identificationFew purchase locationsExample: Lamborghini, Rolex WatchCopyright 2007, Prentice Hall, Inc.
11 Unsought Products New innovations Products consumers do not want to think aboutRequire much advertising and personal sellingExamples: life insurance, cemetery plots, blood donationCopyright 2007, Prentice Hall, Inc.
12 2. Industrial ProductsThose purchased for further processing or for use in conducting business.Distinction between consumer and industrial products is based on the purpose for which an item is bought.Copyright 2007, Prentice Hall, Inc.
13 Industrial Products Materials and parts: Capital items: Raw materials, manufactured materials, and partsCapital items:Products that aid in buyer’s production or operationsSupplies and services:Operating supplies, repair, and maintenance itemsCopyright 2007, Prentice Hall, Inc.
14 Other Market Offerings Organizations: Profit (businesses) and nonprofit (schools and churches).Includes corporate image advertising.Persons: Politicians, entertainers, sports figures, doctors, and lawyers.Places: Create, maintain, or change attitudes or behavior toward particular places (e.g., tourism).Ideas (social marketing): Public health campaigns, environmental campaigns, family planning, or human rights.Copyright 2007, Prentice Hall, Inc.
15 Individual Product Decisions Product attributesBrandingPackagingLabelingProduct support servicesCopyright 2007, Prentice Hall, Inc.
16 1. Product & Service Attributes Product qualityPerformance qualityConformance qualityFeaturesValue to consumerCost to companyStyle and designInfluences experienceCopyright 2007, Prentice Hall, Inc.
17 2. BrandingCreating, maintaining, protecting, and enhancing products and services.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.Copyright 2007, Prentice Hall, Inc.
18 Branding Advantages to buyers: Advantages to sellers: Product identificationProduct qualityAdvantages to sellers:Basis for product’s quality storyProvides legal protectionHelps to segment marketsCopyright 2007, Prentice Hall, Inc.
19 3. PackagingDesigning and producing the container or wrapper for a product.Developing a good package:Market the brandProtect the elementsEnsure product safetyAddress environmental concernsCopyright 2007, Prentice Hall, Inc.
20 4. Labeling Printed information appearing on or with the package. Performs several functions:Identifies product or brandDescribes several things about the productPromotes the product through attractive graphicsCopyright 2007, Prentice Hall, Inc.
21 5. 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.Copyright 2007, Prentice Hall, Inc.
22 Product Line Decisions Product line length:The number of items in a product line.Adjust line length by:StretchingDownwardUpwardBoth directionsFillingCopyright 2007, Prentice Hall, Inc.
23 Product Mix Decisions Product mix: Product mix dimensions include: all of the product lines and items that a particular seller offers for sale.Product mix dimensions include:Length: the number of items in a line.Width: the number of different product lines the company carries.Depth: the number of versions offered of each product in the line.Consistency: how closely related various lines are.Copyright 2007, Prentice Hall, Inc.
24 Branding Strategy 1. 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 loyaltyBasis for strong, profitable customer relationshipsCopyright 2007, Prentice Hall, Inc.
25 2. Major Brand Strategy Decisions Branding Strategy2. Major Brand Strategy DecisionsBrands are assets that must be carefully developed and managed via:2.1. Brand positioning2.2. Brand name selections2.3. Brand sponsorship2.4. Brand developmentCopyright 2007, Prentice Hall, Inc.
26 2.1. Brand Positioning Can position brands at any of three levels: Product attributesProduct benefitsBeliefs and valuesCopyright 2007, Prentice Hall, Inc.
27 2.2. Brand Name SelectionDesirable qualities for a brand name include: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, Prentice Hall, Inc.
28 2.3. Brand Sponsorship Manufacturer’s brands Private brands Also called national brandsPrivate brandsAlso called store or distributor brandsLicensed brandsCo-brandingCopyright 2007, Prentice Hall, Inc.
29 2.4. Brand Development Line extension: Brand extension: introduction of additional items in a given product category under the same brand name (e.g., new flavors, forms, colors, ingredients, or package sizes).Brand extension:using a successful brand name to launch a new or modified product in a new category.Copyright 2007, Prentice Hall, Inc.
30 Brand Development Multibranding: New brands: offers a way to establish different features and appeal to different buying motives.New brands:developed based on belief that the power of its existing brand is waning and a new brand name is needed. Also used for products in new product category.Copyright 2007, Prentice Hall, Inc.