Product, Service, and Branding Strategies References:Marketing Management by Philip Kotler Internet Resource Person: Chapter 6
Marketing Mix (4Ps of Marketing)
Set of marketing tools used by a firm to pursue its marketing objectives in a target market.OrCombination of a number of policies to realize profit through customer satisfaction.
Marketing Mix VariablesProductPlacePromotionPricingProducing goods, services, or any that offering that satisfy customer needsThe ready, convenient, and timely availability of productsActivities that inform customers about the organization and its productsDecisions and actions to establish pricing objectives and policies and set product prices
Product LevelsCore benefit- The fundamental benefit or services that the customer is really buying.TheCOREproduct is NOT the tangible, physical product. You can't touch it. That's because the core product is the BENEFIT of the product that makes it valuable to you. So with the car example..!Basic Product- Marketer turns benefit into basic product.Expected product- A set of attributes & conditions buyers normally expect when they purchase product according to their purchasing power.
Augmented product- Products that exceeds consumers expectations. Competition usually takes place in this level, for which you may or may not pay a premium. So when you buy a car, part of the augmented product would be the warranty, the customer service support offered by the car's manufacture, and any after-sales service. Potential product- All possible augmentations & transformations the product might undergo in future.
Product Classification Products are classified on the bases of durability, tangibility & use (Consumer or Business).Durability & TangibilityNondurable- Tangible goods usually consumed in one or few uses. Purchased quickly & consumed frequently. FMCG (wide availability, small markup, heavy advertisements)Durable Goods- Tangibles that normally provide long-term benefit. Require personal selling & services, higher profit & seller guaranties.
Durable GoodsProvide Long-Term Benefits(cars, furniture, appliances)Nondurable GoodsProvide Short-Term Benefits(newspapers, food)LowInvolvementDecisionsHigh Involvement Decisions
Services- Intangible, inseparable & activities that are the main objective of a transaction designed to provide want-satisfaction to customers.Virtually all services require supporting goods & goods require supporting services. A company may also sell a combination of goods & services.
ConvenienceShoppingSpecialtyUnsoughtProducts involving frequent purchases bought with minimal buying effort, without gathering extra information and little comparison shoppingLow priceWidespread distributionMass promotion by producerConvenience goods are further dividedStaples- regular basesImpulse Goods- without planningEmergency Goods- urgent need(Use) Consumer Goods Classification Goods purchased by final consumer for personal consumption
Emergency GoodsImpulse GoodsStaplesStaples
ConvenienceShoppingSpecialtyUnsoughtLess frequent purchases requiring more shopping effort and price, quality, suitability and style comparisons in several stores or between brands. Prices higher than convenience goodsSelective distribution in fewer outletsAdvertising and personal selling by producer and resellerTypes of Consumer Products Consumer Goods Classification
ConvenienceShoppingSpecialtyUnsoughtProducts having unique characteristics or brand identity for which a significant group of buyers is willing to make a special purchase effort (substantial time, price & in locating product) .High priceSelected distribution even with no convenient locations.(although they must let prospects & buyers about location)Carefully targeted promotion by producers and resellersTypes of Consumer Products Consumer Goods Classification
ConvenienceShoppingSpecialtyUnsoughtConsumer products that the consumer either doesn't know about or if knows about even then doesn't normally think of buying right now.Pricing variesDistribution variesAggressive advertising and personal selling by producers and resellersTypes of Consumer Products Consumer Goods Classification Products that are usually purchased due to adversity rather than desire
the coffin cost $25,000.
Durability and tangibilityConsumer goodsIndustrial goodsProducts bought by organizations or individuals for use in a businessMaterial & PartsRaw Material- goods that become the part of product prior of being processed in anyway.Manufactured material and parts-Capital items- long lasting goods that facilitates developing or managing the finished product.Installations- buildings, heavy equipmentsEquipment- portable equipment &toolsSupplies and business servicesMaintenance and repairAdvisory services
By-ProductAby-productis a secondary or incidental product deriving from amanufacturingprocess, achemical reactionor a biochemical pathway, and is not the primary product or service being produced. A by-product can be useful andmarketable, or it can be consideredwaste.
Dried blood-from slaughterhouse operations Feathers - poultry processing
Product Mix (also called Product Assortment)- Set of all products offered for sale by a particular company. A product mix consists of various product lines. Product Line- A group of products consist of all similar items in one category. All products which are closely related, having similar uses and similar physical characteristicsNumber of items being offered by one product line is called length of Product Line.The width of Product Mix refers to total number of product lines offered by companyLength of Product Mix refers to total number of items in product mix
The Depth of Product Line refers to how many variants( flavors, sizes, colors etc.) are offered of a product in the product line .The Consistency of Product Line refers to how closely related the various lines are in the end use, production requirement, distribution channels or some other way.
Brandsmarketing approximately 250 brands in over 130 countries.
Fabric & Home careArielTideFairyDashBonuxLenorMR CleanFood & BeveragesNutristarSunny DelightPringlesCriscoJifOleanFolgersHealth care ActonelDidronelMetamucilPeptobismolVicksCrestBlend-a-mendPURBaby care
PampersDodotLuvsFeminine careAlwaysAlldaysTampaxWhisperBeauty careOlaySafeguardPantenePert PlusMax FactorCover GirlCamayZest
Product Line DecisionsLine Stretching When a company lengthens its product line beyond its current market range (making additional products for upper or lower class users)Line FillingAdding more items within a product range to get more profits, fill missing items in product line, utilize excess capacity, try to be leading as full line company, to fill holes to keep out competitorsDownwardUpward
Line PruningDropping weakItems from product lineTwo-way
Brand/Trade MarkA 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 competitorsA Brand Name consists of words, letters, or numbers that can be vocalizedBrand 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 or brand services); and (for a registered trademark). http://www.ipo.gov.pk
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 is not 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 to use the registration symbol at any point before the registration issues.
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 of goods, packaging, color or combination of colors, smell, sound, movement or any combination thereof which is capable of distinguishing goods and services of one business from those of others.
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 rememberCapable of being registered and legally protectedIt should be distinctiveIt 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)
Advantages of BrandingBrand name makes it easy for sellers to process orders & track down problemBranding gives seller opportunity to attract a loyal and profitable customer.Branding provides legal protection to sellerHelps in segmentationStrong brands help to build corporate image, makes it easy to launch new brands & gain acceptance of distributors and consumers easily
Brand Name StrategiesIndividual names/branding- Company gives separate names to its all products. ( Unilever, P & G)Company doesn't tie its reputation to the product in case products fails or appears to be of low standard.