PRODUCTS Services and Brands 99

kapitola:

Katarína Chomová, 2012

MARKETING MIX

... Apple iPhone, Toyota LandCruisers, Caffé Mocha at Starbucks...

= anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.

PRODUCT

THREE LEVELS OF PRODUCT

What is the buyer really buying?

„In the factory, we make cosmetics, in the store, we sell hope“

CHARLES REVSON of REVLON

CORE = BENEFITCORE = BENEFIT

FREEDOM and

FREEDOM and ON-THE-GO ON-THE-GO CONNECTIVITY

CONNECTIVITY TO PEOPLE AND

TO PEOPLE AND RESOURCESRESOURCES

Design, packaging, quality level, brand name...

FORMAL = FORMAL = FEATURESFEATURES

SERVICE SERVICE FEATURES,

FEATURES, DESIGN,

DESIGN, A QUALITY LEVEL,

A QUALITY LEVEL, A BRAND NAME,

A BRAND NAME,PACKAGINGPACKAGING

Additional consumer services and benefits.

AUGMENTED = AUGMENTED = VALUE ADDEDVALUE ADDED

PRODUCT SUPPORT,AFTER-SALE SERVICE, WARRANTY, DELIVERY

PRODUCTATTRIBUTES

BRANDING

PACKAGING

LABELING

PRODUCTSUPPORTSERVICES

PRODUCTPRODUCTATTRIBUTESATTRIBUTES

PRODUCT QUALITYPRODUCT QUALITY = The characteristics of a product or service

that bear on its ability to satisfy stated or implied customer needs.

„Quality is when our customers come back and our products don´t.“

SIEMENS

TQM - Total Quality ManagementTQM - Total Quality Management= = is an approach in which all of the company´s people are is an approach in which all of the company´s people are

involved in constantly improving the quality of products, involved in constantly improving the quality of products, services and business process. services and business process.

PRODUCT FEATURESPRODUCT FEATURES= features are a competitive tool for

differantiating the company´s product from competitors ´ products.

How can a company identify new features and decide which ones to add to its product? 

http://youtu.be/BRstTgvY7gg

PRODUCT STYLE and PRODUCT STYLE and DESIGN DESIGN

Design is a larger concept than style.- it goes to the very heart of a product.

Good design contributes to a product´s usefulness as well as to its looks.

Nike employs about 60 designers who come every year with more than 500 footwear design proposals.

http://youtu.be/XgC3zjNH1oU

BRANDING

BRANDINGBRANDING

= A name, term, sign, symbol, design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors.

BRAND NAME SELECTIONBRAND NAME SELECTION

BRAND POSITIONINGBRAND POSITIONING

BRAND DEVELOPMENTBRAND DEVELOPMENT

BRAND SPONSORSHIPBRAND SPONSORSHIP

Attributes- -Benefits- -Beliefs and ValuesAttributes- -Benefits- -Beliefs and Values

Line extensions- -Brand extensionsLine extensions- -Brand extensionsMultibrands- -New brandsMultibrands- -New brands

Selection- -ProtectionSelection- -Protection

Manufacturer´s brand- -Private brandManufacturer´s brand- -Private brandLicensing- -Co-brandingLicensing- -Co-branding

BRAND NAME SELECTIONBRAND NAME SELECTION

Brand names come in many styles. A few include:

Initialism: A name made of initials such as UPS or IBMDescriptive: Names that describe a product benefit or function like Whole Foods or Airbus

Alliteration and rhyme: Names that are fun to say and stick in the mind like Reese's Pieces or Dunkin' Donuts

Evocative: Names that evoke a relevant vivid image like Amazon or Crest

Neologisms: Completely made-up words like Wii or Kodak

Foreign word: Adoption of a word from another language like Volvo or Samsung

Founders' names: Using the names of real people, and founder's name like Hewlett-Packard, Dell or Disney

Geography: Many brands are named for regions and landmarks like Cisco and Fuji Film

Personification: Many brands take their names from myth like Nike

PACKAGING

PACKAGINGPACKAGING = The activities of designing and producing the

container or wrapper for a product..

Original packagingcompany can secure acompetitive advantage!

For exampleFor example, ,

in the average supermarket, whichin the average supermarket, whichoffers offers 15 to 17,000 15 to 17,000 itemsitems, , the typical customerthe typical customer g goesoes through around through around 300300 products per minuteproducts per minuteand and 53%53% of the of the purchase is impulsivepurchase is impulsive. .

In thisIn this h highlyighly competitive environment can becompetitive environment can beppackingacking for thefor the seller's last chance toseller's last chance toiinfluencenfluence t thehe customer.customer.

Becoming a Becoming a 5-5- second advertisementsecond advertisement..

LABELINGLABELING

LABELINGLABELING

= describe several things about the product- who made it, where it was made, when it was made, its contests, how it is to be used, and how to use it safely.

PRODUCTPRODUCTSUPPORTSUPPORTSERVICESSERVICES

PRODUCT PRODUCT SUPPORTSUPPORT

SERVICESSERVICES

= customer service

A company´s offer usually includes some support services, which can be a minor part or a major part of the total offering.

PRODUCT MIX= the set of all product lines and items that a

particular seller offers for sale. = has 4 important dimensions:• width,• length,• depth,• consistency.

PRODUCT LIFE-CYCLE STRATEGIES

Product Life-Cycle, PLC= the course of a product´s sales and profits over its lifetime. It involves five district stages: Product development, Introduction, Growth, Maturity and decline.

Introduction

This is the stage of low growth rate of sales as the product is newly launched in the market. Monopoly can be created, depending upon the efficiency and need of the product to the customers. A firm usually incurs losses rather than profit. If the product is in the new product class, the users may not be aware of its true potential. In order to achieve that place in the market, extra information about the product should be transferred to consumers through various media. The stage has the following characteristics: 1. Low competition 2. Firm mostly incurs losses and not profit.

Growth

Growth comes with the acceptance of the innovation in the market and profit starts to flow. As the monopoly still exists manufacturer can experiment with its new ideas and innovation in order to maintain the sales growth. It is the best time to introduce new effective product in the market thus creating an image in the product class in the presence of its competitors who tries to copy or improve the product and present it as a substitute me.the growth of a product is determined on the country of a product.

Maturity

In this the end stage of the growth rate, sales slowdown as the product have already achieved it acceptance in the market. So new firms starts experimenting in order to compete by innovating new models of the product. With many companies in the market, competition for customers becomes fierce, even though the increase in the growth rate of sales at the initial part of this stage.

Decline

This is the stage where most of the product class usually dies due to the low growth rate in sales. As number of companies starts dominating the market, makes it difficult for the existing company to maintain its sale. Not only the efficiency of the company play an important factor in the decline, but also the product category itself becomes a factor, as market may perceive the product as 'OLD' and may not be in demand.