basic07_ppt.ppt 211KB Apr 07 2011 01:18:20 AM

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Chapter Seven

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Roadmap:

Previewing the Concepts

1. Define product and the major classifications of products and services.

2. Describe the decisions companies make regarding their individual products and

services, product lines, and product mixes.

3. Discuss branding strategy – the decisions firms make in building and managing their brands.

4. Identify the four characteristics that affect the marketing of a service and the additional

marketing considerations that services require.

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 _{Product source: comes}

from an underground location in Fiji islands.

 _{Key benefits: ultra-clean}

taste, no impurities or pollutants.

 _{Brand image: “The Taste}

of Paradise”

FIJI Water – “The Taste of Paradise”

Case Study

Promotion

 _{It’s a brand experience!}  _{Name, packaging, label,}

celebrity endorsers and places through which it is sold contributes to “Taste of Paradise” imagery.

 _{Ads evoke exotic origins:} tropical forest, volcanoes.  _{High price charged}

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What Is a Product?

 _{Anything that can be offered to a}

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

– _{Includes: physical objects, services,}

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What Is a Service?

 _{A form of product that consists of}

activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.

– _{Examples: banking, hotel, airline, retail, tax}

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Market Offerings

 _{Continuum ranges from pure tangible}

goods (with no services) to pure

services (with no good component) with many combinations in between.

– Pure good: Camay soap.

– Pure service: Legal representation.

– Combination: Restaurant meal.

 _{Creating and managing customer}

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Levels of a Product

 _{Core benefit}

– What the consumer is really buying.

 _{Actual product}

– Includes the brand name, features, design, packaging, quality level.

 _{Augmented product}

– _{Additional services and benefits such as}

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Consumer Products

 _{Products and services bought by final}

consumers for personal consumption. – Also includes other marketable entities.

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Convenience Products

 _{Purchased frequently and immediately}  _{Low priced}

 _{Mass advertising}

 _{Many purchase locations}

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Shopping Products

 _{Bought less frequently}  _{Higher price}

 _{Fewer purchase locations}  _{Comparison shop}

– _{Examples: furniture, clothing, cars,}

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Specialty Products

 _{Special purchase efforts}  _{High price}

 _{Unique characteristics}  _{Brand identification}

 _{Few purchase locations}

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Unsought Products

 _{New innovations}

 _{Products consumers do not want to}

think about

 _{Require much advertising and personal}

selling

– _{Examples: life insurance, cemetery plots,}

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Industrial Products

 _{Those purchased for further}

processing or for use in conducting business.

– _{Distinction between consumer and}

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Industrial Products

 _{Materials and parts:}

– Raw materials, manufactured materials, and parts

 _{Capital items:}

– Products that aid in buyer’s production or operations

 _{Supplies and services:}

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Other Market Offerings

 _{Organizations:}_{Profit (businesses) and}

nonprofit (schools and churches).

– Includes corporate image advertising.

 _Persons:_{Politicians, entertainers, sports}

figures, doctors, and lawyers.

 _Places:_{Create, maintain, or change attitudes}

or behavior toward particular places (e.g., tourism).

 _{Ideas (social marketing):}_{Public health}

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Individual Product Decisions

 _{Product attributes}  _Branding

 _Packaging

 _Labeling

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Product & Service Attributes

 _{Product quality}

– Performance quality

– Conformance quality

 _Features

– Value to consumer

– Cost to company

 _{Style and design}

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Branding

 _{Creating, maintaining, protecting, and}

enhancing products and services.

 _{A brand is a name, term, sign, symbol,}

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Branding

 _{Advantages to buyers:}

– Product identification

– Product quality

 _{Advantages to sellers:}

– Basis for product’s quality story

– Provides legal protection

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Packaging

 _{Designing and producing the container}

or wrapper for a product.

 _{Developing a good package:}

– Market the brand

– Protect the elements

– Ensure product safety

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Labeling

 _{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}

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Product Support Services

 _{Assess the value of current services}

and obtain ideas for new services.

 _{Assess the cost of providing the}

services.

 _{Put together a package of services that}

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Product Line Decisions

 _{Product line length:}

– The number of items in a product line.

 _{Adjust line length by:}

– Stretching

• Downward

• Upward

• Both directions

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Product Mix Decisions

 _{Product mix:}

– all of the product lines and items that a particular seller offers for sale.

 _{Product mix dimensions include:}

– Length: the number of items in a line.

– Width: the number of different product lines the company carries.

– Depth: the number of versions offered of each product in the line.

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Brand Equity

 _{The positive differential effect that}

knowing the brand name has on

customer response to the product or service.

 _Provides:

– _{More brand awareness and loyalty}

– _{Basis for strong, profitable customer}

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Major Brand Strategy

Decisions

 _{Brands are assets that must be}

carefully developed and managed via: – Brand positioning

– Brand name selections

– Brand sponsorship

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Brand Positioning

 _{Can position brands at any of three}

levels:

– Product attributes

– Product benefits

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Brand Name Selection

 _{Desirable qualities for a brand name include:} 1.It should suggest product’s benefits and qualities. 2.It should be easy to pronounce, recognize, and

remember.

3.It should be distinctive. 4.It should be extendable.

5.It should translate easily into foreign languages. 6.It should be capable of registration and legal

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Brand Sponsorship

 _{Manufacturer’s brands}

– Also called national brands

 _{Private brands}

– Also called store or distributor brands

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Brand Development

 _{Line extension}_:

– introduction of additional items in a given product category under the same brand name (e.g., new flavors, forms, colors, ingredients, or package sizes).

 _{Brand extension}_:

– _{using a successful brand name to launch a}

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Brand Development

 _{Multibranding}_:

– offers a way to establish different features and appeal to different buying motives.

 _{New brands}_:

– developed based on belief that the power of its existing brand is waning and a new brand name is needed. Also used for

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Nature and Characteristics

of a Service

 _{Intangibility:}

– Services cannot be seen, tasted, felt, heard, or smelled before purchase.

 _{Inseparability:}

– Services cannot be separated from their providers.

 _Variability:

– Quality of services depends on who provides them and when, where, and how they are

delivered.  _{Perishability:}

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The Service-Profit Chain

 _{Internal service quality}

 _{Satisfied and productive service}

employees

 _{Great service value}

 _{Satisfied and loyal customers}

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Services Marketing

 _{External marketing:}

– Traditional marketing via the 4 “P’s”

 _{Internal marketing:}

– Effective training and motivation of customer contact employees

 _{Interactive marketing:}

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Major Service Marketing Tasks

 _{Managing service differentiation:}

– Develop a differentiated offer, delivery, and image.  _{Managing service quality:}

– Be customer obsessed, set high service quality standards, have good service recovery, empower front-line employees.

 _{Managing service productivity:}

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International Product and

Services Marketing

 _{Decide which products and services to}

introduce.

 _{Decide how much to standardize or}

adapt.

 _{Packaging presents new challenges.}

 _{Services marketers face special}

challenges.

 _{Trend toward global service companies}

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Rest Stop:

Reviewing the Concepts