Unit 7

Product,, Services and Branding

g
Strategy

Road Map: Previewing the

Concepts
Define product and the major classifications of products
and services.
Describe the roles of product and service branding,
packaging, labeling, and product support services.
Explain the decisions companies make when developing
product lines and mixes.
Identify the four characteristics that affect the marketing of
a service
service.
Discuss the additional marketing considerations for
services.
2

Wh
d t?
Whatt iis a P
Product?
A PRODUCT is 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
S i
Services
Events
Persons
Places
Organisations
Ideas
Combinations of the above
3

Wh
i ?
Whatt iis a S
Service?
A SERVICE is a form of product that consist
of activities, benefits, or satisfactions offered
for sale that are essentially intangible and do
not result in the ownership of anything.
E
Examples
l iinclude:
l d

Banking
Hotels
Tax preparation
Home repair services
4

G d S
Goods,
Services,
i
and
dE
Experiences
i
Tangible Good
Pure
With
Tangible
g
Accompanying
Good
Services

Soap

Hybrid
Offer

Service
S
i
With
Accompanying
p y g
Minor Goods

Pure
Service

Auto With
Airline Trip
Accompanying Restaurant
With
Doctors
Repair
Accompanying Exam
Services
Snacks

Nature
atu e a
and
dC
Characteristic
a acte st c o
of a
Service

Illustrate how a movie theatre can deal

with the intangibility, inseparability,
y, and perishability
p
y of the
variability,
services it provides.

L
Levels
l off P
Product
d t

P d
Cl
ifi i
C
Product
Classifications:
Consumer
Convenience Products
Buy frequently & immediately

Shopping Products
Buy less frequently

Low
L
priced
i d
Mass advertising
Many purchase locations
i.e Candy, newspapers

Higher
Hi h price
i
Fewer purchase locations
Comparison shop
g, cars,, appliances
pp
i.e Clothing,

Specialty Products

Unsought Products

Special purchase efforts

New innovations

High price
Unique characteristics
Brand identification
Few purchase locations
i.e Lamborghini, Rolex

Products consumers dont

want to think about
Require much advertising &
personal selling
i.e Life insurance, blood donation
9

What
these
at do you think
t
t ese
products are?
A pair of shoes
Toilet paper
KFC Chicken Burger
Mobile phone
Iced black coffee
Sofa
S k detector
Smoke
d
Gucci sunglasses
R fi
Refrigerator
t
10

Product Classifications: Industrial

Materials and Parts

Raw materials,, manufactured

materials, and parts

C it l Items
Capital
It

Industrial products that aid in

buyers production or operations

Supplies and Services

Operating supplies,
supplies repair/
maintenance items
11

Product
oduct Classifications:
C ass cat o s
Other Marketable Entities
Activities undertaken to create, maintain, or change the attitudes
g
and behaviour toward the following:
Organisations - Profit (businesses) and non profit (schools and
churches).
Persons Politicians, entertainers, sports figures, doctors, and
lawyers.
Places - Business sites, new residents, and tourism.
Ideas (social ideas marketing) Public health campaigns
campaigns,
environmental campaigns, and others such as family planning, or
human rights.

12

I di id l Product
Individual
P d t Decisions
D i i

13

P d t Attributes
Product
Att ib t
Developing a Product or Service Involves Defining
the Benefits that it Will Offer Such as:
Product Quality

Ability of a Product to Perform Its

Functions; Includes Level &
Consistency

Product Features

Differentiates the Product from

Competitors Products
Competitors

Product Style
& Design

Process of Designing a Products

St le & Usefulness
Style
Usef lness
14

Branding
What is a g
good brand?

15

B di
Branding

16

B di
Branding
Advantages to
Branding
g
Buyers:
Identification
Quality
Q lit and
d value
l

Sellers
Tells a story
y
Provides legal protection
Helps segments
markets

Brand Equity

Higher
g
brand loyalty
y y
Name awareness
Perceived quality
Strong brand
associations
Patents,
Patents trademarks,
trademarks
channel relationships

17

B
Brands
d and
d Brand
B
d Symbols
S b l
Powerful brands such
as these have brand
equity:
Eg. Coca-Cola brand $69 billion

Offers defense
against
i t fi
fierce price
i
competition.
18

M j B
Major
Branding
di D
Decisions
i i

19

B
Benefits
fit off Branding
B di
Branding
distinguishes
products from
competition
Product
Identification

New Product
Sales
Repeat Sales
20

A Effective
An
Eff ti Brand
B d Name
N
Is easy to pronounce
Is easy to recognize and remember
Is short, distinctive, and unique
Describes the product
product, use
use, and
benefits
Has a positive connotation
Reinforces the product image
g yp
protectable
Is legally
21

