0. Product, Services, and Branding Strategies
Chapter 9

1. Objectives
Be able to define product and know the major classifications of products and services.
Understand the decisions companies make regarding their individual products and services, product lines, and product mixes.
Understand how firms build and manage their brands.

2. Objectives
Know the four characteristics of services and the additional marketing considerations that services require.
Review additional product issues related to social responsibility and international marketing.

3. c
Cosmetics Industry
Cosmetics companies sell billions of dollars worth of products
Consumers buy more than just a particular smell
The “promise”, image, company, name, package, and ingredients are all part of the product, as are the stores where it is sold.

4. Definition
Product
Anything offered to a market for attention, acquisition, consumption or use that might satisfy a need or want.

5. Definition
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.

6. What is a Product? Products, Services, & Experiences
Market offerings, pure tangible goods, pure services, experiences
Experiences include zoos and aquariums

7. Three Levels of Product
Figure 9-1:
Three Levels of Product

8. Discussion Question
Describe the core benefit, actual product, and augmented product aspects of an automobile purchase.

9. What is a Product?
Product and service classifications fall into two broad classes based on the types of buyers who use them:
Consumer products
Industrial products

10. Types of Consumer Products
What is a Product?
Types of Consumer Products
Frequent purchases bought with minimal buying effort and little comparison shopping
Low price
Widespread distribution
Mass promotion by producer
Convenience
Shopping
Specialty
Unsought

11. Types of Consumer Products
What is a Product?
Types of Consumer Products
Less frequent purchases requiring more shopping effort and price, quality, and style comparisons.
Higher priced than convenience goods
Selective distribution in fewer outlets
Advertising and personal selling by producer and reseller
Convenience
Shopping
Specialty
Unsought

12. Types of Consumer Products
What is a Product?
Types of Consumer Products
Strong brand preference and loyalty, requires special purchase effort, little brand comparisons, and low price sensitivity
High price
Exclusive distribution
Carefully targeted promotion by producers and resellers
Convenience
Shopping
Specialty
Unsought

13. Discussion Question
How can tropical fish be a convenience good, specialty good, or shopping good to different consumers?
Provide examples.

14. Types of Consumer Products
What is a Product?
Types of Consumer Products
Little product awareness and knowledge (or if aware, sometimes negative interest)
Pricing varies
Distribution varies
Aggressive advertising and personal selling by producers and resellers
Convenience
Shopping
Specialty
Unsought

15. Pay Now . . . Die Later Selling Cemetery Plots
The Goal: Sell plots to baby boomers prior to an actual death in the family – “preneed policies”.
Special Challenges: Emotional – marketing done at the wrong time could boomerang.
Opportunities: Many states treat preneed policies as tax exempt, and now allow cemeteries to have funeral homes. On-site funeral homes provide greater convenience.
Source: “Pay now, die later: Consumers urged not to delay that final decision,” Marketing News; Chicago; Oct 24, 1994; by Shermach, Kelly; Volume: 28 Issue: 22 Start Page: 1

16. Pay Now . . . Die Later Selling Cemetery Plots
Unusual Promotions:
Buy one plot get a second for a penny
“Heaven Can Wait” cemetery run
Boy Scout campouts at cemeteries
Other Advertising:
Freestanding inserts
“Penny pincher” bags
Lakeview Cemetery:
Brochure direct mail with map and open plots designated
Stresses need to preplan as a method of sparing loved ones
Other Sales Methods:
Grief information
Via clergy members
Source: “Pay now, die later: Consumers urged not to delay that final decision,” Marketing News; Chicago; Oct 24, 1994; by Shermach, Kelly; Volume: 28 Issue: 22 Start Page: 1

17. What is a Product? Product and Service Classifications
Industrial products are those purchased for use in conducting a business or those purchased as ingredients or components to be used in manufacturing.
Materials and parts
Capital items
Supplies and services

18. Industrial products also include business services, such as landscaping, technology, food services, or custodial.

19. What is a Product? Product and Service Classifications
“Products” also include organizations, persons, places, and ideas
Organizational marketing makes use of corporate image advertising
Person marketing applies to political candidates, entertainment sports figures, and professionals
Place marketing relates to tourism
Social marketing campaigns promote ideas

20. Social marketing promotes ideas or causes for the purpose of improving an individual’s well-being or the well-being of society.

21. Product & Service Decisions
Product attributes
Quality, features, style and design
Branding
Packaging
Labeling
Product support services
Key Decisions
Individual Product
Product Line
Product Mix

22. Individual Product and Service Decisions
Figure 9-2:
Individual Product and Service Decisions

23. Product & Service Decisions
Innovative product design can help revitalize a company, such as with the Apple iMac.

24. Product & Service Decisions
Brand:
A name, term, sign, symbol, design, or a combination of these, that identifies the maker or sellers of a product or service.

