1. Product and Branding Strategies

2. The Product and the Product Mix
Components of the Market Offering
Product
Physical goods
Services
Experiences
Events
Persons
Places
Properties
Organizations
Information
Ideas

3. What is a Product?
A Product ğ anything that can be offered to a market for attention, acquisition, or consumption and that might satisfy a want or need.
Includes:
Physical Objects
Services
Events
Persons
Places
Organizations
Ideas
Combinations of the above

4. 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.

5. Products, Services, and Experiences
Tangible Good With Accompanying Services
Service With Accompanying Minor Goods
Pure Tangible Good
Hybrid Offer
Pure Service
Auto With Accompanying Repair Services
Airline Trip With Accompanying Snacks
Soap
Restaurant
Doctor’s Exam
The Product-Service Continuum

6. Levels of Product Product levels--Customer value hierarchy
Core benefit
Basic product
Expected product
Augmented product
Potential product

7. Levels of Product

8. Product Classifications
Durability-Tangibility
Nondurable goods
Durable goods
Services

9. Product Classifications - Consumer Products
Convenience Products
Purchased frequently& immediately
Low priced
Mass advertising
Many purchase locations
Staple goods
Impulse goods
Emergency goods
Shopping Products
Bought less frequently
Higher price
Gather product information
Comparison shopping
Suitability & Quality
Price & Style
Fewer purchase locations
Specialty Products
Special purchase efforts
High price
Unique characteristics
Brand identification
Few purchase locations
Unsought Products
New innovations
Products consumers don’t
want to think about
Require much advertising &
personal selling

10. MARKETING CONSIDERATIONS
Convenience
Shopping
Speciality
Unsought
General Characteristics
Frequent purchase,little compar., no planning, low involvement
Less frequent purchase,
much effort, planning
Strong brand preference,
loyalty,little comp.,low price sens.
Little awareness,
knowledge
Price/
distribution
Low price, widespread distr., convenient location
Higher price,
selective distribution in fewer o.let
High price,
exsclusive distr.
Varies
Promotion
Mass promotion
Adv.,pers. selling by producer and
retailers
More carefully targeted promotion
Aggressive adv. & p.selling

11. Product Classifications - Industrial Products
Materials and Parts
Raw materials, manufactured
materials, and parts
Capital Items
Products that aid in buyer’s
production or operations
Supplies and Services
Operating supplies, repair,
and maintenance items

12. Product Classifications - Other Marketable Entities
Activities undertaken to create, maintain, or change the attitudes and behavior toward the following:
Organizations,
Persons,
Places,
Ideas,
etc.

13. Product Strategy Product Strategy decisions includes ğ decisions on:
branding,
packaging,
labeling,
and services for individual products
Product Strategy also calls ğ for managing the product lines and product mix.

14. Individual Product Decisions
Product Attributes
Branding
Labeling
Packaging
Product Support Services

15. Product Attributes
Developing a product or service involves ğ Defining the benefits that it will offer such as:
Product Quality
Product Features
Product Style
& Design
Ability of a Product to Perform Its Functions (Includes Performance Quality and Conformance Quality)
Help to Differentiate the Product from Those of the Competition
(Value to customer; cost to company)
Process of Designing a Product’s Style & Function
(Influences experience)

16. Packaging
Designing and producing the container or wrapper for a product.
Packaging used to just contain and protect the product
Packaging now has promotional value

17. Packaging Marketers should: Developing a good package:
Establish a packaging concept,
Develop specific elements of the package,
Tie together elements to support the positioning and marketing strategy.
Developing a good package:
Protect the elements
Ensure product safety
Market the brand
Address environmental concerns

18. Packaging Packaging ğ a crucial marketing tool
Self-service ğ the package must perform many of the sales tasks
Consumer affluence ğ consumers are willing to pay a little more for convenience, appearance, and prestige for better packages
Packages contribute to instant recognition of the company or brand image
The packaging offer an opportunity for innovation

19. Describes several things Identifies product or brand
Labeling
Printed information appearing on or with the package.
Performs several functions:
Promotes
the product
through attractive
graphics
Describes several things
about the product
Identifies product or brand

20. Product - Support Services
Companies should design support services to profitably meet the needs of target customers and gain competitive advantage.
How?
Step 1. Survey customers to assess the value of current services and to obtain ideas for new services.
Step 2. Assess costs of providing desired services.
Step 3. Develop a package of services that delights customers and yields profits to the company.

