Product, Service and Branding Product, Service and Branding StrategyStrategybyby

Kotler on Marketing

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The best way to hold customers is to constantly figure out how to give them more for less.

PRODUCTAny thing that can be

offered to market for attention, acquisition, use or consumption that might satisfy a want or need.

Services, physical objects, events, persons , places, organizations, ideas are all PRODUCTS

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Products, Services, and Experiences

Product is a key element in the market offering.

Marketing mix begins with planning product

Offering brings value and that value becomes the basis for profitable relationships with customers.

PURE tangible goods , PURE services

Now companies are differentiating and giving experiences rather than JUST products or services

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The Product and the Product Mix

Product levelsCore Benefit (problem

solving benefit)Hotel, Drill

Actual Product Augmented Product

(offering additional services and benefits)Warranties, toll free numbers

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Product and Service Classifications

Consumer Products

Industrial Products

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Product and Service DecisionMarketers make

product and services decisions at three levels.

Individual Product Decisions,

Product Line decisions,

Product Mix decision

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Individual Product Decision

Defining the benefits that the product will offer

Quality: Major marketing tool, linked to customer value and satisfaction

Features: Competitive tools for differentiation

HOW CAN A COMPANY ADD FEATURES??

Cost versus benefit should also be analyzed

Product Attributes

Support ServicesBranding LabelingPackaging

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Individual Product Decision

Brand: A name, term , sign , symbol, or design or a combination or these intended to identify the goods or services fo one seller or group of sellers and to differentiate them from those of competitors.

Hardly any thing goes unbranded

Helps in identifying , tells about product quality, helps segment the market

Product Attributes

Support ServicesBranding LabelingPackaging

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Individual Product Decision

Container or wrapper of a product

Primary container, secondary container, shipping packages

Primary function was to protect the product but now it performs many sales tasks. (attracting attention, describing the product, making the sale)

Helps in instantly recognizing the product.

Product Attributes

Support ServicesBranding LabelingPackaging

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Individual Product Decision

In an average supermarket, which stocks 15,000 to 17,000 items, the typical shopper passes by some 300 items per minute, and more than 60 percent of all purchases are made on impulse. In this highly competitive environment, the package may be the sellers last chance to influence buyers.

Product Attributes

Support ServicesBranding LabelingPackaging

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Individual Product Decision

Printed information appearing on or with the packages.

Identifies the products, describe several things about the product, promote the product (through attractive packaging)

Open Dating (expected shelf life) , Nutritional Labeling

Product Attributes

Support ServicesBranding LabelingPackaging

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Individual Product Decision

Surveying customers, assessing the cost of providing of theses services and providing the services

Services such as E-mail, fax, warranty and so on.

Product Attributes

Support ServicesBranding LabelingPackaging

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Product-Mix Width and Product-Line Length for Proctor& Gamble Products

PRODUCT-PRODUCT-LINE LINE LENGTHLENGTH

Product-Mix WidthProduct-Mix Width

DetergentsDetergents ToothpasteToothpasteDisposable Disposable Bar SoapBar Soap DiapersDiapers

Paper Paper TissueTissue

Ivory Snow Ivory Snow (1930)(1930)

Dreft Dreft (1933)(1933)

Tide Tide (1946)(1946)

Cheer Cheer (1950)(1950)

Gleem (1952)Gleem (1952)

Crest (1955)Crest (1955)

Ivory Ivory (1879)(1879)

Kirk’s Kirk’s (1885) (1885)

Lava Lava (1893)(1893)

Camay Camay (1926)(1926)

Pampers Pampers (1961)(1961)

Luvs Luvs (1976)(1976)

Charmin Charmin (1928) (1928)

Puffs Puffs (1960)(1960)

Banner Banner (1982)(1982)

Summit Summit (1992)(1992)

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Product Line DecisionsProduct-line decisions

Product-line length analysisSales and Profits

A company can lengthen its product line in two ways.Line Stretching

Stretching beyond current range. Downward (Mercedes to Mercedes C class), Upward (Toyota to Lexus), Both Directions (Marriot Hotels)

Line Filling Adding more items within the

present range of the line. Reasons ??

