Services and Branding
MKTG 201
Semester 1, 2010
Sandy Bennett
Chapters 11 & 12
Overview
Define services
Characteristics of services
Managing services
Define brand
Benefits of branding
Brand strategies
Branding and the PLC
Services and branding
Review: What is a Product?
A product is anything that can be
offered to a market for attention,
acquisition, use or consumption that
might satisfy a want or need.
Definition of ‘services’
“Services are intangible activities or benefits that
an organization provides to consumers (such
as airline trips, financial advice, or automobile
repair) in exchange for money or something
else of value”
Kerin et al (2006, p. 316)
The continuum of market offerings
Equipment-based
‘Almost
pure’
physical
goods
Self-service petrol
Pacific cruise
‘Almost pure’
service
Self-service
groceries
Personal training
People-based
Shostack’s Continuum
Characteristics of Services
• Intangibility
– There is no physical presence
• Inseparability
– The customer must be present for the service to
take place
• Inconsistency (_________)
– The service provider cannot provide exactly the
same service every time
• Inventory (__________)
– A service cannot be stored or stockpiled
Managing Services
Characteristic
Challenges
INTANGIBILITY
Cannot be produced and
displayed ahead of time
Can’t try before you buy
Increased perceived risk
INSEPARABILITY
Interaction required
Production/consumption
simultaneous
Time/place restraints
INCONSISTENCY
Variances in how the service is
delivered via staff
May affect actual/perceived
quality
INVENTORY
Unused service goes to waste
Fixed and variable costs need to
be considered
Unmet demand = lost
opportunity
Strategies
What do we mean by BRAND?
• A BRAND is a name, term, sign, symbol or
design, or a combination of these, intended to
identify the goods or services of one seller or
group of sellers and to differentiate them from
those of competitors (an identifier, a promise)
(Kotler et al, 2006, p. 269)
Some Key Terms
BRAND
Benefits of branding
• To the _________
–
–
–
–
–
Identify products
Reduce time required for purchase
Evaluate quality of products
Reduces perceived risk
Psychological reward
• To the _________
–
–
–
–
–
Differentiates product from competitors
Segment market by creating tailored images
Identifies company, making repeat purchases easier
Reduces price comparisons
Communicates company/product values, promises
Selecting a Brand
• The elements of a good brand should be:
– Memorable & Likeable
– Meaningful _____________
– Transferable and Adaptable
– Protectible
– ______________
Four Brand Strategies
Brand Name
Product Category
Existing
New
Existing
Line
Extension
Brand
Extension
New
Multibrands
New
Brands
Are You Pro or No Logo?
http://www.brandchannel.com/forum.asp?bd_id=9
(Naomi Klien “No Logo” Flamingo 2000)
Consumers manipulate
Brands
Brands are not merely
products but they used
by consumers as forms
of self expression and
they represent lifestyle
Hence consumers choice
drives brand decisions
Brands manipulate Consumers
Branding influences consumers
self expression and they
represent lifestyle
Hence brand decisions drive
consumer choice
Companies whitewash over third
world production, horrible
labour practices, monopolistic
competition and consumer
brain washing
Hence companies and their
brands can’t be trusted
Product Life Cycle (PLC)
Branding and the PLC
• How can branding be used to manage the product life
cycle?
– Introduction
– Growth
– Maturity
– Decline
Service Branding
Strong brands increase customers’ _________of the invisible
purchase. Strong brands enable customers to better
__________ and understand intangible products. They reduce
customers’ perceived monetary, social, or safety risk in buying
services, which are difficult to evaluate prior to purchase. Strong
brands are the __________ when the company offers no fabric to
touch, no trousers to try on, no watermelons or apples to
scrutinize, no automobile to test-drive”
Berry (2000)
Strong Service Brand
• Dare to be __________
• _________ the service well
• Make an ___________ connection (reach
beyond the purely rational and economic)
• ___________ the brand (internal
marketing/branding, selling the brand values
and promises to the employees)
Services and branding
Characteristic
Challenges
INTANGIBILITY
Cannot be produced and
displayed ahead of time
Can’t try before you buy
Increased perceived risk
INSEPARABILITY
Interaction required
Production/consumption
simultaneous
Time/place restraints
INCONSISTENCY
Variances in how the service is
delivered via staff
May affect actual/perceived
quality
INVENTORY
Unused service goes to waste
Fixed and variable costs need to
be considered
Unmet demand = lost
opportunity
Strategies
Looking back
Define services
Characteristics of services
Managing services
Define brand
Benefits of branding
Brand strategies
Branding and the PLC
Services and branding