Dr. Saleh Alqahtani Chapter 14 Setting the Product and Branding Strategy by

Dr. Saleh Alqahtani The best way to hold customers is to constantly figure out how to give them more for less. Kotler on Marketing

Dr. Saleh Alqahtani Chapter Objectives  In this chapter, we focus on the following questions:  What are the characteristics of products?  How can a company build and manage its product mix and product lines?  How can a company make better brand decisions?  How can packaging and labeling be used as marketing tools?

Dr. Saleh Alqahtani Components of the Market Offering Value-based prices Services mix and quality Product features and quality Attractiveness of the market offering

Dr. Saleh Alqahtani Five Product Levels Potential productAugmented product Expected product Basic product Core benefit

Dr. Saleh Alqahtani Specialty Products Unsought Products Shopping Products Buy less frequently > Gather product information > Fewer purchase locations > Compare for: Suitability & Quality Price & Style Convenience Products Special purchase efforts > Unique characteristics > Brand identification > Few purchase locations New innovations > Products consumers don’t want to think about. >Require much advertising & personal selling Buy frequently & immediately > Low priced > Many purchase locations > Includes: Staple goods Impulse goods Emergency goods Consumer-Goods Classification

Dr. Saleh Alqahtani The Product and the Product Mix  Industrial-Goods Classification  Materials and parts  Farm products  Natural products  Manufactured materials and parts  Component materials  Component parts  Capital items  Installations  Equipment

Dr. Saleh Alqahtani The Product and the Product Mix  Supplies and business services  Maintenance and repair items  Operating supplies  Maintenance and repair services  Business advisory services

Dr. Saleh Alqahtani Product Mix Width Width - number of different product lines Length Length - total number of items within the lines Length Length - total number of items within the lines Depth Depth - number of versions of each product Product Mix - all the product lines offered Product Mix - all the product lines offered Consistency

Dr. Saleh Alqahtani The Product and the Product Mix  Line Filling  Just-noticeable difference  Line Modernization, featuring, and pruning  Brand decisions  What is brand?  Attributes  Benefits  Values  Culture  Personality  User

Dr. Saleh Alqahtani The Product and the Product Mix  Building Brand Identity  Brand bonding  Brands are not built by advertising but by the brand experience  Everyone in the company lives the brand  Three ways to carry on internal branding – Employees must  Understand  Desire, and  Deliver on the brand promise

Dr. Saleh Alqahtani What is a Brand? AttributesBenefitsValues Culture User Personality

Dr. Saleh Alqahtani The Product and the Product Mix  Branding gives the seller several advantages:  Brand name makes it easier for the seller to process orders and track down problems  Seller’s brand name and trademark provide legal protection of unique product features  Branding gives the seller the opportunity to attract a loyal and profitable set of customers.  Branding helps the seller segment markets.  Strong brands help build corporate image, making it easier to launch new brands and gain acceptance by distributors and consumers.

Dr. Saleh Alqahtani An Overview of Branding Decisions Branding Decision Brand No brand Brand- Sponsor Decision Manu- facturer brand Distribu- tor (private) brand Licensed brand Brand- Name Decision Individual brand names Blanket family name Separate family names Company- individual names Brand- Repositioning Decision Reposi- tioning No reposi- tioning Brand- Strategy Decision Line extension Brand extension Multi- brands New brands Cobrands

Dr. Saleh Alqahtani Brand Strategies Brand Extension New Brand Name Product Category Line Extension Existing Multibrands New Brands

Dr. Saleh Alqahtani Good Brand Names: Suggest Product Benefits Distinctive Lack Poor Foreign Language Meanings Suggest Product Qualities Easy to: Pronounce Recognize Remember

Dr. Saleh Alqahtani Labels IdentifyIdentify DescribeDescribe PromotePromote

Dr. Saleh Alqahtani Chapter 15 Designing and Managing Services by

Dr. Saleh Alqahtani Every business is a service business. Does your service put a smile on the customer’s face? Kotler on Marketing

Dr. Saleh Alqahtani Keen.com is a virtual advice marketplace The Nature of Services  Government sector  Private non-profit sector  Business sector  Manufacturing sector  Service

Dr. Saleh Alqahtani PureService Categories of Service Mix TangibleGoodw/ServicesMajorService w/ Goods Hybrid PureTangibleGood

Dr. Saleh Alqahtani Services Inseparability Services cannot be separated from their providers Inseparability Services cannot be separated from their providers Perishability Services cannot be stored for later sale or use Perishability Services cannot be stored for later sale or use Intangibility Services cannot be seen, tasted, felt, heard, or smelled before purchase Intangibility Services cannot be seen, tasted, felt, heard, or smelled before purchase Variability Quality of services depends on who provides them and when, where, and how Variability Quality of services depends on who provides them and when, where, and how

Dr. Saleh Alqahtani Services Inseparability Increase productivity of providers Inseparability Increase productivity of providers Perishability Match supply and demand Perishability Match supply and demand Intangibility Use cues to make it tangible Intangibility Use cues to make it tangible Variability Standardize service production & delivery Variability Standardize service production & delivery

Dr. Saleh Alqahtani Types of Marketing in Service Industries Internal marketing CompanyCustomers External marketing Employees Interactive marketing Cleaning/ maintenance services Financial/ banking services Restaurant industry

Dr. Saleh Alqahtani Service Differentiation Offer Delivery Image

Dr. Saleh Alqahtani Marketing Strategies for Service Firms  Five gaps that cause unsuccessful delivery   Gap between consumer expectation and management perception   Gap between management perception and service-quality specification   Gap between service-quality specification and service delivery   Gap between service delivery and external communications   Gap between perceived service and expected service

Dr. Saleh Alqahtani  Five determinants of service quality  Reliability  Responsiveness  Assurance  Empathy  Tangibles  Strategic Concept  Top-Management Commitment  High Standards  Self-Service Technologies (SSTS) Marketing Strategies for Service Firms

Dr. Saleh Alqahtani Service-Quality Model Expected service Management perceptions of consumer expectations Marketer Consumer Gap 1 Service delivery (including pre- and post-contacts) Gap 3 Translation of perceptions to service-quality specifications Gap 2 Gap 5 Perceived service External communi- cations to consumers Gap 4 Personal needs Past experience Word-of-mouth communications

Dr. Saleh Alqahtani Service Excellence  Strategic Concept  Top-Management Commitment  High Standards  Monitoring Systems  Satisfying Customer Complaints  Satisfying Both Employees & Customers  Managing Productivity

Dr. Saleh Alqahtani Complaint Resolution  Hiring Criteria & Training for Employees  Develop Guidelines for Fairness  Remove Complaint Barriers  Analyze Types & Sources of Complaints