Chapter 7: Products, Services, and Brands

Brand value

*Branding Strategy: Building Strong Brands*... *Brand Equity and _____*... _____ is the total financial value of a brand.

Brand Development

*Branding Strategy: Building Strong Brands*... *Building Store Brands*... *_____* (Brand Development) A company has four choices when it comes to developing brands (see Figure 7.6). It can introduce *line extensions*, *brand extensions*, *multibrands*, or *new brands*.

Line extensions

*Branding Strategy: Building Strong Brands*... *Building Store Brands*... *Brand Development*... *_____* _____ occur when a company extends existing brand names to new forms, colors, sizes, ingredients, or flavors of an existing product category.

Multibrands

*Branding Strategy: Building Strong Brands*... *Building Store Brands*... *Brand Development*... *_____* (Multibrands) Companies often market many different brands in a given product category.

brand extension

*Branding Strategy: Building Strong Brands*... *Building Store Brands*... *Brand Development*... *_____s* A _____ extends a current brand name to new or modified products in a new category.

The Nature and Characteristics of a Service

*Services Marketing*... *_____* (The Nature and Characteristics of a Service) A company must consider four special service characteristics when designing marketing programs: intangibility, inseparability, variability, and perishability (see Figure 7.3). *SINGLE STAR*

Product and Service Classifications

*What Is a Product?*... *_____* (Product and Service Classifications) Products and services fall into two broad classes based on the types of consumers who use them: *consumer products* and *industrial products (aka business products)*.

Product Item

A specific version of a product that can be designated as a distinct offering among an organization's products.

Consumer's Mind

Brand is a seller's *promise* to deliver a specific set of features and benefits *consistently* to buyers -Attributes -Benefits -Values -Culture -Personality --"It's *slow* good!" --=Charles Berger is responsible for this Heinz marketing campaign --"Real Estate in a *_____*" - Charles Berger --Ties to our Positioning Discussion

New Brand

*Branding Strategy: Building Strong Brands*... *Building Store Brands*... *Brand Development*... *_____s* A company might believe that the power of its existing brand name is waning, so a _____ name is needed. Or it may create a _____ name when it enters a new product category for which none of its current brand names are appropriate.

Co-branding

*Branding Strategy: Building Strong Brands*... *Building Store Brands*... *Brand Sponsorship*... *_____* _____ occurs when two established brand names of different companies are used on the same product.

Licensing

*Branding Strategy: Building Strong Brands*... *Building Store Brands*... *Brand Sponsorship*... *_____* (Licensing) Most manufacturers take years and spend millions to create their own brand names. However, some companies license names or symbols previously created by other manufacturers, names of well-known celebrities, or characters from popular movies and books.

Brand Name Selection

*Branding Strategy: Building Strong Brands*... *Building Strong Brands*... *_____* (Brand Name Selection)... Desirable qualities for a brand name include the following: (1) It should suggest something about the product's benefits and qualities: Beautyrest, Slimfast, Snapchat, Pinterest. (2) It should be easy to pronounce, recognize, and remember: iPad, Tide, Jelly Belly, Twitter, Jetblue. (3) The brand name should be distinctive: Panera, Swiffer, Zappos, Nest. (4) It should be extendable - Amazon.com began as an online bookseller but chose a name that would allow expansion into other categories. (5) The name should translate easily into foreign languages... (6) It should be capable of registration and legal protection... After a decade of choosng quirky names (Yahoo!, Google) or trademark-proof made-up names (Novartis, Aventis, Accenture), today's style is to build brands around names that have real meaning... But with trademark applications soaring, *available* new names can be hard to find... To protect their brands, marketers present them carefully using the word *brand* and registered trademark symbol...

Brand Positioning

*Branding Strategy: Building Strong Brands*... *Building Strong Brands*... *_____* (Brand Positioning) Marketers need to position their brands clearly in target customers' minds. They can position brands at any of three levels. At the lowest level, they can position the brand on *product attributes*... A brand can be better positioned by associating its name with a desirable *benefit*... The strongest brands go beyond attribute or benefit positioning. They are positioned on strong *beliefs and values*, engaging customers on a deep, emotional level... Advertising agency Saatchi & Saatchi suggests that brands should strive to become *lovemarks*, products or services that "inspire loyalty beyond reason."

