Products, Services and Brands. The Product-Service Continuum Sugar Restaurant Education Pure...
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Products, Services and Brands. The Product-Service Continuum Sugar Restaurant Education Pure Tangible Good Pure Service Offer another example of a pure
The Product-Service Continuum Sugar Restaurant Education Pure
Tangible Good Pure Service Offer another example of a pure
service.
Slide 3
What Is a Product? Anything offered to a market that satisfies
a want or need. Includes: physical objects, services, events,
persons, places, organizations, ideas, or some combination
thereof.
Slide 4
What Is a Service? Activities, benefits, or satisfactions
offered to a market that are essentially intangible and do not
result in the ownership of anything. Examples: banking, hotel,
airline, retail, tax preparation, home repairs.
Slide 5
7-5 Consumer Experiences In-store Theater is more important
than ever Consider ALL consumer touch-points Eliminate shopping
drudgery Work fun into the shopping experience, but dont overdo it
Knot Tying Clinic Art Gallery Entrance
Slide 6
Three Levels of Product
Slide 7
Individual Product Decisions
Slide 8
Product Attributes Quality Performance vs. Conformance quality
Benefits vs. Features Consumers generally value benefits, not
features Style and design Influences product choice and experience
Price What is an attribute?
Slide 9
Branding A brand is a name, term, sign, symbol, or design, or a
combination of these that identifies the maker or seller of a
product or service. Product = Body Brand = Soul
Slide 10
Branding - Advantages Advantages to buyers: Eases product
identification Simplifies the purchase process (choice heuristic)
Signal of quality Repository of Trust (- Jordan) Advantages to
sellers: Drive loyalty to company and its products Provides legal
protection Helps segment markets (i.e. Branded Variants)
Slide 11
How Branding Happens
Slide 12
Attributes of Strong Brands Excels at delivering desired
benefits Stays relevant Priced to meet perceptions of value
Positioned properly Communicates consistent brand messages
Well-designed brand hierarchy Uses multiple marketing activities
Understands consumer- brand relationship Supported by organization
Monitors sources of brand equity
Slide 13
Marketing Advantages of Strong Brands Improved perceptions of
product performance Greater loyalty Less vulnerable to competition
Less vulnerable to crises Larger margins Inelastic consumer
response to price increases Elastic consumer response to price
decreases Greater trade cooperation Increase in effectiveness of
IMC Licensing opportunities Brand extension opportunities
Slide 14
Packaging Container, wrapper or external face for a product.
Good packages market the brand effectively protect the internal
elements protect the external elements are easy/straightforward to
use dont become stale over time ensure consumers safety are
responsive to local environmental and social concerns
Slide 15
Dutch Boys packaging innovation offers paint in plastic
containers with twist-off tops. The paint container is easy to
carry, doesnt need a screwdriver to pry open, doesnt dribble when
poured, and doesnt take a hammer to bang the lid shut. Innovative
Packaging
Slide 16
Labeling Printed information appearing on or with the package.
Performs several functions: Identifies or reinforces identification
of product/brand Provides valuable information about product
contents or ingredients Co-promotes the product along with
packaging
Slide 17
The FDA now requires food manufacturers to list trans fat on
the Nutrition Facts portion of product labels. Labeling
Slide 18
The Ethics and Legality of Labeling
Slide 19
Product Line Decisions Product Line Group of products with
variations (flavors/types/appeals). Product Line Stretching
Downward Upward Both directions Product Line Filling Examples Ice
Tea Pet Foods
Slide 20
Marriott offers a full line of hotel brands, each aimed at a
different market. Product Line Stretching - Marriott
Slide 21
Product Mix Decisions Product mix: What combination of products
do we carry? Product mix decisions: Product Line Length: the number
of items in a line. Product Line Width: the number of different
product lines the company carries. (i.e. Wal-Mart has toys, food,
cards, clothes, music, etc.) Product Line Depth: the number of
versions offered of each product in the line. (i.e. 2 or 3
different sizes or sub-types)
Slide 22
Question du Jour Is product variety a blessing or curse for
consumers?
