kotler09_exs - Product, Services, and Branding Strategies...

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Unformatted text preview: Product, Services, and Branding Strategies Branding Cha pte r 9 Objectives • Be a ble to de fine product a nd know the Be p roduct m a jor cla s s ifica tions of products a nd s e rvice s . • Unde rs ta nd the de cis ions compa nie s Unde m a ke re ga rding the ir individua l p roducts a nd s e rvice s , product line s , a nd product mixe s . Objectives • Unde rs ta nd how firms build a nd Unde ma na ge the ir bra nds . ma • Know the four cha ra cte ris tics of Know s e rvice s a nd the a dditiona l ma rke ting cons ide ra tions tha t s e rvice s re quire . c ons • R e vie w a dditiona l product is s ue s Re re la te d to s ocia l re s pons ibility a nd inte rna tiona l ma rke ting. inte Case Study The Co s me tic s Indus try • Co s me tic s • The “pro mis e ”, Co The c o mpanie s s e ll imag e , c o mpany, b illio ns o f n ame , pac kag e , d o llars wo rth o f a nd ing re die nts pro duc ts a re all part o f the p ro • Co ns ume rs buy p ro duc t, as are the Co m o re than jus t a s to re s whe re it is s o ld. partic ular s me ll p artic Definitions • P roduct Anything offe re d to a ma rke t for a tte ntion, Anything a cquis ition, us e , or cons umption tha t might s a tis fy a ne e d or wa nt. m ight • S e rvice Any a ctivity or be ne fit tha t one pa rty ca n Any o ffe r to a nothe r tha t is e s s e ntia lly inta ngible a nd doe s not re s ult in owne rs hip of a nything. o wne What is a Product? • P roducts , S e rvice s , a nd Expe rie nce s E xpe Ma rke t offe rings , pure ta ngible Ma goods , pure s e rvice s , e xpe rie nce s g oods • Le ve ls of P roduct a nd S e rvice s C ore be ne fit, a ctua l product, a nd Core a ugme nte d product • P roduct a nd S e rvice Cla s s ifica tions What is a Product? Type s o f Type Co ns ume r Pro duc ts P ro • Conve nie nce • S hopping • S pe cialty • Uns ought • F re que nt purcha s e s Fre b ought with minima l b uying e ffort a nd little compa ris on s hopping c ompa • Low price • Wide s pre a d Wide dis tribution d is • Ma s s promotion by Ma produce r p roduce What is a Product? Type s o f Type Co ns ume r Pro duc ts P ro • Conve nie nce • S hopping • S pe cialty • Uns ought • Le s s fre que nt purcha s e s Le re quiring more s hopping e ffort a nd price , qua lity, a nd s tyle compa ris ons . • Highe r tha n conve nie nce Highe good pricing g ood • S e le ctive dis tribution in fe we r outle ts fe • Adve rtis ing a nd pe rs ona l Adve s e lling by produce r a nd re s e lle r re What is a Product? Type s o f Type Co ns ume r Pro duc ts P ro • Conve nie nce • S hopping • S pe cialty • Uns ought • S trong bra nd pre fe re nce a nd loya lty, re quire s s pe cia l purcha s e e ffort, little bra nd compa ris ons , a nd low price s e ns itivity • High price • Exclus ive dis tribution • C a re fully ta rge te d Ca p romotion by produce rs a nd re s e lle rs What is a Product? Type s o f Type Co ns ume r Pro duc ts P ro • Conve nie nce • S hopping • S pe cialty • Uns ought • Little product a wa re ne s s Little a nd knowle dge (or if a wa re , s ome time s ne ga tive inte re s t) ne • P ricing va rie s • Dis tribution va rie s • Aggre s s ive a dve rtis ing Aggre a nd pe rs ona l s e lling by produce rs a nd re s e lle rs p roduce What is a Product? • P roduct a nd S e rvice Cla s s ifica tions C la Cons ume r products Indus tria l products Mate rials and parts Mate Capital ite m s C apital S upplie s and s e rvice s What is a Product? • P roduct a nd S e rvice Cla s s ifica tions O rga niza tions , pe rs ons , pla ce s , a nd Orga ide a s ide O rganiz ational m arke ting m ake s us e of corporate im age adve rtis ing c orporate P e rs on m arke ting applie s to political c andidate s , e nte rtainm e nt s ports figure s , and profe s s ionals p rofe Place m arke ting re late s to touris m P lace S ocial m arke ting cam paigns prom ote ide as Product and Service Decisions Ke y De c is io ns Ke • Individual Product • P roduct Line Product • Product Mix • P roduct a ttribute s Q ua lity, fe a ture s , s tyle Qua a nd de s ign • • • • Bra