1. Products, Services and Brands

2. The Product-Service Continuum Sugar Restaurant Education Pure Tangible Good Pure Service Offer another example of a pure service.

3. What Is a Product? Anything offered to a market that satisfies a want or need. – Includes: physical objects, services, events, persons, places, organizations, ideas, or some combination thereof.

4. What Is a Service? Activities, benefits, or satisfactions offered to a market that are essentially intangible and do not result in the ownership of anything. – Examples: banking, hotel, airline, retail, tax preparation, home repairs.

5. 7-5 Consumer Experiences In-store Theater is more important than ever Consider ALL consumer touch-points Eliminate shopping drudgery Work fun into the shopping experience, but don’t overdo it Knot Tying Clinic Art Gallery Entrance

6. Three Levels of Product

7. Individual Product Decisions

8. Product Attributes Quality – Performance vs. Conformance quality Benefits vs. Features – Consumers generally value benefits, not features Style and design – Influences product choice and experience Price What is an attribute?

9. Branding 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. Product = “Body” Brand = “Soul”

10. Branding - Advantages Advantages to buyers: – Eases product identification – Simplifies the purchase process (choice heuristic) – Signal of quality – “Repository of Trust” (- Jordan) Advantages to sellers: – Drive loyalty to company and its products – Provides legal protection – Helps segment markets (i.e. “Branded Variants”)

11. How Branding Happens

12. Attributes of Strong Brands Excels at delivering desired benefits Stays relevant Priced to meet perceptions of value Positioned properly Communicates consistent brand messages Well-designed brand hierarchy Uses multiple marketing activities Understands consumer- brand relationship Supported by organization Monitors sources of brand equity

13. Marketing Advantages of Strong Brands Improved perceptions of product performance Greater loyalty Less vulnerable to competition Less vulnerable to crises Larger margins Inelastic consumer response to price increases Elastic consumer response to price decreases Greater trade cooperation Increase in effectiveness of IMC Licensing opportunities Brand extension opportunities

14. Packaging Container, wrapper or “external face” for a product. Good packages – market the brand effectively – protect the internal elements – protect the external elements – are easy/straightforward to use – don’t become “stale” over time – ensure consumer’s safety – are responsive to local environmental and social concerns

15. Dutch Boy’s packaging innovation offers paint in plastic containers with twist-off tops. The paint container is easy to carry, doesn’t need a screwdriver to pry open, doesn’t dribble when poured, and doesn’t take a hammer to bang the lid shut. Innovative Packaging

16. Labeling Printed information appearing on or with the package. Performs several functions: – Identifies or reinforces identification of product/brand – Provides “valuable” information about product contents or ingredients – Co-promotes the product along with packaging

17. The FDA now requires food manufacturers to list trans fat on the Nutrition Facts portion of product labels. Labeling

18. The Ethics and Legality of Labeling

19. Product Line Decisions Product Line – Group of products with variations (flavors/types/appeals). Product Line Stretching Downward Upward Both directions Product Line Filling – Examples Ice Tea Pet Foods

20. Marriott offers a full line of hotel brands, each aimed at a different market. Product Line Stretching - Marriott

21. Product Mix Decisions Product mix: – What combination of products do we carry? Product mix decisions: – Product Line Length: the number of items in a line. – Product Line Width: the number of different product lines the company carries. (i.e. Wal-Mart has toys, food, cards, clothes, music, etc.) – Product Line Depth: the number of versions offered of each product in the line. (i.e. 2 or 3 different sizes or sub-types)

22. Question du Jour Is product variety a blessing or curse for consumers?

23. Brand Loyalty & Brand Equity Brand Loyalty – Definition: Willingness to re-purchase due to favorable brand impressions – How measured? Brand Equity – Definition: The positive effect that knowing the brand name has on consumer response to the product. – Psychological Value – Financial Value The Link between Brand Loyalty & Brand Equity

24. Brand Loyalty Measurement Methods Repeat Purchases Reported Loyalty Price Sensitivity Analysis Brand Set “Squares” Method Other Methods

