PRODUCTS & BRANDS

OBJECTIVES
üunderstand and use English terms related to products and brands
üunderstand the marketing terminology of products and brands in specific texts
üapply these English terms for listening, speaking, reading and writing in specific
contexts
 PRODUCT & BRANDS

• Product and Services

• Product Decisions
• Developing New Products &
Product Life Cycle
• Branding Strategy
 PRODUCT
1. What is a product?
2. Describe main products of NEU?

Product § being offered to a market for attention,

acquisition, use, or consumption
§ satisfying a want or need
§ including more than just tangible objects
LEVELS OF PRODUCT AND SERVICES

The core, problem-solving benefits

or services that the consumers seek

Core customer value

What is the buyer really buying?
LEVELS OF PRODUCT AND SERVICES

Turn the core benefit into an

actual product

Actual product
LEVELS OF PRODUCT AND SERVICES

Offering additional consumer

services and benefits

Augmented product
WHAT IS A PRODUCT? - NIKE
Comfort, safety to the feet while walking, jogging, running, playing
- Quality: light-weight, flexibility, barefoot like feel, support, cushioning, protection
- Logo: Swoosh
- Packaging: appealing, stylish, swoosh symbol attractive colors
- Updated styles keep up with fads

- Customization: NIKEiD
- Nike community: Nike membership, apps Nike Run Club
- Buyer’s self-esteem

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 WHAT IS A PRODUCT?
YOUR TURN

Give examples of products at three product levels!

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Reading 1.1: Product – the heart of an organization’s marketing program
The product offering, the heart of an organization’s marketing program, is usually the
starting point in creating a marketing mix. A marketing manager cannot determine a price,
design a promotion strategy, or create a distribution channel until the firm has a product to
sell. Moreover, an excellent distribution channel, a persuasive promotion campaign, and a
fair price have no value when the product offering is poor or inadequate.
Products can be classified as either business (industrial) or consumer, depending on the
buyer’s intentions. The key distinction between the two types of products is their intended
use. If the intended use is a business purpose, the product is classified as a business or
industrial product. A consumer product is bought to satisfy an individual’s personal
wants or needs. Some- times the same item can be classified as either a business or a
consumer product, depending on its intended use. Although there are several ways to
classify them, the most popular approach includes these four types: convenience products,
shopping products, specialty products, and unsought products. This approach classifies
products according to how much effort is normally used to shop for them.
 Discussion
Distinguish an industrial product and a consumer product.

Give examples.

Consumer products Industrial products

products and services bought products purchased for further

by final consumers for processing or for use in
personal consumption. conducting a business
 PRODUCTS AND SERVICES CLASSIFICATIONS
C
Convenience Specialty B
products products

Shopping Unsought
D A
products products

A. consumer products that a consumer either does not know about or knows about but does not
normally consider buying
B. consumer products and services with unique characteristics or brand identifications for which a
significant group of buyers is willing to make a special purchase effort.
C. consumer products and services that customers usually buy frequently, immediately, and with
minimal comparison and buying effort.
D. less frequently purchased consumer products and services that customers compare carefully on
suitability, quality, price, and style.
CONSUMER PRODUCTS & MARKETING CONSIDERATIONS
 DISCUSSION
How would you classify the following products?
(a) Johnson’s baby shampoo
(b) a Dyson hair dryer
(c) Bitis sneakers
(d) Fire extinguishers
(e) Home safety cameras
(f) PlayStation video games
(g) a Lamborghini car
Identify marketing considerations for each of them.
 PRODUCT LINE

a group of products that are closely

related because they function in a similar
manner, are sold to the same customer
groups, are marketed through the same
types of outlets, or fall within given price
ranges.
Danh mụcPRODUCT
sản phẩm (product mix or product
MIX (PRODUCT portfolio): là tập hợp
PORTFOLIO)
tất cả các đơn vị hàng hóa mà một người bán cụ thể chào bán
all the products and items that a particular seller offers for sale
 CRITERIA OF EVALUATING PRODUCT MIX
• Width: the number of different product lines the company carries.
• Length: the total number of items a company carries within its
product lines.
• Depth: the number of versions offered of each product in the line
• Consistency: how closely related the various product lines are in end
use, production requirements, distribution channels, or some other way.
 YOUR TURN

Analyze the product mix of a company you are interested in.