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Product Mix Decisions Product mix : The set of all the

product lines and items that a particular seller offers for sale.

Four Dimensions of Product MixMix Width (number of product

lines)Mix Length (total number of

items within product lines) Line Depth ( versions offered of

each product in the lineConsistency (how closely related

the product lines are in end use, production requirement, distribution channels, etc

THIS ANALYSIS HELPS COMPANIES TO MAKE STRATEGIES5-16

Branding StrategyBRAND EQUITY

Brand are powerful assetsThe real value of the brand is its

power to capture consumer preference and loyalty.

A powerful brand has high brand equity. A measure of a brand’s equity is the extent to which customers are willing to pay more for the brand.

A powerful brand name offers the company some defense against fierce price competition.

Powerful brand forms the basis for building profitable customer relationships.

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Building Stronger Brands

Three levels of positioningProduct Attributes

Least desirable, competitors can copy.

Benefits

Beliefs and ValuesCrest not talking about cavity protection, but giving

beautiful smiles for lifeTapal talking about FAMILY REALTIONS

Brand Positionin

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Brand Developme

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Brand Name

Selection

Brand Sponsorsh

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Building Stronger Brands

A good name can add greatly to a product’s success.

Desirable qualities for a brand name includeIt should suggest something about the productShould be easy to pronounceShould be distinctiveShould be extendableShould translate into foreign languages. Should be capable of registration and legal protection.

Brand Positionin

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Brand Developme

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Brand Name

Selection

Brand Sponsorsh

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Building Stronger Brands

Manufacturer’s brands versus private brand

Licensing

Co Branding

Brand Positionin

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Brand Developme

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Brand Name

Selection

Brand Sponsorsh

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Building Stronger Brands

A company has four choices when it comes to brand development

Brand Positionin

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Brand Developme

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Brand Name

Selection

Brand Sponsorsh

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Brand Name

Product CategoryExisting New

Existing

Line Extension Brand Extension

NewMulti Brands New Brands

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Building Stronger Brands

Line ExtensionNew flavors, new sizesLow cost, low risk way to introduce new products. Extension may come at the expense of other items in the

line , or may cause customer confusion or frustration. A line extension works best when it takes sales away

from competing brands, not when it “cannibalizes” the company’s other items.

Brand Positionin

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Brand Developme

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Brand Name

Selection

Brand Sponsorsh

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Building Stronger Brands

Brand ExtensionUse of successful brand name to launch new or modified

products. Gives new product instant recognitionSaves high advertising cost May confuse the image of main brandMay not be appropriate to particular products

Brand Positionin

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Brand Developme

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Brand Name

Selection

Brand Sponsorsh

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Building Stronger Brands

Multi BrandsAdditional Brand in the same categoryAllows companies to lock up more reseller shelf space.Major drawback: Brand might obtain only a small

market share.

Brand Positionin

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Brand Developme

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Brand Name

Selection

Brand Sponsorsh

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Building Stronger Brands

New BrandsCompany may create new brand when entering new

category. As with multi branding, offering too many new brands

can result in a company spreading its resources too thin.

Brand Positionin

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Brand Developme

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Brand Name

Selection

Brand Sponsorsh

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Managing BrandsBrand positioning must be

continuously communicated to consumers

Brands are not just maintained through advertising, but by brand experience. Therefore, companies should take care of all the customer touch points.

Companies must periodically audit their brand’s strengths and weakness.

The brand audit may turn up brands that need to be repositioned because of changing customer preferences or new competitors. 5-26

NEXT SESSION

Product Life Cycle

Article : Using sense to build powerful brands

Article : Too many flops

5-27