nding P a cka ging La be ling P roduct s upport s e rvice s Product and Service Decisions Ke y De c is io ns Ke • Individual Product • Product Line • Product Mix • P roduct line le ngth Line s tre tching: a dding products tha t a re highe r or lowe r p rice d tha n the e xis ting line Line filling: a dding m ore ite ms within the pre s e nt price ra nge p re Product and Service Decisions Ke y De c is io ns Ke • Individual Product • P roduct Line Product • Product Mix • P roduct line width: n umbe r of diffe re nt numbe p roduct line s ca rrie d by compa ny by • P roduct line de pth: Numbe r of diffe re nt Numbe ve rs ions of e a ch product in the line p roduct • P roduct line cons is te ncy c ons Branding Strategy • Bra nds a re powe rful a s s e ts tha t Bra m us t be ca re fully de ve lope d / ma na ge d. ma • Bra nds with s trong e quity ha ve Bra ma ny compe titive a dva nta ge s : ma High cons ume r a wa re ne s s High S trong bra nd loya lty He lps whe n introducing ne w products Le s s s us ce ptible to price compe tition Brand Strategy Ke y De c is io ns Ke • Brand Pos itioning • B rand Nam e Brand S e le ction • Brand S pons ors hip • B rand Brand De ve lopm e nt De • Thre e le ve ls of Thre pos itioning: p os P roduct a ttribute s Le as t e ffe ctive Le Be ne fits Be lie fs a nd va lue s T aps into e m otions Brand Strategy Ke y De c is io ns Ke • Brand Pos itioning • B rand Nam e Brand S e le ction • Brand S pons ors hip • B rand Brand De ve lopm e nt De • Good Bra nd Na me s : S ugge s t s ome thing a bout the product or its be ne fits the Are e a s y to s a y, re cognize Are a nd re me mbe r Are dis tinctive Are e xte nda ble Tra ns la te we ll into othe r Tra la ngua ge s la C a n be re gis te re d a nd Ca le ga lly prote cte d le Brand Strategy Ke y De c is io ns Ke • Brand Pos itioning • B rand Nam e Brand S e le ction • Brand S pons ors hip • B rand Brand De ve lopm e nt De • Ma nufa cture r bra nds • P riva te (s tore ) bra nds C os tly to e s ta blis h a nd Cos promote p romote Highe r profit ma rgins • Lice ns e d bra nds Na me a nd cha ra cte r Na lice ns ing ha s grown lice • Co-bra nding Adva nta ge s / Adva dis a dva nta ge s d is Brand Strategy Ke y De c is io ns Ke • Brand Pos itioning • B rand Nam e Brand S e le ction • Brand S pons ors hip • B rand Brand De ve lopm e nt De • Line e xte ns ions Minor cha nge s to e xis ting Minor products p roducts • Bra nd e xte ns ions S ucce s s ful bra nd na me s h e lp introduce ne w products p roducts • Multibra nds Multiple product e ntrie s in Multiple a product ca te gory p roduct • Ne w bra nds Ne w product ca te gory Brand Strategy Line Exte ns io ns May Fe ature Diffe re nt: May • Fla vors • Colors • Forms • Ingre die nts • P a cka ge S ize s Services Marketing • S e rvice s Account for 74% of U.S . gros s Account dome s tic product. d ome S e rvice indus trie s include bus ine s s o rga niza tions , gove rnme nt, a nd priva te not-for-profit orga niza tions . p riva Services Marketing • Cha ra cte ris tics of S e rvice s Inta ngibility Cons um e rs look for s e rvice quality s ignals C ons Ins e pa ra bility S e rvice s can’t be s e parate d from provide rs Va ria bility E m ploye e s and othe r factors re s ult in variability v ariability P e ris ha bility S e rvice s can’t be inve ntorie d for late r s ale Services Marketing • S e rvice Firm Ma rke ting S tra te gie s The S e rvice -P rofit Cha in Inte rnal Marke ting Inte Inte ractive Marke ting Inte Ma na ging S e rvice Ma na ging S e rvice Ma na ging S e rvice Diffe re ntia tion Qua lity P roductivity Additional Product Considerations • P roduct De cis ions a nd S ocia l Re s pons ibility Re Acquis itions a nd me rge rs Le ga l complia nce P roduct lia bility is s ue s Wa rra ntie s Additional Product Considerations • Inte rna tiona l P roduct a nd S e rvice s Inte Ma rke ting Ma S pe cia l cha lle nge s : W hich products s hould be m arke te d inte rnationally? S hould the products be s tandardiz e d or adapte d for world m arke ts ? a dapte How s hould packaging be adapte d? How How can othe r barrie rs be ove rcom e ? How ...
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