Product, Service and Branding Strategy

by

Kotler on Marketing
The best way to hold customers is to constantly figure out how to give them more for less.

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PRODUCT
Any thing that can be

offered to market for attention, acquisition, use or consumption that might satisfy a want or need.
Services, physical objects,

events, persons , places, organizations, ideas are all PRODUCTS

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Products, Services, and Experiences

Product is a key element in the

market offering. Marketing mix begins with planning product Offering brings value and that value becomes the basis for profitable relationships with customers. PURE tangible goods , PURE services Now companies are differentiating and giving experiences rather than JUST 5-4 products or services

The Product and the Product Mix

Product levels
Core Benefit (problem solving

benefit)
Hotel, Drill

Actual Product Augmented Product (offering

additional services and benefits)

Warranties, toll free numbers

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Product and Service Classifications

Consumer

Products
Industrial

Products

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Product and Service Decision

Marketers make

product and services decisions at three levels.

Individual Product

Decisions, Product Line decisions, Product Mix decision

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Individual Product Decision

Product Attributes Branding Packaging Labeling Support Services

Defining the benefits that the product will offer Quality: Major marketing tool, linked to customer value

and satisfaction
Features: Competitive tools for differentiation

HOW CAN A COMPANY ADD FEATURES??

Cost versus benefit should also be analyzed
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Individual Product Decision

Product Attributes Branding Packaging Labeling Support Services

Brand: A name, term , sign , symbol, or design or a

combination or these intended to identify the goods or services fo one seller or group of sellers and to differentiate them from those of competitors.
Hardly any thing goes unbranded Helps in identifying , tells about product quality, helps

segment the market

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Individual Product Decision

Product Attributes Branding Packaging Labeling Support Services

Container or wrapper of a product Primary container, secondary container, shipping

packages
Primary function was to protect the product but now it

performs many sales tasks. (attracting attention, describing the product, making the sale)
Helps in instantly recognizing the product.
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Individual Product Decision

Product Attributes Branding Packaging Labeling Support Services

In an average supermarket, which stocks 15,000 to

17,000 items, the typical shopper passes by some 300 items per minute, and more than 60 percent of all purchases are made on impulse. In this highly competitive environment, the package may be the sellers last chance to influence buyers.

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Individual Product Decision

Product Attributes Branding Packaging Labeling Support Services

Printed information appearing on or with the packages. Identifies the products, describe several things about

the product, promote the product (through attractive packaging)

Open Dating (expected shelf life) , Nutritional Labeling

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Individual Product Decision

Product Attributes Branding Packaging Labeling Support Services

Surveying customers, assessing the cost of providing

of theses services and providing the services

Services such as E-mail, fax, warranty and so on.

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Product-Mix Width and Product-Line Length for Proctor& Gamble Products

Product-Mix Width Detergents Toothpaste Ivory Snow (1930) PRODUCT- Dreft LINE (1933) LENGTH Tide (1946) Cheer (1950) Gleem (1952) Crest (1955)

Disposable Bar Soap Diapers

Ivory (1879) Pampers (1961)

Paper Tissue
Charmin (1928)

Kirks (1885)
Lava (1893) Camay (1926)

Luvs (1976)

Puffs (1960)
Banner (1982) Summit (1992)

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Product Line Decisions

Product-line decisions Product-line length analysis
Sales and Profits

A company can lengthen its product

line in two ways.

Line Stretching

Stretching beyond current range. Downward (Mercedes to Mercedes C class), Upward (Toyota to Lexus), Both Directions (Marriot Hotels) Line Filling Adding more items within the present range of the line. Reasons ??

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Product Mix Decisions

Product mix : The set of all the product

lines and items that a particular seller offers for sale. Four Dimensions of Product Mix Mix Width (number of product lines) Mix Length (total number of items within product lines) Line Depth ( versions offered of each product in the line Consistency (how closely related the product lines are in end use, production requirement, distribution channels, etc
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THIS ANALYSIS HELPS COMPANIES

TO MAKE STRATEGIES

Branding Strategy
BRAND EQUITY Brand are powerful assets The real value of the brand is its power to capture consumer preference and loyalty. A powerful brand has high brand equity. A measure of a brands equity is the extent to which customers are willing to pay more for the brand. A powerful brand name offers the company some defense against fierce price competition. Powerful brand forms the basis for building profitable customer 5-17 relationships.

Building Stronger Brands

Brand Positioning Brand Name Selection Brand Sponsorshi p Brand Developmen t

Three levels of positioning Product Attributes Least desirable, competitors can copy.
Benefits Beliefs and Values

Crest not talking about cavity protection, but giving beautiful smiles for life Tapal talking about FAMILY REALTIONS
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Building Stronger Brands

Brand Positioning Brand Name Selection Brand Sponsorshi p Brand Developmen t

A good name can add greatly to a products success.

Desirable qualities for a brand name include It should suggest something about the product Should be easy to pronounce Should be distinctive Should be extendable Should translate into foreign languages. Should be capable of registration and legal protection.
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Building Stronger Brands

Brand Positioning Brand Name Selection Brand Sponsorshi p Brand Developmen t

Manufacturers brands versus private brand Licensing Co Branding

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Building Stronger Brands

Brand Positioning Brand Name Selection Brand Sponsorshi p Brand Developmen t

A company has four choices when it comes to brand

development

Product Category Existing New Brand Extension

Brand Name

Existing

Line Extension

New

Multi Brands

New Brands

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Building Stronger Brands

Brand Positioning Brand Name Selection Brand Sponsorshi p Brand Developmen t

Line Extension New flavors, new sizes Low cost, low risk way to introduce new products. Extension may come at the expense of other items in the line , or may cause customer confusion or frustration. A line extension works best when it takes sales away from competing brands, not when it cannibalizes the companys other items.

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Building Stronger Brands

Brand Positioning Brand Name Selection Brand Sponsorshi p Brand Developmen t

Brand Extension Use of successful brand name to launch new or modified products. Gives new product instant recognition Saves high advertising cost May confuse the image of main brand May not be appropriate to particular products

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Building Stronger Brands

Brand Positioning Brand Name Selection Brand Sponsorshi p Brand Developmen t

Multi Brands Additional Brand in the same category Allows companies to lock up more reseller shelf space. Major drawback: Brand might obtain only a small market share.

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Building Stronger Brands

Brand Positioning Brand Name Selection Brand Sponsorshi p Brand Developmen t

New Brands Company may create new brand when entering new category. As with multi branding, offering too many new brands can result in a company spreading its resources too thin.

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Managing Brands
Brand positioning must be

continuously communicated to consumers Brands are not just maintained through advertising, but by brand experience. Therefore, companies should take care of all the customer touch points. Companies must periodically audit their brands strengths and weakness. The brand audit may turn up brands that need to be repositioned because of 5-26

NEXT SESSION
Product Life Cycle
Article : Using sense to build powerful brands Article : Too many flops

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