25. Product & Service Decisions
Packaging involves designing a container or wrapper for a product

26. Product & Service Decisions
Many aspects of a food product’s label are dictated by law

27. Product & Service Decisions
Support services via the web include FAQ files, queries, live chat with customer service personnel, and software updates
1-800 Flowers

28. Product & Service Decisions
Product line length
Line stretching: adding products that are higher or lower priced than the existing line
Line filling: adding more items within the present price range
Key Decisions
Individual Product
Product Line
Product Mix

29. Discussion Question
Would you classify Tide’s product line as an example of line stretching or line filling?
Why?

30. Product & Service Decisions
Product line width:
Number of different product lines carried by company
Product line depth:
Number of different versions of each product in the line
Product line consistency
Key Decisions
Individual Product
Product Line
Product Mix

31. Branding Strategy
Brands are powerful assets that must be carefully developed and managed.
Both Tiger Woods and Nike can be considered brands

32. Branding Strategy
Brands with strong equity have many competitive advantages:
High consumer awareness
Strong brand loyalty
Helps when introducing new products
Less susceptible to price competition

33. Major Brand Strategy Decisions
Figure 9-3:
Major Brand Strategy Decisions

34. Brand Strategy Key Decisions Three levels of positioning:
Product attributes
Least effective
Benefits
Beliefs and values
Taps into emotions
Key Decisions
Brand Positioning
Brand Name Selection
Brand Sponsorship
Brand Development

35. Brand Strategy Key Decisions Brand Positioning Brand Name Selection
Good Brand Names:
Suggest something about the product or its benefits
Are easy to say, recognize and remember
Are distinctive
Are extendable
Translate well into other languages
Can be registered and legally protected
Key Decisions
Brand Positioning
Brand Name Selection
Brand Sponsorship
Brand Development

36. Discussion Question
Evaluate the brand name for the product at left according to the criteria previously listed.
Would you have chosen this name for this product?

37. Brand Strategy Key Decisions Manufacturer brands Brand Positioning
Brand Name Selection
Brand Sponsorship
Brand Development

38. Brand Strategy Key Decisions Private (store) brands Brand Positioning
Costly to establish and promote
Higher profit margins
Key Decisions
Brand Positioning
Brand Name Selection
Brand Sponsorship
Brand Development

39. Brand Strategy Key Decisions Licensed brands Brand Positioning
Name and character licensing has grown
Key Decisions
Brand Positioning
Brand Name Selection
Brand Sponsorship
Brand Development

40. Brand Strategy Key Decisions Brand Positioning Brand Name Selection
Co-branding
Advantages
Broader consumer appeal
Greater brand equity
Efficient means of expansion into new product categories
Limitations
Complex legal contracts
Requires careful coordination of IMC
Requires that partners trust one another
Key Decisions
Brand Positioning
Brand Name Selection
Brand Sponsorship
Brand Development

41. Brand Strategy Key Decisions Brand Positioning Brand Name Selection
Line extensions
Minor changes to existing products
Brand extensions
Successful brand names help introduce new products
Multibrands
Multiple product entries in a product category
New brands
New product category
Key Decisions
Brand Positioning
Brand Name Selection
Brand Sponsorship
Brand Development

42. Brand Development Strategies
Figure 9-4:
Brand Development Strategies

43. Line Extensions May Feature Different Things
Brand Strategy
Line Extensions May Feature Different Things
Flavors
Colors
Forms
Ingredients
Package Sizes

44. Services Marketing Services
Account for 74% of U.S. gross domestic product.
Service industries include business organizations, government, and private not-for-profit organizations.

45. Four Services Characteristics
Figure 9-5:
Four Services Characteristics

46. BusinessNow Site59 Video Clip
The perishability of services such as airline seats creates special challenges for marketers
Click the picture above to play video

47. Three Types of Marketing in Services Industries
Figure 9-6:
Three Types of Marketing in Services Industries

48. Services Marketing Service Firm Marketing Strategies
The Service-Profit Chain
Internal Marketing: service firms train and effectively motivate their employees to work as a team to satisfy the customer
Interactive Marketing: recognizes that service quality depends heavily on the quality of buyer-seller interaction

49. Services Marketing Service Firm Marketing Strategies
Managing Service Differentiation
British Airways differentiates its service by offering first-class world travelers private “demi-cabins”

50. Services Marketing Service Firm Marketing Strategies
Managing Service Quality
One method of differentiation
Customer retention is often the best measure
Top service firms are “customer obsessed”
Service recovery and employment empowerment are key
Managing Service Productivity
Many methods of enhancing productivity
Key is to avoid reducing quality

51. Additional Product Considerations
Product Decisions and Social Responsibility
Acquisitions and mergers
Legal compliance
Product liability issues
Warranties

52. Additional Product Considerations
International Product and Services Marketing
Special challenges:
Which products should be marketed internationally?
Should the products be standardized or adapted for world markets?
How should packaging be adapted?
How can other barriers be overcome?