25. Measuring Brand Equity Brand Audits Brand Tracking Brand Valuation

26. Brand Values BrandBrand Value (Billions) Coca-Cola$67.39 Microsoft$61.37 IBM$53.79 GE$44.11 Intel$33.50 Disney$27.11 McDonald’s$25.00 Nokia$24.04 Toyota$22.67 Marlboro$22.13

27. Interbrand’s Brand Equity Formula Brand earnings Brand sales Costs of sales Marketing costs Overhead expenses Remuneration of capital charge Taxation Brand strength Leadership (25%) Stability (15%) Market (10%) Geographic spread (25%) Trend (10%) Support (10%) Protection (5%)

28. Brand Equity Models Brand Asset Valuator Aaker Model BRANDZ

29. Brand Asset Valuator (BAV) Differentiation Relevance Esteem Knowledge Brand Equity Factors

30. Aaker Model – Brand Identity Brand-as-product Brand-as-personBrand-as-symbol Brand-as-organization

31. Aaker Model – Brand Assets Brand loyalty Brand associations Perceived quality Brand awareness Proprietary assets

32. The BRANDZ Model Presence Relevance Performance Advantage Bonding

33. Major Brand Strategy Decisions

34. Brand Elements Elements Slogans Brand Names URLs Logos Symbols Characters

35. Slogans Like a good neighbor, State Farm is there Just do it Nothing runs like a Deere Help is just around the corner Save 15% or more in 15 minutes or less We try harder We’ll pick you up Nextel – Done Zoom Zoom I’m lovin’ it Innovation at work This Bud’s for you Always low prices

36. Brand Element Choice Criteria Memorable Meaningful Likeable Transferable Adaptable Protectible

37. Brand Positioning Brands can be positioned at three levels: – Product features/ attributes Least desirable Easily copied – Brand benefits – Beliefs and values Hits consumers on a deeper level, tapping “universal” emotions.

38. Brand Name Selection Good Brand Names: 1.Straightforwardly suggest the product’s benefits and qualities. 2.Are easy to spell, pronounce and recognize. 3.Are distinctive and memorable. 4.Are extendable into different product lines (i.e. facilitate brand extensions). 5.Translate easily into foreign languages. 6.Provide the maximum legal protection from infringement.

39. Boudreaux’s Butt Paste is a real product used in the treatment of diaper rash. Is this a good brand name? Brand Name Selection Good Brand Names: 1.Straightforwardly suggest the product’s benefits and qualities. 2.Are easy to spell, pronounce, recognize, and remember. 3.Are distinctive and memorable. 4.Are extendable into different product lines (i.e. facilitate brand extensions). 5.Translate easily into foreign languages. 6.Provide the maximum legal protection from infringement.

40. Brand Naming – Multi-brand strategies Individual names/ “House of Brands” Individual names/ “House of Brands” Blanket family names/ ”Branded House” Blanket family names/ ”Branded House” Parent/Sub-Brand combination names

41. Crest Whitestrips

42. Brand Sponsorship Manufacturer’s brands – Also called “National Brands” (Tide, Coke, Pringles, etc.) Private-label brands – Also called “Store” or “Distributor” Brands (Stop & Shop’s “Mi Casa”, Costco’s “Kirkland”) Store vs. Private Label Trends Co-branding – “Tag-team Branding” ( Waffle House and Minute Maid OJ) Ingredient Branding (“Intel Inside”) Mi Casa brand products are only available at Stop & Shop stores.

43. Brand Development Strategies

44. Line Extensions

45. Brand Extensions

46. Brand Development – Multibranding & New Brands Multi-branding – appeal to different buying motives and segments – “branded variants” – Cannibalization issues Example: Toyota sells Corolla, Camry, Scion, Yarris New Brands – waning power of existing brands or product portfolio – diversification advantages – can develop (Black & Decker develops De Walt) or buy (i.e. Wendy’s buys Baja Fresh)

47. Branding Terms Brand line Brand mix Brand extension Sub-brand Parent brand Family brand Line extension Category extension Branded variants Licensed product Brand dilution Brand portfolio

48. Services

49. Four Service Characteristics

50. How do the service characteristics of intangibility, variability, inseparability, and perishability relate to restaurants? Four Service Characteristics – Restaurant Example