Chapter

7TITLE: PRODUCT,SERVICES, AND BRANDING STRATEGY

• A PRODUCT is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or

need. Includes:

• -Physical object • -Services • -Events • -Person • -Places• -Organization• -Ideas

SERVICES are form of product that consist of activities , benefits, or satisfaction offered for sale that are essentially intangible and do not result in the ownership of anything.

Example of pure services includes: hotel,banking and foot spa or Barber SHOP, Catering service.

PRODUCT,SERVICES AND EXPERIENCES

-A company's offer to the marketplace often includes both tangible goods and services. The continuum

consists of: 1.pure tangible goods-consist of physical items that can be touched and seen such as soap, shampoo.2.tangible goods with accompanying services-such as an automobile that offers accompanying services. 3.hybrid offers –consist of equal parts of goods and services such as restaurant.4.services with accompanying minor goods- such as airline trips with accompanying snacks.5.pure services – such as those offered by doctor’s, teachers .6. Product and services

THE PRODUCT-SERVICES CONTINUUM LEVELS OF PRODUCT

1.The core product - is the core, problem solving service, or core benefit that consumers are really buying when they obtain a product or service. 2.Actual Product- may have as five characteristics that are combined to deliver core product benefits. They are: a. Quality level b. Features c. Design d. Brand namee. Packaging

3. The Augmented product includes any additional consumer services and benefits built around the core and actual products

PRODUCT CLASSIFICATIONSMarketers have developed several product classification schemes based on product characteristics. Consumer Products- are those bought by final consumers for personal consumption. Convenience Product - are consumer product and services that the consumer usually buys frequently, immediately, and with a minimum of comparison and buying effort.

Shopping Products- are consumer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price and style. Specialty Product- are consumer products with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. Unsought Product- are consumer either does not know about or knows about but does not normally think of buying.

INDUSTRIAL PRODUCT -are those bought by individuals and organizations for further processing or for use in conducting a business.

Three groups of industrial products are: 1. Materials and part- Most are sold directly to

industrial users. 2. Capital items- these products aid in the buyer's

production or operations, including installations and accessory equipment.

3. Supplies and services- These could be operational or repair and maintenance.

Many of these services are supplied under contract.

ORGANIZATIONS, PERSONS, PLACES AND IDEAS.

• Marketers- has broadened in recent years to cover marketable entities other than just product and services.

These are the entities: Organization marketing- consist of activities undertaken to

create, maintain, or change attitudes and behavior of target audience toward an organization such as churches, colleges, charities.

Person marketing- are activities undertaken to create, maintain, or change attitudes and behavior toward particular persons like politicians, entertainers, sports figure, doctors, lawyers.

• Place marketing- involves activities undertaken to create, maintain or change attitudes toward particular places. Market, commercial market or a selling land property.

• Idea marketing- also called social marketing, is the marketing of social ideas like public health campaigns, environmental concerns campaigns and such other campaigns as family planning, human rights, animal rights.

EXAMPLE: PAWS ( PHILIPPINE ANIMAL WELFARE SOCIETY )

GABRIELA - A NATIONAL ALLIANCE FOR WOMEN

INDIVIDUAL PRODUCT DECISIONS

Product Attribute -Developing a product or service involves defining the benefits that it will offer. These benefits are communicated and delivered by product attributes such as: 1. Product quality- is the ability of a product to

perform its functions. 2. A product can be offered with varying product

features. 3. Product style and design - is another way to

add distinctiveness. a. Style- simply describes the appearance of a

product. b. Design- goes to the heart of the product.

Branding Brand- is a name, sign, symbol or design or a combination of these that identifies the maker or seller of a product or service. Branding- has become so strong that hardly anything goes unbranded.Brand Equity- is the value of brand, based on the extent to which it has high brand loyalty , name awareness, perceived quality, strong brand associations.

MAJOR BRANDING DECISION

BRAND NAME

SELECTION

SELECTION PROTECTION

BRAND SPONSOR

MANUFACTURER’S BRAND

PRIVATE BRANDLICENSED BRAND

CO-BRANDING

BRAND STRATEGY

NEW BRANDSLINE

EXTENTIONSBRAND

EXTENTIONSMULTIBRANDS

Brand Strategy Line Extension- Existing brand names extended to new forms, sizes, and flavors of an existing

product category. Brand Extension- Existing brand extended to

new or modified product categories. Multi brands- New brand names introduced in

the same product category. New Brands- New brand names in new product

categories.

PACKAGINGPackaging -decisions are the third set of decisions that must be made about individual products. - is the activity of designing and producing the container or wrapper for a product.

EXAMPLES:

Labeling -is also a part of packaging and consists of printed information appearing on or with the package. Labeling performs several functions: 1. It IDENTIFIES the product or brand. 2. It might DESCRIBE several things

about the product. 3. It might PROMOTE the product

through attractive graphics.

EXAMPLES:

Product line-is a group of products that are closely related because they function in a similar manner. -is influenced by company objectives.

Product Line Length- is The number of items in the product line.Product line stretching- which is increasing the product line by lengthening it beyond its current range. a. Downward stretch b. Upward stretchc. Two-way stretch

Product Line Filling- is increasing the product line by adding more items within the present range of the line. Reasons to use this strategy include: a. Extra profits b. Attempting to satisfy dealers. c. Trying to use excess capacity. d. Trying to be the leading full line company. e. Trying to plug holes to keep out competition.

PRODUCT MIX DECISIONS

- ORGANIZATION WITH SEVERAL PRODUCT LINES HAS A PRODUCT MIX. A PRODUCT MIX OR PRODUCT ASSORTMENT CONSISTS OF ALL THE PRODUCT LINES AND ITEMS THAT A PARTICULAR SELLER OFFERS FOR SALE.

Nature and Characteristics of a Service 1. Service intangibility- which cannot be stored for later sale. Services cannot be seen, tasted, felt heard, or smelled before they are bought.

2. Service inseparability- which are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines.

3. Service variability- whose quality may greatly defending on who provides them and when, where and how. 4. Service perish ability- which cannot be stored for later sale or use.