product, services and branding strategies
DESCRIPTION
A report in Product, services and branding strategiesTRANSCRIPT
Products, Services, and
Branding Strategy
Marketing Mix (4P’s of Marketing)
• Product• Price• Place• Promotion
Product• Refers to the goods and services offered by
the organization. • Consumers purchased products because it
satisfies one or more of their needs. • When consumers are paying, they are not
paying for the tangible products, but for the benefit it will provide.
• Thus, product can be described as a bundle of benefits which marketers offered to the consumer for price.
It is anything that can be offered to a mark for attention, acquisition, use, or consumptions and that might satisfy a want or need.
Physical Objects
Ipod Shuffle Iphone & Ipad
Kinds of Product
EventsKinds of Product
PersonsKinds of Product
PoliticianProfessionalCelebrityAthlete
PlacesKinds of Product
OrganizationKinds of Product
IdeasKinds of Product
ServicesForm of product that consist of activities, benefits, or satisfaction offered for sale that are essentially intangible and do not result in ownership of anything.
Kinds of Product
Hotel Service Dermatologist
Foot SpaBanking Service
Example of Services
Products- Service Continuum
• Pure tangible goods – Physical items that can be touched and seen.
• Tangible goods with accompanying services - It consists of a tangible good accompanied by one or more services. These types of offering are more dependent on quality and available services such as delivery time, after-sale services, warrantees and guarantees, etc.
RefrigeratorCar Aircon
Products- Service Continuum
• Hybrid offers – consist of equal parts of goods and services.
Products- Service Continuum
• Services with accompanying minor goods – It consists of major service along with additional services or supportive goods.
Products- Service Continuum
• Pure Services- represent the highest
level of customer contact.
Products- Service Continuum
• Total Customer Experience- “Experiences are memorable while some products and services are not.”
Products- Service Continuum
Levels of Product
1. Core Product – problem-solving service, or core benefit that consumers are really buying when they obtain a product or service.
2. Actual Producta. Quality Level
b. Features
c. Design
d. Brand Name
e. Packaging
Levels of Product
3. Augmented Product – includes any additional consumer services and benefits built around for the core and actual products.
Levels of Product
“Consumers tend to see products as bundles of benefits that satisfy
their needs.”
When developing products, marketers must:
1. Identify the core consumer needs that the product will satisfy.
2. Design the actual product.
3. Find ways to augment the product.
Product classifications• Consumer Products
• Industrial Products
• Marketable Entities
Consumer Products bought by final consumers for personal
consumption.
Classifications:• Convenience Products• Shopping Products• Specialty Products• Unsought Products
Product Classification
Convenience ProductsConsumer products and services that the
consumer usually buys frequently, immediately, and with a minimum of comparison and buying effort. They are usually low priced, and marketers place them in many outlets to make them readily available when customers need them.
Classification of Consumer Products
Example of Convenience Products
Shopping ProductsConsumer products that the consumer,
in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price, and style. These products are usually distributed through fewer outlets but have deeper sales support.
Classification of Consumer Products
Example of Shopping Products
Specialty ProductsUnique characteristics or brand
identification. Buyers do not normally compare specialty products; instead, they only invest the time to reach the outlet that carries the goods.
Classification of Consumer Products
Example of Specialty Products
Unsought ProductsConsumer either does not know about or
knows about but does not normally think of buying. These products require a lot of promotional support to be successful.
Classification of Consumer Products
Example of Unsought Products
Industrial Products Bought by individuals and organization for
further processing or for use of conducting a business. Purpose of purchase is the chief distinction between industrial products and consumer products.
Classifications:• Material and parts• Capital items• Supplies and services
Product Classification
Materials and Parts• Most are sold directly to the industrial users
Classification of Industrial Products
Capital Items• These products aid in the buyer’s
production or operations, including installations and accessory equipment.
Classification of Industrial Products
Supplies and Services• These could be operational or repair
and maintenance. Many of these services are supplied under contract.
Classification of Industrial Products
Marketable Entities Are entities other than products and
services that marketing covers.
Classification:• Organization marketing• Person Marketing• Place Marketing• Idea Marketing
Product Classification
Organizati on Marketi ng• Activities undertaken to create, maintain,
or change attitudes and behavior of target audiences towards an organization.
• A major tool to market organization is corporate image advertising.
Classification of Marketable Entities
Person Marketing• Activities undertaken to create,
maintain or change attitudes or behavior toward particular person.
Classification of Marketable Entities
Place Marketing• Activities undertaken to create, maintain, or
change attitudes towards a particular place.
Example:
Business Site Marketing
Tourism Marketing
Classification of Marketable Entities
Idea Marketi ng (Social Marketi ng)
• It is the marketing of social ideas.• It includes the design, implementation, and
control of programs seeking to increase the acceptability of social idea, cause, or practice within targeted groups.