Brand Sponsorship

*Branding Strategy: Building Strong Brands*... *Building Strong Brands*... *_____* (Brand Sponsorship) A manufacturer has four sponsorship options. The product may be launched as a *national brand* (or *manufacturer's brand*), as when Samsung and Kellogg sell their output under their own brand names (the Samsung Galaxy tablet or Kellogg's Frosted Flakes). Or the manufacturer may sell to resellers who give the product a *private brand* (also called a *store brand* or *distributor brand*). Although most manufacturers create their own brand names, others market licensed brands. Finally, two companies can join forces and *co-brand* a product.

store brands, private brands

*Branding Strategy: Building Strong Brands*... *Building ___1___*... *Brand Sponsorship*... *National Brands versus ___1___* National brands (or manufacturers' brands) have long dominated the retail scene. In recent times, however, increasing number of retailers and wholesalers have created their own ___1___ (or ___2___)... In the so-called *battle of the brands* between national and ___2___, retailers have many advantages. -___2___ are brand names owned by a wholesaler or a retailer. Also known as a private label. =Ex: Crate & Barrel, Trader Joe's, Victoria's Secret

Brand equity

*Branding Strategy: Building Strong Brands*... *_____ and Brand Value*... _____ is the differential effect that knowing the brand name has on customer response to the product and its marketing... A brand has positive _____ when consumers react more favorably to it than to a generic or unbranded version of the same product. It has negative _____ if consumers react less favorably than to an unbranded version. -1 - Starts with product innovation -2 - Product builds a relationship -3 - Communications re-enforce the relationship =-Brand name, logo and product ID (Design) re-enforces the what the Brand stands for =This creates the experience -The value of company and brand names *SINGLE STAR*

Brand Equity and Brand Value

*Branding Strategy: Building Strong Brands*... *_____* (Brand Equity and Brand Value)... Brands represent consumers' perceptions and feelings about a product and its performance - everything that the product or the service *means* to consumers... A powerful brand has high *brand equity*... Ad agency Young & Rubicam's BrandAsset Valuator measures brand strength along four consumer perception dimensions: *differentiation* (what makes the brand stand out), *relevance* (how consumers feel it meets their needs), *knowledge* (how much consumers know about the brand), and *esteem* (how highly consumers regard and respect the brand). Brands with strong brand equity rate high on all four dimensions... Consumers sometimes bond *very* closely with specific brands... A brand with high brand equity is a very valuable asset... The fundamental asset underlying brand equity is *customer equity* - the value of customer relationships that the brand creates.

Managing Brands

*Branding Strategy: Building Strong Brands*... *_____* (Managing Brands) Companies must manage their brands carefully. First, the brand's positioning must be continuously communicated to consumers... However, the fact is that brands are not maintained by advertising but by customers' *engagement* with brands and customers' *brand experiences*... The brand's positioning will not take hold fully unless everyone in the company lives the brand. Therefore, the company needs to train its people to be customer centered... Finally, companies need to periodically audit their brands' strengths and weaknesses.

Building Strong Brands

*Branding Strategy: _____*... *_____* (Building Strong Brands)... Figure 7.5 shows that the major brand strategy decisions involve *brand positioning*, *brand name selection*, *brand sponsorship*, and *brand development*. ="The ultimate goal in marketing is to have a brand like coke" =-Brand strategy links product & promotion ="A brand is on a product like how a brand is on a cattle" *SINGLE STAR*

product mix, product portfolio

*Product and Service Decisions*... *___1___ Decisions* A ___1___ (or ___2___) consists of all the product lines and items that a particular seller offers for sale. =Depth; what are the different product offerings

Creating Value, Goodwill

*Marketing is about ___1___* -Exchange A <-> B - Customer value and beneficial relationships (inner circle) -Four P's (outer circle) (... -> Creating Value -> Communicating Value -> Delivering Value ->...) -*Core Connections* --Brands have Value! --Financial Value --Wall Street/Finance --"___2___" in Accounting acquisition =*Brand Equity* = *___2___* when you buy a company =Interbrand Global brands value brand equity =*Brands have financial value*

product style and design

*Product and Service Decisions*... *Individual Product and Service Decisions*... *Product and Service Attributes*... *_____* Another way to add customer value is through distinctive *_____*. Design is a larger concept than style. *Style* simply describes the appearance of a product... A sensational style may grab attention and produce pleasing aesthetics, but it does not necessarily make the product *perform* better. Unlike style, *design* is more than skin deep - it goes to the very heart of a product. Good design contributes to a product's usefulness as well as to its looks.

