Transcript product - Pearson

Copyright © 2005 Pearson Education Inc.
Product, Service, and Branding Strategies
•Chapter 10
•PowerPoint slides
•Express version
•Instructor name
•Course name
•School name
•Date
Principles of Marketing, Sixth Canadian Edition
Learning Objectives
10.2
Copyright © 2005 Pearson Education Inc.
• After studying this chapter, you should be able to:
– Define product and the major classifications of products and
services
– Describe the decisions companies make regarding their
individual products and services, product lines, and product
mixes
– Discuss branding strategy-the decisions companies make in
building and managing their brands
– Identify the four characteristics that affect the
marketing of a service and the additional
marketing considerations that services require
– Discuss two additional product issues:
socially responsible product decisions and
international product and services marketing
Principles of Marketing, Sixth Canadian Edition
Three Levels of Product
Copyright © 2005 Pearson Education Inc.
• Product: anything that
10.3
Figure 10.1
can be offered for
attention, acquisition, use,
or consumption to satisfy
a need or want
• Service: any activity
or benefit that can be
offered that is intangible
and does not result in
the ownership of
anything
• Experiences: are
memorable
Principles of Marketing, Sixth Canadian Edition
Copyright © 2005 Pearson Education Inc.
Product Classifications
• Consumer goods:
– Convenience goods
– Shopping goods
– Specialty goods
– Unsought goods
10.4
• Industrial goods:
– Materials and parts
– Capital items
– Supplies and services
• Marketable offerings:
– Organizations
– Person marketing
– Place marketing
– Social (ideas) marketing
Principles of Marketing, Sixth Canadian Edition
Product and Service Decisions
Copyright © 2005 Pearson Education Inc.
• Product attributes:
10.5
• Branding:
– Product quality
– Product features
– Product style and design
– Name, term, sign, or
symbol
– Used to identify the
goods of a seller
– Differentiate from its
competition
Figure 10.2
Principles of Marketing, Sixth Canadian Edition
Product and Service Decisions (continued)
Copyright © 2005 Pearson Education Inc.
• Packaging:
10.6
• Labelling:
– Hold the contents
– Protect the product
– Store, identify, and ship
the product
– Place for labelling
– Used as a promotional
tool
–
–
–
–
–
Identify the product
Weights/measures
Description/instructions
Ingredients
Nutritional information
Figure 10.2
Principles of Marketing, Sixth Canadian Edition
Product Line Decisions
10.7
Copyright © 2005 Pearson Education Inc.
• Product line:
– Group of closely related products due to function, similar
target markets, outlets sold in, or similar pricing
• Length: number of
items in the line
• Line stretching:
adding items to either end
of the line, can be
upwards, downwards, or
both
• Line filling: adding
items within the product
line
• Product mix: set of all
product lines
• Width: # of product lines
• Length: # of products in
lines
• Depth: # of versions of each
product carried
• Consistency: how closely
related the product lines are
Principles of Marketing, Sixth Canadian Edition
10.8
Major Brand Strategy Decisions
Copyright © 2005 Pearson Education Inc.
• Brand equity:
– Positive differential effect that knowing the brand name has on
customer response to the product or service
– Value of the brand based on awareness, recognition, loyalty
– Used for line and brand extension strategies
Figure 10.3
Principles of Marketing, Sixth Canadian Edition
Major Brand Strategy Decisions (continued)
10.9
Copyright © 2005 Pearson Education Inc.
• Brand name selection:
–
–
–
–
–
–
Suggest something about the product’s benefits
Easy to pronounce, recognize, and remember
Distinctive
Extendable
Ability to be translated into other languages
Capable of being registered and legally protected
Figure 10.3
Principles of Marketing, Sixth Canadian Edition
Major Brand Strategy Decisions (continued)
10.10
Copyright © 2005 Pearson Education Inc.
• Brand sponsorship:
– Manufacturer’s (national) brands
– Private (store) brand
– Issues:
• Slotting fees:
• Profitability of private label to retailers
• Control of shelf space
Figure 10.3
Principles of Marketing, Sixth Canadian Edition
10.11
Brand Development Strategies
Copyright © 2005 Pearson Education Inc.
Figure 10.4
Principles of Marketing, Sixth Canadian Edition
10.12
Four Service Characteristics
Copyright © 2005 Pearson Education Inc.
• Service: any activity or benefit that one party can offer to another
that is essentially intangible and does not result in the ownership of
anything
Figure 10.5
Principles of Marketing, Sixth Canadian Edition
10.13
Copyright © 2005 Pearson Education Inc.
The Service Profit Chain
• The chain that links
service firm profits with
employee and customer
satisfaction
Internal service quality
Internal service quality
Internal service quality
Internal service quality
Internal service quality
Principles of Marketing, Sixth Canadian Edition
10.14
Marketing in Service Industries
• Internal marketing: marketing by a service firm to train and
Copyright © 2005 Pearson Education Inc.
motivate customer contract employees to provide customer satisfaction
• Interactive
marketing:
marketing by a service
firm that recognizes
that service quality
depends on the quality
of the buyer-seller
interaction
Figure 10.6
Principles of Marketing, Sixth Canadian Edition
Managing Service Differentiation
10.15
Copyright © 2005 Pearson Education Inc.
• Price competition
• Differentiate offer by:
– Innovative features
– Service delivery
– Images or symbols
– Service quality
– Service recovery
• Service productivity
Principles of Marketing, Sixth Canadian Edition
Additional Product Considerations
10.16
Copyright © 2005 Pearson Education Inc.
• Product decisions and social responsibility
–
–
–
–
Government regulation
Food and product safety
Pricing and advertising
Labelling, weights, and measures
– Hazardous products
– Product liability
• International product and service marketing
–
–
–
–
Standardization versus local adaptation
Electrical standards, packaging
Cultural differences in meaning
Barriers to trade
Principles of Marketing, Sixth Canadian Edition
In Conclusion…
10.17
Copyright © 2005 Pearson Education Inc.
• The learning objectives for this chapter were:
– Define product and the major classifications of products and
services
– Describe the decisions companies make regarding their individual
products and services, product lines, and product mixes
– Discuss branding strategy-the decisions companies make in
building and managing their brands
– Identify the four characteristics that affect the
marketing of a service and the additional
marketing considerations that services
require
– Discuss two additional product issues:
socially responsible product decisions and
international product and services marketing
Principles of Marketing, Sixth Canadian Edition