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