Chapter 7: Product, Services and Branding Strategy Flashcards
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, event, persons, places, organizations, ideas or some combination thereof.
Service:
form of product that consists of activities, benefits, or satisfaction offered for sale that are essentially intangible and do not result in the ownership of anything. (eg: banking, hotel, airline, retail, tax preparation, home repairs)
Levels of product:
- core product- benefit
- Actual product- brand name, packaging features, design, quality
- Augmented product- delivery, installation, after-sale-service, warranty
Consumer products:
Products and services bought by final consumers for personal consumption.
Product classification: consumer
- convinience-
- shopping-
- Specialty-
- unsought-
-produtc
Convenience product characteristics:
- buy frequently and immediately
- low priced
- mass advertising
- many purchase locations
- eg: candy
Shopping product characteristics
- buy less frequently
- higher price
- fewer purchase locations
- comparison shop
- eg: cars
Specialty product characteristics
- special purchase efforts
- high price
- unique characteristics
- brand identification
- few purchase locations
unsought product characteristics
- new innovations
- products consumers don’t want to think about
- require much advertising and personal selling
Industrial Products:
- Materials and parts (raw component)
- Capital items (products that aid in buyer’s production or operations)
- Suppliers and services (operating activities, repair and maintenance items.)
Other Market Offerings:
> Organizations: profit (business) and nonprofit (schools and churches)
Persons: politicians, entertainers, sports figures, doctors and lawyers.
Places: create, maintain or change attitudes or behavior toward particular places.
Ideas (social marketing): public health campaigns, family planning or human rights.
Individual product decisions
1.product attributes
2.Branding
3. Packaging
4. labeling
5. Product support services
Product and Service Attributes:
- Quality- includes consistency
- Features- differentiates: assessed based on value and costs
- Design and style- design is hard style is appearance
Branding refers to
Name, term, sign, symbol, design, or a combination of these that identifies the maker or seller of a product or service. An idea, reputation.
Branding advantages to buyers
- Communicate about the self
- Socialization needs
- Product identification
- Product quality
- After purchase assurance
Branding advantages to sellers
- Basis for product’s story
- Provides legal protection
- Helps to segment markets
- Help create and strengthen other brands
- Intangible value: withstand challenging periods
- Smooths partnerships and negotiations
- Allow for abstraction
4 brand developement strategies:
- line extension
- Brand extension
- Multibrand
- new brand
Line extension:
Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category.
Brand extention:
Extending an existing brand name to new product categories.
Multibrands:
Companies often market many different brands in each product category
New brand:
company might believe that the power of its existing brand name is waning, so a new brand name is needed
Brand strategy positioning
- Brand positioning
- Brand name selection
- Brand Sponsorship
- Brand developement
Brand positioning:
Marketers need to position their brands clearly in target customers’ minds
- product attributes
- product benefits
- beliefs and values
Brand name selection:
begins with a careful review of the product and its benefits, the target market, and proposed marketing strategies. After that, naming a brand becomes part science, part art, and a measure of instinct.
Brand sponsorship 4 options:
1.launched as a national brand (or manufacturer’s brand)
2. the manufacturer may sell to resellers who give the product a private brand (also called a store brand or distributor brand).
Packaging:
designing and producing the container or wrapper for a product
Labeling:
printed info appearing on or with the package to:
- identifies product or brand
- describes several things about the product
- promotes the product through attractive graphs
Product Line:
A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.
Product Line Decisions:
Stretching- Lengthen beyond current range. Can be: upward, downward, both directions
Filling- Lengthen within current range
Product Mix Decisions:
> Width: number of product lines
Length: number of items within product lines
Depth: number of versions offered of each product.
Nature and characteristics of a service:
- Intangibility- cant see touch or smell before purchase
- Inseparability- cant be seperated from providers
- Perishability- cant be stored for later sale or use
- Variability- quality depends on who, where, when and how
Major service marketing tasks:
> Managing service DIFFERENTIATION: develop a differentiated offer, delivery and image.
Managing service QUALITY: be customer obsessed, set high quality standards, have good service recovery, empower front-line employees.
Managing service PRODUCTIVITY: train current employees or hire new ones, harness technology.