Slide 23
Brand Loyalty & Brand Equity Brand Loyalty Definition:
Willingness to re-purchase due to favorable brand impressions How
measured? Brand Equity Definition: The positive effect that knowing
the brand name has on consumer response to the product.
Psychological Value Financial Value The Link between Brand Loyalty
& Brand Equity
Slide 24
Brand Loyalty Measurement Methods Repeat Purchases Reported
Loyalty Price Sensitivity Analysis Brand Set Squares Method Other
Methods
The BRANDZ Model Presence Relevance Performance Advantage
Bonding
Slide 33
Major Brand Strategy Decisions
Slide 34
Brand Elements Elements Slogans Brand Names URLs Logos Symbols
Characters
Slide 35
Slogans Like a good neighbor, State Farm is there Just do it
Nothing runs like a Deere Help is just around the corner Save 15%
or more in 15 minutes or less We try harder Well pick you up Nextel
Done Zoom Zoom Im lovin it Innovation at work This Buds for you
Always low prices
Slide 36
Brand Element Choice Criteria Memorable Meaningful Likeable
Transferable Adaptable Protectible
Slide 37
Brand Positioning Brands can be positioned at three levels:
Product features/ attributes Least desirable Easily copied Brand
benefits Beliefs and values Hits consumers on a deeper level,
tapping universal emotions.
Slide 38
Brand Name Selection Good Brand Names: 1.Straightforwardly
suggest the products benefits and qualities. 2.Are easy to spell,
pronounce and recognize. 3.Are distinctive and memorable. 4.Are
extendable into different product lines (i.e. facilitate brand
extensions). 5.Translate easily into foreign languages. 6.Provide
the maximum legal protection from infringement.
Slide 39
Boudreauxs Butt Paste is a real product used in the treatment
of diaper rash. Is this a good brand name? Brand Name Selection
Good Brand Names: 1.Straightforwardly suggest the products benefits
and qualities. 2.Are easy to spell, pronounce, recognize, and
remember. 3.Are distinctive and memorable. 4.Are extendable into
different product lines (i.e. facilitate brand extensions).
5.Translate easily into foreign languages. 6.Provide the maximum
legal protection from infringement.
Slide 40
Brand Naming Multi-brand strategies Individual names/ House of
Brands Individual names/ House of Brands Blanket family names/
Branded House Blanket family names/ Branded House Parent/Sub-Brand
combination names
Slide 41
Crest Whitestrips
Slide 42
Brand Sponsorship Manufacturers brands Also called National
Brands (Tide, Coke, Pringles, etc.) Private-label brands Also
called Store or Distributor Brands (Stop & Shops Mi Casa,
Costcos Kirkland) Store vs. Private Label Trends Co-branding
Tag-team Branding ( Waffle House and Minute Maid OJ) Ingredient
Branding (Intel Inside) Mi Casa brand products are only available
at Stop & Shop stores.
Slide 43
Brand Development Strategies
Slide 44
Line Extensions
Slide 45
Brand Extensions
Slide 46
Brand Development Multibranding & New Brands Multi-branding
appeal to different buying motives and segments branded variants
Cannibalization issues Example: Toyota sells Corolla, Camry, Scion,
Yarris New Brands waning power of existing brands or product
portfolio diversification advantages can develop (Black &
Decker develops De Walt) or buy (i.e. Wendys buys Baja Fresh)
Slide 47
Branding Terms Brand line Brand mix Brand extension Sub-brand
Parent brand Family brand Line extension Category extension Branded
variants Licensed product Brand dilution Brand portfolio
Slide 48
Services
Slide 49
Four Service Characteristics
Slide 50
How do the service characteristics of intangibility,
variability, inseparability, and perishability relate to
restaurants? Four Service Characteristics Restaurant Example