Marketing Quality Circle

After reading this chapter, students should:  Know what are the characteristics of products and how do marketers classify products.  Know how companies can differentiate products  Know how a company can build and manage its product mix and product lines  Know how companies can combine products to create strong co- brands or ingredient brands  Know how companies can use packaging, labeling, warranties, and guarantees as marketing tools  Know what a is brand and how branding works  Know what brand equity is  Know how a firm can choose and communicate an effective positioning in the market  Know how brands are differentiated Marketing Quality Circle

 Identifying and establishing brand positioning  Planning and implementing brand marketing  Measuring and interpreting brand performance  Growing and sustaining brand value

Marketing Quality Circle A brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

Marketing Quality Circle

 Identify the maker  Simplify product handling  Organize accounting  Offer legal protection

Marketing Quality Circle

 Signify quality  Create barriers to entry  Serve as a competitive advantage  Secure price premium

Marketing Quality Circle Branding is endowing products and services with the power of the brand.

Marketing Quality Circle Brand equity is the added value endowed on products and services, which may be reflected in the way consumers, think, feel, and act with respect to the brand.

Marketing Quality Circle  Improved perceptions of product performance  Greater loyalty  Less vulnerability to competitive marketing actions  Less vulnerability to crises  Larger margins  More inelastic consumer response  Greater trade cooperation  Increased marketing communications effectiveness  Possible licensing opportunities

Marketing Quality Circle A brand promise is the marketer’s vision of what the brand must be and do for consumers.

Marketing Quality Circle  Brand names  Slogans  Characters  Symbols  Logos  URLs

Marketing Quality Circle  Memorable  Meaningful  Likeability  Transferable  Adaptable  Protectible

Marketing Quality Circle Brand2006 Brand Value (Billions) Coca-Cola$67.00 Microsoft$56.93 IBM$56.20 GE$48.91 Intel$38.32 Nokia$30.13 Toyota$27.94 Disney$27.85 McDonald’s$27.50 Mercedes-Benz$22.13

Marketing Quality Circle  Brand reinforcement  Brand revitalization  Brand crises

Marketing Quality Circle A product is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.

Marketing Quality Circle  Product levels: The Customer-Value Hierarchy  Product Classification  Product and Brand Relationships

Marketing Quality Circle

Core Product Attributes Styling Colour Brand Name Packaging Quality Instructions Manual After sales services Delivery points & systems Installation (for bulky products) Customer education and Training Customer complaint management Payment options (for high priced prod- cts) Replacement or returns policy Guarantees & warranties Core Product Formal Product Augmented Product Future Product The total product concept

Marketing Quality Circle Industrial products Consumer products Product Materials and parts Supplies and services Capital itemsSpecialty Shopping Unsought Convenience

Marketing Quality Circle Marketing Consideration ConvenienceShoppingSpecialtyUn-sought Customer buying behavior Frequent purchases Less frequent purchase Special purchase effort Little product awareness PriceLowHigherhighvaries DistributionWidespread Distribution Convenient location Selective distribution in fewer outlets Exclusive in one or few outlets. varies PromotionMass promotionAdvertising and personal selling More carefully targeted promotion by both. Aggressive advertising and personal selling ExampleToothpaste, soap, candy Television, furniture Luxury items, Rolex watches. Life insurance, blood donations

Marketing Quality Circle

 Product form  Features  Customization  Performance  Conformance  Durability  Reliability  Repairability  Style

Marketing Quality Circle  Ordering ease  Delivery  Installation  Customer training  Customer consulting  Maintenance and repair  Returns

Marketing Quality Circle  Product system  Product mix  Product assortment  Depth  Length  Width  Consistency

Marketing Quality Circle  Core product  Staples  Specialties  Convenience items

Marketing Quality Circle  Down-market stretch  Up-market stretch  Two-way stretch

Marketing Quality Circle  Product-line pricing  Optional-feature pricing  Captive-product pricing  Two-part pricing  By-product pricing  Product-bundling pricing

Marketing Quality Circle Packaging, sometimes called the 5 th P, is all the activities of designing and producing the container for a product.

Marketing Quality Circle  Self-service  Consumer affluence  Company/brand image  Innovation opportunity

Marketing Quality Circle  Identify the brand  Convey descriptive and persuasive information  Facilitate product transportation and protection  Assist at-home storage  Aid product consumption

Marketing Quality Circle  Identifies  Grades  Describes  Promotes

Marketing Quality Circle Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.

Marketing Quality Circle  Perdue Chicken  More tender golden chicken at a moderate premium price  Domino’s  A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price

Marketing Quality Circle Points-of-difference (PODs)  Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand Points-of-parity (POPs)  Associations that are not necessarily unique to the brand but may be shared with other brands

Marketing Quality Circle  Prices  Distribution  Advertising  Sales promotion  Services

Marketing Quality Circle  Convert nonusers  Enter new market segments  Attract competitors’ customers  Have consumers use the product on more occasions  Have consumers use more of the product on each occasion  Have consumers use the product in new ways