Products & Services

Criteria for establishing a brand mantra

- Communicate - Simplify - Inspire

Components of Brand Positioning

- Competitive frames of Reference - Points of Difference - Brand mantras

POD Criteria

- Desirable - Deliverable - Differentiable

Brand Positioning

- Effective Positioning - POD & POP - Brand Differentiation

Product Support Services

- Individual product and service decisions. ex. GENIUS BAR at Apple, Nordstrom Return Policy

Service

- Intangible (not an inventory) - Does not result in the ownership - Service Sector > 85 % U.S. Economy

Marketing Strategies

- Internal Service Quality - Satisfied service employees - Greater service value - Satisfied and loyal customers - Healthy service profits and growth

Building Strong Brand

Brand Positioning Brand Name Selection Brand Sponsorship Brand Development

Managing service differentiation

Creates a competitive advantage from the offer, delivery, and image of the service

Customer Coproduction

Interactive Marketing ex. Pizza Press, Hair-cut

Customer Empowerment

Internet has empowered customers information about bad or good service. Customers can send their comments around the world with a mouse click.

Packaging

The 5th P, is all the activities of designing and producing the container of the product

Positioning Maps

Show consumer perceptions of their brands vs. competing products on important buying dimensions

Customer-Value Hierarchy

Wynn & Encore Example (each level adds more customer value) • Core Benefit: service or benefit the customer is really buying. (Rest and sleep) • Basic Product: marketers turn core benefit into a basic product (Bed, bathroom, towels) • Expected Product: attributes buyers expect when they purchase this product. (Clean bed, fresh towels). • Augmented Product: attributes exceed customer expectations.(Free internet, free breakfast) • Potential Product: various augmentations that could be incorporated in the future. Here is where companies search for new ways to satisfy customers and distinguish their offering. (clubs)

Brand Equity

added value endowed on products and services

Product

anything that can be offered to a market to satisfy a need, including physical goods, services, experiences, events, person

Brand Mantra

articulation of the soul of the brand. They are short phrases that capture the essence of the brand positioning and key PODs.

Two-way Strech

both high-end and down-stretch line ex. dog food

Product Mix

consists of all the products that seller offers for sale; under collection of products they can offer

Brand

most valuable, intangible asset

Product Line Stretching

occurs when a company lengthens its product line beyond its current range

Perishability

refers to the fact that services cannot be stored for later sale or use Ex. In & Out workers get penalty if they mess up order

Variability of a Service

service quality depends on who provides the services as well as when, where and how they are provided. Ex. In & Out: adapted products depending on variability: 1pm, 6pm..etc

Intangibility of a Service

services cannot be seen, tasted, felt before they are purchased.

Inseparability of a Service

services cannot be separated from their providers

Internal Service quality

superior employee selection and training. quality work environment

Best-in-class "bench marking"

the process of measuring products; bench marking in experience

Up-Market Stretch

introduces a higher priced line ex. Toyota's Lexus

Down-Market Stretch

introduces a lower priced line. ex. iPhone C, Mini Coope from BMW

Private Label

packaged for sale under the name of the retailer i.e. Trader Joes, Victoria's Secret, ZARA (you can only purchase their brand there)

Experience

- What buying the product or service will do for the customer - Experience of having an iPhone vs. Galaxy - Experience of going to Disneyland

Product Features/Attributes/Benefits

- are competitive tools for differentiating a product from competitor's products - are assessed based on the value to the customer vs. cost of the company - companies can create more value - being the first producer to introduce a valued new <> is one of the most effective ways to compete.

Product Classification

Consumer Goods Industrial Goods

Branding

Name, term, sign or design or combination that identifies the maker of the product/services

Internal Marketing

Satisfying Employees

Packaging Objectives

a. Brand Identification b. Persuade c. Protection d. At-home storage e. Aid consumption

Labeling Objectives

a. Identify b. Grade c. Describe d. Promote

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 outlets, or fall within given price ranges

Consumer Goods

• Convenience goods: Consumers purchase convenience goods frequently, immediately, and with minimal effort. • Specialty goods: Consumer make special purchasing effort to buy specialty goods due to their unique characteristics or brand identification. Ex. Cars • Shopping goods: based on suitability, quality, price, and style. • Unsought goods: Consumer does not normally know or buy unsought goods. As such these goods require advertising and personal-selling support. Ex. Life insurance

Industrial Goods

• Materials and parts are goods that enter the manufacturer's product completely. Ex. Raw materials • Capital items are long-lasting goods that facilitate developing or managing the finished product. ○ Something you buy to make the product: sewing machine • Supplies and business services are short-term goods and services that facilitate developing or managing the finished product. Stationary/maintenance supplies for school