05. Product, Service, And Branding Strategies (B&F 10-12)

7/31/2019 05. Product, Service, And Branding Strategies (B&F 10-12)

1/42

Product, Service, and

Branding Strategies

References:Marketing Management by Philip Kotler

Internet

Resource Person: Furqan-ul-haq Siddiqui

Chapter 5


2/42

Marketing Mix(4Ps of Marketing)

Set of marketing

tools used by a

firm to pursue its

marketing objectivesin a target market.

Or

Combination of a

number of policiesto realize profit

through customer

satisfaction.


3/42

Marketing Mix Variables

Product

Place

Promotion

Pricing

Producing goods, services, or anythat offering that satisfy customerneeds

The ready, convenient, and timelyavailability of products

Activities that inform customersabout the organization and itsproducts

Decisions and actions to establish

pricing objectives and policies andset product prices


4/42

Product Classification Products are classified on the bases of durability,

tangibility & use (Consumer or Business). Durability & Tangibility

1. Nondurable- Tangible goods usually consumed in

one or few uses. Purchased quickly & consumedfrequently. FMCG (wide availability, small

markup, heavy advertisements)

2. Durable Goods- Tangibles that normally providelong-term benefit. Require personal selling &

services, higher profit & seller guaranties.


5/42

Durable GoodsProvide Long-Term Benefits(cars, furniture, appliances)

Nondurable GoodsProvide Short-Term Benefits

(newspapers, food)Low

InvolvementDecisions

High

InvolvementDecisions


6/42

3. Services- Intangible, inseparable & activities that are themain objective of a transaction designed to provide want-satisfaction to customers.

Virtually all services require supporting goods & goodsrequire supporting services.

A company may also sell a combination of goods &services.


7/42

Convenience Shopping Specialty Unsought

Products involving frequentpurchases bought withminimal buying effort,without gathering extra

information and littlecomparison shopping

Low price

Widespread distribution Mass promotion by producer

Convenience goods arefurther divided

Staples- regular bases

Impulse Goods- withoutplanning

Emer enc Goods- ur ent need

(Use)Consumer

GoodsClassificationGoods purchased byfinal consumer for

personal consumption


8/42 Emergency Goods

Impulse Goods

Staples

Staples


9/42

Convenience

Shopping Specialty

Unsought

Less frequent purchases

requiring more shopping

effort and price, quality,

suitability and stylecomparisons in several

stores or between brands.

Prices higher thanconvenience goods

Selective distribution in

fewer outlets

Advertising and personal

selling by producer and

reseller

Types ofConsumer

Products

ConsumerGoods

Classification


10/42

Convenience

Shopping

Specialty Unsought

Products having uniquecharacteristics or brand identityfor which a significant group of

buyers is willing to make aspecial purchase effort(substantial time, price & inlocating product) .

High price Selected distribution even with

no convenient locations.

(although they must let

prospects & buyers aboutlocation)

Carefully targeted promotion byproducers and resellers

Types ofConsumer

Products

ConsumerGoods

Classification


11/42

Convenience

Shopping

Specialty

Unsought

Consumer productsthat the consumereither doesn't know

about or if knows abouteven then doesn'tnormally think ofbuying right now.

Pricing varies

Distribution varies

Aggressive advertisingand personal selling byproducers and resellers

Types of

ConsumerProducts

ConsumerGoods

Classification

Products that are usually purchased

due to adversity rather than desire


12/42

the coffin cost $25,000.


13/42

By-Product

A by-product is a secondary or incidental product

deriving from a manufacturing process, a chemical

reaction or a biochemical pathway, and is not the

primary product or service being produced. A by-

product can be useful and marketable, or it can be

considered waste.

Dried blood-from slaughterhouse operations

Feathers - poultry processing


14/42

Product Mix (also called Product Assortment)- Set of allproducts offered for sale by a particular company. Aproduct mix consists of various product lines.

Product Line- A group of products consist of all similaritems in one category. All products which are closelyrelated, having similar uses and similar physicalcharacteristics

Number of items being offered by one product line is calledlength of Product Line.

The width of Product Mix refers to total number of productlines offered by company

Length of Product Mix refers to total number of items inproduct mix


15/42

Corporate &

Investment Banking Personal Banking

Mortgage Finance

Auto Finance

Business Finance

Travellers Cheques

Profit / Markup

Rates on Retail

Products

Agriculture finance


16/42

The Depth of Product

Line refers to how many

variants( flavors, sizes,colors etc.) are offered of

a product in the product

line .


