Product, Service, and Branding Strategies Chapter 10 PowerPoint slides Express version Instructor name Course name School name Date Principles of Marketing, Sixth Canadian Edition

Learning Objectives After studying this chapter, you should be able to: 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 strategy-the 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 Principles of Marketing, Sixth Canadian Edition

Three Levels of Product Product: anything that can be offered for attention, acquisition, use, or consumption to satisfy a need or want Figure 10.1 Service: any activity or benefit that can be offered that is intangible and does not result in the ownership of anything Experiences: are memorable Principles of Marketing, Sixth Canadian Edition

Product Classifications Consumer goods: Convenience goods Shopping goods Specialty goods Unsought goods Industrial goods: Materials and parts Capital items Supplies and services Marketable offerings: Organizations Person marketing Place marketing Social (ideas) marketing Principles of Marketing, Sixth Canadian Edition

Product and Service Decisions Product attributes: Product quality Product features Product style and design Branding: Name, term, sign, or symbol Used to identify the goods of a seller Differentiate from its competition Figure 10.2 Principles of Marketing, Sixth Canadian Edition

Product and Service Decisions (continued) Packaging: Hold the contents Protect the product Store, identify, and ship the product Place for labelling Used as a promotional tool Labelling: Identify the product Weights/measures Description/instructions Ingredients Nutritional information Figure 10.2 Principles of Marketing, Sixth Canadian Edition

Product Line Decisions Group of closely related products due to function, similar target markets, outlets sold in, or similar pricing Length: number of items in the line Line stretching: adding items to either end of the line, can be upwards, downwards, or both Line filling: adding items within the product line Product mix: set of all product lines Width: # of product lines Length: # of products in lines Depth: # of versions of each product carried Consistency: how closely related the product lines are Principles of Marketing, Sixth Canadian Edition

Major Brand Strategy Decisions Brand equity: Positive differential effect that knowing the brand name has on customer response to the product or service Value of the brand based on awareness, recognition, loyalty Used for line and brand extension strategies Figure 10.3 Principles of Marketing, Sixth Canadian Edition

Major Brand Strategy Decisions (continued) Brand name selection: Suggest something about the product’s benefits Easy to pronounce, recognize, and remember Distinctive Extendable Ability to be translated into other languages Capable of being registered and legally protected Figure 10.3 Principles of Marketing, Sixth Canadian Edition

Major Brand Strategy Decisions (continued) Brand sponsorship: Manufacturer’s (national) brands Private (store) brand Issues: Slotting fees: Profitability of private label to retailers Control of shelf space Figure 10.3 Principles of Marketing, Sixth Canadian Edition

Brand Development Strategies Figure 10.4 Principles of Marketing, Sixth Canadian Edition

Four Service Characteristics Service: any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything Figure 10.5 Principles of Marketing, Sixth Canadian Edition

The Service Profit Chain Internal service quality The Service Profit Chain The chain that links service firm profits with employee and customer satisfaction Internal service quality Internal service quality Internal service quality Internal service quality Principles of Marketing, Sixth Canadian Edition

Marketing in Service Industries Internal marketing: marketing by a service firm to train and motivate customer contract employees to provide customer satisfaction Interactive marketing: marketing by a service firm that recognizes that service quality depends on the quality of the buyer-seller interaction Figure 10.6 Principles of Marketing, Sixth Canadian Edition

Managing Service Differentiation Price competition Differentiate offer by: Innovative features Service delivery Images or symbols Service quality Service recovery Service productivity Principles of Marketing, Sixth Canadian Edition

Additional Product Considerations Product decisions and social responsibility Government regulation Food and product safety Pricing and advertising Labelling, 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 trade Principles of Marketing, Sixth Canadian Edition

In Conclusion… The learning objectives for this chapter were: 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 strategy-the 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 Principles of Marketing, Sixth Canadian Edition