Product And Services Concepts
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Product and Services Concepts
Chapter 8
Prepared by Deborah Baker Texas Christian University Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
1
Learning Objectives 1. Define the term product. 2. Classify consumer products. 3. Discuss the importance of services to the economy. 4. Discuss the differences between services and goods. Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
2
Learning Objectives (continued) 5. Define the terms product items, product line, and product mix. 6. Describe marketing uses of branding 7. Describe marketing uses of packaging and labeling. 8. Describe how and why product warranties are important marketing tools. Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
3
1
Learning Objective
On OnLine Line http://www.coleman.com http://www.coleman.com
Define the term product.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
4
1
Product
Everything, both favorable and unfavorable, that a person receives in an exchange.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
5
1
What Is a Product? Product is the “heart” of Marketing Mix
Product
Promotion
Price
Place (Distribution) Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
6
2
Learning Objective
Classify consumer products.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
7
2
Product Classifications
Business Business Product Product
A A product product used used to to manufacture manufacture other other goods goods or or services, services, to to facilitate facilitate an an organization’s organization’s operations, operations, or or to to resell resell to to other other consumers. consumers.
Consumer Consumer Product Product
Product Product bought bought to to satisfy satisfy an an individual’s individual’s personal personal wants wants
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
8
2
Types of Consumer Products PRODUCTS PRODUCTS
Consumer Consumer Products Products
Convenience Convenience Products Products
Shopping Shopping Products Products
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
Business Business Products Products
Specialty Specialty Products Products
Unsought Unsought Products Products
9
2
Types of Consumer Products Convenience Convenience Product Product
AArelatively relativelyinexpensive inexpensiveitem itemthat that merits meritslittle littleshopping shoppingeffort. effort.
Shopping Shopping Product Product Specialty Specialty Product Product
AAproduct productthat thatrequires requirescomparison comparison shopping, shopping,because becauseititis isusually usuallymore more expensive expensiveand andfound foundin infewer fewerstores. stores. AAparticular particularitem itemthat thatconsumers consumers search searchextensively extensivelyfor forand andare are reluctant reluctantto toaccept acceptsubstitutes. substitutes.
Unsought Unsought Product Product
AAproduct productunknown unknownto tothe thepotential potential buyer buyeror oraaknown knownproduct productthat thatthe the buyer buyerdoes doesnot notactively activelyseek. seek.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
10
3
Learning Objective
Discuss the importance of services to the economy.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
11
3
Service
The result of applying human or mechanical efforts to people or objects.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
12
3
The Importance of Services
79% 79% of of workers workers are are in in service service sector sector Services Services account account for for 76% 76% of of U.S. U.S. GDP GDP Service Service occupations occupations will will be be responsible responsible for for all all net net job job growth growth through through 2005 2005 Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
13
3
Service-Producing Industries and Job Growth
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
14
4
Learning Objective
Discuss the differences between services and goods.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
15
4
How Services Differ from Goods
On OnLine Line http://www.nationalamusements.com http://www.nationalamusements.com http://www.amctheatres.com http://www.amctheatres.com http://www.movietickets.com http://www.movietickets.com
Services Services Are AreIntangible Intangible Performances Performances Services ServicesAre AreProduced Producedand and Consumed Consumed Simultaneously Simultaneously Services ServicesHave HaveGreater Greater Variability Variability Services Services Are Are Perishable Perishable Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
16
5
Learning Objective
Define the terms product item, product line, and product mix.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
17
5
Product Items, Lines, and Mixes
Product Product Item Item
A A specific specific version version of of aa product product that that can can be be designated designated as as aa distinct distinct offering offering among among an an organization’s organization’s products. products.
Product Product Line Line
A A group group of of closely-related closely-related product product items. items.
