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1、Product, Services, and Branding StrategiesChapter 90ObjectivesBe able to define product and know the major classifications of products and services.Understand the decisions companies make regarding their individual products and services, product lines, and product mixes.1ObjectivesUnderstand how fir

2、ms build and manage their brands.Know the four characteristics of services and the additional marketing considerations that services require.Review additional product issues related to social responsibility and international marketing.2Cosmetics companies sell billions of dollars worth of productsCo

3、nsumers buy more than just a particular smellThe “promise”, image, company, name, package, and ingredients are all part of the product, as are the stores where it is sold.The Cosmetics IndustryCase Study3DefinitionsProductAnything offered to a market for attention, acquisition, use, or consumption t

4、hat might satisfy a need or want.ServiceAny activity or benefit that one party can offer to another that is essentially intangible and does not result in ownership of anything.4What is a Product?Products, Services, and ExperiencesMarket offerings, pure tangible goods, pure services, experiencesLevel

5、s of Product and ServicesCore benefit, actual product, and augmented productProduct and Service Classifications5What is a Product?ConvenienceShoppingSpecialtyUnsoughtFrequent purchases bought with minimal buying effort and little comparison shoppingLow priceWidespread distributionMass promotion by p

6、roducerTypes of Consumer Products 6What is a Product?ConvenienceShoppingSpecialtyUnsoughtLess frequent purchases requiring more shopping effort and price, quality, and style comparisons. Higher than convenience good pricingSelective distribution in fewer outletsAdvertising and personal selling by pr

7、oducer and resellerTypes of Consumer Products 7What is a Product?ConvenienceShoppingSpecialtyUnsoughtStrong brand preference and loyalty, requires special purchase effort, little brand comparisons, and low price sensitivityHigh priceExclusive distributionCarefully targeted promotion by producers and

8、 resellersTypes of Consumer Products 8What is a Product?ConvenienceShoppingSpecialtyUnsoughtLittle product awareness and knowledge (or if aware, sometimes negative interest)Pricing variesDistribution variesAggressive advertising and personal selling by producers and resellersTypes of Consumer Produc

9、ts 9What is a Product?Product and Service ClassificationsConsumer productsIndustrial products Materials and parts Capital items Supplies and services10What is a Product?Product and Service ClassificationsOrganizations, persons, places, and ideas Organizational marketing makes use of corporate image

10、advertising Person marketing applies to political candidates, entertainment sports figures, and professionals Place marketing relates to tourism Social marketing campaigns promote ideas11Product and Service DecisionsIndividual ProductProduct Line Product MixProduct attributesQuality, features, style

11、 and designBrandingPackagingLabelingProduct support servicesKey Decisions 12Product and Service DecisionsIndividual ProductProduct Line Product MixProduct line lengthLine stretching: adding products that are higher or lower priced than the existing lineLine filling: adding more items within the pres

12、ent price rangeKey Decisions 13Product and Service DecisionsIndividual ProductProduct Line Product MixProduct line width:number of different product lines carried by companyProduct line depth:Number of different versions of each product in the lineProduct line consistencyKey Decisions 14Branding Str

13、ategyBrands are powerful assets that must be carefully developed / managed.Brands with strong equity have many competitive advantages:High consumer awareness Strong brand loyaltyHelps when introducing new productsLess susceptible to price competition15Brand StrategyBrand PositioningBrand Name Select

14、ion Brand SponsorshipBrand DevelopmentThree levels of positioning:Product attributes Least effectiveBenefitsBeliefs and values Taps into emotionsKey Decisions 16Brand StrategyBrand PositioningBrand Name Selection Brand SponsorshipBrand DevelopmentGood Brand Names:Suggest something about the product

15、or its benefitsAre easy to say, recognize and rememberAre distinctiveAre extendableTranslate well into other languagesCan be registered and legally protectedKey Decisions 17Brand StrategyBrand PositioningBrand Name Selection Brand SponsorshipBrand DevelopmentManufacturer brandsPrivate (store) brands

16、Costly to establish and promoteHigher profit marginsLicensed brandsName and character licensing has grownCo-brandingAdvantages / disadvantagesKey Decisions 18Brand StrategyBrand PositioningBrand Name Selection Brand SponsorshipBrand DevelopmentLine extensionsMinor changes to existing productsBrand e

17、xtensionsSuccessful brand names help introduce new productsMultibrandsMultiple product entries in a product categoryNew brandsNew product categoryKey Decisions 19Line Extensions May Feature Different:Brand StrategyFlavorsColorsFormsIngredientsPackage Sizes20Services MarketingServicesAccount for 74%

18、of U.S. gross domestic product.Service industries include business organizations, government, and private not-for-profit organizations.21Services MarketingCharacteristics of ServicesIntangibility Consumers look for service quality signalsInseparability Services cant be separated from providersVariability Employees and other factors result in variabilityPerishability Services cant be inventoried for later sale22Services MarketingServic

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