Product, Services, and Branding Strategy. 8 - 1 Definitions Product Anything offered to a market for attention, acquisition, use, or consumption that.

Product, Services, and Branding Strategy

8 - 2

Definitions

• Product Anything offered to a market for attention,

acquisition, use, or consumption that might satisfy a need or want.

• 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.

8 - 3

Three Levels of Product

8 - 4

Unsought ProductsUnsought Products

New innovations Products consumers don’t want to think about these products Require much advertising &personal selling i.e Life insurance, blood donation

Product ClassificationsConsumer Products

Specialty ProductsSpecialty Products

Special purchase efforts High price Unique characteristics Brand identification Few purchase locations i.e can be anything

Shopping ProductsShopping Products

Buy less frequently Higher price Fewer purchase locations Comparison shop i.e Clothing, appliances

Convenience ProductsConvenience Products

Buy frequently & immediately Low priced Mass advertising Many purchase locations i.e Candy, newspapers

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Product and Service Classifications

• Consumer products

• Industrial products Materials and parts Capital items Supplies and services

8 - 6

Brand

A name, term, sign, symbolor design, or a combination of them,

intended to identify the goodsor services of one seller or group

of sellers and to differentiatethem from those of competitors.

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The Role of Brands

Identify the makerIdentify the maker

Simplify product handlingSimplify product handling

Organize accountingOrganize accounting

Offer legal protectionOffer legal protection

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The Role of Brands

Signify qualitySignify quality

Create barriers to entryCreate barriers to entry

Serve as a competitive advantage

Serve as a competitive advantage

Secure price premiumSecure price premium

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Brand Elements

ElementsSlogans

Brand

names URLs

Logos

SymbolsCharacters

8 - 10

Brand Elements

8 - 11

Brand Elements

Companies often create product icons to develop an identity for their products. Many made-up creatures and personalities, such as Çelik, Sütaş İnek and Yumoş Ayı,

are widely recognized figures in popular culture.

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Brand Element Choice Criteria

• Memorable

• Meaningful

• Likeability

• Transferable

• Protectible

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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

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Brand Strategy

• Brand Positioning

• Brand Name Selection

• Brand Sponsorship

• Brand Development

• Three levels of positioning: Product attributes

• Least effective Benefits Beliefs and values

• Taps into emotions

Key Decisions Key Decisions

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Brand Strategy

• Brand Positioning

• Brand Name Selection

• Brand Sponsorship

• Brand Development

• Good Brand Names: Suggest something

about the product or its benefits

Are easy to say, recognize and remember

Are distinctive Are extendable Translate well into other

languages Can be registered and

legally protected

Key Decisions Key Decisions

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Packaging: The 5th P

All the activities of designing and producingthe container for a product.

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Packaging has been influenced by…

Self-serviceSelf-service

Company/brand imageCompany/brand image

Innovation opportunityInnovation opportunity

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Innovations in Packaging

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Functions of Labels

Identifies

Describes

Promotes

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Brand Strategy

• Brand Positioning

• Brand Name Selection

• Brand Sponsorship

• Brand Development

• Manufacturer brands

• Private (store) brands Costly to establish and

promote Higher profit margins

• Licensed brands Name and character

licensing has grown

• Co-branding Advantages /

disadvantages

Key Decisions Key Decisions

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Product and Service Decisions

• Product line A group of products

that are closely related because they may: • function in a similar

manner• be sold to the same

customer groups, • be marketed through

the same types of outlets

• fall within given price ranges

Key Decisions Key Decisions

• Individual Product

• Product Line

• Product Mix

Personal Care(product category)

• Personal Wash Skin Care Hair Care

• Lux Fair & Lovely Sunsilk

• Lifebuoy Pond’s Clinic

• Breeze Vaseline Clear

• Dove

8 - 22

Food(Product category)

• Tea Ice cream Food• Brook bond Wall’s Kissan

• Lipton Knorr

8 - 23

8 - 24

Product and Service Decisions

• Individual Product

• Product Line

• Product Mix

• Product line length Line stretching:

adding products that are higher or lower priced than the existing line

Line filling: adding more items within the present price range

Key Decisions Key Decisions

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Product and Service Decisions

• Individual Product

• Product Line

• Product Mix

• Product mix Also known as

product assortment Consists of all the

product lines and items that a particular seller offers for sale

Key Decisions Key Decisions

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Product and Service Decisions

• Individual Product

• Product Line

• Product Mix

• Product mix width: Number of different

product lines carried by company

• Product mix depth: Number of different

versions of each product in the line

• Product mix consistency

Key Decisions Key Decisions

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Brand Equity

The differential effect that brandknowledge has on consumer

response to the marketing of that brand.

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Branding Strategy

• Brands with strong equity have many competitive advantages: High consumer awareness Strong brand loyalty Helps when introducing new products Less susceptible to price competition

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The 10 Most Valuable Brands(Source: Millward Brown)

Brand 2007 Brand Value (Billions)

Google $86.06

GE $71.38

Microsoft $70.89

CocaCola $58.21

China Mobile

IBM

Apple

$57.23

$55.33

$55.21

McDonald’s $49.50

Nokia $43.98

Marlboro $37.32

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Line Extension

Multi brands

Brand Extension

New Brands

Bra

nd

Nam

e

Existing New

Product Category

Existing

New

Four Brand Strategies

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Four Services Characteristics

8 - 32

Characteristics of Services

• Intangibility Consumers look for service quality signals

• Inseparability Services can’t be separated from providers

• Variability Employees and other factors result in

variability

• Perishability Services can’t be inventoried for later sale