1. 7-1 Chapter Seven Product, Services, and Branding Strategy

2. 7-2 What is a Product? Anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. –Includes: physical objects, services, events, persons, places, organizations, ideas, or some combination thereof.

3. 7-3 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. –Examples: banking, hotel, airline, retail, tax preparation, home repairs.

4. 7-4 The Product-Service Continuum Sugar Restaurant University Education Pure Tangible Good Pure Service

5. 7-5 Levels of a Product

6. 7-6 Core Benefit:- The most basic level of a product is the CORE BENEFIT which answers the question “What is the buyer really buying?” When designing the products, marketers must first define the core, problem solving benefits or services that consumers seek.

7. 7-7 Actual product:- At this second level, product planners must turn the core benefit into actual product.At this second level, product planners must turn the core benefit into actual product. They need to develop product and service features, design a quality level, a brand name, and packaging.They need to develop product and service features, design a quality level, a brand name, and packaging.

8. 7-8 Augmented product:- Finally all product manufactures must build an augmented product around the core benefit and actual product by offering additional customer services and benefits.

9. 7-9 Comparison of the Product Concepts of Full Service vs. No Frills or Budget Airlines

10. 7-10

11. 7-11 The Evolving Product Concept in Coffee Marketing

12. 7-12 Products and Service Classifications Based on the type of consumers that use the products, we can classify the products and services into two groups. One is Industrial products and the other is Consumer products

13. 7-13 Consumer Products Products and services bought by final consumers for personal consumption.

14. 7-14 Convenience Products Purchased frequently and immediately Low priced Mass advertising Many purchase locations –Examples: candy, soda, newspapers

15. 7-15 Shopping Products Bought less frequently Higher price Fewer purchase locations Comparison shop –Examples: furniture, clothing, cars, appliances

16. 7-16 Specialty Products Special purchase efforts High price Unique characteristics Brand identification Few purchase locations –Examples: Ferrari, Rolex Watch

17. 7-17 Unsought Products New innovations Products consumers do not want to think about Require much advertising and personal selling Examples: life insurance, cemetery plots, blood donation

18. 7-18 Industrial Products Those purchased for further processing or for use in conducting business.

19. 7-19 Supplies and Services Operating supplies, repair, and maintenance items Supplies and Services Operating supplies, repair, and maintenance items Materials and Parts Raw materials, manufactured materials, and parts Materials and Parts Raw materials, manufactured materials, and parts Capital Items Products that aid in buyer’s production or operations Capital Items Products that aid in buyer’s production or operations Industrial Products

20. 7-20 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.

21. 7-21 Individual Product Decisions

22. 7-22 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 Style = Appearance Design = heart of the product

23. 7-23 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.

24. 7-24 Branding Advantages to buyers: –Product identification –Product quality Advantages to sellers: –Basis for product’s quality story –Provides legal protection –Helps to segment markets

25. 7-25 Packaging Designing and producing the container or wrapper for a product. Developing a good package: –Packaging concept –Package elements –Product safety –Environmental concerns

26. 7-26 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

27. 7-27 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.

28. 7-28 Stretching Lengthen beyond current range. Can be: Downward Upward Both Directions Product Line Length Number of Items in the Product Line Product Line Length Number of Items in the Product Line Filling Lengthen within current range Product Line Decisions

29. 7-29 Product line of Passenger cars of Toyota

30. 7-30 Product Line Stretching

31. 7-31 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.

32. 7-32 Product Mix Decisions Product Mix: all of the product lines and items that a particular seller offers for sale. Width: the number of different product lines the company carries. Length: the total number of items the company carries in its product line Depth: the number of versions offered of each product in the line. Consistency: how closely related the various lines are.

33. Product mix 7-33

34. 7-34 The Product Mix and Implications for Marketing Strategy Figure 7.6

35. 7-35 Brand Development Strategies

36. 7-36 Brand Development Line Extension: 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.

37. 7-37 Brand Development Multibranding: offers a way to establish different features and appeal to different buying motives. New Brands: developed based on belief that the power of its existing brand is waning and a new brand name is needed. Also used for products in new product category.