Professional Documents
Culture Documents
Armstrong, Kotler
Chapter Seven
Product, services, and branding strategy
Looking Ahead
Product Definition
Product:
Product Definition
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.
Service Definition
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.
Levels of Product
Figure 1
Consumer products
Convenience Products
Shopping Products
Low priced
Mass advertising
Many purchase locations
i.e Candy, newspapers
Higher price
Fewer purchase locations
Comparison shop
i.e Clothing, cars, appliances
Specialty Products
Unsought Products
New innovations
High price
Unique characteristics
Brand identification
Few purchase locations
i.e Lamborghini, Rolex
Features.
2- Branding
Is a name, term, sign, symbol, design or combination of
these that identifies the maker or seller of a product or
service.
Brand Equity
Advantages to Branding
Higher brand loyalty
Buyers:
Identification
Name awareness
Quality and value
Perceived quality
Sellers
Strong brand
Tells a story
associations
Provides legal
Patents, trademarks,
protection
channel relationships
Helps segments
markets
3- Packaging:
Packaging concept.
Package elements.
Product safety.
Environmental concerns.
4- Labeling:
.
5- Product support services; Customer service
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 consumers
perceptions and feelings about a product
and its performance.
Brands exits in the mind of consumers.
Major Brand Strategy Decisions: Figure 3
Figure 10.3
Product attributes.
Product benefits.
Consumer beliefs and values.
3- Brand sponsorship:
Manufacturers brand
Private brand
Service Marketing
Service Characteristics
Intangibility.
Inseparability.
Variability.
Perishability.
Internal
Service
quality
Satisfied
employees
Service
Value
Satisfied
customers
Profit
&
growth
Innovative features
Service delivery
Images or symbols
Service quality
Service recovery: retain angry customers
Service productivity
- lowering the overhead costs
- Increase service productivity
Government regulation
Food and product safety
Pricing and advertising
Labeling, weights, and measures
Hazardous products
Product liability