17/42

The Consistency of

Product Line refers

to how closelyrelated the various

lines are in the end

use, productionrequirement,

distribution channels

or some other way.

Polyester Power Generation

Textile Financial Services


18/42

Brands

Fabric &Home care

Ariel

Tide

FairyDash

Bonux

Lenor

MR Clean

Food &Beverages

Nutristar

Sunny

DelightPringles

Crisco

Jif

Olean

Folgers

Health care

Actonel

Didronel

MetamucilPeptobismol

Vicks

Crest

Blend-a-mend

PUR

Baby care

Pampers

Dodot

Luvs

Femininecare

Always

Alldays

Tampax

Whisper

Beautycare

Olay

Safeguard

PantenePert Plus

Max Factor

Cover Girl

Camay

Zest

marketing approximately 250 brands

in over 130 countries.


19/42

Product Line Decisions

Line Stretching

When a companylengthens its product line

beyond its current marketrange (making additionalproducts for upper orlower class users)

Line Filling

Adding more itemswithin a product

range to get moreprofits, fill missingitems in product line,utilize excesscapacity, try to beleading as full linecompany, to fill holesto keep outcompetitors

Downward

Upward

Line Pruning

Dropping weakItems from

product line

Two-way


20/42

Brand/Trade Mark A name, term, sign, symbol, or design, or a combination of these,

intended to identify the goods or services of one seller or group ofsellers and to differentiate them from those competitors

ABrand Name consists of words, letters, or numbers that can bevocalized

Brand Mark is a part of brand that appears in the form of a symbol ,

design or distinctive color or lettering. A trademark is designated by the following symbols:

(for an unregistered trademark, that is, a mark used to promote or

brand goods);

(for an unregistered service mark, that is, a mark used to promote orbrand services); and

(for a registered trademark).http://www.ipo.gov.pk


21/42

Anyone who claims rights in a mark may use the

TM (trademark) or SM (service mark) designation

with the mark to alert the public to the claim. It isnot necessary to have a registration, or even a

pending application, to use these designations. The

claim may or may not be valid.

The registration symbol, , may only be used when

the mark is registered in the PTO. It is improper touse the registration symbol at any point before the

registration issues.


22/42

Terms such as "mark", "brand" and "logo" are

sometimes used interchangeably with"trademark". "Trademark", however, also

includes any device, brand, label, name,

signature, word, letter, numerical, shape ofgoods, packaging, color or combination of

colors, smell, sound, movement or any

combination thereof which is capable ofdistinguishing goods and services of one

business from those of others.


23/42

Desirable Qualities For A Brand NameSuggest something about the products benefits or

characteristics ( fair & Lovely, ufone, Compuclinic, Mr.books, Cakes & Cookies, Telenor, Hijjab, Bugrer king,Candyland)

Easy to pronounce, recognize, and remember

Capable of being registered and legally protected

It should be distinctive

It should not carry poor meanings in other countries

and languagesBe adaptable to additions of product line or product

mix (McDonald vs. Burger King or Pizza Hut,

Alaska Airline vs. United Airlines)


24/42

In 2005, the management of

the bank abbreviated its name

from Muslim CommercialBank Limited to MCB Bank

Limited to explore

international markets; they

were facing resistance due tothe word Muslim especially

from Western Countries to

avail license.

Nishat Group is a businessconglomerate founded and runby Mian Muhammad Mansha.The company has fixed/currentassets of over Rs.300 billion(US$ 5 billion), it ranksamongst the top five business

houses of Pakistan


25/42

B d N St t i


26/42

Brand Name Strategies Individual names/branding- Company gives separate

names to its all products. ( Unilever, P & G)

Company doesn't tie its reputation to the product in caseproducts fails or appears to be of low standard.

Blanket family name/Corporate branding- Company

give same names to its all products/ company's name is usedas a product brand name

less expenditures on brand name recognition

LG TV, LG radio, LG DVD, LG Fridge etc


27/42

Separate family names for all products- When company

produces quite different products from each other then

gives separates names (Product line name) to all similarproducts.

Company Trade name combined with individual

product names-

Simultaneously product & company recognition

C b d B d b i t ll k b d


28/42

Co-brand- Brands bearing two or more well known brand

names (two separate companies or with two product line

names)

multiple sponsor co-branding. Joint venture co-branding

A fighting brand is a brand created specifically to countera competitive threat either by a company or by joint jenture

with other companies.

