chapter 7

product support services

- important element of product strategy as they augment actual products offerings - important part of customer's overall brand experience - use of telephone, email, internet, interactive voice

3 level of product benefits

1- core product benefit / core customer value not tangible/physical product. can't be touched core product is the benefit of the product that makes it valuable addresses question "what is the customer really buying" marketers must first define the core, problem solving benefits or services that consumers seek 2- actual product benefit planners must turn core benefit into actual product is tangible, physical product include product, service features, design, quality level, brand name and packaging eg. iphone/blackberry - actual product benefit is name, parts, design, style and features combined to deliver core customer value of staying connected 3- augmented product non physical part of product consist of added value may or may not pay a premium eg. car - augmented product is the warranty, customer service support offered by car's manufacturer each level adds more customer values

Brand Strategy Decisions

1. Brand positioning - refer to how potential buyers see product, expressed relative to position of competitors - perceptual map is used to measure positioning of brand (common is two-dimensional perceptual map) - can be positioned on 3 levels • product attributes positioning (easily copied by competitors) • benefit positioning (better positioned by associating name with desirable benefit) • beliefs and values (evoke strong emotions in customer because create surprise, passion and excitement surrounding their brand) 2. Brand name selection - valuable asset (create emotional connection between company and customers) - critical component of firm marketing decision - 6 desirable quality for brand name • should suggest something about product benefit and qualities • easy to pronounce, recognise and remember • distinctive • extendable • translated easily into foreign language • capable fo registration and legal protection 3. Brand sponsorship - increase brand awareness, establish, strengthen, change brand image - 4 sponsorship options • product may launched as national • sell to resellers who create product as their own store / distributor brand • market licensed brand • join forces to create product 4. Brand development - 4 choices when comes to developing brands • line extension (extends existing brand name to new forms, colours, ingredients/flavours of existing product category • brand extension (extend a current brand name to new/ modified products in new category) • multibrands (common in large consumer product companies) • new brands (create new brand name i'd want to enter new product category)

Product Line Decisions

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 major product line decision involves product line length (number of items in product line) can be expanded in 2 ways : line filling - •adding more items within the present range of line reasons : •making extra profits •utilising excess production capacity •plugging gaps to keep out competition •satisfying dealers eg. if f&n foods excess manufacturing capacity line stretching, may introduce new juice flavour like guava to complement its existing apple and guava juice range line stretching - when company lengthen product line beyond its current range can stretch upwards or downwards or both to attract different target markets eg. toyota and nissan launches lexus and infiniti respectively to compete in luxury car market honda launched fit to target budget conscious user

factors to consider in developing branding strategy

powerful brand -> high brand equity ( measure is brand ability to capture consumer preference and loyalty ) - brand strategy decision - packaging decision - labelling - product support services

definition of products, services and experiences

product : key element in overall market offering anything that can be offered to a markeg for attention, acquisition, use or consumption thst might satisfy want/ need services : form of product that consist of activities, benefits or satisfaction offered for sale that are essentially intangible and doesn't result in ownership of anything experiences : aspects of products which take place in the mind of consumer and are memorable but marketing is about providing benefits of product or service to changing needs and demands of customer

Individual Product Decisions

product attributes branding packaging labeling product support services

product attributes decisions

developing a product involves defining benefits it'll offer . these benefits are communicated and delivered by product attributes : design and style - appearance of product - good design contribute to product usefulness and looks, attract attention, improve product performance, cut production cost, give product a competitive advantage in market quality - ability to perform functions - include product durability, reliability, precision, ease of operation, repair - must be consistent with elements of marketing mix (premium price, premium quality) 2 dimension : • level ~ determine performance quality (ability to perform functions) ~ high performance quality level will command premium price consistency ~ means conformance quality freedom from defects and consistency in delivering targeted level of performance features - most effective way to compete

packaging decisions

functions : - informs customers - meets legal requirements - it's design aid the use of product benefits : - tamper resistant (eg. plastic strips around caps prevent it from being opened when on shelves) - customer usage (eg. development of carbonated drinks packaging from glass bottles to vans to portable plastic bottles) - protect the environment (packaging should be either recyclable/ biodegradable)

Labelling

functions : - identifies products/ brands - can describe several things about product (5w 1h) - hep promote brand, support it's positioning

key factors to consider in product and service decisions

product line decision individual product decision product mix decision