Product quality

*Product and Service Decisions*... *Individual Product and Service Decisions*... *Product and Service Attributes*... *_____* _____ is one of the marketer's major positioning tools. Quality affects product or service performance; thus, it is closely linked to customer value and satisfaction. In the narrowest sense, quality can be defined as "no defects." But most marketers go beyond this narrow definition. Instead, they define quality in terms of creating customer value and satisfaction... *Total quality management* (TQM) is an approach in which all of the company's people are involved in constantly improving the quality of products, services, and business processes... Today, companies are taking a *return-on-quality* approach, viewing quality as an investment and holding quality efforts accountable for bottom-line results. _____ has two dimensions: level and consistency. In developing a product, the marketer must first choose a *quality level* that will support the product's positioning. Here, _____ means *performance quality* - the product's ability to perform its functions... Beyond quality level, high quality also can mean high levels of quality consistency. Here, _____ means *conformance quality* - freedom from defects and consistency in delivering a targeted level of performance.

Product Features

*Product and Service Decisions*... *Individual Product and Service Decisions*... *Product and Service Attributes*... *_____* (Product Features)... How can a company identify new features and decide which ones to add to its product? It should periodically survey buyers who have used the product and ask these questions: How do you like the product? Which specific features of the product do you like most? Which features could we add to improve the product? The answers to these questions provide the company with a rich list of feature ideas. The company can then assess each feature's *value* to customers versus its *cost* to the company.

Labeling

*Product and Service Decisions*... *Individual Product and Service Decisions*... *_____* Labels range from simple tags attached to products to complex graphics that are part of the packaging. They perform several functions. At the very least, the label *identifies* the product or brand, such as the name Sunkist stamped on oranges. The label might also *describe* several things about the product - who made it, where it was made, when it was made, its contents, how it is to be used, and how to use it safely. Finally, the label might help to *promote* the brand and engage customers... The Nutritional _____ and Educational Act of 1990 requires sellers to provide detailed nutritional information on food products, and recent sweeping actions by the Food and Drug Administration (FDA) regulate the use of health-related terms such as *low fat*, *light*, *high fiber*, and *organic*.

Packaging

*Product and Service Decisions*... *Individual Product and Service Decisions*... *_____* _____ involves designing and producing the container or wrapper for a product. Traditionally, the primary function of the package was to hold and protect the product. in recent times, however, _____ has become an important marketing tool as well. -Important - "Sells" the product in a retail environment "Consumer Package Good Industry

Product Support Services

*Product and Service Decisions*... *Individual Product and Service Decisions*... *_____* (Product Support Services)... Keeping customers happy *after* the sale is the key to building lasting relationships... The first step in designing support services is to survey customers periodically to assess the value of current services and obtain ideas for new ones. Once the company has assessed the quality of various support services to customers, it can take steps to fix problems and add new services that will both delight customers and yield profits to the company.

Product and Service Attributes

*Product and Service Decisions*... *Individual Product and Service Decisions*... *_____* (Product and Service Attributes) Developing a product or service involves defining the benefits that it will offer. These benefits are communicated and delivered by product attributes such as *quality*, *features*, and *style and design*.

brand

*Product and Service Decisions*... *Individual Product and Service Decisions*... *_____ing*... A _____ is a name, term, sign, symbol, or design or a combination of these that identifies the maker or *seller* of a product or service. Consumers view a _____ as an important part of a product, and _____ing can add value to a consumer's purchase. *How do other experts define _____?* -"A _____ is the sum of all feelings, thoughts and recognition - a positive and negative - that people in the target audience have about a company, product or service" Steven McNamara , Creative director at AdCracker -"A _____ is a promise of what a consumer believes they will achieve/feel/become from using a product/service" Jon Strande "Business Evolutionist" -"A _____ is a collection of images and ideas representing an economic producer, more specifically it refers to concrete symbols such as a name, logo, slogan and design scheme" Wikipedia. -=There is trust that product will work -*_____s turn every day items into hot items*

