Product, Services, and

Branding Strategy
8 - 1
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 - 2
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 - 3

Three Levels of Product

8 - 4
Product Classification
Schemes
Durability
Use
Tangibility
8 - 5
Durability and Tangibility
Nondurable
goods
Services
Durable
goods
8 - 6
Unsought Products

New innovations
Products consumers dont
want to think about these products
Require much advertising &
personal selling
i.e Life insurance, blood donation



Product Classifications
Consumer 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 - 7
Product and Service
Classifications
Consumer products
Industrial products
Materials and parts
Capital items
Supplies and services
8 - 8
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 - 9
Packaging: The 5
th
P
All the activities of designing and producing
the container for a product.
8 - 10
Packaging has been influenced
by
Self-service
Consumer affluence
Company/brand image
Innovation opportunity
8 - 11
Innovations in Packaging
8 - 12
Functions of Labels
Identifies
Grades
Describes
Promotes
8 - 13
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 - 14
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 - 15
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 - 16
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 - 17
Brand
A name, term, sign, symbol
or design, or a combination of them,
intended to identify the goods
or services of one seller or group
of sellers and to differentiate
them from those of competitors.
8 - 18
The Role of Brands
Identify the maker
Simplify product handling
Organize accounting
Offer legal protection
8 - 19
The Role of Brands
Signify quality
Create barriers to entry
Serve as a competitive
advantage
Secure price premium
8 - 20
Brand Equity
The differential effect that brand
knowledge has on consumer
response to the
marketing of that brand.
8 - 21
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 - 22
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
McDonalds $49.50
Nokia $43.98
Marlboro $37.32
8 - 23
Brand Elements
Elements
Slogans
Brand
names
URLs
Logos
Symbols
Characters
8 - 24
Brand Elements
8 - 25
Brand Elements
Companies often create product icons to develop an
identity for their products. Many made-up creatures
and personalities, such as elik, Sta nek and
Yumo Ay, are widely recognized figures in popular
culture.
8 - 26
Brand Element Choice
Criteria

Memorable
Meaningful
Likeability


Transferable
Adaptable
Protectible
8 - 27
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
Well pick you up
Nextel Done
Zoom Zoom
Im lovin it
Innovation at work
This Buds for you
Always low prices


8 - 28
Slogans
Adn unutabilirsiniz,
tadn asla!
Hayaaaatn tad!
Fark, fiyat!
Yok aslnda
birbirimizden farkmz,
ama biz Osmanl
Bankasyz.
Ne biim lastik buuu?
Honda, hayat onda.
akar akmaz akan
akmak.
Bira bu kapan
altndadr.

Citroen gelir, hayat
deiir.
Trkiyenin motosikleti.
Erkek snnet olur,
askerlik yapar, Permatik
kullanr!
Philips hayatmz
kolaylatracak.
Kirlenmek gzeldir.
Tefal, ne varsa sende
var.
Arelik demek yenilik
demek.
Kalebodur, seramik
budur.
8 - 29
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 - 30
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 - 31
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 - 32
Line Extension
Arelik New Refrigerators
Multibrands
Arelik - Beko
Brand Extension
Arelik TV-A/C
New Brands
OYAK - Tuka
B
r
a
n
d

N
a
m
e

Existing New
Product Category
Existing
New
Four Brand Strategies

8 - 33
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 - 34

Four Services
Characteristics

8 - 35
Characteristics of Services
Intangibility
Consumers look for service quality signals
Inseparability
Services cant be separated from providers
Variability
Employees and other factors result in
variability
Perishability
Services cant be inventoried for later sale