Nestea is a brand of iced tea manufactured by Nestle & distributed by

The Coca-Cola Company. It competes with Unilever/Pepsi's LiptonIced Tea.
http://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/Pepsi


29/42

A Premium Brand typically costs more than otherproducts in the category or which is the most widely

admired brands of the firm.

When large Retailers buy products in bulk from

manufacturers and put their own brand name onthem, this is called private branding , store brand,or private label.

When a company sells the rights to use a brandname to another company for use on a non-competing product or in another geographical area,

this is referred to as Brand licensing.


30/42

Derived brands

In this case the supplier of a key component, used by a

number of suppliers of the end-product, may wish toguarantee its own position by promoting that component as

a brand in its own right.


31/42

Brand Strategy decision

Line Extension- Adding new sizes, styles, colors &

flavors to existing product

Brand Extension (Sub-Brand)- famous Brand

name extended to new products.

An existing brand that gives birth to a brand extension is often referred to as the parent brand


32/42

Multibrands- New brand name in existing product

line ( Dove, Lux, Lifebuoy)

New Brand- new brand name for a newly establishedproduct line


33/42

Brand equity A brand's power derived from the goodwill and name

recognition that it has earned over time, which translatesinto higher sales volume and higher profit margins againstcompeting brands.

The brand can add significant value when it is wellrecognized and has positive associations in the mind of the

consumer. This concept is referred to as brand equity. Measures of Brand Equity

i. Brand awareness

ii. Perceived quality

iii. Brand Association

iv. Brand loyalty

v. Extra price payment


34/42

The Atlas Group is a diversified dealing in engineering,financial services and trading. The Atlas Group was laidin 1962, with the establishment of Shirazi Investments

(Private) Limited. It consists of seven public limitedcompanies out of which six are quoted on the stockexchanges in Pakistan, and five private limitedcompanies.


35/42

List of some famous protected trademarks

frequently used as generic terms

Coke- (Coca-Cola Company) Popularly used to refer to any softdrink; Also used for rival brands of cola (e.g., Pepsi)

Formica- (Formica Corporation) Wood or plastic laminate

Google- As a verb, to use a web search engine.

Jeep-(Chrysler) Compact sport utility vehicle

Vaseline- Petroleum jelly

Walkman- often used generically for any portable stereo player

Aspirin- Still a Bayer trademark name for acetylsalicylic acid inabout 80 countries, including Canada and many countries in Europe,but declared generic in the U.S.

Xerox- Photocopier or to make a photocopy

TCS-

Surf- a brand of laundry detergent made by Unilever

Advertising slogans are short often memorable


36/42

Advertising slogans are short, often memorable

phrases used in advertising campaigns. They are

claimed to be the most effective means of drawing

attention to one or more aspects of a product. Astrapline is a British term used as a secondary

sentence attached to a brand name.

Rishta wahi, Soch nai


37/42

Packaging Activity of designing and producing the container or wrapper for a

product.

3 levels

I. Primary Packing- Contains core product

II. Secondary package- Contains primary packaging

III. Shipping Package- contains products in bulk quantity.


38/42

Protection against damage,

spoilage, tampering etc.

Assistance in marketing

the product

Provides Self service

opportunity in stores

Portability


39/42

Labeling Simple tag attached to the product or elaborately designed 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.

Features of Labeling

Product & company name

Features of Product

Open dating- product manufacturing & expiry dates Unit pricing- simple or through UPC

Grade labeling- quality level

Ingredients


40/42

A bar code on a products package that provides

information read by optical scanners.

UPC codes provide several advantages: labor saving,improve inventory control, and help with marketing

research.

The Green Dot is the license symbol of a European

network of industry-funded systems for recycling the

packaging materials of consumer goods

79400 80740


41/42

POLYTHENE TEREPHTHALATE (PET) is amaterial widely used for packaging, especially

drinks containers. It is 90% recyclable

The CE markingcertifies that a

product has metEU consumersafety, health orenvironmentalrequirements.CE stands forConformit

Europenne,"Europeanconformity" inFrench.


42/42

PromotesIdentifies

Competitive

Advantages

Describes

SalesTasks

ProductSafetyPackaging

Labeling

Date post:	05-Apr-2018
Category:	Documents
Upload:	irfanba2012
View:	218 times
Download:	0 times

05. Product, Service, And Branding Strategies (B&F 10-12)

Documents