M t Brands
Master
B d
Photocopy

Zerox

Mobile phone

Nokia

Internet Search
Computer
Car
Airline

Google
Dell
BMW
Air Asia

Television

Sony

Fast food

McDonald
22

B di St
Branding
Strategies
t i
Brand

Manufacturers
B
Brand
d

Individual
Brand

Family
Brand

Combination

No Brand

Private Brand

Individual Family
Brand
Brand

Combination

23

B di St
Branding
Strategies
t i

24

Four Brand Strategies

Product Category
Existing

Brand
d Name
e

Existing

New

New

Line Extension
Vinamilk Yogurt
Yog t Flavours
Fla o s

Brand Extension
B bi Electronics
Barbie
El t i

Multibrands
M
ltib d
Toyota and Lexus

New Brands

25

B
d St
t
Brand
Strategy
Li E
Line
Extension
t
i
Existing brand names extended to new forms, sizes,
and flavours of an existing
gp
product category.
g y

Brand Extension
Existing brand names extended to new or modified
product
d t categories.
t
i

Multibrands
New brand names introduced in the same product
category.

New Brands
New brand names in new product categories.
26

We can find Coke in six or more varieties in some countries.

Coke
Classic Coke
Vanilla Coke
Cherry Coke
Diet Coke
Diet Coke with Lime
Diet Coke Decaffeinated
Coke Zero

List some of the issues these line extensions raise for the
manufacturers, retailers, and consumers.

27

P
k i
Packaging
Designing and producing the
container or wrapper for a
product.
product
Steps in developing a good
package:
Packaging concept,
Develop specific elements of the
package,
Elements must support products
position
iti and
d marketing
k ti strategy.
t t
28

29

30

L
b li
Labeling
Printed information
appearing on or with the
package.
Performs several functions:
Identifies product or brand
Describes several things
about the product
Promotes the product
through attractive graphics
31

P d t Support
Product
S
t Services
S i
Companies use product support services as a major
tool in gaining competitive advantage.
How?
Step 1. Survey customers to assess the value of
current services and
d to obtain
b
ideas
d
for
f new
services.
St 2
Step
2. Assess costs of providing desired services.
services
Step 3. Develop a package of services to delight
customers and yield profits to the company
company.
32

Marketing Strategies for

Service Firms
Managing Service
Differentiation
Develop differentiated offer,
delivery, and image.

Managing
g g Service Quality
y
Empower front-line employees,
Become Customer obsessed,
Set high service quality
standards,
Watch service performance
closely.

Managing Service
Productivity
Train current or new
employees better,
Work on q
quality
y as well
as quantity,
Utilize technology
Well-designed Web site

33

Product life cycle

Introductory
stage

Growth
stage

Maturity
stage

Decline
stage

Product
category
sales

Product
category
profits

Time
34

Introductory stage
Full-scale launch of new products

High failure rates

Little competition
Frequent product modification
Limited distribution
High marketing and production costs
Negative profits
Promotion focuses on awareness and
information
Intensive
I t
i
personall selling
lli
tto channels
h
l
35

Growth stage
Second stage
Increasing rate of sales
Entrance of competitors
Initial healthy profits
Promotion
P
ti
emphasises
h i
b
brand
d ads
d
Goal is wider distribution
Prices normally fall
Development costs are recovered
36

Maturityy stage
g

A period during which sales increase

at an decreasing rate

Declining sales growth

Saturated markets
Extending product line
Stylistic
y
product
p
changes
g
Heavy promotions to dealers and
consumers
Marginal
Ma ginal competitors
competito s drop
d op o
outt
Prices and profits fall
Niche marketers emerge
37

Decline stage
A long run drop in sales
Long
Long-run
run drop in sales
Large inventories of unsold
items
Elimination of all nonessential
marketing
k
expenses

38

The adoption process

Awareness
Interest
Evaluation
Trial
Decision
Confirmation
39

Diffusion

The process by which

the adoption
p
of an
innovation spreads.

40

Categories of adopters
Categories of adopters in the
diffusion process:

Innovators

E l adopters
Early
d t

Early majority

Late majority

gg
Laggards
41

Percentage of ado
opters

Categories of adopters

Innovators
2 5%
2.5%

Early
adopters
13 5%
13.5%

Early
majority
34%

Time

Late
majority
34%

Laggards
16%
42

Diffusion p
process and p
product
life cycle curve

Salles

Introduction

Growth

Maturity

Decline
Product
life cycle
curve

Early majority

Late majority

Early
y adopters
p
Innovators

Laggards

Diffusion
curve
43

R t St
Rest
Stop: Reviewing
R i i th
the C
Concepts
t
Define product and the major classifications of products
and services.
Describe the roles of product and service branding,
packaging, labelling, and product support services.
Explain the decisions companies make when developing
product lines and mixes.
Identify the four characteristics that affect the marketing of
a service
service.
Discuss the additional marketing considerations for
services.
44