1. Products and Services
Based on Marketing: An Introduction, 6th edition by Philip Kotler & Gary Armstrong
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Product and Services Strategies

2. Product and Services Strategies
Something that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or a need.
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Product and Services Strategies

3. Product and Services Strategies
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Product and Services Strategies

4. Three levels of product
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Product and Services Strategies

5. Core, Actual and Augmented Product
Customers perceive the Sony camcorder as a complex bundle of tangible and intangible features and services that deliver a core benefit - A convenient, high-quality way to capture important moments.
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Product and Services Strategies

6. Product Classifications
Consumer Products
Industrial Products
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Product and Services Strategies

7. Product and Services Strategies
Consumer Products
Products bought by final consumers for personal consumption
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Product and Services Strategies

8. Product and Services Strategies
Consumer Products
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Product and Services Strategies

9. Product and Services Strategies
Industrial Products
Products bought by individuals and organizations for further processing or for use in conducting business.
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Product and Services Strategies

10. Product and Services Strategies
Industrial Products
Materials and parts
Capital items
Supplies and services.
Materials and parts are raw materials (wheat, cotton, livestock,fruits, vegetables, fish lumber, crude petroleum, iron ore) and manufactured materials (iron, cement, wires, small motors, tires, castings): proce and service are the amjor marketing factors
Capital items are industrial products that aid in the buyer’s production or operations, such as factories, offices (major equipment), generators, drill presses, large computer sistems, elevators, hand tools, lift trucks, fax machines...
Supplies and services are lubricants, coal, paper, clips, pencils, paint, nails, brooms, and window cleaning, computer repair, legal, management consulting, advertising...
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Product and Services Strategies

11. Individual Product Decisions
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Product and Services Strategies

12. Product and Services Strategies
Product Attributes
Product Quality
Product Features
Product Design
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Product and Services Strategies

13. Product and Services Strategies
Product Quality
Two dimensions:
Performance
Conformance
In performance terms: Rolls-Royce is better than Ford Rolex is better than Timex
In conformance terms: Rolls-Royce quality is as consistent as Ford quality Rolex quality is as consistent as Timex quality
Quality level that matches target needs and the quality levels of competing products
Consistently deliver the quality that customers pay for and expect
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Product and Services Strategies

14. Product Quality for Motorola
“Quality means the world to us”
TQM - Total quality management
Improve customer value
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Product and Services Strategies

15. Product and Services Strategies
Product Features
Stripped down
Added features Feature value to customer vs. Feature cost to the company
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Product and Services Strategies

16. Product Style and Design
Style + Performance
Bose, B&O, Braun
Falar do exemplo da lanterna de Black & Decker
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Product and Services Strategies

17. Product and Services Strategies
Brand
A name, term, sign, symbol, or design, or combination of these, intended to identify the goods or services of one seller or group of sellers and differentiate them from those of its competitors
Nike, Philips
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Product and Services Strategies

18. Product and Services Strategies
Powerful Brand Names
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Product and Services Strategies

19. Product and Services Strategies
Branding
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20. Product and Services Strategies
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21. Product and Services Strategies
Brand Equity
The value of a brand based on the extent to which it has high brand loyalty, name awareness, perceived quality, strong brand associations, and other assets such as patents, trademarks and channel relationships.
IBM $17 bn, Coca-cola $39 bn Marlboro$39 bn, Kodak $12 bn
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Product and Services Strategies

22. Product and Services Strategies
Brand Name Selection
Brand Name should:
Suggest something about the product benefits and qualities: Duracell
Be easy to pronounce, recognize, and remember: TIDE
Be distinctive: Kodak, Shell
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Product and Services Strategies

23. Product and Services Strategies
Brand Name Selection
Brand Name should:
‘work’ in languages used in target markets
Be ‘registerable’
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Product and Services Strategies

24. Brand Owner (or Sponsor)
Manufacturer’ Brand Brand created and owned by the producer of a product or a service. Ex: IBM, Kellogg Manufactures have to pay Slotting fees
Private Brand or (middleman, distributor or store brand) Brand created and owned by a reseller of a product or service. Ex: Continente, Pingo Doce
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Product and Services Strategies

25. Product and Services Strategies
Licensing
Looney Tunes generates more than $1 bn annually
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Product and Services Strategies