length

*Product and Service Decisions*... *Product Line Decisions*... The major product line decision involves *product line _____* - the number of items in the product line. The line is too short if the manager can increase profits by adding items; the line is too long if the manager can increase profits by dropping items... A company can expand its product line in two ways: by *line filling* or *line stretching*. *Product line filling* involves adding more items within the present range of the line... *Product line stretching* occurs when a company _____ens its product line beyond its current range... Companies located at the upper end of the market can stretch their lines *downward*... Companies can also stretch their product lines *upward*. -_____ = # of SKU's in a product line *SINGLE STAR*

product line

*Product and Service Decisions*... *_____ Decisions*... A _____ 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. -ex: Campbell's condensed soup - group of *like products*

Individual Product and Service Decisions

*Product and Service Decisions*... *_____* (Individual Product and Service Decisions) Figure 7.2 shows the important decisions in the development and marketing of individual products and services. We will focus on decisions about *product attributes*, *branding*, *packaging*, *labeling*, and *product support services*. -e.g. when adding a new product

Product Mix Decisions

*Product and Service Decisions*... *_____* (Product Mix Decisions)... A company's product mix has four important dimensions: width, length, depth, and consistency. Product mix *width* refers to the number of different product lines the company carries... Product mix *length* refers to the total number of items a company carries within its product lines... Product mix *depth* refers to the number of versions offered for each product in the line... Finally, the *consistency* of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other aspect... These product mix dimensions provide the handles for defining the company's product strategy. A company can increase its business in four ways. It can add new product lines, widening its product mix... A company can lengthen its existing product lines to become a more full-line company. It can add more versions of each product and thus deepen its product mix. Finally, a company can pursue more product line consistency - or less - depending on whether it wants to have a strong reputation in a single field or in several fields.

Service intangibility

*Services Marketing*... *The Nature and Characteristics of a Service*... _____ means that services cannot be seen, tasted, felt, heard, or smelled before they are bought... To reduce uncertainty, buyers look for *signals* of service quality. They draw conclusions about quality from the place, people price, equipment, and communications that they can see.

Service inseparability

*Services Marketing*... *The Nature and Characteristics of a Service*... _____ means that services cannot be separated from their providers, whether the providers are people or machines... Customer coproduction makes *provider-customer interaction* a special feature of services marketing. Both the provider and the customer affect the service outcome.

Service perishability

*Services Marketing*... *The Nature and Characteristics of a Service*... _____ means that services cannot be stored for later sale or use.

Service variability

*Services Marketing*... *The Nature and Characteristics of a Service*... _____ means that the quality of services depends on who provides them as well as when, where, and how they are provided.

Managing Service Differentiation

*Services Marketing*... *The Service Profit Chain*... *_____* (Managing Service Differentiation)... The solution to price competition is to develop a differentiated offer, delivery, and image. The *offer* can include innovative features that set one company's offer apart from competitors' offers... Service companies can differentiate their service *delivery* by having more able and reliable customer-contact people, developing a superior physical environment in which the service product is delivered, or designing a superior delivery process... Finally, service companies also can work on differentiating their *images* through symbols and branding.

Managing Service Productivity

*Services Marketing*... *The Service Profit Chain*... *_____* (Managing Service Productivity)... With their costs rising rapidly, service firms are under great pressure to increase service productivity. They can do so in several ways. They can train current employees better or hire new ones who will work harder or more skillfully. Or they can increase the quantity of their service by giving up some quality. Finally, a service provider can harness the power of technology... They should be careful not to take *service* out of the service.

Managing Service Quality

*Services Marketing*... *The Service Profit Chain*... *_____* (Managing Service Quality)... As hard as they may try, even the best companies will have an occasional late delivery, burned steak, or grumpy employee. However, good *service recovery* can turn angry customers into loyal ones. -Delivering consistently higher quality than the competitors

Internal service quality, Satisfied and productive service employees, Greater service value, Satisfied and loyal customers, Healthy service profits and growth

*Services Marketing*... *The Service Profit Chain*... This chain consists of five links:... -___1___. Superior employee selection and training, a quality work environment, and strong support for those dealing with customers, which results in... -___2___. More satisfied, loyal, and hardworking employees, which results in... -___3___. More effective and efficient customer value creation, engagement, and service delivery, which results in... -___4___. Satisfied customers who remain loyal, make repeat purchases, and refer other customers, which results in... -___5___. Superior service firm performance.