Product Product Mix Mix
All All products products that that an an organization organization sells. sells.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
18
5 Depth of the product lines
Gillette’s Product Lines and Mix Width of the product mix Blades and razors
Toiletries
Mach 3 Sensor Trac II Atra Swivel Double-Edge Lady Gillette Super Speed Twin Injector Techmatic
Series Adorn Toni Right Guard Silkience Soft and Dri Foamy Dry Look Dry Idea Brush Plus
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
Writing instruments
Lighters
Paper Mate Flair
Cricket S.T. Dupont
19
5
Benefits of Product Lines Advertising Advertising Economies Economies Package Package Uniformity Uniformity Standardized Standardized Components Components Efficient Efficient Sales Sales and and Distribution Distribution Equivalent Equivalent Quality Quality Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
20
5
Product Mix Width
The number of product lines an organization offers.
Diversifies risk
Capitalizes on established reputations
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
21
5
Product Line Depth The number of product items in a product line. Attracts buyers with different preferences Increases sales/profits by further market segmentation Capitalizes on economies of scale Evens out seasonal sales patterns Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
22
5
Adjustments
On OnLine Line http://www.unilever.com http://www.unilever.com
Adjustments Adjustments to to Product ProductItems, Items, Lines, Lines, and andMixes Mixes Product Product Line Line Extension Extension or or Contraction Contraction
Product Product Modification Modification Product Product Repositioning Repositioning Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
23
5
Types of Product Modifications Quality Quality Modification Modification
Functional Functional Modification Modification
Style Style Modification Modification Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
24
5
Planned Obsolescence
The practice of modifying products so those that have already been sold become obsolete before they actually need replacement.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
25
5
Repositioning
Why Whyreposition reposition established establishedbrands? brands? Changes Changes in in Social Social Environment Environment
Changing Changing Demographics Demographics Declining Declining Sales Sales
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
26
5
Product Line Extension
Adding additional products to an existing product line in order to compete more broadly in the industry.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
27
5
Product Line Contraction Symptoms Symptoms of of Product Product Line Line Overextension 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 Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
28
6
Learning Objective
Describe marketing uses of branding.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
29
6
Brand
A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
30
6
Branding Brand Brand Name Name
That That part part of of aa brand brand that that can can be be spoken, spoken, including including letters, letters, words, words, and and numbers. numbers.
Brand Brand Mark Mark
The The elements elements of of aa brand brand that that cannot cannot be be spoken. spoken.
Brand Brand Equity Equity
The The value value of of company company and and brand brand names. names.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
31
6
Benefits of Branding
On OnLine Line http://www.tide.com http://www.tide.com
Product Product Identification Identification
Repeat Repeat Sales Sales
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
New New Product Product Sales Sales
32
6
An Effective Brand Name Is easy to pronounce Is easy to recognize and remember Is short, distinctive, and unique Describes the product, use, and benefits Has a positive connotation Reinforces the product image Is legally protectable Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
33
6
The World’s Most Valuable Brands
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
34
6
Branding Strategies Brand Brand
No No Brand Brand
Manufacturer’s Manufacturer’s Brand Brand
Individual Individual Brand Brand
Family Family Brand Brand
CombiCombination nation
Private Private Brand Brand
Individual Individual Brand Brand
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
Family Family Brand Brand
CombiCombination nation
35
6
Generic Brand
A no-frills, no-brand-name, low-cost product that is simply identified by its product category.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
36
Manufacturers’ Brands Versus Private Brands
6
Manufacturers’ Manufacturers’ Brand Brand
The The brand brand name name of of aa manufacturer. manufacturer.
Private Private Brand Brand
A A brand brand name name owned owned by by aa wholesaler wholesaler or or aa retailer. retailer. Also Also known known as as aa private private label label or or store store brand. brand.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
37
Advantages of Manufacturers’ Brands
6
Develop customer loyalty Attract new customers Enhance prestige Offer rapid delivery, can carry less inventory Ensure dealer loyalty
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
38
Advantages of Private Brands
6
Earn higher profits
Less pressure to mark down prices
Manufacturer may drop a brand or become a direct competitor to dealers
Ties customer to wholesaler or retailer
No control over distribution of manufacturers’ brands
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
39
Individual Brands Versus Family Brands
6
Individual Individual Brand Brand
Using Using different different brand brand names names for for different different products. products.
