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Product, Service, and Branding Strategies

•Chapter 10

•PowerPoint slides

•Express version

•Instructor name

•Course name

•School name

•Date

Principles of Marketing, Sixth Canadian Edition

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Learning Objectives

• After studying this chapter, you should be able to:– Define product and the major classifications of products and

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

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Three Levels of Product

• Product: anything that can be offered for attention, acquisition, use, or consumption to satisfy a need or want

• Service: any activity or benefit that can be offered that is intangible and does not result in the ownership of anything

• Experiences: are memorable

Figure 10.1

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Product Classifications

• Consumer goods:

– Convenience goods

– Shopping goods

– Specialty goods

– Unsought goods

• Industrial goods:

– Materials and parts

– Capital items

– Supplies and services

• Marketable offerings:

– Organizations

– Person marketing

– Place marketing

– Social (ideas) marketing

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Product and Service Decisions

• Product attributes:– Product quality

– Product features

– Product style and design

• Branding:– Name, term, sign, or

symbol

– Used to identify the goods of a seller

– Differentiate from its competition

Figure 10.2

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Product and Service Decisions (continued)

• Packaging:– Hold the contents

– Protect the product

– Store, identify, and ship the product

– Place for labelling

– Used as a promotional tool

• Labelling:– Identify the product

– Weights/measures

– Description/instructions

– Ingredients

– Nutritional information

Figure 10.2

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Product Line Decisions

• Product line:– Group of closely related products due to function, similar

target markets, outlets sold in, or similar pricing

• Length: number of items in the line

• Line stretching: adding items to either end of the line, can be upwards, downwards, or both

• Line filling: adding items within the product line

• Product mix: set of all product lines

• Width: # of product lines

• Length: # of products in lines

• Depth: # of versions of each product carried

• Consistency: how closely related the product lines are

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Major Brand Strategy Decisions

• Brand equity: – Positive differential effect that knowing the brand name has on

customer response to the product or service

– Value of the brand based on awareness, recognition, loyalty

– Used for line and brand extension strategies

Figure 10.3

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Major Brand Strategy Decisions (continued)

• Brand name selection: – Suggest something about the product’s benefits

– Easy to pronounce, recognize, and remember

– Distinctive

– Extendable

– Ability to be translated into other languages

– Capable of being registered and legally protected

Figure 10.3

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Major Brand Strategy Decisions (continued)

• Brand sponsorship: – Manufacturer’s (national) brands

– Private (store) brand

– Issues:

• Slotting fees:

• Profitability of private label to retailers

• Control of shelf space

Figure 10.3

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Brand Development Strategies

Figure 10.4

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Four Service Characteristics

• Service: any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything

Figure 10.5

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The Service Profit Chain

• The chain that links service firm profits with employee and customer satisfaction

Internal service quality

Internal service quality

Internal service quality

Internal service quality

Internal service quality

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Marketing in Service Industries

• Internal marketing: marketing by a service firm to train and motivate customer contract employees to provide customer satisfaction• Interactive marketing: marketing by a service firm that recognizes that service quality depends on the quality of the buyer-seller interaction

Figure 10.6

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Managing Service Differentiation

• Price competition

• Differentiate offer by:– Innovative features

– Service delivery

– Images or symbols

– Service quality

– Service recovery

• Service productivity

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Additional Product Considerations

• Product decisions and social responsibility– Government regulation

– Food and product safety

– Pricing and advertising

– Labelling, weights, and measures

– Hazardous products

– Product liability

• International product and service marketing– Standardization versus local adaptation

– Electrical standards, packaging

– Cultural differences in meaning

– Barriers to trade

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In Conclusion…

• The learning objectives for this chapter were:– Define product and the major classifications of products and

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