Interactive marketing

*Services Marketing*... *The Service Profit Chain*... _____ means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter.

Internal marketing

*Services Marketing*... *The Service Profit Chain*... _____ means that the service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction. Marketers must get everyone in the organization to be customer centered. In fact, _____ must *precede* external marketing.

service profit chain

*Services Marketing*... *The _____* In a service business, the customer and the front-line service employee *interact* to co-create the service... They understand the _____, which links service firm profits with employee and customer satisfaction.

Marketing Strategies for Service Firms

*Services Marketing*... *_____* (Marketing Strategies for Service Firms) Just like manufacturing businesses, good service firms use marketing to position themselves strongly in chosen target markets... However, because services differ from tangible products, they often require additional marketing approaches.

The Service Profit Chain

*Services Marketing*... *_____* (The Service Profit Chain)... Services marketing requires more than just traditional external marketing using the four Ps. Figure 7.4 shows that services marketing also requires *internal marketing* and *interactive marketing*... Service companies face three major marketing tasks: They want to increase their *service differentiation*, *service quality*, and *service productivity*.

core customer value, actual product, augmented product

*What Is a Product?*... *Levels of Product and Services* Product planners need to think about products and services on three levels (see Figure 7.1). Each level adds more customer value. The most basic level is the *___1___*, which addresses the question: *What is the buyer really buying?* When designing products, marketers must first define the core, problem-solving benefits or services that consumers seek... =___1___ - why do you use this product in the first place? What value does it add? "You hire a product to meet a function"... At the second level, product planners must turn the core benefit into an *___2___*. They need to develop product and service features, a design, a quality level, a brand name, and packaging... Finally, product planners must build an *___3___* around the core benefit and ___2___ by offering additional consumer services and benefits... -Delivery and credit -After-sale service -Warranty -Product support... When developing products, marketers first must identify the *___1___* that consumers seek from the product. They must then design the ___2___ and find ways to *augment* it to create customer value and a full and satisfying brand experience. *DOUBLE STAR*

Convenience products

*What Is a Product?*... *Product and Service Classifications*... *Consumer Products*... _____ are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort. -Inexpensive item -Little Shopping Effort -Widely available =Often plays into impulse buying; low involvement =Ex: light bulb and aspirin *SINGLE STAR*

Specialty products

*What Is a Product?*... *Product and Service Classifications*... *Consumer Products*... _____ are consumer products and services with unique characteristics or brand identifications for which a significant group of buyers is willing to make a special purchase effort. -Particular Item -Extensive Search -Reluctant to accept substitutes -Exclusively Distributed =usually more expensive than shopping; high involvement =ex: flat-screen, college degree, Rolex watch ; medium involvement *SINGLE STAR*

Unsought products

*What Is a Product?*... *Product and Service Classifications*... *Consumer Products*... _____ are consumer products that the consumer either does not know about or knows about but does not normally consider buying. Most major new innovations are unsought until the consumer becomes aware of them through advertising. -Unknown or Not actively shopped =ex: funeral and tombstone *SINGLE STAR*

Shopping products

*What Is a Product?*... *Product and Service Classifications*... *Consumer Products*... _____ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. -More expensive item, -Comparison Shopping -Found in Fewer Stores *SINGLE STAR*

social marketing

*What Is a Product?*... *Product and Service Classifications*... *Organizations, Persons, Places, and Ideas*... In one sense, all marketing is the marketing of an idea, whether it is the general idea of brushing your teeth or the specific idea that Crest toothpastes create "healthy, beautiful smiles for life." Here, however, we narrow our focus to the marketing of *social ideas*. This area has been called _____ and consists of using traditional business marketing concepts and tools to create behaviors that will create individual and societal well-being.