Family Family Brand Brand
Marketing Marketing several several different different products products under under the the same same brand brand name. name.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
40
6
On OnLine Line http://www.postcereal.com http://www.postcereal.com http://www.quakeroats.com http://www.quakeroats.com
Cobranding
Types Typesof of Cobranding Cobranding Ingredient Ingredient Branding Branding
Complementary Complementary Branding Branding Cooperative Cooperative Branding Branding
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
41
6
Trademarks A Trademark is the exclusive right to use a brand Many parts of a brand and associated symbols qualify for trademark protection The mark has to be continuously protected Rights continue for as long as it is used Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
42
7
Learning Objective
Describe marketing uses of packaging and labeling.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
43
7
Packaging Contain Contain and and Protect Protect
Promote Promote Facilitate Facilitate Storage, Storage, Use, Use, and and Convenience Convenience
Functions Functions of of Packaging Packaging
Facilitate Facilitate Recycling Recycling Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
44
7
Labeling
On OnLine Line http://www.fda.gov http://www.fda.gov
Persuasive Persuasive Focuses on promotional theme Information is secondary Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
Informational Informational Helps make proper selections Lowers cognitive dissonance Includes use/care 45
7
Universal Product Codes A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
46
8
Learning Objective
Describe how and why product warranties are important marketing tools.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
47
8
Product Warranties
Warranty Warranty
AAconfirmation confirmationof ofthe thequality qualityor or performance performanceof ofaagood goodor orservice. service.
Express Express Warranty Warranty
AAwritten writtenguarantee. guarantee.
Implied Implied Warranty Warranty
An Anunwritten unwrittenguarantee guaranteethat thatthe the good goodor orservice serviceis isfit fitfor forthe thepurpose purpose for forwhich whichititwas wassold. sold.(UCC) (UCC)
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
48
8
Product Warranties
On OnLine Line http://www.landsend.com http://www.landsend.com http://www.llbean.com http://www.llbean.com
Express Express Warranty Warranty
Written Guarantee
Implied Implied Warranty Warranty
Unwritten Guarantee
Warranties Warranties
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
49
Chapter 8
Prepared by Deborah Baker Texas Christian University Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
1
Learning Objectives 1. Define the term product. 2. Classify consumer products. 3. Discuss the importance of services to the economy. 4. Discuss the differences between services and goods. Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
2
Learning Objectives (continued) 5. Define the terms product items, product line, and product mix. 6. Describe marketing uses of branding 7. Describe marketing uses of packaging and labeling. 8. Describe how and why product warranties are important marketing tools. Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
3
1
Learning Objective
On OnLine Line http://www.coleman.com http://www.coleman.com
Define the term product.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
4
1
Product
Everything, both favorable and unfavorable, that a person receives in an exchange.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
5
1
What Is a Product? Product is the “heart” of Marketing Mix
Product
Promotion
Price
Place (Distribution) Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
6
2
Learning Objective
Classify consumer products.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
7
2
Product Classifications
Business Business Product Product
A A product product used used to to manufacture manufacture other other goods goods or or services, services, to to facilitate facilitate an an organization’s organization’s operations, operations, or or to to resell resell to to other other consumers. consumers.
Consumer Consumer Product Product
Product Product bought bought to to satisfy satisfy an an individual’s individual’s personal personal wants wants
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
8
2
Types of Consumer Products PRODUCTS PRODUCTS
Consumer Consumer Products Products
Convenience Convenience Products Products
Shopping Shopping Products Products
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
Business Business Products Products
Specialty Specialty Products Products
Unsought Unsought Products Products
9
2
Types of Consumer Products Convenience Convenience Product Product
AArelatively relativelyinexpensive inexpensiveitem itemthat that merits meritslittle littleshopping shoppingeffort. effort.
Shopping Shopping Product Product Specialty Specialty Product Product
AAproduct productthat thatrequires requirescomparison comparison shopping, shopping,because becauseititis isusually usuallymore more expensive expensiveand andfound foundin infewer fewerstores. stores. AAparticular particularitem itemthat thatconsumers consumers search searchextensively extensivelyfor forand andare are reluctant reluctantto toaccept acceptsubstitutes. substitutes.
