Chapter 9: Product, Service, and Branding Strategies

Objectives
  • •Be able to define product and know the major classifications of products and services.
  • •Understand the decisions companies make regarding their individual products and services, product lines, and product mixes.
 
  • •Understand how firms build and manage their brands.
  • •Know the four characteristics of services and the additional marketing considerations that services require.
  • •Review additional product issues related to social responsibility and international marketing.
 

 

Please Open The Following Figures In Different Windows and Leave Them Open:

Animated Figure 9-1 , Animated Figure 9-2, Animated Figure 9-3 , Animated Figure 9-4

 

Case Study

The Cosmetics Industry
  • •Cosmetics companies sell billions of dollars worth of products
  • •Consumers buy more than just a particular smell
 

 
  • The “promise”, image, company, name, package, and ingredients are all part of the product, as are the stores where it is sold.

 

 

Definitions
  • •Product
  • §Anything offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want.
  • •Service
  • §Any activity or benefit that one party can offer to another that is essentially intangible and does not result in ownership of anything.
 
 

 

What is a Product?
  • •Products, Services, and Experiences
  • §Market offerings, pure tangible goods, pure services, experiences
  • •Levels of Product and Services
  • §Core benefit, actual product, and augmented product
  • •Product and Service Classifications
 
 

 

What is a Product?

Types of Consumer Products

  • •Convenience
  • •Shopping
  • •Specialty
  • •Unsought

 

 
  • •Frequent purchases bought with minimal buying effort and little comparison shopping
  • •Low price
  • •Widespread distribution
  • •Mass promotion by producer
 

 

What is a Product?

Types of Consumer Products

  • •Convenience
  • •Shopping
  • •Specialty
  • •Unsought

 

 
  • •Less frequent purchases requiring more shopping effort and price, quality, and style comparisons.
  • •Higher than convenience good pricing
  • •Selective distribution in fewer outlets
  • •Advertising and personal selling by producer and reseller
 

 

What is a Product?

Types of Consumer Products

  • •Convenience
  • •Shopping
  • •Specialty
  • •Unsought

 

 
  • •Strong brand preference and loyalty, requires special purchase effort, little brand comparisons, and low price sensitivity
  • •High price
  • •Exclusive distribution
  • •Carefully targeted promotion by producers and resellers
 

 

What is a Product?

Types of Consumer Products

  • •Convenience
  • •Shopping
  • •Specialty
  • •Unsought

 

 
  • •Little product awareness and knowledge (or if aware, sometimes negative interest)
  • •Pricing varies
  • •Distribution varies
  • •Aggressive advertising
    and personal selling by producers and resellers

 

What is a Product?
  • •Product and Service Classifications
  • §Consumer products
  • §Industrial products
  •  Materials and parts
  • v Capital items
  • v Supplies and services
 
 

 

What is a Product?
  • •Product and Service Classifications
  • §Organizations, persons, places, and ideas
  •  Organizational marketing makes use of corporate image advertising
  • v Person marketing applies to political candidates, entertainment sports figures, and professionals
  • v Place marketing relates to tourism
  • v Social marketing campaigns promote ideas
 

 

Product and Service Decisions

Key Decisions

  • •Individual Product
  • •Product Line
  • •Product Mix
 

 

 
  • •Product attributes
  • §Quality, features, style and design

     

  • •Branding
  • •Packaging
  • •Labeling
  • •Product support services

 

Product and Service Decisions

Key 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

 

Product and Service Decisions

Key Decisions

  • •Individual Product
  • •Product Line
  • •Product Mix
 

 

 
  • •Product line width:
  • §number of different product lines carried by company
  • •Product line depth:
  • §Number of different versions of each product in the line
  • •Product line consistency

 

Branding Strategy
  • •Brands are powerful assets that must be carefully developed / managed.

     

  • •Brands with strong equity have many competitive advantages:
  • §High consumer awareness
  • §Strong brand loyalty
  • §Helps when introducing new products
  • §Less susceptible to price competition
 

 

Brand Strategy

Key Decisions

  • •Brand Positioning
  • •Brand Name Selection
  • •Brand Sponsorship
  • •Brand Development

 

 
•Three levels of positioning:
  • §Product attributes
  •  Least effective
  • §Benefits
  • §Beliefs and values
  •  Taps into emotions

 

Brand Strategy

Key Decisions

  • •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

 

Brand Strategy

Key Decisions

  • •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
 

 

 

Brand Strategy

Key Decisions

  • •Brand Positioning
  • •Brand Name Selection
  • •Brand Sponsorship
  • •Brand Development

 

 
  • •Line extensions
  • §Minor changes to existing products
  • •Brand extensions
  • §Successful brand names help introduce new products
  • •Multibrands
  • §Multiple product entries in a product category
  • •New brands
  • §New product category

 

 

Brand Strategy
Line Extensions
May Feature Different:
  • •Flavors
  • •Colors

 
  • •Forms
  • •Ingredients
 

  • •Package Sizes

 

Services Marketing
  • •Services
  • §Account for 74% of U.S. gross domestic product.
  • §Service industries include business organizations, government, and private not-for-profit organizations.
 
 

 

Services Marketing
  • •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
 

 

Services Marketing
  • •Service Firm Marketing Strategies
  • §The Service-Profit Chain
  •  Internal Marketing
  • v Interactive Marketing
  • §Managing Service Differentiation
  • §Managing Service Quality
  • §Managing Service Productivity
 
 

 

Additional Product Considerations
  • •Product Decisions and Social Responsibility
  • §Acquisitions and mergers
  • §Legal compliance
  • §Product liability issues
  • §Warranties
 
 

 

Additional Product Considerations
•International Product and Services Marketing
  • §Special challenges:
  •  Which products should be marketed
     internationally?
  •  Should the products be standardized or adapted for world markets?
  • v How should packaging be adapted?
  • v How can other barriers be overcome?
 

 

Chapter 9: Product, Service, and Branding Strategies

Study Guide
  • Concepts Check

 

Study Guide
  • Concepts Challenge

 

 
  • Chapter Outline

 

 
  • Video Case

 

 
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Chapter 9: Product, Service, and Branding Strategies

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