Classification of Marketable Entities
Individual Product Decisions
ProductAttributes
Branding Packaging Labeling
Product Support Services
Product Att ributesDeveloping a product or service
involves defining the benefits that it will offer.
1. Product Quality
2. Product Features
3. Product Style and Design
Individual Product Decision
Product Quality Ability of the product to perform its
functions. It has two dimensions: level and consistency.
• Quality level• Performance Quality• Product Consistency or Conformance• Return on Quality• Improve customer satisfaction and value
Product Attributes
Product FeaturesIt helps to differentiate the product
from those of the competition.
Product Attributes
Product Style and DesignAnother way to add distinctiveness. It
is the process of designing a product’s style and function.
a. Style – appearance of a product.
b. Design – heart of the product. It contributes to the product’s usefulness as well as its looks.
Product Attributes
Example of Product Style and Design
Branding• Brand – is a name, sign, symbol, or design
that identifies the maker or seller of the product or service.
Individual Product Decision
Advantages of BrandingBuyer• It helps buyers to identify the
product that might benefit them.• It tells the buyer something about
quality and value.
Advantages of BrandingSeller• Make it easier for the sellers to process
order and track down problems.• It provide legal protection for unique
product features.• It promotes loyalty and helps in
segmenting markets.
Brand Equity(Value of a brand)
• Higher brand loyalty• Name awareness• Perceived quality• Strong brand associations• Patents, trademarks, channel
relationships
Brand Equity(Value of a brand)
Powerful brand names command strong consumer preference.
It is a very valuable asset.
Advantages ofBrand Name Equity
1. High consumer awareness and loyalty
2. Greater ease in launching brand extensions because of high brand credibility
3. A good defense against fierce price competition
4. Belief in being the company’s most enduring asset
Major Branding Decisions
Brand Name
Selection
BrandSponsor
BrandStrategy
Qualiti es ofGood Brand Name
It should suggest something about the product’s benefits and qualities.
It should be easy to pronounce, recognize, and remember.
It should be distinctive.
Qualiti es of Good Brand Name
It should be extendible.
It should translate easily into foreign languages.
It should be capable of registration and legal protection.
Brand Sponsor• Manufacturer's Brand or National
Brand- brand created and owned by the producer of a product or service.
• Private Brand or distributor or store brand- brand created and owned by a reseller of a product or service.
Major Branding Decisions
Brand Sponsor• Licensed Brand- company sells it output
under another brand name.
• Co-branding- occurs when two companies go together and manufacture one product. It is the practice of using the established brand names of two different companies on the same product.
Major Branding Decisions
Co-brandingAdvantages• Create broader customer appeal and
greater brand equity.• Allow a company to expand its existing
brand into a category it might otherwise have difficulty entering alone.
Co-brandingDisadvantages• Complex legal contracts and licenses
are involve.• Coordination efforts are often difficult.• Trust is essential between partners.
• The Battle of the Brands – the competition between manufacturer's and private brand. It causes resellers to have advantages, they charge manufacturer's slotting fees.
• Slotting fees- payments demanded by retailers from producer before they will accept new products and find slots for them on the shelves.
Brand Strategy1. Introduce Line-extensions – Existing
brand names are extended to new forms, sizes, and flavors of an existing product category.
a. Meet consumer desires for variety
b. Meet excess manufacturing capacity
c. Simply command more shelf space
Major Branding Decisions
Brand Strategy2. Introduce Brand Extension – Existing brand names are extended to new or modified product categories.
a. They help a company enter new product categories more easily.
b. They aid in new product recognition.
c. They save on advertising cost.
Major Branding Decisions
Brand Strategy3. Introduce Multi-brands – new brand names are introduce in the same product categories.
a. They gave more shelf space.
b. They offer several brands to capture “brand switchers”.
c. It helps to develop healthy competition within the organization.
d. Each brand can have a separate following.
Major Branding Decisions
Brand Strategy4. Introduce New Brands - new brand names in new categories are introduced.
a. They help move away from a brand that is failing.
b. They can get new brands in new categories by corporate acquisitions.
c. Weaker brand weeded out and resources are focused achieving number one or two market share position.
Major Branding Decisions
PackagingIs the activity of designing and
producing the container or wrapper for a product.
Traditionally, packaging decisions are based on cost and production factors. Now, it has promotional value.
Individual Product Decision
Packaging
Primary Package
Packaging
Secondary Package
Packaging
Shipping Package
Enhancing promotional value of the packaging
a. Establish packaging concept
b. Decide on specific elements of the package
c. Tie together elements to support the positioning and marketing strategy.
Labeling Part of Packaging and consists of printed
information appearing on or with the package.
Functions1. It identifies the product or brand.
