Published on April 10, 2013
Lecturer: Bahman Moghimi Doctor of Business Administration M.Sc. Of “Industrial Marketing & e-Commerce” Product, services, and branding strategy University of Georgia B.Moghimi@yahoo.co.ukB.Moghimi@yahoo.co.uk
Looking Ahead 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. Discuss the additional marketing considerations that services require. B.Moghimi@yahoo.co.uk
Definitions Product: any market offering that is intended to satisfy a want or need. Service: a type of product that is intangible and does not result in the ownership of anything. Experience: a type of product that combines a service or physical product with a memorable experience.B.Moghimi@yahoo.co.uk
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. Includes: physical objects, services, events, persons, places, organizations, ideas or some combination thereof.B.Moghimi@yahoo.co.uk
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. Examples: banking, hotel, airline, retail, tax preparation, home repairs.B.Moghimi@yahoo.co.uk
Levels of product and servicesFigure 11- Core benefit; What is the buyer is really buying? Example: People buy camcorders to capture important moment.2- Actual product; Features, brand name, quality, and packaging help the product to be delivered, like Features of the camcorder.3- Augmented product; additional consumer services after sale. Warranty, delivery, credit, installation, service B.Moghimi@yahoo.co.uk
Levels of Product Figure 1B.Moghimi@yahoo.co.uk
Products and Services Classifications;1- Consumer products; products and services bought by end users. Convenience, shopping, specialty, and unsought products ( Figure 2).2- Industrial products; purchase for further processing or for use in conducting a business. Material, parts, capital items, and supplies and services.3- Organizations, persons, places, and ideas; - Corporate image advertising - People; lawyers, doctors,,, market them-selves. - places; attract people to cities, region… - Ideas; crest “ create smiles everyday”. Social ideas to create social marketing to influence people B.Moghimi@yahoo.co.uk
Consumer productsConvenience Products Shopping Products Buy frequently & immediately Buy less frequently Low priced Higher price Mass advertising Fewer purchase locations Many purchase locations Comparison shopi.e. Candy, newspapers i.e. Clothing, cars, appliancesSpecialty Products Unsought Products Special purchase efforts New innovations High price Products consumers don’t Unique characteristics want to think about Brand identification Require much advertising & Few purchase locations personal sellingi.e. Lamborghini, Rolex i.e. Life insurance, blood donation B.Moghimi@yahoo.co.uk
Social marketing: The use of commercial marketing concepts and tools inprograms designed to influence individuals’ behavior to improve their well-beingand that of society. B.Moghimi@yahoo.co.uk
Individual Product DecisionsB.Moghimi@yahoo.co.uk
Product and Service decisions1- Product attributes: Quality. Performance and satisfaction includes level and consistency. Features. Differentiates a product from the competition. Assessed based on value and cost. Style and design. Style equals appearance: Design is the heart of the product. B.Moghimi@yahoo.co.uk
Product and Service decisions (Cont.)2- Branding:Is a name, term, sign, symbol, design or combination of these thatidentifies the maker or seller of a product or service. Advantages to Branding Brand Equity Buyers: Higher brand loyalty Identification Name awareness Quality and value Perceived quality Sellers Strong brand associations Tells a story Patents, trademarks, Provides legal protection channel relationships Helps segments markets B.Moghimi@yahoo.co.uk
Product and Service decisions (Cont.)3- Packaging: Developing a good wrapper for a product. Packaging concept. Package elements. Product safety. Environmental concerns. 4- Labeling: Identify the product Weights/measures Description/instructions Ingredients Nutritional information B.Moghimi@yahoo.co.uk
Product and Service decisions (Cont.)5- Product support services; Customer service 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. B.Moghimi@yahoo.co.uk
Product Line DecisionsProduct line: Group of closely related products due to function, similar target markets, outlets sold in, or similar pricing- Length: number of items in the product line.- Line stretching: adding items to either. High-end of theline can be stretched downwards. Marriott, Mercedes. - Line filling: adding items within the product line range.Increase sizes, B.Moghimi@yahoo.co.uk