Organizations, Persons, Places, and Ideas

*What Is a Product?*... *Product and Service Classifications*... *_____* In addition to tangible products and services, marketers have broadened the concept of a product to include other market offerings: _____... Organizations often carry out activities to "sell" the organization itself. *Organization marketing* consists of activities undertaken to create, maintain or change the attitudes and behavior of target consumers toward an organization... Business firms sponsor public relations or *corporate image marketing* campaigns to market themselves and polish their images... People can also be thought of as products. *Person marketing* consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people... *Place marketing* involves activities undertaken to create, maintain, or change attitudes or behavior toward particular places... *Ideas* can also be marketed.

Consumer products

*What Is a Product?*... *Product and Service Classifications*... *_____* _____ are products and services bought by final consumers for *personal consumption*... _____ include *convenience products*, *shopping products*, *specialty products*, and *unsought products*. These products differ in the ways consumers buy them and, therefore, in how they are marketed (see Table 7.1). -Classified by Value, Buying Process & Distribution *SINGLE STAR*

Industrial product (aka Business products)

*What Is a Product?*... *Product and Service Classifications*... *_____s* _____s are those products purchased for further processing or for use in *conducting a business*. Thus, the distinction between a consumer product and an _____ is based on the *purpose* for which the product is purchased... The three groups of _____s and services are materials and parts, capital items, and supplies and services. *Materials and parts* include raw materials as well as manufactured materials and parts. Raw materials consist of farm products (wheat, cotton, livestock, fruits, vegetables) and natural products (fish, lumber, crude petroleum, iron ore). Manufactured materials and parts consist of component materials (iron, yarn, cement, wires) and component parts (small motors, tires, castings)... *Capital items* are _____s that aid in the buyer's production or operations, including installations and accessory equipment. Installations consist of major purchases such as buildings (factories, offices) and fixed equipment (generators, drill presses, large computer systems, elevators). Accessory equipment includes portable factory equipment and tools (hand tools, lift trucks) and office equipment (computers, fax machines, desks)... The final group of _____s is *supplies and services*. Supplies include operating supplies (lubricants, coal, paper, pencils) and repair and maintenance items (paint, nails, brooms)... Business services include maintenance and repair services (window cleaning, computer repair) and business advisory services (legal, management consulting, advertising). -Used to manufacture other goods and services, to facilitate an organization's operations or to resell to other consumers. *SINGLE STAR*

Products, Services, and Experiences

*What Is a Product?*... *_____* (Products, Services, and Experiences) Products are a key element in the overall *market offering*... A company's market offering often includes both *tangible goods* and *services*. At one extreme, the market offer may consist of a *pure tangible good*, such as soap, toothpaste, or salt; no services accompany the product. At the other extreme are *pure services*, for which the market offer consists primarily of a service... Today, as products and services become more commoditized, many companies are moving to a new level in creating value for their customers. To differentiate their offers, beyond simply making products and delivering services, they are creating and managing customer *experiences* with their brands or companies. *Combo Product/Service* -MANY FIRMS OFFER A COMBINATION OF PRODUCT & SERVICES: Restaurants, Car Dealerships, Disney, Starbucks, Electrical Products --Pure Product example: Sack of Potatoes --Combination example: Starbucks --Pure Service example: Uber Ride *SINGLE STAR*

Services

*What Is a Product?*... _____ are 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. -The result of applying human or mechanical efforts to people or objects. --Legal Services --Lawn Service --Healthcare --Home Maintenance

product

*What Is a _____?*... We define a _____ as *anything* that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. -Physical Goods -Services -Experiences -Events -Information -Ideas -Places -Properties =Physical _____ production - supply chain in manufacturing company =Maintaining hotel room components, scheduling of planes, operations, etc. - supply chain in finance Managing brand experience = managing people in business *SINGLE STAR*

Brand Standards

*_____ or Guidelines* -"*_____* are a set of guidelines for the colors; photography and graphic elements; logo specs; fonts and messaging that comprise your *brand*. They're the glue that holds your brand together and help to create and protect your firm's *brand* identity." =_____ keep consistency (important for everyone in company) =-In B2B, *people* represent brand (salespeople) =-A good brand has this

