Product, Services, and Branding Strategy

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6a

• Product, Services, and Branding Strategy

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ROAD MAP Previewing the Concepts

• Major classifications of products and services.
• Product decisions
• Individual product decisions
• Product line decisions
• Product mix decisions
• Branding strategy
• brand positioning, name selection, sponsorship,
  and development.
• Four characteristics that affect the marketing of
  a service.
• Other issues.

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At the heart of a great brand is a great product
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ROAD MAP

• Product and the major classifications of products
  and services.
• Describe the individual product decisions
• product and service attributes, branding,
  packaging, labeling, and product support
  services.
• Discuss branding strategy
• brand positioning, name selection, sponsorship,
  and development.
• Identify the four characteristics that affect the
  marketing of a service.
• Discuss other issues.

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What is a Product?

• Anything that can be offered to a market for
  attention, acquisition, use, or consumption and
  that might satisfy a want or need.
• physical objects, services, events, persons,
  places, organizations, ideas, or some combination.

What is a 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.
• banking, hotel, airline, retail, tax preparation,
  home repairs.

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The Product-Service Continuum
College Education
Restaurant
Sugar
Pure Tangible Good
Pure Service
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Levels of a Product
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Consumer Products
Industrial Products
Materials and Parts Raw materials, manufactured
materials, and parts
Convenience Products

• Purchased frequently and immediately
• Low priced
• Mass advertising
• Many purchase locations
• Examples candy, soda, newspapers

Shopping Products
Capital Items Products that aid in buyers
production or operations

• Bought less frequently
• Higher price
• Fewer purchase locations
• Comparison shop
• Examples furniture, clothing, cars, appliances

Unsought Products
Supplies and Services Operating supplies,
repair, and maintenance items

• New innovations
• Products consumers do not want to think about
• Require much advertising and personal selling
• Examples life insurance, cemetery plots, blood
  donation

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Other Market Offerings

• Organizations
• Profit (businesses) and nonprofit (schools and
  churches).
• Persons
• Politicians, entertainers, sports figures,
  doctors, and lawyers.
• Places
• Create, maintain, or change attitudes or behavior
  toward particular places (e.g., tourism).
• Ideas (social marketing)
• Public health campaigns, environmental campaigns,
  family planning, or human rights.

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Product Differentiation

• Style
• Design
• Ordering ease
• Delivery
• Installation
• Customer training
• Customer consulting
• Maintenance

• Product form
• Features
• Performance
• Conformance
• Durability
• Reliability
• Reparability

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Dunkin Donuts Differentiation
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Design Differentiation
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Maintenance and Repair
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ROAD MAP

• Define product and the major classifications of
  products and services.
• Product decisions
• Individual product decisions
• Product line decisions
• Product mix decisions
• Discuss branding strategy
• brand positioning, name selection, sponsorship,
  and development.
• Identify the four characteristics that affect the
  marketing of a service.
• Discuss other issues.

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Individual Product Decisions
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Product and Service Attributes
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Branding

• Creating, maintaining, protecting, and enhancing
  products and services.
• A brand is a name, term, sign, symbol, or design,
  or a combination of these, that identifies the
  maker or seller of a product or service.

• Advantages to buyers
• Product identification
• Product quality
• Advantages to sellers
• Basis for products quality story
• Provides legal protection
• Helps to segment markets

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Packaging

• Designing and producing the container or wrapper
  for a product.
• Developing a good package
• Packaging concept
• Package elements
• Product safety
• Environmental concerns

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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

Innovative Labeling
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Product Support Services

• Assess the value of current services and obtain
  ideas for new services.
• Assess the cost of providing the services.
• Put together a package of services that delights
  the customers and yields profits for the company.

