Chapter 1 Product, Services, and Branding Strategy Professor Takada

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. Professor Takada

At the heart of a great brand is a great product Professor Takada

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. Professor Takada

What is a Product? What is a Service? 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. Professor Takada

The Product-Service Continuum College Education Sugar Restaurant Pure Tangible Good Pure Service Professor Takada

Chapter 1 Levels of a Product Professor Takada

Industrial Products Consumer Products Materials and Parts Convenience Products Materials and Parts Raw materials, manufactured materials, and parts Purchased frequently and immediately Low priced Mass advertising Many purchase locations Examples: candy, soda, newspapers Shopping Products Capital Items Products that aid in buyer’s 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 Professor Takada

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. Professor Takada

Product Differentiation Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance Product form Features Performance Conformance Durability Reliability Reparability Professor Takada

Dunkin’ Donuts’ Differentiation Chapter 1 Dunkin’ Donuts’ Differentiation Click on the video icon to see a clip on product differentiation at Dunkin’ Donuts. Professor Takada

Design Differentiation Professor Takada

Maintenance and Repair Professor Takada

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. Professor Takada

Individual Product Decisions Chapter 1 Individual Product Decisions Professor Takada

Product and Service Attributes Chapter 1 Product and Service Attributes Quality Features Style & Design Performance and Satisfaction Includes Level & Consistency Differentiates a product from the competition; assessed based on value and cost Style = Appearance Design = heart of the product Professor Takada

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 product’s quality story Provides legal protection Helps to segment markets Professor Takada

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

Labeling Innovative 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 Professor Takada

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. Professor Takada

Product Line Decisions Chapter 1 Product Line Decisions Product Line Length Number of Items in the Product Line Filling Lengthen within current range Stretching Lengthen beyond current range. Can be: Downward Upward Both Directions Professor Takada

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. Professor Takada

Two-Way Product-Line Stretch: Marriott Hotels Chapter 1 Two-Way Product-Line Stretch: Marriott Hotels Quality Economy Standard Good Superior Marriott Marquis (Top executives) High Marriott (Middle managers) Price Above average Average Courtyard (Salespeople) Fairfield Inn (Vacationers) Low Professor Takada 8

Line Stretching Down-Market Stretch Up-Market Stretch Two-Way Stretch Chapter 1 Line Stretching Down-Market Stretch Up-Market Stretch Two-Way Stretch Professor Takada

Line Filling Professor Takada

Product Mix Decisions Product Mix Four important dimensions: 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. Professor Takada

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. Professor Takada

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 Professor Takada

Major Brand Strategy Decisions Professor Takada

Brand Positioning Product Attributes Product Benefits Can position brands at any of three levels. Product Attributes Product Benefits Beliefs and Values Professor Takada

Brand Name Selection Desirable qualities for a brand name include: It should suggest product’s 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 Professor Takada

Manufacturer’s Brands Brand Sponsorship Manufacturer’s Brands Four Options Co-Branding Private Brands Licensed Brands Professor Takada

Brand Development Line Extension Brand Extension Multibranding 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. Professor Takada

Line Extensions Morton sells an entire line of salts and seasonings for every occasion. Professor Takada

Brand Development Strategies Chapter 1 Brand Development Strategies Brand Strategy This CTR corresponds to Figure 8-4 on p. 251 and relates to the discussion on pp. 250-252. Line Extension Brand Extension Product Category Existing New Multibrands New Brands Brand Strategy Companies may implement at least four brand-name strategies, including: Line Extension. This strategy occurs when a company introduces additional items in a given product category under the same brand name. The vast majority of new product introductions are line extensions. Brand Extension. This strategy seeks to extend existing brand qualities to launch new products or modified products in a new category. Multibrand. This strategy develops two or more products in the same product category. P & G pioneered multibranding. New Brands. Here a company creates a new brand name when it enters a new product category for which none of the company’s current brand names are appropriate. Existing Brand Name New Professor Takada

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. Professor Takada

Nature and Characteristics of a Service Chapter 1 Nature and Characteristics of a Service Professor Takada

The Service-Profit Chain Professor Takada

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. Professor Takada

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. Professor Takada

International Product and Services Marketing Decide Which Products & Services to Introduce Decide How Much to Standardize or Adapt Chapter 1 International Product and Services Marketing Packaging Presents New Challenges Service Marketers Face Special Challenges Trend Toward Global Service Companies Will Continue Professor Takada

Rest Stop: Reviewing the Concepts Chapter 1 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 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. Professor Takada