Lecture 6: Product, Service, and Branding Definition of products Layers of product Types of products Outline Product line and product mix Product portfolio managment decisions Service definition & characteristics Service Marketing Tasks Lectured by Khoa Nguyen What is a product? Lectured by Khoa Nguyen • A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. • Broadly defined, “products” also include Definition services, events, persons, places, organizations, ideas, or mixes of these. of Product An MSG company, i. Ajinomoto, decided to sell coffee to the Vietnamese market.
Question: how Ajinomoto acquires attention from customers? Lectured by Khoa Nguyen Value-based prices Components of the Market Offering Attractiveness of the market offering Product Services features mix and and quality quality Lectured by Khoa Nguyen Five product levels Lectured by Khoa Nguyen Classfication Of Products Lectured by Khoa Nguyen Industrial products Types of Product? Consumer products Lectured by Khoa Nguyen Convenience Shopping Specialty Unsought Consumer Goods Classification Convenience Product • …Customers usually buy frequently, immediately, and with a minimum of comparison and buying effort. Lectured by Khoa Nguyen • less frequently purchased • customers compare carefully on suitability, quality, price, and style Specialty Product • Unique characteristics or brand identification • Buyers are willing to make a special purchase effort. Lectured by Khoa Nguyen Unsought Product • …consumer either does not know about or knows about but does not normally think of buying. Lectured by Khoa Nguyen • Industrial products are those Industrial purchased for further processing or for use in conducting a business, Products including: • Materials and parts • Capital items • Supplies and services.
Lectured by Khoa Nguyen Raw Materials/Parts Lectured by Khoa Nguyen Capital Items Lectured by Khoa Nguyen Supplies/Services Lectured by Khoa Nguyen • Which of the following are examples of shopping products? • A. Furniture, clothing, used cars, major appliances, and hotel and airline services Test your • B. Laundry detergent, candy, magazines, and fast food knowledge • C. Branded cars, high-priced photographic equipment, and designer clothes • D.
Life insurance, preplanned funeral services, and blood donations to the Red Cross Lectured by Khoa Nguyen • Which of the following are examples of shopping products? • A. Furniture, clothing, used cars, major appliances, and hotel and airline services Test your • B. Laundry detergent, candy, magazines, and fast food knowledge • C. Branded cars, high-priced photographic equipment, and designer clothes • D.
Life insurance, preplanned funeral services, and blood donations to the Red Cross Lectured by Khoa Nguyen Product Differentiation • Product form • Features • Customization • Performance • Conformance • Durability • Reliability • Repairability • Style Product Line & Product Mix Lectured by Khoa Nguyen • Product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of Product Line outlets, or fall within given price ranges • Product line length is the number of items in the product line. Lectured by Khoa Nguyen Product line filling. Product Line Decisions Product line stretching. Lectured by Khoa Nguyen Product Mix • Product mix consists of all the products and items that a particular seller offers for sale.
• Also called: Product poftfolio • A company’s product mix has four dimensions: width, length, depth, and consistency. Lectured by Khoa Nguyen Four dimensions of product mix • Product mix width refers to the number of different product lines the company carries. • Product mix length refers to the total number of items the company carries within its product lines. • Product mix depth refers to the number of versions offered of each product in the line.
• Product mix consistency refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way. Lectured by Khoa Nguyen Lectured by Khoa Nguyen The company can increase its business in four ways. • Add new product lines, widening its product mix. Product • Lengthen its existing product lines.
Porfolio • Add more versions of each product, deepening its Decisions product mix. Product Portfolio Mangement Lectured by Khoa Nguyen The BCG Growth- Share Matrix Lectured by Khoa Nguyen The BCG Growth-Share Matrix • Stars are high-growth, high-share products requiring heavy investment to finance rapid growth. They will eventually turn into cash cows. • Cash cows are low-growth, high-share products requiring less investment to maintain market share.
• Question marks are low-share products in high-growth markets requiring a lot of cash to hold their share. • Dogs are low-growth, low-share products that may generate enough cash to maintain themselves but do not promise to be large sources of cash. Lectured by Khoa Nguyen Lectured by Khoa Nguyen • Services Service Characteristics INTANGIBILITY INSEPARABILITY VARIABILITY PERISHABILITY Lectured by Khoa Nguyen Service Marketing Tasks • DIFFERENTIATION • SERVICE QUALITY • SERVICE PRODUCTIVITY Lectured by Khoa Nguyen BRANDING Lectured by Khoa Nguyen What is a Brand? • A brand is a “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.” • A Brand could be a lot more than that. Why? Lectured by Khoa Nguyen Criteria for Choosing Brand Elements Criteria for Choosing Brand Elements How is it protectable? Types of Brand Elements Logos and Brand URLs Symbols Characters Names Slogans Jingles Packaging • Captures the central theme or key associations of a product in a very compact and economical fashion • Most difficult element for marketers to Brand change • Closely tied to the product in the Names minds of consumers Brand Names • Naming guidelines • Simple and easy to pronounce • Familiar and Meaningful • Descriptive, Unique, and Differentiated Can be based on • people • locations How • animals brands are • Inherent product meanings named? • Suggesting important attributes and/or benefits • Prefixes and suffixes Can you think of examples? Thing to remember The way you name your brand would affect the sustainability of your business Logos and Symbols • Indicate origin, ownership, or association • Range from corporate names or trademarks written in a distinctive form, to abstract designs that may: • Be completely unrelated to the corporate name or activities Characters/Fictional Character • Special type of brand symbol • One that takes on human or real-life characteristics • Introduced through advertising and can play a central role in ad campaigns and package designs • E.: GEICO character Slogans • Short phrases that communicate descriptive or persuasive information about the brand • Function as useful “hooks” or “handles” to help consumers grasp the meaning of a brand • Indispensable means of summarizing and translating the intent of a marketing program A slogan can only be successful if… Sometimes, a new slogan could fail badly Should a logo be changed? Lectured by Khoa Nguyen • Musical messages written around the brand • Have catchy hooks and choruses that become permanently registered in the Jingles minds of listeners • Enhance brand awareness by repeating the brand name in clever and amusing ways • E.: Hisamitsu Packaging • Activity of designing and producing containers or wrappers • From the perspective of both the firm and consumers, packaging must: • Identify the brand • Convey descriptive and persuasive information • Facilitate product transportation and protection • Assist in at-home storage • Aid product consumption