Tema 3 Marketing

UNIT 3: PRODUCTS, SERVICES, AND BRANDS

Building Customer Value

Instructor: Goretti Cabaleiro Cerviño

LEARNING OBJECTIVES

  • Define product and major classifications of products and services: Understand the differences between various types of products and services, and how these classifications impact marketing strategies.

  • Describe product decisions regarding individual products, product lines, and product mixes: Evaluate how businesses can optimize their product offerings over the entire product life cycle, including introduction, growth, maturity, and decline stages.

  • Identify characteristics affecting service marketing and considerations for services: Analyze the differences between marketing goods and services, focusing on intangibility, perishability, variability, and inseparability.

  • Discuss branding strategy and brand management decisions: Explore the elements that make up a strong brand and the strategic decisions involved in managing a brand’s equity.

PRODUCT DEFINITION

General Definition

  • Product: Any item, tangible or intangible, that is offered in a market for attention, use, or consumption to satisfy needs or wants. This encompasses a wide array of items, including tangible objects like goods (e.g., electronics, clothing), services such as financial consulting, events like concerts, and ideas such as social initiatives.

Service Definition

  • Services: Intangible products that consist of activities, benefits, or satisfactions offered for sale. Key examples include banking, hospitality, home repairs, consulting, and education. Services often require consumer participation and are characterized by their lack of ownership transfer.

MARKET OFFERING

Components

  • Market offerings may encompass both tangible goods and services combined to provide consumer solutions.

    • Pure tangible goods: Examples include soap, toothpaste, and electronics—products that are entirely physical.

    • Pure services: Examples include a doctor’s exam, financial advice, or personal training—offerings where no physical product is exchanged.

LEVELS OF PRODUCT AND SERVICES

Three Levels

  1. Core Customer Value: The essential benefit that buyers are really purchasing; this represents the fundamental need or desire that the product fulfills.

  2. Actual Product: This includes the features, design, packaging, brand name, and warranty aspects of the product that differentiate it from competitors.

  3. Augmented Product: Additional services, benefits, and features that come with the product, such as customer service, warranty, and after-sales support—elements that enhance the value of the actual product.

PRODUCT CLASSIFICATIONS

Industrial vs. Consumer Products

  • Industrial Products: These are products purchased for further processing or business use, often in manufacturing or industry applications.

  • Consumer Products: Products purchased for personal consumption, which can be classified into several categories:

    • Convenience Products: Frequently purchased items that require minimal effort, such as snacks or household goods.

    • Shopping Products: Products that consumers buy less frequently and compare on attributes such as quality, price, and style, like clothing and electronics.

    • Specialty Products: Uniquely characterized products with high buyer preference and brand loyalty, such as luxury cars or designer clothing.

    • Unsought Products: Products that consumers do not actively seek out, often requiring aggressive marketing strategies, like life insurance or funeral services.

MARKETING CONSIDERATIONS FOR SERVICE FIRMS

Marketing Strategies

  • Due to the intangible nature of services, they necessitate unique marketing strategies:

    • Service-Profit Chain: This concept links service quality, employee satisfaction, and customer satisfaction to profit. A focus on enhancing employee experiences can lead to better service delivery and greater customer satisfaction.

    • Internal and Interactive Marketing: Internal marketing emphasizes motivating and training employees, while interactive marketing focuses on the actual interactions between service providers and customers, emphasizing relationship-building.

BRANDING STRATEGY

Key Concepts

  • Brands: Represent consumer perceptions and feelings towards products and services. A strong brand can evoke emotions and affect purchasing decisions significantly.

  • Brand Equity: Refers to the added value a brand name provides to a product. Strong brands are typically associated with higher loyalty, better recognition, and increased market share.

  • Brand Management: Involves various strategies, including brand name selection, sponsorship, and brand extension strategies.

Brand Development Strategies

  • Line Extensions: Utilizing an existing brand to introduce new product forms or variations within the same product category.

  • Brand Extensions: Applying an established brand name to a completely new product category to leverage brand equity.

  • Multibrands: Developing multiple brands within a single product category to target different market segments.

  • New Brands: Creating entirely new brand names when entering a new market segment where existing brands may not be suitable.

NEUROMARKETING INSIGHTS FOR LOGOS

  • Effective logos are crucial for building brand recognition and generating consumer interest.

  • Descriptive Logos: Logos that represent the product or service can enhance authenticity and consumer evaluations; however, they may not always capture the essence of the brand effectively.

  • Psychology of Colors: Different colors evoke various emotions and associations, influencing consumer perceptions and purchasing behaviors. For example, blue can create a sense of trust, while red can stimulate excitement and urgency.

Building Customer Value

Instructor: Goretti Cabaleiro Cerviño

LEARNING OBJECTIVES

  • Define product and major classifications of products and services, recognizing impacts on marketing strategies.

  • Describe product decisions across individual products, product lines, and product mixes over the product life cycle.

  • Identify service marketing characteristics including intangibility, perishability, variability, and inseparability.

  • Discuss branding strategy and brand management decisions involved with a strong brand.

PRODUCT DEFINITION

  • Product: Any item offered in a market for attention or consumption to satisfy needs. Encompasses tangible goods and intangible services, events, and ideas.

  • Services: Intangible products consisting of activities or benefits offered for sale, often requiring consumer participation.

MARKET OFFERING

  • Components: Tangible goods and services that provide consumer solutions.

  • Pure tangible goods: Examples: soap, toothpaste, electronics.

  • Pure services: Examples: doctor’s exam, consulting.

LEVELS OF PRODUCT AND SERVICES

  • Core Customer Value: The essential benefit that the buyer is purchasing.

  • Actual Product: Features, design, packaging, brand name, and warranty aspects.

  • Augmented Product: Additional services and benefits enhancing the actual product, like customer service and warranty.

PRODUCT CLASSIFICATIONS

  • Industrial Products: Purchased for further processing or business use.

  • Consumer Products: Purchased for personal consumption, categorized into:

    • Convenience Products: Frequently purchased with minimal effort.

    • Shopping Products: Compared on attributes like quality and price.

    • Specialty Products: High buyer preference and brand loyalty.

    • Unsought Products: Not actively sought and require marketing strategies.

MARKETING CONSIDERATIONS FOR SERVICE FIRMS

  • Service-Profit Chain: Links service quality, employee satisfaction, and customer satisfaction.

  • Internal and Interactive Marketing: Focuses on employee motivation and customer-service provider interactions.

BRANDING STRATEGY

  • Brands: Represent consumer perceptions towards products.

  • Brand Equity: Added value from a brand name affecting loyalty and recognition.

  • Brand Management Strategies: Brand naming, sponsorship, extension strategies.

  • Brand Development Strategies: Line extensions, brand extensions, multibrands, new brands.

NEUROMARKETING INSIGHTS FOR LOGOS

  • Effective Logos: Crucial for brand recognition.

  • Descriptive Logos: Enhances authenticity but may not capture brand essence.

  • Psychology of Colors: Colors influence emotions and consumer behaviors, e.g., blue creates trust, red stimulates urgency.