Product, Service and Branding Product, Service and Branding StrategyStrategybyby
Kotler on Marketing
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The best way to hold customers is to constantly figure out how to give them more for less.
PRODUCTAny thing that can be
offered to market for attention, acquisition, use or consumption that might satisfy a want or need.
Services, physical objects, events, persons , places, organizations, ideas are all PRODUCTS
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Products, Services, and Experiences
Product is a key element in the market offering.
Marketing mix begins with planning product
Offering brings value and that value becomes the basis for profitable relationships with customers.
PURE tangible goods , PURE services
Now companies are differentiating and giving experiences rather than JUST products or services
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The Product and the Product Mix
Product levelsCore Benefit (problem
solving benefit)Hotel, Drill
Actual Product Augmented Product
(offering additional services and benefits)Warranties, toll free numbers
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Product and Service Classifications
Consumer Products
Industrial Products
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Product and Service DecisionMarketers make
product and services decisions at three levels.
Individual Product Decisions,
Product Line decisions,
Product Mix decision
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Individual Product Decision
Defining the benefits that the product will offer
Quality: Major marketing tool, linked to customer value and satisfaction
Features: Competitive tools for differentiation
HOW CAN A COMPANY ADD FEATURES??
Cost versus benefit should also be analyzed
Product Attributes
Support ServicesBranding LabelingPackaging
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Individual Product Decision
Brand: A name, term , sign , symbol, or design or a combination or these intended to identify the goods or services fo one seller or group of sellers and to differentiate them from those of competitors.
Hardly any thing goes unbranded
Helps in identifying , tells about product quality, helps segment the market
Product Attributes
Support ServicesBranding LabelingPackaging
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Individual Product Decision
Container or wrapper of a product
Primary container, secondary container, shipping packages
Primary function was to protect the product but now it performs many sales tasks. (attracting attention, describing the product, making the sale)
Helps in instantly recognizing the product.
Product Attributes
Support ServicesBranding LabelingPackaging
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Individual Product Decision
In an average supermarket, which stocks 15,000 to 17,000 items, the typical shopper passes by some 300 items per minute, and more than 60 percent of all purchases are made on impulse. In this highly competitive environment, the package may be the sellers last chance to influence buyers.
Product Attributes
Support ServicesBranding LabelingPackaging
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Individual Product Decision
Printed information appearing on or with the packages.
Identifies the products, describe several things about the product, promote the product (through attractive packaging)
Open Dating (expected shelf life) , Nutritional Labeling
Product Attributes
Support ServicesBranding LabelingPackaging
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Individual Product Decision
Surveying customers, assessing the cost of providing of theses services and providing the services
Services such as E-mail, fax, warranty and so on.
Product Attributes
Support ServicesBranding LabelingPackaging
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Product-Mix Width and Product-Line Length for Proctor& Gamble Products
PRODUCT-PRODUCT-LINE LINE LENGTHLENGTH
Product-Mix WidthProduct-Mix Width
DetergentsDetergents ToothpasteToothpasteDisposable Disposable Bar SoapBar Soap DiapersDiapers
Paper Paper TissueTissue
Ivory Snow Ivory Snow (1930)(1930)
Dreft Dreft (1933)(1933)
Tide Tide (1946)(1946)
Cheer Cheer (1950)(1950)
Gleem (1952)Gleem (1952)
Crest (1955)Crest (1955)
Ivory Ivory (1879)(1879)
Kirk’s Kirk’s (1885) (1885)
Lava Lava (1893)(1893)
Camay Camay (1926)(1926)
Pampers Pampers (1961)(1961)
Luvs Luvs (1976)(1976)
Charmin Charmin (1928) (1928)
Puffs Puffs (1960)(1960)
Banner Banner (1982)(1982)
Summit Summit (1992)(1992)
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Product Line DecisionsProduct-line decisions
Product-line length analysisSales and Profits
A company can lengthen its product line in two ways.Line Stretching
Stretching beyond current range. Downward (Mercedes to Mercedes C class), Upward (Toyota to Lexus), Both Directions (Marriot Hotels)
Line Filling Adding more items within the
present range of the line. Reasons ??