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Product Line Decisions
Product Line Length Number of Items in the
Product Line
Stretching Lengthen beyond current range. Can
be Downward Upward Both Directions
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Two-Way Stretch
Marriott added the Renaissance Hotels line to
serve the upper end of the market and the
TownePlace Suites line to serve the moderate and
lower ends.
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Two-Way Product-Line Stretch Marriott Hotels
Quality
Economy
Superior
Standard
Good
Marriott Marquis (Top executives)
High
Marriott (Middle managers)
Above average
Price
Average
Courtyard (Salespeople)
Fairfield Inn (Vacationers)
Low
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Line Stretching
Down-Market Stretch
Up-Market Stretch
Two-Way Stretch
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Line Filling
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Product Mix Decisions

• Product Mix
• all of the product lines and items that a
  particular seller offers for sale.
• Four important dimensions
• Width
• the number of different product lines the company
  carries.
• Length
• the total number of items the company carries
  within its product line.
• Depth
• the number of versions offered of each product in
  the line.
• Consistency
• how closely related the various lines are.

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ROAD MAP

• Define product and the major classifications of
  products and services.
• Describe the individual product decisions
• product and service attributes, branding,
  packaging, labeling, and product support
  services.
• Branding strategy
• brand positioning, name selection, sponsorship,
  and development.
• Identify the four characteristics that affect the
  marketing of a service.
• Discuss other issues.

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Brand Equity

• The positive differential effect that knowing the
  brand name has on customer response to the
  product or service.
• Provides
• More brand awareness and loyalty
• Basis for strong, profitable customer
  relationships

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Major Brand Strategy Decisions
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Brand Positioning

• Can position brands at any of three levels.

Product Attributes
Product Benefits
Beliefs and Values
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Brand Name Selection

• Desirable qualities for a brand name include
• It should suggest products benefits and
  qualities
• It should be easy to pronounce, recognize, and
  remember
• It should be distinctive
• It should be extendable
• It should translate easily into foreign languages
• It should be capable of registration and legal
  protection

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Brand Sponsorship
Manufacturers Brands
Four Options
Co-Branding
Private Brands
Licensed Brands
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Brand Development

• Line Extension
• introduction of additional items in a given
  product category under the same brand name
• (e.g., new flavors, forms, colors,
  ingredients, or package sizes).
• Brand Extension
• using a successful brand name to launch a new or
  modified product in a new category.

• Multibranding
• to establish different features and appeal to
  different buying motives.
• New Brands
• the power of its existing brand is waning and a
  new brand name is needed. Also used for products
  in new product category.

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Line Extensions
Morton sells an entire line of salts and
seasonings for every occasion.
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Brand Development Strategies
Line Extension
Brand Extension
Product Category
Existing
New
Multibrands
New Brands
Existing
Brand Name
New
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ROAD MAP

• Define product and the major classifications of
  products and services.
• Describe the individual product decisions
• product and service attributes, branding,
  packaging, labeling, and product support
  services.
• Discuss branding strategy
• brand positioning, name selection, sponsorship,
  and development.
• Four characteristics that affect the marketing of
  a service.
• Discuss other issues.

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Nature and Characteristics of a Service
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The Service-Profit Chain
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Major Service Marketing Tasks

• Differentiation
• Develop a differentiated offer, delivery, and
  image.
• Quality
• Be customer obsessed, set high service quality
  standards, have good service recovery, empower
  front-line employees.
• Productivity
• Train current employees or hire new ones,
  increase quantity and sacrifice quality, harness
  technology.

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ROAD MAP

• Define product and the major classifications of
  products and services.
• Describe the individual product decisions
• product and service attributes, branding,
  packaging, labeling, and product support
  services.
• Discuss branding strategy
• brand positioning, name selection, sponsorship,
  and development.
• Identify the four characteristics that affect the
  marketing of a service.
• Other issues.

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International Product and Services Marketing
Decide Which Products Services to Introduce
Decide How Much to Standardize or Adapt
Packaging Presents New Challenges
Service Marketers Face Special Challenges
Trend Toward Global Service Companies Will
Continue

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Rest Stop Reviewing the Concepts

• Define product and the major classifications of
  products and services.
• Describe the decisions companies make regarding
  their individual products and services, product
  lines, and product mixes.
• Discuss branding strategythe decisions companies
  make in building and managing their brands.
• Identify the four characteristics that affect the
  marketing of a service and the additional
  marketing considerations that services require.
• Discuss two additional product issues socially
  responsible product decisions and international
  product and services marketing.