Product, Services, and Branding Strategies

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Product, Services, and Branding Strategies

• MGT 252 Lecture 6

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Learning Goals

• Define product and the major classifications of
  products and services
• Describe the decisions companies make regarding
  their individual products and services, product
  lines, and product mixes
• Discuss branding strategy-the decisions companies
  make in building and managing their brands
• Identify the four characteristics that affect the
  marketing of a service and the additional
  marketing considerations that services require
• Discuss two additional product issues socially
  responsible product decisions and international
  product and services marketing

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What Is a Product?

• A product is anything that can be offered to a
  market for attention, acquisition, use, or
  consumption that might satisfy a need or want.
• A service is a form of product that consists of
  activities, benefits or satisfactions offered for
  sale that are essentially intangible and do not
  result in the ownership of anything.

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What Is a Product?

• Products, Services, and Experiences
• Market offerings may consist of a combination of
  goods and services
• Experiences are used to differentiate offerings
• Core benefit, actual and augmented product

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What Is a Product?

• Figure 9.1 - Three Levels of Product

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Discussion Question

• Consider Starbucks
• What goods and services do they offer?
• How do they differentiate through experience?
• What is their core, actual and augmented product
  offering?

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What Is a Product?

• Types of Consumer Products
• Convenience
• Shopping
• Specialty
• Unsought

• Frequent purchases bought with minimal buying
  effort and little comparison shopping
• Low price
• Widespread distribution
• Mass promotion by producer
• Snack foods, toiletries, food products

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Convenience Product

• Types of Consumer Products
• Convenience
• Shopping
• Specialty
• Unsought

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What Is a Product?

• Types of Consumer Products
• Convenience
• Shopping
• Specialty
• Unsought

• Less frequent purchases
• More shopping effort for comparisons
• Higher than convenience good pricing
• Selective distribution in fewer outlets
• Advertising and personal selling

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Shopping Product

• Types of Consumer Products
• Convenience
• Shopping
• Specialty
• Unsought

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What Is a Product?

• Types of Consumer Products
• Convenience
• Shopping
• Specialty
• Unsought

• Strong brand preference and loyalty, requires
  special purchase effort, little brand
  comparisons, and low price sensitivity
• High price
• Exclusive distribution
• Carefully targeted promotions

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Specialty Product

• Types of Consumer Products
• Convenience
• Shopping
• Specialty
• Unsought

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What Is a Product?

• Types of Consumer Products
• Convenience
• Shopping
• Specialty
• Unsought

• Little product awareness and knowledge (or if
  aware, sometimes negative interest)
• Pricing varies
• Distribution varies
• Aggressive advertising and personal selling by
  producers and resellers

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Types of Consumer Products