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Product, Service, and Branding Strategies

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Product, Service, and Branding Strategies References: Marketing Management by Philip Kotler Internet Resource Person: Chapter 6
Transcript

Product, Service, and Branding Strategies

References:Marketing Management by Philip Kotler Internet

Resource Person:

Chapter 6

Marketing Mix

((4Ps of Marketing)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 Variables

ProductProduct

PlacePlace

PromotionPromotion

PricingPricing

Producing goods, services, or any that offering that satisfy customer needs

The ready, convenient, and timely availability of products

Activities that inform customers about the organization and its products

Decisions and actions to establish pricing objectives and policies and set product prices

Product LevelsProduct Levelsi. Core benefit- The fundamental

benefit or services that the customer is really buying.

The CORE product 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………..!

ii. Basic Product- Marketer turns benefit into basic product.

iii. 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.

v. 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 & Tangibility

1. Nondurable- Tangible goods usually consumed in one or few uses. Purchased quickly & consumed frequently. FMCG (wide availability, small markup, heavy advertisements)

2. 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)

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

Nondurable GoodsProvide Short-Term Benefits

(newspapers, food)

Nondurable GoodsProvide Short-Term Benefits

(newspapers, food)Low

InvolvementDecisions

High Involvement

Decisions

3. 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.

Convenience• Shopping• Specialty• Unsought

Products involving frequent purchases bought with minimal buying effort, without gathering extra information and little comparison shopping

Low price

Widespread distribution

Mass promotion by producer

Convenience goods are further divided

Staples- regular bases

Impulse Goods- without planning

Emergency Goods- urgent need

(Use) (Use) Consumer Consumer

Goods Goods Classification Classification

Goods purchased by Goods purchased by final consumer for final consumer for personal consumptionpersonal consumption

Emergency Goods

Impulse Goods Staples

Staples

• Convenience

Shopping• Specialty• Unsought

Less frequent purchases requiring more shopping effort and price, quality, suitability and style comparisons in several stores or between brands.

Prices higher than convenience goods

Selective distribution in fewer outlets

Advertising and personal selling by producer and reseller

Types of Types of Consumer Consumer ProductsProducts

Consumer Consumer Goods Goods

ClassificationClassification

• Convenience• Shopping

Specialty• Unsought

Products 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 price

Selected distribution even with no convenient locations.

(although they must let prospects & buyers about location)

Carefully targeted promotion by producers and resellers

Types of Types of Consumer Consumer ProductsProducts

Consumer Consumer Goods Goods

ClassificationClassification

• Convenience• Shopping• Specialty

Unsought

• Consumer products that the consumer either doesn't know about or if knows about even then doesn't normally think of buying right now.

• Pricing varies

• Distribution varies

• Aggressive advertising and personal selling by producers and resellers

Types of Types of Consumer Consumer ProductsProducts

Consumer Consumer Goods Goods

ClassificationClassification

Products that are usually purchased

due to adversity rather than desire

the coffin cost $25,000.

ProductClassifications

• Durability and tangibility• Consumer goods

Industrial goods Products bought by

organizations or individuals for use in a business

Material & Partsa. Raw Material- goods that

become the part of product prior of being processed in anyway.

b. Manufactured material and parts-

Capital items- long lasting goods that facilitates developing or managing the finished product. Installations- buildings, heavy

equipments Equipment- portable

equipment &tools Supplies and business services

Maintenance and repair Advisory services

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

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 characteristics

Number of items being offered by one product line is called length of Product Linelength of Product Line.

The width of Product MixThe width of Product Mix refers to total number of product lines offered by company

Length of Product MixLength of Product Mix refers to total number of items in product mix

The Depth of Product The Depth of Product LineLine refers to how many variants( flavors, sizes, colors etc.) are offered of a product in the product line .

The Consistency of The Consistency of Product LineProduct Line refers to how closely related the various lines are in the end use, production requirement, distribution channels or some other way.