26. Product and Services Strategies
Co- Branding
The practice of using established brand names belonging to different companies on the same product Philips & Whirlpool, Credit card issued by Ordem dos Engenheiros & American Express
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Product and Services Strategies

27. Product and Services Strategies
Brand Strategy
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Product and Services Strategies

28. Product and Services Strategies
Line Extension
Using a successful brand name to introduce additional items in a given product category under the same brand name Classic vs. Diet Coke Danone vs. Corpos Danone
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Product and Services Strategies

29. Product and Services Strategies
Brand Extensions
Using a successful brand name to launch a new or modified product in a new category. Honda motorbikes, cars, and outboard engines (for boats)
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Product and Services Strategies

30. Product and Services Strategies
Multibrands
A strategy under which a seller develops two or more brands in the same product category: Philips & Ariston Toyota & Lexus VW & Skoda
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Product and Services Strategies

31. Product and Services Strategies
New brands
The same manufacturer but different brands for different products: Philips & Signaal (for defense)
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Product and Services Strategies

32. Product and Services Strategies
Packaging
Includes design and production of:
Primary container
Secondary container
Shipping container
Primary container Tube holding the Colgate toothpaste
Secondary container = Cardboard box containing the tube
Shipping container = Box containing six dozen tubes (of, say, Colgate toothpaste)
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Product and Services Strategies

33. Product and Services Strategies
Packaging
Packaging supports sales by:
Attracting buyer’s attention
Promoting the product
Describing the product (legal requirements)
Average supermarket which stocks 15,000 to 17,000 shopper passed by some 300 items per minute and 53% of all the purchases are made from impulse.
Campbell Soup Company estimates that the average shopper sees its familiar red and white can 76 times a year creating the equivalent of $26 millions worth of advertising (ref 16)
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Product and Services Strategies

34. Packaging concept or strategy
Packaging strategy states:
What the package should be, or
What the package should do for the product.
Decisions must be made on specific aspects, including size, shape, materials, color, text and brand name.
Must be consistent with the product advertising, pricing and distribution.
Must be childproof
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Product and Services Strategies

35. Product and Services Strategies
Labeling
Identifies brand: Sunkist oranges
Identifies grade
Describes benefits
Uses attractive graphics
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Product and Services Strategies

36. Product and Services Strategies
Labeling
Checklist for essential information:
Unit price
Use-by date
Nutritional value
Low fat, light, high fiber
Often regulated by law
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Product and Services Strategies

37. Product-Support Services
Services that augment actual products
More and more companies use product-support services as a major tool in gaining competitive advantage.
An active customer service department creates customer satisfaction and loyalty and helps the company find ways to distinguish itself from competitors.
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Product and Services Strategies

38. Product-Support Services
Whirlpool, Procter& Gamble use numbers
Cadillac holds regular focus-group interviews with owners.
Cadillac has learned that buyers are very upset by repairs that are not done correctly the first time. As a result the company has set up a system directly linking each dealership with a group of 10 engineers who can help walk mechanics trough difficult repairs
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Product and Services Strategies

39. Product-Support Services
Estimate the cost and the benefit of product-support services
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40. Product Line Decisions
A group of products that are closely related because they function in a similar manner, are sold to the same customer groups and marketed through the same type of outlets, or fall within given price ranges.
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Product and Services Strategies

41. Product and Services Strategies
Product Line Length
Number of items in the product line.
Companies looking for high market share and growth usually carry longer lines.
Companies looking for short-term profit generally carry shorter lines of selected items.
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Product and Services Strategies

42. Increasing Product Line Length
Stretching. Downward or upward
Xerox stretched downwards with the small copier.
Filling.
Solar-powered Sony Walkman line
Marriott stretch ..
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Product and Services Strategies

43. Product and Services Strategies
Product Mix Decisions
The set of all product lines and items that a particular seller offers for sale to buyers.
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Product and Services Strategies

44. Product Mix Selected From P&G
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Product and Services Strategies

45. Product and Services Strategies
Product Mix Decisions
Line Width Number of different product lines
Line length Total number of items that the company carries
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Product and Services Strategies

46. Product and Services Strategies
Product Mix Decisions
Line consistency How closely related the various product lines are in end use, production requirements, distribution channels, etc.
Line depth Number of versions of each product. Example: Crest comes in three sizes and two formulations
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Product and Services Strategies

47. Product and Services Strategies
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48. Product and Services Strategies
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Product and Services Strategies