product breakdown - kotler
DESCRIPTION
Very well constructed ppt on products brands and strategy following Kotler's book.TRANSCRIPT
Product, Services, and Branding
Strategy
8 - 2
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 - 3
What is a Product?
• Products, Services, and Experiences Market offerings may consist of a
combination of goods and services Experiences are used to differentiate
offerings• Levels of Product and Services
Core benefit, actual and augmented product
• Product and Service Classifications Consumer products and industrial
products
8 - 4
Three Levels of Product
8 - 5
Product Classification Schemes
Durability
Use
Tangibility
8 - 6
Durability and Tangibility
Nondurable
goods
ServicesDurable
goods
8 - 7
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 ClassificationsConsumer 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 - 8
Product and Service Classifications
• Consumer products• Industrial products
Materials and parts Capital items Supplies and services
8 - 9
Product and Service Decisions
• Individual Product
• Product Line • Product Mix
• Product attributes Quality,
features, style and design
• Branding• Packaging• Labeling• Product
support services
Key Decisions
8 - 10
Packaging: The 5th P
All the activities of designing and producingthe container for a product.
8 - 11
Packaging has been influenced by…
Self-serviceSelf-service
Consumer affluenceConsumer affluence
Company/brand imageCompany/brand image
Innovation opportunityInnovation opportunity
8 - 13
Functions of Labels
Identifies
Grades
Describes
Promotes
8 - 14
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
8 - 15
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
8 - 16
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
8 - 17
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
8 - 18
Brand
A name, term, sign, symbolor design, or a combination of them,
intended to identify the goodsor services of one seller or group
of sellers and to differentiatethem from those of competitors.
8 - 19
The Role of Brands
Identify the makerIdentify the maker
Simplify product handlingSimplify product handling
Organize accountingOrganize accounting
Offer legal protectionOffer legal protection
8 - 20
The Role of Brands
Signify qualitySignify quality
Create barriers to entryCreate barriers to entry
Serve as a competitive advantage
Serve as a competitive advantage
Secure price premiumSecure price premium
8 - 21
Brand Equity
The differential effect that brandknowledge has on consumer
response to the marketing of that brand.
8 - 22
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
8 - 23
The 10 Most Valuable Brands(Source: Millward Brown)
Brand 2007 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
8 - 24
Brand Elements
ElementsSlogans
Brand
names URLs
Logos
SymbolsCharacters
8 - 25
Brand Elements
8 - 26
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.
8 - 27
Brand Element Choice Criteria
• Memorable
• Meaningful
• Likeability
• Transferable
• Adaptable• Protectibl
e
8 - 28
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
8 - 29
Slogans• Adını unutabilirsiniz,
tadını asla!• “Hayaaaatın tadıııı!”• Farkı, fiyatı!• Yok aslında
birbirimizden farkımız, ama biz Osmanlı Bankası’yız.
• Ne biçim lastik buuu?• Honda, hayat onda.• Çakar çakmaz çakan
çakmak.• Bira bu kapağın
altındadır.
• Citroen gelir, hayat değişir.
• Türkiye’nin motosikleti.
• Erkek sünnet olur, askerlik yapar, Permatik kullanır!
• Philips hayatımızı kolaylaştıracak.
• Kirlenmek güzeldir.• Tefal, ne varsa sende
var.• Arçelik demek yenilik
demek.• Kalebodur, seramik
budur.
8 - 30
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
8 - 31
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
8 - 32
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
8 - 33
Line ExtensionArçelik New Refrigerators
MultibrandsArçelik - Beko
Brand ExtensionArçelik TV-A/C
New BrandsOYAK - TukaşB
rand
Nam
e
Existing New
Product Category
Existing
New
Four Brand Strategies
8 - 34
Services Marketing
• Services Account for 74% of U.S.
gross domestic product. Service industries include
business organizations, government, and private not-for-profit organizations.
8 - 35
Four Services Characteristics
8 - 36
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