Brands

Fabric & Home careArielTideFairyDashBonuxLenorMR Clean

Food & BeveragesNutristarSunny DelightPringlesCriscoJifOleanFolgers

Health care

ActonelDidronelMetamucilPeptobismolVicksCrestBlend-a-mendPUR

Baby care

PampersDodotLuvs

Feminine careAlwaysAlldaysTampaxWhisper

Beauty careOlaySafeguardPantenePert PlusMax FactorCover GirlCamayZest

marketing approximately 250 brands in over 130 countries.

Product Line DecisionsProduct Line DecisionsProduct Line DecisionsProduct Line Decisions

Line Stretching Line Stretching

When a company When a company lengthens its product line lengthens its product line beyond its current market beyond its current market range (making additional range (making additional products for upper or products for upper or lower class users)lower class users)

Line FillingLine Filling

Adding more items Adding more items within a product within a product range to get more range to get more profits, fill missing profits, fill missing items in product line, items in product line, utilize excess utilize excess capacity, try to be capacity, try to be leading as full line leading as full line company, to fill holes company, to fill holes to keep out to keep out competitorscompetitors

Downward

Upward

Line PruningLine PruningDropping weak

Items from product line

Line PruningLine PruningDropping weak

Items from product line

Two-way

Brand/Trade MarkBrand/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 of sellers and to differentiate them from those competitors

A Brand NameBrand Name consists of words, letters, or numbers that can be vocalized

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

or brand services); and ® (for a registered trademark).

http://www.ipo.gov.pkhttp://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 Name Suggest something about the product’s 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 languages Be adaptable to additions of product line or product

mix (McDonald vs. Burger King or Pizza Hut, Alaska Airline vs. United Airlines)

Advantages of Branding

Brand name makes it easy for sellers to process orders & track down problem

Branding gives seller opportunity to attract a loyal and profitable customer.

Branding provides legal protection to seller Helps in segmentation Strong brands help to build corporate image, makes

it easy to launch new brands & gain acceptance of distributors and consumers easily

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 case

products 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 used as a product brand name

less expenditures on brand name recognition LG TV, LG radio, LG DVD, LG Fridge etc

Separate family names for all products- When company produces quite different products from each other then gives separates names (Product line name) to all similar products.

Company Trade name combined with individual product names-

Simultaneously product & company recognition

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 counter a 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 Lipton Iced Tea.

A Premium Brand typically costs more than other products 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 on them, this is called private branding , store brand, or private label.

When a company sells the rights to use a brand name to another company for use on a non-competing product or in another geographical area, this is referred to as Brand licensing.

Derived brandsIn this case the supplier of a key component, used by a number of suppliers of the end-product, may wish to guarantee its own position by promoting that component as a brand in its own right.

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

Multibrands- New brand name in existing product line ( Dove, Lux, Lifebuoy)

New Brand- new brand name for a newly established product line

Brand equity Brand equity refers to the marketing effects or outcomes that a product

enjoys with its brand name compared with those that would be if the same product did not have the brand name.. In other words, consumers' knowledge about a brand makes manufacturers/advertisers respond differently or adopt appropriately adept measures for the marketing of the brand.

The brand can add significant value when it is well recognized and has positive associations in the mind of the consumer. This concept is referred to as brand equity.

Measures of Brand Equityi. Brand awarenessii. Perceived qualityiii. Brand Associationiv. Brand loyaltyv. Extra price payment

List of some famous protected trademarks frequently used as generic terms

Coke- (Coca-Cola Company) Popularly used to refer to any soft drink; 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 in

about 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 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. A strapline is a British term used as a secondary sentence attached to a brand name.

Rishta wahi, Soch nai

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.

•Protection against damage, spoilage, tampering etc.

•Assistance in marketing the product

•Provides Self service opportunity in stores

•Portability

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

A bar code on a product’s 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

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

drinks containers. It is 90% recyclable

The CE marking certifies that a product has met EU consumer safety, health or environmental requirements. CE stands for Conformité Européenne, "European conformity" in French.

PromotesIdentifies

Competitive Advantages

Describes

SalesTasks

Product Safety

Packaging

Labeling

Packaging

Labeling


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