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Principles of Marketing Chapter 8

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169 views36 pages

Principles of Marketing Chapter 8

Uploaded by

Mahmud Ahmed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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08

The Product
At the heart of a great brand
is a great product
Definitions
• Product
 Anything offered to a market for attention,
acquisition, use, or consumption that might
satisfy a need or want.
• 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.

8-3
What is a Product?
• Products, Services, and Experiences
 Market offerings may consist of a
combination of goods and services
 Experiences are used to differentiate
offerings
• Levels of Product and Services
 Core benefit, actual and augmented
product
• Product and Service Classifications
 Consumer products and industrial products

8-4
Three Levels of Product

8-5
Product Classification
Schemes

Durability

Tangibility

Use

8-6
Durability and Tangibility

Nondurable
goods

Durable
Services
goods

8-7
Product Classifications
Consumer Products
Convenience Products Shopping Products
 Buy frequently & immediately  Buy less frequently
 Low priced  Higher price
 Mass advertising  Fewer purchase locations
 Many purchase locations  Comparison shop
i.e Candy, newspapers i.e Clothing, appliances

Specialty Products Unsought Products

 Special purchase efforts  New innovations


 High price  Products consumers don’t
 Unique characteristics want to think about these products
 Brand identification  Require much advertising &
 Few purchase locations personal selling
i.e can be anything 8-8
i.e Life insurance, blood donation
Product and Service
Classifications
• Consumer products
• Industrial products
 Materials and parts
 Capital items
 Supplies and services

8-9
Product and Service
Decisions

Key Decisions • Product


attributes
• Individual
 Quality,
Product features, style
• Product Line and design
• Product Mix • Branding
• Packaging
8 - 10
• Labeling
Packaging: The 5th P

All the activities of designing and producing


the container for a product.

8 - 11
Packaging has been influenced
by…
Self-service

Consumer affluence

Company/brand image

Innovation opportunity

8 - 12
Functions of Labels

Identifies

Grades

Describes

Promotes

8 - 13
Product and Service
Decisions
• Product line
Key Decisions  A group of
products that
• Individual are closely
Product related
• Product Line because they
may:
• Product Mix • function in a
similar manner
• be sold to the
same customer8 - 14
Product and Service
Decisions

Key Decisions • Product line length


 Line
• Individual stretching:
Product adding
• Product Line products that
• Product Mix are higher or
lower priced
than the 8 - 15
existing line
Product and Service
Decisions

Key Decisions • Product mix


 Also known as
• Individual product
Product assortment
• Product Line  Consists of all
• Product Mix the product
lines and
items that a
8 - 16
particular
Product and Service
Decisions

Key Decisions • Product mix


width:
• Individual
 Number of
Product different
• Product Line product lines
• Product Mix carried by
company
• Product line 8 - 17

depth:
Product width/length
PRODUCT MIX WIDTH
PRODUCT LINE LENGTH

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Brand

A name, term, sign, symbol


or design, or a combination of them,
intended to identify the goods
or services of one seller or group
of sellers and to differentiate
them from those of competitors.

8 - 19
The Role of Brands

Identify
Identify the
the maker
maker

Simplify
Simplify product
product handling
handling

Organize
Organize accounting
accounting

Offer
Offer legal
legal protection
protection

8 - 20
The Role of Brands

Signify
Signify quality
quality

Create
Create barriers
barriers to
to entry
entry

Serve
Serve as
as aa competitive
competitive
advantage
advantage

Secure
Secure price
price premium
premium

8 - 21
Brand Equity

The differential effect that brand


knowledge has on consumer
response to the
marketing of that brand.

8 - 22
Branding Strategy

• Brands with strong equity have


many competitive advantages:
 High consumer awareness
 Strong brand loyalty
 Helps when introducing new
products
 Less susceptible to price competition

8 - 23
The 10 Most Valuable Brands
(Source: Millward Brown)
Brand 2011 Brand Value (Billions)
Apple $153
Google $115
IBM $101
McDonalds $78
CocaCola $74
AT&T $70
Marlboro $68
China Mobile $57
GE $50
ICBC $44

8 - 24
Brand Elements
Brand
names URLs

Slogans
Elements
Logos

Characters
Symbols
8 - 25
Brand Elements

8 - 26
Brand Elements

Companies often create product icons to develop an


identity for their products. Many made-up creatures
and personalities, such as Çelik, Sütaş İnek and
Yumoş Ayı, are widely recognized figures in popular
culture.
8 - 27
Brand Element Choice
Criteria

• Memorable • Transferabl
• Meaningful e
• Likeability • Adaptable
• Protectible
8 - 28
Slogans
• Like a good neighbor, • We try harder
State Farm is there • We’ll pick you up
• Just do it • Nextel – Done
• Nothing runs like a • Zoom Zoom
Deere • I’m lovin’ it
• Help is just around the
• Innovation at work
corner
• Save 15% or more in 15
• This Bud’s for you
minutes or less • Always low prices

8 - 29
Brand Strategy

Key Decisions • Three levels of


positioning:
• Brand Positioning
 Product
• Brand Name
Selection
attributes
• Least effective
• Brand Sponsorship
• Brand Development  Benefits
 Beliefs and
values
8 - 30
• Taps into
Brand Strategy
• Good Brand Names:
Key Decisions  Suggest something
about the product or its
• Brand Positioning benefits
 Are easy to say,
• Brand Name recognize and
Selection remember
• Brand Sponsorship  Are distinctive
 Are extendable
• Brand Development
 Translate well into
other languages
 Can be registered and
legally protected 8 - 31
Brand Strategy

Key Decisions • Manufacturer brands


• Private (store) brands
• Brand Positioning  Costly to establish and
promote
• Brand Name  Higher profit margins
Selection • Licensed brands
• Brand Sponsorship  Name and character
• Brand Development licensing has grown
• Co-branding
 Advantages /
disadvantages
8 - 32
8 - 33
New Brands Multibrands New
OYAK - Tukaş Arçelik - Beko
Brand Name

Brand Extension Line Extension Existing


Arçelik TV-A/C Arçelik New Refrigerators
New Existing
Product Category
Four Brand Strategies
Services Marketing

• Services
 Account for 74% of U.S. gross
domestic product.
 Service industries include
business organizations,
government, and private not-
for-profit organizations.
8 - 34
Four Services
Characteristics

8 - 35
Nature and Characteristic
of a Service
Intangibility
Intangibility Can’t be seen, tasted, felt, heard,
or smelled before purchase.

Can’t be separated from service


providers.
Inseparability
Inseparability

Variability
Variability Quality depends on who provides
them and when, where and how.

Can’t be stored for later sale or


Perishability
Perishability
use.
CHP: 9&12&13&20-36

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