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Integrated marketing program P1 : Product and Branding

ROAD MAP: Previewing the Concepts

What is a product? Levels of product and services Product classification Product decisions Branding Packaging Labeling Product support services
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What is a Product?
Anything that can be offered to a
market for attention, acquisition, use, or consumption and that might satisfy a want or need.
Includes: physical objects, services, events, persons, places, organizations, ideas, or some combination thereof.

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Physical product Car

Service Education

Place Kandalama Hotel Person Actress

Event Wedding
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What is a Service?
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.
Examples: banking, hotel, airline, retail, tax preparation, home repairs.

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The Product-Service Continuum

Sugar Restaurant
Some of the values result in physical product while some result in intangible experience

College Education

Pure Tangible Good

Pure Service

All the value result in physical product ownership

All the values are intangible do not have the ownership of anything

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Activity 1: Identify the service and physical product combinations of the following products.

Restaurant Medicine Tailor-made clothes New car

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Krispy Kreme

A Krispy Kreme isnt just a doughnut. Its a truly sweet experience.

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Levels of a Product

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Example : hotel industry

Core benefit: It is the fundamental level. It is the benefit the customer is really buying. E.g a hotel guest is buying rest and sleep Basic product: The marketer has to turn the core benefit in to the basic product. E.g the hotel room includes a bed, bathroom, desk, dresser etc Expected product: A set of attributes and conditions buyers normally expect when they purchase this product. E.g guest expect clean bead, fresh towels, working lamps.
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Augmented product: The product that exceeds customer expectations. Differentiation arises on the basis of product augmentation. E.g fresh flowers, and TV facilities, swimming pool etc.. . Product augmentation adds costs. Those augmented after sometimes becomes customer expectations. Today hotel guests expect satellite TVs. Potential product: It encompasses all the possible augmentations and transformations the product or offering might undergo in the future. Company search new ways to satisfy customers prefer.

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Activity 2 : Develop different levels of products of the followings.

Supermarket BIT degree New Car

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Product classification
Products Consumer Pro. Final consumption Convenience Shopping Specialty Unsought Industrial products To manufacture products for final consumption. Capital items

Materials and parts

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Consumer Products
Products and
services bought by final consumers for personal consumption.

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Convenience Products
Purchased frequently and immediately, little
or no planning/comparison / shopping effort Low priced Wide spread distribution/ convenient location Mass advertising Many purchase locations Examples: candy, soda, newspapers

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Shopping Products
Bought less frequently much

planning/comparison / shopping effort Higher price Selective distribution in fewer outlets Advertizing and personal selling Fewer purchase locations Examples: furniture, clothing, cars, appliances

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Specialty Products
Special purchase efforts, strong brand preference,
loyalty, low price sensitivity High price Exclusive distribution in one or few outlets Unique characteristics Brand identification Few purchase locations Examples: Lamborghini, Rolex Watch

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Unsought Products
Little product awareness, negative
interest, New innovations Products consumers do not want to think about Aggressive advertising and personal selling Examples: life insurance, cemetery plots, blood donation

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Industrial Products
Those purchased for
further processing or for use in conducting business.

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Industrial Products
Materials and Parts

Raw materials, manufactured materials, and parts

Products that aid in buyers production or operations

Capital Items

Supplies and Services

Operating supplies, repair, and maintenance items

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Other Market Offerings

Organizations: Profit (businesses) and nonprofit
(schools and churches). Persons: Politicians, entertainers, sports figures, doctors, and lawyers. Places: create, maintain, or change attitudes or behavior toward particular places (e.g., tourism). Ideas (social marketing): Public health campaigns, environmental campaigns, family planning, or human rights.

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Product Decisions
Quality Design Package Labeling Branding

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Product quality
Freedom from defects Two dimensions :
performance quality level :high, low, medium conformance quality :freedom from defects and continuously deliver on the same quality level

BMW
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Product design and style

Style is just appearance to attract people. But the design is a deep concept. It looks at
the people requirements and design to make the use convenience for them.

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Product Design
The innovative Discover 2GO card is a gotta-have-it accessory for people who want to dash off to the gym, the mall, or a restaurant with nothing more than their keys and a credit card.
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Branding
Creating, maintaining, protecting, and
enhancing products and services.

A brand is a name, term, sign, symbol, or

design, or a combination of these, that identifies the maker or seller of a product or service.

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Branding
Advantages to buyers: Advantages to sellers:
Product identification Indicator of Product quality Basis for products quality story Provides legal protection Helps to segment markets

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Packaging
Designing and producing the container or
wrapper for a product. Developing a good package: Packaging concept Customer identification Product safety Environmental concerns

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Innovative Packaging
Dutch Boy recently came up with a long overdue innovationpaint in plastic containers with twist-off caps.
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Labeling
Printed information appearing on or
with the package. Performs several functions:
Identifies product or brand Describes several things about the product Promotes the product through attractive graphics
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Innovative Labeling

Innovative labeling can help to promote a product.

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Nature and Characteristics of a Service

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Discussion Question

How can an airline deal with the

intangibility, inseparability, variability, and perishability of its service offering?

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