marketing kotler product service and brands moghimi
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Lecturer: Bahman MoghimiDoctor of Business AdministrationM.Sc. Of “Industrial Marketing & e-Commerce”
Product, services, and branding strategyUniversity of Georgia
Looking Ahead
Define product and the major classifications of products and services.
Describe the roles of product and service branding, packaging, labeling and product support services.
Explain the decisions companies make when developing product lines and mixes.
Identify the four characteristics that affect the marketing of a service.
Discuss the additional marketing considerations that services require.
Definitions
Product: any market offering that is intended to satisfy a want or need.
Service: a type of product that is intangible and does not result in the ownership of anything.
Experience: a type of product that combines a service or physical product with a memorable experience.
What is a Product ?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, events, persons, places, organizations, ideas or some combination thereof.
What is a Service ?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 preparation, home repairs.
Figure 11- Core benefit; What is the buyer is really buying? Example:
People buy camcorders to capture important moment.2- Actual product; Features, brand name, quality, and packaging
help the product to be delivered, like Features of the camcorder.
3- Augmented product; additional consumer services after sale. Warranty, delivery, credit, installation, service
Levels of product and services
1- Consumer products; products and services bought by end users. Convenience, shopping, specialty, and unsought products ( Figure 2).
2- Industrial products; purchase for further processing or for use in conducting a business. Material, parts, capital items, and supplies and services.
3- Organizations, persons, places, and ideas;- Corporate image advertising- People; lawyers, doctors,,, market them-selves.- places; attract people to cities, region…- Ideas; crest “ create smiles everyday”. Social ideas to create social marketing to influence people
Products and Services Classifications;
Unsought ProductsUnsought ProductsNew innovations Products consumers don’t want to think about Require much advertising &personal sellingi.e. Life insurance, blood donation
Consumer products
Specialty ProductsSpecialty Products Special purchase efforts High price Unique characteristics Brand identification Few purchase locationsi.e. Lamborghini, Rolex
Shopping ProductsShopping Products
Buy less frequently Higher price Fewer purchase locations Comparison shop i.e. Clothing, cars, appliances
Convenience ProductsConvenience Products
Buy frequently & immediately Low pricedMass advertisingMany purchase locationsi.e. Candy, newspapers
Social marketing: The use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society.
Product and Service decisions11-- Product Product attributes:attributes:
Quality. Performance and satisfaction includes level and consistency.
Features. Differentiates a product from the competition. Assessed based on value and cost.
Style and design. Style equals appearance: Design is the heart of the product.
22-- Branding:Branding:Is a name, term, sign, symbol, design or combination of these that identifies the maker or seller of a product or service.
Advantages to Branding Buyers: IdentificationQuality and value
Sellers Tells a story Provides legal
protectionHelps segments markets
Brand Equity Higher brand loyalty Name awareness Perceived quality Strong brand associations Patents, trademarks,
channel relationships
Product and Service decisions (Cont.)
3- Packaging: Developing a good wrapper for a product. Packaging concept. Package elements. Product safety. Environmental concerns.
4- Labeling: Identify the product Weights/measures Description/instructions Ingredients Nutritional information
Product and Service decisions (Cont.)
5- Product support services; Customer service
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 delights the customers and
yields profits for the company.
Product and Service decisions (Cont.)
Product Line Decisions
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 product line. - Line stretching: adding items to either. High-end of the line can be stretched downwards. Marriott, Mercedes.- Line filling: adding items within the product line range.
Increase sizes,
Product Mix Decisions
A product mix (product portfolio) consists of all the product lines and items that a particular seller offers for sale
Width Length
Depth Consistency
Branding Strategy : Building strong Brands
Brand equity:
Positive differential effect that knowing the brand name has on customer response to the product or service.
Brands are more than just names and symbols. Brands represent consumer’s perceptions and feelings about a product and its performance.
Brands exits in the mind of consumers.
Major Brand Strategy Decisions: Figure [email protected]
1- Brand positioning: Can position brands at any of three levels. Product attributes. Product benefits. Consumer beliefs and values.
2 - Brand name selection: Suggest something about the product’s benefits Easy to pronounce, recognize, and remember Distinctive and Extendable Ability to be translated into other languages Capable of being registered and legally protected
Major Brand Strategy DecisionsMajor Brand Strategy Decisions
3- Brand sponsorship: Manufacturer’s brand Brand sponsored and promoted by the producer of the good,
such as Pepsi, IBM. Private brand Brand created and owned by a reseller
of a product or service such as President’s Choice. Licensing 4- Brand development, Figure 4
Major Brand Strategy DecisionsMajor Brand Strategy Decisions
Some Definitions Licensing. Most manufacturers take years and spend millions to create their own
brand names. However, some companies license names or symbols previously created by other manufacturers, names of well-known celebrities, or characters from popular movies and books. For a fee, any of these can provide an instant and proven brand name.
Co-branding. The practice of using the established brand names of two different companies on the same product.
............................................................. Line extension. Extending an existing brand name to new forms, colors, sizes,
ingredients, or flavors of an existing product category. Ex.. Coke. Brand extension. Extending an existing brand name to new product categories. For
example, Kellogg’s has extended its Special K cereal brand into a full line of cereals plus lines of crackers, fruit crisps, snack and nutrition bars, breakfast shakes, protein waters, and other health and nutrition products.
Multi-branding. offers a way to establish different features that appeal to different customer segments, lock up more reseller shelf space, and capture a larger market share. For example, P&G’s six laundry detergent brands combined capture a whopping 62 percent of the U.S. laundry detergent market
New Brand. …[email protected]
Service Marketing
Service Service CharacteristicsCharacteristics
Intangibility. Cannot be seen, tasted, felt or smelled before purchasing.
Inseparability. Consumed when it is provided and cannot be separated
from the provider. Variability. Quality depends on who provides.
Perishability. Cannot be stored or resold. Figure 5
Marketing in Service IndustriesService profit chainService profit chain::1- Internal service quality: selecting, hiring, training, talent employees leads to :2- Satisfied employees: loyal productive, happy employees lead to:3- Greater service value: High quality service delivery leads to:4- Satisfied and loyal customers; loyal, repeat purchase leads to;5- Business growth and profit: superior service performance.
InternalService quality
Satisfiedemployees
ServiceValue
Satisfiedcustomers
Profit&
growth
Managing Service Differentiation Differentiate offer by: Innovative features Service delivery Images or symbols
Service quality Service recovery: retain angry customers Service productivity:
- lowering the overhead costs- Increase service productivity
Additional Product Considerations
Product decisions and social responsibility Government regulation Food and product safety Pricing and advertising Labeling, 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