Unsought Unsought Product Product
AAproduct productunknown unknownto tothe thepotential potential buyer buyeror oraaknown knownproduct productthat thatthe the buyer buyerdoes doesnot notactively activelyseek. seek.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
10
3
Learning Objective
Discuss the importance of services to the economy.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
11
3
Service
The result of applying human or mechanical efforts to people or objects.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
12
3
The Importance of Services
79% 79% of of workers workers are are in in service service sector sector Services Services account account for for 76% 76% of of U.S. U.S. GDP GDP Service Service occupations occupations will will be be responsible responsible for for all all net net job job growth growth through through 2005 2005 Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
13
3
Service-Producing Industries and Job Growth
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
14
4
Learning Objective
Discuss the differences between services and goods.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
15
4
How Services Differ from Goods
On OnLine Line http://www.nationalamusements.com http://www.nationalamusements.com http://www.amctheatres.com http://www.amctheatres.com http://www.movietickets.com http://www.movietickets.com
Services Services Are AreIntangible Intangible Performances Performances Services ServicesAre AreProduced Producedand and Consumed Consumed Simultaneously Simultaneously Services ServicesHave HaveGreater Greater Variability Variability Services Services Are Are Perishable Perishable Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
16
5
Learning Objective
Define the terms product item, product line, and product mix.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
17
5
Product Items, Lines, and Mixes
Product Product Item Item
A A specific specific version version of of aa product product that that can can be be designated designated as as aa distinct distinct offering offering among among an an organization’s organization’s products. products.
Product Product Line Line
A A group group of of closely-related closely-related product product items. items.
Product Product Mix Mix
All All products products that that an an organization organization sells. sells.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
18
5 Depth of the product lines
Gillette’s Product Lines and Mix Width of the product mix Blades and razors
Toiletries
Mach 3 Sensor Trac II Atra Swivel Double-Edge Lady Gillette Super Speed Twin Injector Techmatic
Series Adorn Toni Right Guard Silkience Soft and Dri Foamy Dry Look Dry Idea Brush Plus
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
Writing instruments
Lighters
Paper Mate Flair
Cricket S.T. Dupont
19
5
Benefits of Product Lines Advertising Advertising Economies Economies Package Package Uniformity Uniformity Standardized Standardized Components Components Efficient Efficient Sales Sales and and Distribution Distribution Equivalent Equivalent Quality Quality Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
20
5
Product Mix Width
The number of product lines an organization offers.
Diversifies risk
Capitalizes on established reputations
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
21
5
Product Line Depth The number of product items in a product line. Attracts buyers with different preferences Increases sales/profits by further market segmentation Capitalizes on economies of scale Evens out seasonal sales patterns Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
22
5
Adjustments
On OnLine Line http://www.unilever.com http://www.unilever.com
Adjustments Adjustments to to Product ProductItems, Items, Lines, Lines, and andMixes Mixes Product Product Line Line Extension Extension or or Contraction Contraction
Product Product Modification Modification Product Product Repositioning Repositioning Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
23
5
Types of Product Modifications Quality Quality Modification Modification
Functional Functional Modification Modification
Style Style Modification Modification Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
24
5
Planned Obsolescence
The practice of modifying products so those that have already been sold become obsolete before they actually need replacement.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
25
5
Repositioning
Why Whyreposition reposition established establishedbrands? brands? Changes Changes in in Social Social Environment Environment
Changing Changing Demographics Demographics Declining Declining Sales Sales
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
26
5
Product Line Extension
Adding additional products to an existing product line in order to compete more broadly in the industry.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
27
5
Product Line Contraction Symptoms Symptoms of of Product Product Line Line Overextension 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 Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
28
6
Learning Objective
Describe marketing uses of branding.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
29
6
Brand
A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
30
6
Branding Brand Brand Name Name
That That part part of of aa brand brand that that can can be be spoken, spoken, including including letters, letters, words, words, and and numbers. numbers.
Brand Brand Mark Mark
The The elements elements of of aa brand brand that that cannot cannot be be spoken. spoken.