DEVELOPING NEW PRODUCTS & PRODUCT LIFE CYCLE

1. What is the role of new product development?

2. What is the difference in Apple's new product development?
3. How do companies find and develop new product ideas?
 New-Product Development
the development of original products, product improvements, product modifications,
and new brands through the firm’s own product development efforts
 DISCUSS
List and explain sources of new product ideas.
Ideas for new products from internal sources https://youtu.be/cZ8-CaIGroA

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Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
 PRODUCT LIFE-CYCLE STRATEGIES

The course of a
product’s sales and
profits over its
lifetime
 PRODUCT LIFE-CYCLE STRATEGIES
• Product development
Zero sales and increasing investment costs
• Introduction
Slow sales and nonexistent profits
• Growth
Rapid market acceptance and increasing profits
• Maturity
Slow sales growth and profits level off or decline
• Decline
Sales fall off and profits drop
 PRODUCT LIFE-CYCLE STRATEGIES
TABLE 9.2 PART I

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 PRODUCT LIFE-CYCLE STRATEGIES
TABLE 9.2 PART II

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INTRODUCTION
 INTRODUCTION
Firms’ responses
Characteristics q Product
q Firms - Perfectionism
§ slow increase in sales q Price
§ low or no profit or even loss - Adequate pricing strategies
§ low speed of production expansion § Market Penetration
§ technical problems § Market Skimming
q Place
q Consumers
§ Not expansion: exclusive distribution
§ not aware of products
§ Establish relationships with intermediaries
§ old habits
q Promotion
§ limited buying power § Raise awareness
q Competition: not much § Reinforce advertising, promotion tools , trial
§Focus on customers who are ready
GROWTH
 GROWTH
Firm’s responses
q Strategy
Characteristics
Entering a new market
q Firms qProducts
§ Highest speed of sales increase Improvement & Advancement
§ Increased profit q Price
§ Decreased supply costs § No change
q Consumers § Discount to get attention
§ Begin to pay attention & consume q Place
§ Increased consumption scale § Expand distribution channels
q Competitors § Build New distribution channels
q Promotion
New competitors join
§ Continue to provide more information
§ Modify messages
 MATURITY
Firms’ responses
q Strategy
Characteristics Finding a new market for products
q Firms q Products
§ Maximal sales § Improvement
§ Reduced profit § New market for existing products
q Customers § Improved customer service
§ Maximal consumption scale
§ Research for product improvement
§ Like product improvements
§ Additional product features
§ Responsive to price
q Competitors: fierce q Price: Discounts
q Place: multi-channels
q Promotion: promotional tools
 DECLINE

Firm’s response
Characteristics q Strategy
q Firms § Narrow product types
§ Declining sales and profits § Exit the market
§ Negative growth rate
q Product
q Customers § Continuing production or Removing
§ Find new substitutes from product portfolio
§ Declining consumption q Price
q Competitors At a level that products can be sole
Very few or no competitor q Production: narrowing
q Promotion: No
 PRACTICE
Suggest marketing activities for the following products

(a) Canon digital camera

(b) Samsung tablets

(c) KFC fast food

10-47
 BRANDING STRATEGY
Reading 4.1. Benefits of Branding
The success of any business or consumer product depends in part on the target market’s ability to
distinguish one product from another. Branding is the main tool marketers use to distinguish their
products from those of the competition.
Branding has three main purposes: product identification, repeat sales, and new-product sales.
The term brand equity refers to the value of a company or brand name. A brand that has high
awareness, perceived quality, and brand loyalty among customers has high brand equity.
Brand loyalty, a consistent preference for one brand over all others, is quite high in some product
categories. Brand identity is essential to developing brand loyalty.
Firms face complex branding decisions. