The Product

08

At the heart of a great brand is a great product

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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.

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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

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Three Levels of Product

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Product Classification Schemes

Durability

Use

Tangibility

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Durability and Tangibility

Nondurable

goods

ServicesDurable

goods

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Unsought Products

New innovations Products consumers don’t want to think about these products Require much advertising &personal selling i.e Life insurance, blood donation

Product ClassificationsConsumer Products

Specialty Products

Special purchase efforts High price Unique characteristics Brand identification Few purchase locations i.e can be anything

Shopping Products

Buy less frequently Higher price Fewer purchase locations Comparison shop i.e Clothing, appliances

Convenience Products

Buy frequently & immediately Low priced Mass advertising Many purchase locations i.e Candy, newspapers

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Product and Service Classifications

• Consumer products• Industrial products

Materials and parts Capital items Supplies and services

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Product and Service Decisions

• Individual Product

• Product Line • Product Mix

• Product attributes Quality,

features, style and design

• Branding• Packaging• Labeling• Product

support services

Key Decisions

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Packaging: The 5th P

All the activities of designing and producingthe container for a product.

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Packaging has been influenced by…

Self-serviceSelf-service

Consumer affluenceConsumer affluence

Company/brand imageCompany/brand image

Innovation opportunityInnovation opportunity

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Functions of Labels

Identifies

Grades

Describes

Promotes

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Product and Service Decisions

• Product line A group of products that are closely related because they may: •function in a similar manner•be sold to the same customer groups, •be marketed through the same types of outlets •fall within given price ranges

Key Decisions

• Individual Product

• Product Line • Product Mix

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Product and Service Decisions

• Individual Product

• Product Line • Product Mix

• Product line length

Line stretching: adding products that are higher or lower priced than the existing line

Line filling: adding more items within the present price range

Key Decisions

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Product and Service Decisions

• Individual Product

• Product Line • Product Mix

• Product mix Also known

as product assortment

Consists of all the product lines and items that a particular seller offers for sale

Key Decisions

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Product and Service Decisions

• Individual Product

• Product Line • Product Mix

• Product mix width: Number of

different product lines carried by company

• Product line depth: Number of

different versions of each product in the line

• Product mix consistency

Key Decisions

Product width/lengthPRODUCT MIX WIDTH

PR

OD

UC

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INE

LE

NG

TH

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

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Brand

A name, term, sign, symbolor design, or a combination of them,

intended to identify the goodsor services of one seller or group

of sellers and to differentiatethem from those of competitors.

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The Role of Brands

Identify the makerIdentify the maker

Simplify product handlingSimplify product handling

Organize accountingOrganize accounting

Offer legal protectionOffer legal protection

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The Role of Brands

Signify qualitySignify quality

Create barriers to entryCreate barriers to entry

Serve as a competitive advantage

Serve as a competitive advantage

Secure price premiumSecure price premium

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Brand Equity

The differential effect that brandknowledge has on consumer

response to the marketing of that brand.

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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

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The 10 Most Valuable Brands(Source: Millward Brown)Brand 2011 Brand Value

(Billions)Apple $153

Google $115

IBM $101

McDonalds $78

CocaCola

AT&T

Marlboro

$74

$70

$68

China Mobile $57

GE $50

ICBC $44

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Brand Elements

ElementsSlogans

Brand

names URLs

Logos

SymbolsCharacters

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Brand Elements

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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.

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Brand Element Choice Criteria

• Memorable

• Meaningful

• Likeability

• Transferable

• Adaptable• Protectibl

e

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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• We’ll pick you up• Nextel – Done• Zoom Zoom• I’m lovin’ it• Innovation at work• This Bud’s for you• Always low prices

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Slogans• Adını unutabilirsiniz,

tadını asla!• “Hayaaaatın tadıııı!”• Farkı, fiyatı!• Yok aslında

birbirimizden farkımız, ama biz Osmanlı Bankası’yız.

• Ne biçim lastik buuu?• Honda, hayat onda.• Çakar çakmaz çakan

çakmak.• Bira bu kapağın

altındadır.

• Citroen gelir, hayat değişir.

• Türkiye’nin motosikleti.

• Erkek sünnet olur, askerlik yapar, Permatik kullanır!

• Philips hayatımızı kolaylaştıracak.

• Kirlenmek güzeldir.• Tefal, ne varsa sende

var.• Arçelik demek yenilik

demek.• Kalebodur, seramik

budur.

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Brand Strategy

• Brand Positioning• Brand Name

Selection • Brand Sponsorship• Brand

Development

• Three levels of positioning:

Product attributes• Least

effective

Benefits Beliefs and

values• Taps into

emotions

Key Decisions

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Brand Strategy

• Brand Positioning• Brand Name

Selection • Brand Sponsorship• Brand

Development

• Good Brand Names: Suggest something

about the product or its benefits

Are easy to say, recognize and remember

Are distinctive Are extendable Translate well into

other languages Can be registered

and legally protected

Key Decisions

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Brand Strategy

• Brand Positioning• Brand Name

Selection • Brand Sponsorship• Brand

Development

• Manufacturer brands

• Private (store) brands Costly to establish

and promote Higher profit

margins

• Licensed brands Name and character

licensing has grown

• Co-branding Advantages /

disadvantages

Key Decisions

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Line ExtensionArçelik New Refrigerators

MultibrandsArçelik - Beko

Brand ExtensionArçelik TV-A/C

New BrandsOYAK - TukaşB

rand

Nam

e

Existing New

Product Category

Existing

New

Four Brand Strategies

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Services Marketing

• Services Account for 74% of U.S.

gross domestic product. Service industries include

business organizations, government, and private not-for-profit organizations.

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Four Services Characteristics

CHP: 9&12&13&20-37

IntangibilityIntangibility

InseparabilityInseparability

VariabilityVariability

PerishabilityPerishability

Can’t be seen, tasted, felt, heard, or smelled before purchase.

Can’t be separated from service providers.

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

Can’t be stored for later sale or use.

Nature and Characteristic of a

Service