Brand Brand Equity Equity
The The value value of of company company and and brand brand names. names.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
31
6
Benefits of Branding
On OnLine Line http://www.tide.com http://www.tide.com
Product Product Identification Identification
Repeat Repeat Sales Sales
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
New New Product Product Sales Sales
32
6
An Effective Brand Name Is easy to pronounce Is easy to recognize and remember Is short, distinctive, and unique Describes the product, use, and benefits Has a positive connotation Reinforces the product image Is legally protectable Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
33
6
The World’s Most Valuable Brands
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
34
6
Branding Strategies Brand Brand
No No Brand Brand
Manufacturer’s Manufacturer’s Brand Brand
Individual Individual Brand Brand
Family Family Brand Brand
CombiCombination nation
Private Private Brand Brand
Individual Individual Brand Brand
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
Family Family Brand Brand
CombiCombination nation
35
6
Generic Brand
A no-frills, no-brand-name, low-cost product that is simply identified by its product category.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
36
Manufacturers’ Brands Versus Private Brands
6
Manufacturers’ Manufacturers’ Brand Brand
The The brand brand name name of of aa manufacturer. manufacturer.
Private Private Brand Brand
A A brand brand name name owned owned by by aa wholesaler wholesaler or or aa retailer. retailer. Also Also known known as as aa private private label label or or store store brand. brand.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
37
Advantages of Manufacturers’ Brands
6
Develop customer loyalty Attract new customers Enhance prestige Offer rapid delivery, can carry less inventory Ensure dealer loyalty
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
38
Advantages of Private Brands
6
Earn higher profits
Less pressure to mark down prices
Manufacturer may drop a brand or become a direct competitor to dealers
Ties customer to wholesaler or retailer
No control over distribution of manufacturers’ brands
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
39
Individual Brands Versus Family Brands
6
Individual Individual Brand Brand
Using Using different different brand brand names names for for different different products. products.
Family Family Brand Brand
Marketing Marketing several several different different products products under under the the same same brand brand name. name.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
40
6
On OnLine Line http://www.postcereal.com http://www.postcereal.com http://www.quakeroats.com http://www.quakeroats.com
Cobranding
Types Typesof of Cobranding Cobranding Ingredient Ingredient Branding Branding
Complementary Complementary Branding Branding Cooperative Cooperative Branding Branding
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
41
6
Trademarks A Trademark is the exclusive right to use a brand Many parts of a brand and associated symbols qualify for trademark protection The mark has to be continuously protected Rights continue for as long as it is used Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
42
7
Learning Objective
Describe marketing uses of packaging and labeling.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
43
7
Packaging Contain Contain and and Protect Protect
Promote Promote Facilitate Facilitate Storage, Storage, Use, Use, and and Convenience Convenience
Functions Functions of of Packaging Packaging
Facilitate Facilitate Recycling Recycling Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
44
7
Labeling
On OnLine Line http://www.fda.gov http://www.fda.gov
Persuasive Persuasive Focuses on promotional theme Information is secondary Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
Informational Informational Helps make proper selections Lowers cognitive dissonance Includes use/care 45
7
Universal Product Codes A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
46
8
Learning Objective
Describe how and why product warranties are important marketing tools.
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
47
8
Product Warranties
Warranty Warranty
AAconfirmation confirmationof ofthe thequality qualityor or performance performanceof ofaagood goodor orservice. service.
Express Express Warranty Warranty
AAwritten writtenguarantee. guarantee.
Implied Implied Warranty Warranty
An Anunwritten unwrittenguarantee guaranteethat thatthe the good goodor orservice serviceis isfit fitfor forthe thepurpose purpose for forwhich whichititwas wassold. sold.(UCC) (UCC)
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
48
8
Product Warranties
On OnLine Line http://www.landsend.com http://www.landsend.com http://www.llbean.com http://www.llbean.com
Express Express Warranty Warranty
Written Guarantee
Implied Implied Warranty Warranty
Unwritten Guarantee
Warranties Warranties
Chapter 8 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning
49
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