Product, Services, and

Branding Strategy

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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Three Levels of Product

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Product Classifications
Consumer Products
Convenience Products
Buy frequently & immediately

Low priced
Mass advertising
Many purchase locations
i.e Candy, newspapers

Shopping Products
Buy less frequently

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

Specialty Products

Unsought Products

Special purchase efforts

New innovations

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

Products consumers dont

want to think about these products
Require much advertising &
personal selling
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i.e Life insurance, blood donation

Product and Service

Classifications
Consumer products
Industrial products
Materials and parts
Capital items
Supplies and services

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Brand
A name, term, sign, symbol
or design, or a combination of them,
intended to identify the goods
or services of one seller or group
of sellers and to differentiate
them from those of competitors.
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The Role of Brands

Identify
Identify the
the maker
maker
Simplify
Simplify product
product handling
handling
Organize
Organize accounting
accounting
Offer
Offer legal
legal protection
protection
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The Role of Brands

Signify
Signify quality
quality
Create
Create barriers
barriers to
to entry
entry
Serve
Serve as
as aa competitive
competitive
advantage
advantage
Secure
Secure price
price premium
premium
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Brand Elements
Brand
names
Slogans

Characters

URLs

Elements

Logos

Symbols
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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 elik, Sta nek and Yumo
Ay, are widely recognized figures in popular culture.
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Brand Element Choice

Criteria

Memorable

Transferable

Meaningful

Protectible

Likeability

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Slogans

Like a good neighbor,

State Farm is there

We try harder

Well pick you up

Just do it

Nextel Done

Nothing runs like a Deere

Zoom Zoom

Help is just around the

corner

Im lovin it

Save 15% or more in 15

minutes or less

Innovation at work

This Buds for you

Always low prices

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Brand Strategy
Key Decisions
Brand Positioning
Brand Name Selection
Brand Sponsorship
Brand Development

Three levels of
positioning:
Product attributes
Least effective
Benefits
Beliefs and values
Taps into
emotions
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Brand Strategy
Key Decisions
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
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Packaging: The 5th P

All the activities of designing and producing

the container for a product.

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Packaging has been influenced

by
Self-service

Company/brand image

Innovation opportunity
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Innovations in Packaging

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Functions of Labels
Identifies
Describes

Promotes
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Brand Strategy
Key Decisions
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

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Product and Service

Decisions
Key Decisions
Individual
Product
Product Line
Product Mix

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
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ranges

Personal Care(product category)

Personal Wash

Skin Care

Hair Care

Lux

Fair & Lovely

Sunsilk

Lifebuoy
Breeze

Ponds

Clinic

Vaseline

Clear

Dove

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Food(Product category)
Tea
Brook bond
Lipton

Ice cream
Walls

Food
Kissan
Knorr

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Product and Service

Decisions
Key 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
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Product and Service

Decisions
Key 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

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Product and Service

Decisions
Key Decisions
Individual
Product
Product Line
Product Mix

Product mix width:

Number of different
product lines carried by
company

Product mix depth:

Number of different
versions of each product
in the line

Product mix
consistency
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Brand Equity

The differential effect that brand

knowledge 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

2007 Brand Value (Billions)

Google

$86.06

GE

$71.38

Microsoft

$70.89

CocaCola

$58.21

China Mobile
IBM
Apple

$57.23
$55.33
$55.21

McDonalds

$49.50

Nokia

$43.98

Marlboro

$37.32
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Four Brand Strategies

Product Category

Brand Name

Existing
Existin
g

New

New

Line Extension

Brand Extension

Multi brands

New Brands

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Four Services
Characteristics

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Characteristics of Services
Intangibility
Consumers look for service quality signals

Inseparability
Services cant be separated from providers

Variability
Employees and other factors result in
variability

Perishability
Services cant be inventoried for later sale
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