2. It describes several things about the product.
3. It promote the product through attractive graphics.
Individual Product Decision
Labeling
Legal Concerns About Labels
• There are numerous laws enacted to regulate labeling and protect the public.
• The aspects of nit pricing, open dating and nutritional labeling have effects on labeling practices.
Product Support ServicesServices that augment actual products. • Good customer service is good for
business.• Monitor customer complaints.• Work at designing products that need-
less service.
Individual Product Decision
Suggestion BoxSafety LabelsWarranty
Product Support Services
• Determine the best way to deliver product support services.
• Set up strong customer service departments.
• One of the keys to successful internet marketing is to have excellent support services.
Individual Product Decision
Product Support Services
1. Survey customers2. Assess cost of providing desired
services.3. Develop a package of services to
delight customers and yield profit to the company.
Major Tool in Gaining Comparati ve Advantage
Product Decision and Social Responsibility
Areas of Concern• Acquiring or dropping products• Patents protection• Product quality and safety• Product warranties
Product Line• A group of products that are closely related
because they function in similar manner.• They are sold to the same group.• Marketed through the same type of outlet.• Fall within given price ranges.• Tend to lengthen over time.
Product Line Decisions
Product line length- number of items in the product line. As new products are added to the line, costs begin to rise.
Product line stretching- increasing the product line by lengthening it beyond its current range.
Product Line Decisions
Product Line Stretchinga. Downward Stretch- Occurs when the company moves from the high end of the market to lower end.
1. Faster growth is occurring at the lower end.
2. The quality image established at the upper end can be moved downward.
3. They need a low product to fill a hole.
4. A retaliation against attack on their upper end product.
Product Line Decisions
Product Line Stretchingb. Upward Stretch- This is done when companies at the lower end of the market want to enter the higher end.
1. They are attracted by faster growth rates or higher margins at the upper end.
2. They may want to position themselves as a full-line company.
Product Line Decisions
Product Line Stretching
c. Two-way Stretch- Occurs when companies in the middle range of the market may decide to stretch their lines in both direction.
Product Line Decisions
Product-Line Filling Increasing the product line by adding more items
within the present range of the line.
Reasons:
a. Extra profit
b. Attempting to satisfy dealers
c. Trying to use excess capacity
d. Trying to be the leading full-line company
e. Trying to plug holes to keep out competition.
Product Line Decisions
Product Mix DecisionAn organization with several product lines has a product mix.• Width – number of different product lines
the company carries.• Length – total number of items the
company carries within its product lines.• Depth – the number of versions offered of
each product line.• Consistency of the Product Mix – how
closely related the various product lines.
Ways to Increase Business1. It can add new product lines thus widening
its product mix.
2. The company can lengthen its existing product lines to become a more full-line company.
Product Mix Decision
3. It can add more versions of each product and thus deepen its product mix.
4. The company can pursue more product line consistency, or less depending whether it wants a strong reputation in a single or in several fields.
Product Mix Decision
Ways to Increase Business
Services MarketingBecause of the demand generated by the time-pressed consumer, service industry immensely grow.
Nature and Characteristics of a Service
• Service Intangibility - Services cannot be seen, tasted, felt, heard, or smelled before they are bought.
• Service Inseparability - Services are produced and consumed at the same time and cannot be separated from their providers.
Provider-customer – interaction is a special feature of services marketing.
Nature and Characteristics of a Service
• Service Variability- quality may vary greatly depending on who provides them and when, where and how.
• Service Perishability- Service cannot be stored for later sale or use.
Marketing Strategies for Services Firms
Interaction must be controlled and constantly improved.
Service-profit Chain- Chain that links service firm profits with employees and customer satisfaction.
Links of Service-profit Chain
1. Internal service quality
2. Satisfied and productive service employees
3. Greater service value
4. Satisfied and loyal customers
5. Healthy service profits and growth
Internal service quality
Satisfied and productive service employees
Greater service value
Profit
Company
Internal Marketing
External Marketing
EmployeesInternal
Marketing Customers
The Service Profit Chain
Internal Marketing Train and effectively motivate its customer-
contact employees and all the supporting service people to work as a team to provide customer satisfaction.
a. Everyone in the organization must practice customer orientation.
b. Internal marketing must precede external marketing.
Interactive Marketing Recognizes that perceived service
quality depends heavily on the quality of buyer- seller interaction.
The marketer cannot assume that they will satisfy the customer simply by providing good technical service.
Major Marketing Tasks• Competitive Differentiation – Occur by
differentiating the offer, the delivery and their images.
• Service Productivity- Increase productivity by training employees better. Work on quality and quantity of service. Utilize technology.
• Service Quality- Delivering higher quality than the competition.
Good Service System Empower front-line employees Customer obsessed Set high quality standards Watch service performance
closely.