Services and Branding

1. Services and Branding MKTG 201 Semester 1, 2010 Sandy Bennett Chapters 11 & 12

2. Overview Define services Characteristics of services Managing services Define brand Benefits of branding Brand strategies Branding and the PLC Services and branding

3. Review: What is a Product? A product is anythingthat can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.

4. Definition of ‘services’ “Services are intangible activities or benefits that an organization provides to consumers (such as airline trips, financial advice, or automobile repair) in exchange for money or something else of value” Kerin et al (2006, p. 316)

5. The continuum of market offerings Equipment-based Self-service petrol Pacific cruise ‘Almost pure’ physical goods ‘Almost pure’ service Self-service groceries Personal training People-based

6. Shostack’s Continuum

7. Characteristics of Services • Intangibility • There is no physical presence • Inseparability • The customer must be present for the service to take place • Inconsistency (_________) • The service provider cannot provide exactly the same service every time • Inventory (__________) • A service cannot be stored or stockpiled

8. Managing Services

9. What do we mean by BRAND? • A BRAND is a name, term, sign, symbol or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors (an identifier, a promise) (Kotler et al, 2006, p. 269)

10. Some Key Terms BRAND

11. Benefits of branding • To the _________ • Identify products • Reduce time required for purchase • Evaluate quality of products • Reduces perceived risk • Psychological reward • To the _________ • Differentiates product from competitors • Segment market by creating tailored images • Identifies company, making repeat purchases easier • Reduces price comparisons • Communicates company/product values, promises

12. Selecting a Brand • The elements of a good brand should be: • Memorable & Likeable • Meaningful _____________ • Transferable and Adaptable • Protectible • ______________

13. Four Brand Strategies Product Category Line Extension Brand Extension Existing New Existing Multibrands New Brands Brand Name New

14. Consumers manipulate Brands Brands are not merely products but they used by consumers as forms of self expression and they represent lifestyle Hence consumers choice drives brand decisions Brands manipulate Consumers Branding influences consumers self expression and they represent lifestyle Hence brand decisions drive consumer choice Companies whitewash over third world production, horrible labour practices, monopolistic competition and consumer brain washing Hence companies and their brands can’t be trusted Are You Pro or No Logo?http://www.brandchannel.com/forum.asp?bd_id=9(Naomi Klien “No Logo” Flamingo 2000)

15. Product Life Cycle (PLC)

16. Branding and the PLC • How can branding be used to manage the product life cycle? • Introduction • Growth • Maturity • Decline

17. Service Branding Strong brands increase customers’ _________of the invisible purchase. Strong brands enable customers to better __________ and understand intangible products. They reduce customers’ perceived monetary, social, or safetyrisk in buying services, which are difficult to evaluate prior to purchase. Strong brands are the __________ when the company offers no fabric to touch, no trousers to try on, no watermelons or apples to scrutinize, no automobile to test-drive” Berry (2000)

18. Strong Service Brand • Dare to be __________ • _________ the service well • Make an ___________ connection (reach beyond the purely rational and economic) • ___________ the brand (internal marketing/branding, selling the brand values and promises to the employees)

19. Services and branding

20. Looking back Define services Characteristics of services Managing services Define brand Benefits of branding Brand strategies Branding and the PLC Services and branding