21. Product Line
Product Line ğ a group of products that are closely related; because:
they function in a similar manner,
are sold to the same customer groups,
are marketed through the same types of outlets, or
fall within given price ranges

22. Product Mix Consistency Width - number of different product lines
Length - total number of items
within the lines
Product Mix -
all the product
lines offered
Depth - number of versions of each product in the line
-- All of the product lines and items that a particular seller offers for sale--

23. Product-Mix Width and Product-Line Length for Procter& Gamble Products
Detergents
Toothpaste
Disposable Bar Soap
Diapers
Paper Tissue
Ivory Snow (1930)
Dreft (1933)
Tide (1946)
Cheer (1950)
Gleem (1952)
Crest (1955)
Ivory (1879)
Kirk’s (1885)
Lava (1893)
Camay (1926)
Pampers (1961)
Luvs (1976)
Charmin (1928)
Puffs (1960)
Banner (1982)
Summit (1992)

24. Product Mix Decisions
4 ways that the company can use in expanding its business:
It can add new product lines, widening its product mix
It can can lengthen each product line (becoming a more full-line company)
It can add more versions of each product, deepening its product mix
It can pursue more product line consistency -or less (depending on the strategic position that the firm wants to acquire in the market)

25. Product Line Decisions: Product Line Analysis
Product Line Analysis: Companies need to know the sales and profits of each item to determine which items to build, maintain, harvest or divest.
Sales/profits : A high concentration of sales in a few items means line vulnerability.
(if one of the items account for 5-6 % of sales and profit, this item may be dropped.)
Market profile : How the line is positioned against competitors’lines

26. Product-Item Contributions to a Product Line’s Total Sales and Profits

27. The Product and the Product Mix
Market profile: How the line is positioned against competitors’ lines.
Product Map for a Paper-Product Line

28. Product-Line Lenght
Product line length ğ the number of items in a product line.
The line is too short if the manager can increase profits by adding items
The line is too long if the manager can increase profits by dropping items
Product line length is influenced by company objectives.

29. Product Line Decisions: Product Line Analysis
Product Line Analysis: Companies need to know the sales and profits of each item to determine which items to build, maintain, harvest or divest.
Sales/profits : A high concentration of sales in a few items means line vulnerability.
(if one of the items account for 5-6 % of sales and profit, this item may be dropped.)
Market profile : How the line is positioned against competitors’lines

30. Product Line Decisions
Product lines ğ tend to lenghten over time
Design/engineering costs, Inventory carrying costs order processing/ transportation/promotion costs increase
The company can adjust the length of its product line mainly in 2 ways:
Line Stretching
Downmarket
Upmarket
Two-way
Line Filling

31. Product Line Decisions: Product Line Stretching
Downward stretch ğ occurs when the company moves from the high end of the market to the lower end
Upward stretch ğ when companies at the lower end of the market want to enter the higher end.
Two-way stretch ğ when companies in the middle range of the market decide to stretch their lines in both directions

32. Product Line Stretching
Marriott offers a full line of hotel brands, each aimed at a different market.

33. Product Line Decisions: Product Line Filling
Line Filling ğ increasing the product line by adding more items within the present range of the line
Main Reasons:
To reach extra profits,
To try to satisfy dealers,
To use excess capacity,
To fill up the holes in the market in order to keep out competition
To be the leading full-line company

34. Product Line Decisions
Line modernization
In rapidly changing product markets, modernization is carried on continously
Microprocessor and software companies
Line Featuring/Line Pruning
One or few items are selected to feature.
Sometimes, managers feature promotional models at the low end of the line to serve as “traffic builders”.

35. Branding
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.
Essentially;
A brand ğ a seller’s promise to deliver a specific set of features, benefits and services consistently to the buyers.

36. Most Valuable Global Brands (Interbrand, 2006)

37. Branding
makes it easier for the seller to process orders / track down problems
brand name and trademark provide legal protection of unique product features
helps the seller segment markets
gives the seller the opportunity to attract loyal customers
results in more product variety and choice for consumers

38. --Brand-- Six Levels of Meaning
User
Culture
Personality
Attributes
Benefits
Values

39. Brand Equity Values the Brand Satisfied & Switching Cost
Devoted
to Brand
Values the Brand
(brand as friend)
Satisfied & Switching Cost
(incur cost by changing brands)
Satisfied Customer
(no reason to change brands)
No Brand Loyalty
(customer will change brands)

