６a
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
7-2
At the heart of a great brand is a
great product
Professor Takada
7-3
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
7-4
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.
– 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
7-5
The Product-Service Continuum
Sugar
Restaurant
Pure Tangible Good
College
Education
Pure Service
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Levels of a Product
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Consumer Products
Industrial Products
Convenience Products
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Materials and Parts
Purchased frequently and immediately
Low priced
Mass advertising
Many purchase locations
–
Raw materials, manufactured
materials, and parts
Examples: candy, soda, newspapers
Shopping Products
•
•
•
•
Capital Items
Bought less frequently
Higher price
Fewer purchase locations
Comparison shop
–
Products that aid in
buyer’s production or operations
Examples: furniture, clothing, cars, appliances
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
Professor Takada
Supplies and Services
Operating supplies, repair,
and maintenance items
7-8
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
7-9
Product Differentiation
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Product form
Features
Performance
Conformance
Durability
Reliability
Reparability
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Style
Design
Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance
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7-10
Dunkin’ Donuts’
Differentiation
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7-11
Design Differentiation
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Maintenance and Repair
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7-13
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
7-14
Individual Product Decisions
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Product and Service Attributes
Quality
Performance and Satisfaction
Includes Level & Consistency
Features
Differentiates a product from the
competition; assessed based on
value and cost
Style & Design
Style = Appearance
Design = heart of the product
Professor Takada
7-16
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
7-17
Packaging
• Designing and producing the
container or wrapper for a product.
• Developing a good package:
– Packaging concept
– Package elements
– Product safety
– Environmental concerns
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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
7-19
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
7-20
Product Line Decisions
Product Line Length
Number of Items in the Product Line
Stretching
Filling
Lengthen beyond
current range.
Lengthen within
current range
Can be:
Downward
Upward
Both Directions
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7-21
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.
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7-22
Two-Way Product-Line
Stretch: Marriott
Hotels
Quality
Economy
Standard
Good
Marriott
Marquis
(Top
executives)
Price
High
Marriott
(Middle
managers)
Above
average
Average
Superior
Courtyard
(Salespeople)
Fairfield Inn
Low (Vacationers)
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7-23
Line Stretching
Down-Market Stretch
Up-Market Stretch
Two-Way Stretch
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Line Filling
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Product Mix Decisions
• Product Mix
– 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
7-26
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
7-27
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
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7-28
Major Brand Strategy Decisions
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Brand Positioning
• Can position brands at any of three levels.
Product Attributes
Product Benefits
Beliefs and Values
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Brand Name Selection
• Desirable qualities for a brand name include:
1. It should suggest product’s benefits and qualities
2. It should be easy to pronounce, recognize, and
remember
3. It should be distinctive
4. It should be extendable
5. It should translate easily into foreign languages
6. It should be capable of registration and legal
protection
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7-31
Brand Sponsorship
Manufacturer’s Brands
Co-Branding
Four Options
Private
Brands
Licensed Brands
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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.
• 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
7-33
Line Extensions
Morton sells an entire line of salts and seasonings for every occasion.
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Brand Development Strategies
Brand Name
Product Category
Existing
New
Existing
New
Line
Extension
Brand
Extension
Multibrands
New
Brands
Professor Takada
7-35
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
7-36
Nature and Characteristics of a Service
Professor Takada
7-37
The Service-Profit Chain
Professor Takada
7-38
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
7-39
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
7-40
International Product and
Services Marketing
Decide Which Products & Services to Introduce
Decide How Much to Standardize or Adapt
Packaging Presents New Challenges
Service Marketers Face Special Challenges
Trend Toward Global Service Companies Will Continue
Professor Takada
7-41
Rest Stop: Reviewing the Concepts
1. Define product and the major classifications of products and
2.
3.
4.
5.
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
7-42