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Product, Services, andBranding Strategy
Chapter 8
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Definitions
Product Anything offered to a market for attention,
acquisition, use, or consumption that mightsatisfy a need or want.
Service A form of product that consists of
activities, benefits or satisfactions offeredfor sale that are essentially intangible anddo not result in the ownership of anything.
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What is a Product?
Products, Services, and Experiences Market offerings may consist of a
combination of goods and services
Experiences are used to differentiateofferings
Levels of Product and Services Core benefit, actual and augmented
product Product and Service Classifications
Consumer products and industrial products
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Three Levels of Product
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Product ClassificationSchemes
Durability
Use
Tangibility
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Durability and Tangibility
Nondurable
goods
Services
Durable
goods
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Unsought Products
New innovationsProducts consumers dontwant to think about these products Require much advertising &personal selling
i.e Life insurance, blood donation
Product Classifications
Consumer Products
Specialty Products
Special purchase efforts High price Unique characteristics Brand identification Few purchase locations
i.e can be anything
Shopping Products
Buy less frequently Higher price Fewer purchase locations Comparison shopi.e Clothing, appliances
Convenience Products
Buy frequently & immediately
Low priced Mass advertising Many purchase locationsi.e Candy, newspapers
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Product and Service
Classifications Consumer products
Industrial products Materials and parts
Capital items
Supplies and services
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Product and Service
Decisions
IndividualProduct
Product Line Product Mix
Product attributes
Quality, features,style and design
Branding
Packaging
Labeling
Product supportservices
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 influencedby
Self-service
Consumer affluence
Company/brand image
Innovation opportunity
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Innovations in Packaging
http://www.webpackaging.com/7/30/2019 Ch8 Product, Services & Branding Strategy
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Functions of Labels
Identifies
Grades
Describes
Promotes
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Product and Service
Decisions Product line
A group of products
that are closelyrelated becausethey may: function in a similar
manner be sold to the same
customer groups, be marketed through
the same types ofoutlets
fall within given priceranges
Key Decisions
IndividualProduct
Product Line Product Mix
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Product and Service
Decisions
IndividualProduct
Product Line Product Mix
Product line length
Line stretching:adding productsthat are higher orlower priced thanthe existing line
Line filling: addingmore items withinthe present pricerange
Key Decisions
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Product and Service
Decisions
IndividualProduct
Product Line Product Mix
Product mix
Also known asproduct assortment
Consists of all theproduct lines anditems that a
particular selleroffers for sale
Key Decisions
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Product and Service
Decisions
IndividualProduct
Product Line Product Mix
Product mix width:
Number of differentproduct lines carriedby company
Product mix depth:
Number of differentversions of eachproduct in the line
Product mix
consistency
Key Decisions
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Brand
A name, term, sign, symbol
or design, or a combination of them,intended to identify the goods
or 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 maker
Simplify product handling
Organize accounting
Offer legal protection
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The Role of Brands
Signify quality
Create barriers to entry
Serve as a competitive
advantage
Secure price premium
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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 havemany 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 $58.21China Mobile
IBM
Apple
$57.23
$55.33
$55.21
McDonalds $49.50
Nokia $43.98
Marlboro $37.32
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Brand Elements
ElementsSlogans
Brand
names URLs
Logos
SymbolsCharacters
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Brand Elements
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Brand Elements
Companies often create product icons to develop anidentity for their products. Many made-up creaturesand personalities, such as elik, Sta nekand
Yumo Ay, are widely recognized figures in popularculture.
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Brand Element Choice
Criteria
Memorable
Meaningful
Likeability
Transferable
Adaptable
Protectible
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Slogans
Like a good neighbor,State Farm is there
Just do it
Nothing runs like aDeere
Help is just around thecorner
Save 15% or more in 15minutes or less
We try harder
Well pick you up
Nextel Done
Zoom Zoom
Im lovin it
Innovation at work
This Buds for you
Always low prices
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Slogans Adn unutabilirsiniz,
tadn asla!
Hayaaaatn tad!
Fark, fiyat!
Yok aslndabirbirimizden farkmz,ama biz OsmanlBankasyz.
Ne biim lastik buuu?
Honda, hayat onda.
akar akmaz akanakmak.
Bira bu kapanaltndadr.
Citroen gelir, hayatdeiir.
Trkiyenin motosikleti.
Erkek snnet olur,askerlik yapar, Permatik
kullanr!
Philips hayatmzkolaylatracak.
Kirlenmek gzeldir.
Tefal, ne varsa sendevar.
Arelik demek yenilikdemek.
Kalebodur, seramikbudur.
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Brand Strategy
Brand Positioning
Brand NameSelection
Brand Sponsorship
Brand Development
Three levels ofpositioning:
Product attributes
Least effective
Benefits
Beliefs and values Taps into
emotions
Key Decisions
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Brand Strategy
Brand Positioning
Brand NameSelection
Brand Sponsorship
Brand Development
Good Brand Names:
Suggest somethingabout the product or its
benefits Are easy to say,
recognize andremember
Are distinctive
Are extendable
Translate well intoother languages
Can be registered andlegally protected
Key Decisions
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Brand Strategy
Brand Positioning
Brand NameSelection
Brand Sponsorship
Brand Development
Manufacturer brands
Private (store) brands Costly to establish and
promote
Higher profit margins
Licensed brands
Name and characterlicensing has grown
Co-branding Advantages /
disadvantages
Key Decisions
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Line ExtensionArelik New Refrigerators
MultibrandsArelik - Beko
Brand ExtensionArelik TV-A/C
New BrandsOYAK - TukaB
rand
Name
Existing New
Product Category
Existing
New
Four Brand Strategies
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Services Marketing
ServicesAccount for 74% of U.S. gross
domestic product.
Service industries includebusiness organizations,government, and private not-for-profit organizations.
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Four ServicesCharacteristics
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Characteristics of Services
Intangibility Consumers look for service quality signals
Inseparability Services cant be separated from providers
Variability Employees and other factors result in
variability Perishability
Services cant be inventoried for later sale