Transcript
Product EquityAdvanced Marketing Management
Maribel C. TuberaDBA Student
What is a product?• It is anything that can be offered to a market
for attention, acquisition, use or consumption that might satisfy a want or a need.
Service• An activity, benefit, or satisfaction offered for
sale that is essentially intangible and does not result in the ownership of anything.
2 categories of products1. Consumer products2. Industrial products or Business products
Product and Service Classifications1. Consumer products
a) Convenience productsb) Shopping productsc) Specialty productsd) Unsought products
2. Industrial Products or business productsa) Materials and partsb) Capital itemsc) Supplies and services
Nature of a service1. Service intangibility2. Service variability3. Service perishability
Service Characteristics• Intangibility• Simultaneous production and consumption• Perishability• Heterogeneity• Client-based relationship
3 Levels of Product and Services1. Core customer value2. Actual product3. Augmented product
Other market offerings• Organizations• Persons• Places• ideas
Individual Product Decisions
Product Attributes Branding Packaging
Labeling Product support services
4 ways to increase a business1. Add new product line2. Lengthen its existing product lines 3. Add more versions of each product4. Pursue more product line consistency
Service profit chain• Internal service quality• Satisfied and productive service employees• Greater service value• Satisfied and loyal customers• Healthy service profits and growth
3 types of service marketing1. Internal marketing2. External marketing3. Interactive marketing
Stages in new product development
1. Idea generations2. Idea screening3. Concept development and testing4. Marketing strategy development5. Business analysis6. Product development7. Test marketing8. Commercialization
6 strategic options related to the newness of products
1. New-to-the World products2. New product lines3. Product line extensions4. Improvements or revisions of existing products5. Repositioning6. Cost reductions
• Customer-centered new product development
• Team-based new product development• Systematic new-product development• new-product development in turbulent times
Brand Strategy
Brand • A combination of name, symbol, term, and or
design that identifies a specific product.
2 parts of a brand1. Brand name2. Brand mark
Issues in branding strategy• Manufacturer versus private label brands• Brand loyalty – has 3 degrees– Brand recognition– Brand preference– Brand insistence
• Brand equity – the value of a brand• Brand alliances
Advantages of BrandingOverall advantages of branding• Product identification• Comparison shopping• Shopping efficiency• Risk reduction• Product acceptance• Enhanced self-image• Enhanced product loyalty
Unique advantages of selling manufacturer ( Name) brands
• Reduced costs• Built-in loyalty• Enhanced image• Lower inventory• Less risk
Unique advantages of selling private label (store) brands•Less competition•Total control•Merchant loyalty
Major brand strategy decisionsBrand Positioning
AttributesBenefitsBeliefs and values
Brand name selection
SelectionProtection
Brand sponsorship
Manufacturer’s brandPrivate brand LicensingCo-branding
Brand development
Line extensionBrand extensionMulti brandsNew brands
Brand Development1. Line extensions2. Brand extensions3. Multibrands4. New brands
Product life-cycle strategies1. Product development 2. Introduction3. Growth4. Maturity5. Decline
END
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