40. Brand Equity High brand equity - competitive advantages:
Reduced marketing costs
More trade leverage in bargaining with distributors and retailers because customers expect them to carry the brand
Charging a higher price than competitors because the brand has higher perceived quality
More easily launch extensions because the brand name carries high credibility
Offers the company some defense against price competition
A brand needs to be carefully managed so that its equity doesn’t depreciate.
Brand-equity managers

41. Branding Brand building tools Public facilities Social cause marketing
Public relations and press releases
Sponsorships
Clubs and consumer communities
Factory visits
Trade shows
Event marketing
Public facilities
Social cause marketing
High value for the money
Founder’s or a celebrity personality
Mobile phone marketing

42. Major Branding Decisions
No brand
Branding
Decision
Brand-
Sponsor
Decision
Manufac-
turer brand
Distribu-
tor (private)
brand
Licensed
Brand-
Name
Decision
Individual
branding
Blanket
family
name
Separate
Names
Company-
individual
names
Brand-
Strategy
Decision
Line
extension
Brand
Multi-
brands
New
Brands
Co-brands
Brand-
Positio-
ning
Decision
Reposi-
tioning No
reposi-

43. Brand Sponsorship Manufacturer’s brands Private brands Licensed brands
Also called national brands
(e.g., Dogus Cay, Glade …)
Private brands
Also called store or distributor brands
(e.g., Migros, Carrefour, …)
Licensed brands
(Ferrari hats, Disney toys, Mc Donald's toys)

44. Brand Name Decisions Individual names Blanket family names
(e.g. Unilever: Omo, Cif)
Blanket family names
(e.g. Arçelik, Bosch, Pınar)
Separate family names for all products
(e.g.Sears: Kenmore for appliances, Craftsman for tools, Homart for home installations)
Company trade name combined with individual product names
(e.g.Kellog’s Corn Flakes,Eti Crax, Ülker Cici Bebe)

45. Good Brand Names Distinctive Lack Poor Foreign Language Meanings
Suggest
Product
Qualities
Suggest
Product
Benefits
Easy to:
Pronounce
Recognize
Remember

46. A Few Examples Brand English Translation
Frank Perdue (poultry products)
Slogan: ‘It takes a strong man to make a tender chicken'
Slogan in Spanish: ‘It takes an aroused man to make a chicken affectionate.'
Chevy Nova
Name: Nova
Name's meaning in Spanish: ‘It doesn't go.'
Schweppes Tonic Water
Name: Schweppes Tonic Water
Name's translation in Italian: ‘Schweppes Toilet Water'
Coors Beer
Slogan: ‘Turn it loose'
Slogan in Spanish: ‘You will suffer from diarrhea'

47. Brand Development Strategies
Brand Name
Product Category
Line
Extension
Existing
Brand
Extension
New
New
Brands
Multibrands
New

49. Brand Positioning Can position brands at any of three levels:
Product attributes
Product benefits
Beliefs and values

50. Service Characteristics
Intangibility
Services cannot
be seen, tasted,
felt, heard, or
smelled before
purchase
Inseparability
Services cannot
be separated
from their
providers
Services
Variability
Quality of
services depends
on who provides
them and when,
where, and how
they are delivered
Perishability
Services cannot
be stored for
later sale or use

51. Overcoming Service Challenges
Intangibility
“Use cues to
make it tangible”
Inseparability
“Increase
productivity of
providers”
Services
Services
Variability
“Standardize
service
production
& delivery”
Perishability
“Match supply
and demand”

52. The Service-Profit Chain
Internal
Service Quality
Healthy
Service Profits
and Growth
Satisfied and
Loyal
Customers
Satisfied and
Productive Service
Employees
Greater Service
Value

53. Three Types of Marketing in Service Industries
Company
Customers
External
marketing
Internal
marketing
Cleaning/
maintenance
services
Financial/
banking
Restaurant
industry
Employees
Interactive
marketing

54. Services Marketing External marketing: Internal marketing:
Traditional marketing via the 4 “P’s”
Internal marketing:
Effective training and motivation of customer contact employees
Interactive marketing:
Delivering interactions during the service encounter that are satisfying to the buyer

55. Marketing Strategies for Service Firms
Managing Service Differentiation
Develop differentiated offer, delivery and image.
Managing Service Quality
Become “Customer obsessed”,
Develop high service quality standards,
have good service recovery,
Empower front-line employees.
Managing Service Productivity
Train current or new employees better,
Work on quality as well as quantity,
Utilize technology.