Advantages of Manufacturers' Brands

*_____* (Advantages of Manufacturers' Brands) -Heavy consumer ads by manufacturers -*New products and innovation* -Attract new customers -Enhance dealer's prestige -Rapid delivery, carry less inventory -If dealer carries poor quality brand, customer may simply switch brands and remain loyal to dealer *SINGLE STAR*

Advantages of Private Brands

*_____* (Advantages of Private Brands) -Earn higher profits on own brand -Less pressure to mark down price -Retailer can leverage manufacturer - price or shelf space as a direct competitor -Ties customer to wholesaler or retailer -Wholesalers and retailers have no control over the intensity of distribution of manufacturers' brands

Benefits of Branding

*_____* (Benefits of Branding) -Product Identification --Familiarity -Repeat Sales --Loyalty -New Product Sales --Trust -Higher Price and Brand Equity! --Profit --Value =Strong brands *should* command higher prices *DOUBLE STAR*

Benefits of Product Lines

*_____* (Benefits of Product Lines) -*Advertising Economies - Brand Leverage* - economies of scale in advertising (more impact for equivalent spending). -*Package Uniformity* - Brand Presence - packages may have a common look but maintain individual identities. -*Standardized Components* - reductions in manufacturing and inventory costs. -*Efficient Sales and Distribution* - Efficient sales and distribution: a product line enables a full range of choices to customers, and as a result, better distribution and retail coverage. -*Equivalent Quality - User Features* - all products in a line are perceived as having similar quality.

Brand Personality

*_____* (Brand Personality) -"Consumers are likely to choose brands with personalities that match your own. See page 145 in Kotler/Armstrong -Personality and our self concept or self image influences what we consume, we consume to re-enforce this! =Ex: Jeep Wrangler - Adventurous, rugged =Ex: Dove - Beauty is what *you* make it =*Tops* is a friendly store supposedly

Branding Strategy: Building Strong Brands

*_____* (Branding Strategy: Building Strong Brands) *Author Comment* A brand represents everything that a product or service *means* to consumers. As such, brands are valuable assets to a company... Some analysts see brands as *the* major enduring asset of a company, outlasting the company's specific products and facilities. -Strong Brands give their firms leverage in the channels Stores "have to" carry them!

Difference between a Product and a Brand

*_____* (Difference between a Product and a Brand) *Products* -Anything offered for acquisition, use or consumption that might satisfy a need or want --Functional --Interchangeable =-(ex: NaCl) *Brands* -Connect with consumers at an emotional level --Reflect consumers perceptions --Ownable and difficult to copy --Drive margin and overall value =-(ex: Morton salt)

Key Indicators of Strong Brands

*_____* (Key Indicators of Strong Brands) -High "top of mind" brand awareness in the category -Correct articulation of the brand equity/positioning by consumers -Low brand substitution -High share among target consumers -Brand rated by consumers as best in category and/or best for some of the most important category attributes -Brand rated best value in category or market leader -Brand delivers *OI margins* above relevant competitors -Sales and share grow every year -Consumers don't want to be without the brand and give it good support --Demand channels carry it -Customers (channel) want to be first with the latest brand initiative --Feel they must carry on their shelves =Revenue - Cost of Goods Sold = Gross Margin (often comes from higher price (which comes from higher brand value)) =Gross Margin - Selling, General, and Administrative Expenses = Operating Margin (usually growing; expenses decrease for marketing strong brands) =Retailers *cannot be without* top brands (supermarkets need Campbells, coke, etc.)

Marketing Uses of Packaging

*_____* (Marketing Uses of Packaging) -Contain and Protect -Promote -Facilitate Storage, Use, and Convenience -Facilitate Recycling =-A package can make an entirely new product!