Product Mix Decisions A product mix (product portfolio) consists of all the Width Length product lines and items that a particular seller offers for sale Depth Consistency
Branding Strategy : Building strong BrandsBrand equity: Positive differential effect that knowing the brand name has on customer response to the product or service. Brands are more than just names and symbols. Brands represent consumer’s perceptions and feelings about a product and its performance. Brands exits in the mind of consumers. Major Brand Strategy Decisions: Figure 3 B.Moghimi@yahoo.co.uk
Major Brand strategy decisionFigure 3 Figure 10.3 B.Moghimi@yahoo.co.uk
Major Brand Strategy Decisions1- Brand positioning: Can position brands at any of three levels. Product attributes. Product benefits. Consumer beliefs and values.2 - Brand name selection: Suggest something about the product’s benefits Easy to pronounce, recognize, and remember Distinctive and Extendable Ability to be translated into other languages Capable of being registered and legally protected B.Moghimi@yahoo.co.uk
Major Brand Strategy Decisions 3- Brand sponsorship: Manufacturer’s brand Brand sponsored and promoted by the producer of the good, such as Pepsi, IBM. Private brand Brand created and owned by a reseller of a product or service such as President’s Choice. Licensing 4- Brand development, Figure 4 B.Moghimi@yahoo.co.uk
Brand Development StrategiesFigure 4B.Moghimi@yahoo.co.uk
Bahman’s Mind-Map for Branding B.Moghimi@yahoo.co.uk
Some Definitions Licensing. Most manufacturers take years and spend millions to create their own brand names. However, some companies license names or symbols previously created by other manufacturers, names of well-known celebrities, or characters from popular movies and books. For a fee, any of these can provide an instant and proven brand name. Co-branding. The practice of using the established brand names of two different companies on the same product. ............................................................. Line extension. Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category. Ex.. Coke. Brand extension. Extending an existing brand name to new product categories. For example, Kellogg’s has extended its Special K cereal brand into a full line of cereals plus lines of crackers, fruit crisps, snack and nutrition bars, breakfast shakes, protein waters, and other health and nutrition products. Multi-branding. offers a way to establish different features that appeal to different customer segments, lock up more reseller shelf space, and capture a larger market share. For example, P&G’s six laundry detergent brands combined capture a whopping 62 percent of the U.S. laundry detergent market New Brand. … B.Moghimi@yahoo.co.uk
Service MarketingService Characteristics Intangibility. Cannot be seen, tasted, felt or smelled before purchasing. Inseparability. Consumed when it is provided and cannot be separated from the provider. Variability. Quality depends on who provides. Perishability. Cannot be stored or resold. Figure 5B.Moghimi@yahoo.co.uk
Nature and characteristics of service Figure 5 B.Moghimi@yahoo.co.uk
Marketing in Service IndustriesService profit chain: chain:1- Internal service quality: selecting, hiring, training, talent employees leads to :2- Satisfied employees: loyal productive, happy employees lead to:3- Greater service value: High quality service delivery leads to:4- Satisfied and loyal customers; loyal, repeat purchase leads to;5- Business growth and profit: superior service performance. Internal Profit Satisfied Service Satisfied Service & employees Value customers quality growth B.Moghimi@yahoo.co.uk
Managing Service Differentiation Differentiate offer by: Innovative features Service delivery Images or symbols Service quality Service recovery: retain angry customers Service productivity: - lowering the overhead costs - Increase service productivityB.Moghimi@yahoo.co.uk
Additional Product Considerations Product decisions and social responsibility Government regulation Food and product safety Pricing and advertising Labeling, weights, and measures Hazardous products Product liability International product and service marketing Standardization versus local adaptation Electrical standards, packaging Cultural differences in meaning Barriers to tradeB.Moghimi@yahoo.co.uk
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