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Product Mix Decisions Product mix : The set of all the
product lines and items that a particular seller offers for sale.
Four Dimensions of Product MixMix Width (number of product
lines)Mix Length (total number of
items within product lines) Line Depth ( versions offered of
each product in the lineConsistency (how closely related
the product lines are in end use, production requirement, distribution channels, etc
THIS ANALYSIS HELPS COMPANIES TO MAKE STRATEGIES5-16
Branding StrategyBRAND EQUITY
Brand are powerful assetsThe real value of the brand is its
power to capture consumer preference and loyalty.
A powerful brand has high brand equity. A measure of a brand’s equity is the extent to which customers are willing to pay more for the brand.
A powerful brand name offers the company some defense against fierce price competition.
Powerful brand forms the basis for building profitable customer relationships.
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Building Stronger Brands
Three levels of positioningProduct Attributes
Least desirable, competitors can copy.
Benefits
Beliefs and ValuesCrest not talking about cavity protection, but giving
beautiful smiles for lifeTapal talking about FAMILY REALTIONS
Brand Positionin
g
Brand Developme
nt
Brand Name
Selection
Brand Sponsorsh
ip
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Building Stronger Brands
A good name can add greatly to a product’s success.
Desirable qualities for a brand name includeIt should suggest something about the productShould be easy to pronounceShould be distinctiveShould be extendableShould translate into foreign languages. Should be capable of registration and legal protection.
Brand Positionin
g
Brand Developme
nt
Brand Name
Selection
Brand Sponsorsh
ip
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Building Stronger Brands
Manufacturer’s brands versus private brand
Licensing
Co Branding
Brand Positionin
g
Brand Developme
nt
Brand Name
Selection
Brand Sponsorsh
ip
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Building Stronger Brands
A company has four choices when it comes to brand development
Brand Positionin
g
Brand Developme
nt
Brand Name
Selection
Brand Sponsorsh
ip
Brand Name
Product CategoryExisting New
Existing
Line Extension Brand Extension
NewMulti Brands New Brands
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Building Stronger Brands
Line ExtensionNew flavors, new sizesLow cost, low risk way to introduce new products. Extension may come at the expense of other items in the
line , or may cause customer confusion or frustration. A line extension works best when it takes sales away
from competing brands, not when it “cannibalizes” the company’s other items.
Brand Positionin
g
Brand Developme
nt
Brand Name
Selection
Brand Sponsorsh
ip
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Building Stronger Brands
Brand ExtensionUse of successful brand name to launch new or modified
products. Gives new product instant recognitionSaves high advertising cost May confuse the image of main brandMay not be appropriate to particular products
Brand Positionin
g
Brand Developme
nt
Brand Name
Selection
Brand Sponsorsh
ip
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Building Stronger Brands
Multi BrandsAdditional Brand in the same categoryAllows companies to lock up more reseller shelf space.Major drawback: Brand might obtain only a small
market share.
Brand Positionin
g
Brand Developme
nt
Brand Name
Selection
Brand Sponsorsh
ip
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Building Stronger Brands
New BrandsCompany may create new brand when entering new
category. As with multi branding, offering too many new brands
can result in a company spreading its resources too thin.
Brand Positionin
g
Brand Developme
nt
Brand Name
Selection
Brand Sponsorsh
ip
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Managing BrandsBrand positioning must be
continuously communicated to consumers
Brands are not just maintained through advertising, but by brand experience. Therefore, companies should take care of all the customer touch points.
Companies must periodically audit their brand’s strengths and weakness.
The brand audit may turn up brands that need to be repositioned because of changing customer preferences or new competitors. 5-26
NEXT SESSION
Product Life Cycle
Article : Using sense to build powerful brands
Article : Too many flops
5-27