Overview of Branding Decisions

*_____* (Overview of Branding Decisions) -Branding Decision --Brand --No Brand =--No brand is stupid, but it is an option -Branding-Sponsor Decision --Manufacturer =--The company which designs the product --Brand --Distributor --Private Brand =--Ex: wegmans soup --Licensed Brand =--Ex: model puts name on line of home goods -Brand-Name Decision --Individual names --Family names --Company names -Brand Strategy Decision --Line --Extensions --Brand --Extensions --Multibrands --Cobrands -Brand Repositioning Decision --Repositioning --No Repositioning

Previewing the Concepts

*_____* (Previewing the Concepts)... We start with a seemingly simple question: What *is* a product? As it turns out, the answer is not so simple... This chapter begins with a deceptively simple question: *What is a product?*

Product Line Contraction AKA "Pruning"

*_____* (Product Line Contraction AKA "Pruning") *Symptoms of Product Line Overextension* -Some products have low sales or cannibalize sales of other items -Resources are disproportionately allocated to slow-moving products -Items have become obsolete because of new product entries

Repositioning

*_____* (Repositioning) -Why reposition established brands? --Changing Demographics --Declining Sales --Changes in Social Environment =---Repositioning: Las Vegas a family vacation destination

Services Marketing

*_____* (Services Marketing)... Service industries vary greatly. *Governments* offer services through courts, employment services, hospitals, military services, police and fire departments, the postal service, and schools. *Private not-for-profit organizations* offer services through museums, charities, churches, colleges, foundations, and hospitals. In addition, a large number of *business organizations* offer services - airlines, banks, hotels, insurance companies, consulting firms, medical and legal practices, entertainment and telecommunications companies, real estate firms, retailers, and others.

The Job of Product Management

*_____* (The Job of Product Management) -Key Marketing Position -B2C - Brand Manager -B2B - Product Manager -Retail - Category Manager -Leadership Position: Product "P" is the driver of the Marketing Mix -Great training for General and Upper Management --Work with all functional areas of the firm ---Leading without direct reporting relationship *SINGLE STAR*

Types of Business Products

*_____* (Types of Business Products) -OEM - Original Equipment Manufacturer -MRO - Material, Repair, and Operating Supplies

Types of Product Modifications

*_____* (Types of Product Modifications) -Quality Modification -Functional Modification -Style Modification

What Is a Product?

*_____* (What Is a Product?)... Products include more than just tangible objects, such as cars, computers, or mobile phones. Broadly defined, *products* also include services, events, persons, places, organizations, and ideas or a mixture of these. Throughout this text, we use the term *product* broadly to include any or all of these entities. -Product is the *starting* point of Marketing Mix =Product is *by far* the most important p of the four p's. =What we sell to get money; what we offer for sales =How we create value =Why a company exists =Could be physical and/or service -*Everything*, both favorable and unfavorable, that a person receives in an exchange. =Tangible Good =Service =Idea =etc

What a Product Manager Does

*_____* (What a Product Manager Does) -Adjustments to Product Items, Lines, and Mixes --Product Modification --Product Repositioning --Product Line Extension or Contraction =--Manages Current Product Offering & New Product Development

Product and Service Decisions

*_____*... Marketers make _____ at three levels: individual product decisions, product line decisions, and product mix decisions. =Made or proposed by the PLM (Product Line Manager)

Trademark

*_____*s -A _____ is the exclusive right to use a brand. --Many parts of a brand and associated symbols qualify for _____ protection. -_____ right comes from use rather than registration. -The mark has to be continuously protected. -Rights continue for as long as the mark is used. -_____ law applies to the online world. =-Trade Dress: ex: the shape of the coke bottle

Original Equipment Manufacturer (OEM)

-Parts that go into more complex products -Material - raw materials used to make products

Material, Repair, and Operating Supplies (MRO)

-Toilet paper, copy paper -Lubricants to keep equipment running -Spare parts for equipment

Universal Product Code (UPC)

A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products. -Every SKU has a unique _____

Stock Keeping Unit (SKU)

=1 can or inventory = 1 _____ ==_____s are units of management in marketing products or items ===Can use a bar code to keep track

Pruning (or product line contraction)

=Getting rid of lowest selling products

Global Brand

A brand where at least 20 percent of the product is sold outside its home country.

Generic Product

A no-frills, no-brand-name, low-cost product that is simply identified by its product category. =Like "Topcare" instead of "Bayer" =Some brands will *"flank"* to generic products; sell some products under generic brands -*"Flanking Brands" is sometimes called *fighting brand*

Brand Name

That part of a brand that can be spoken, including letters, words, and numbers.

Manufacturers' Brand

The brand name of a manufacturer. =Ex: Ben & Jerry's, Calvin Klein

Brand Mark

The elements of a brand that cannot be spoken.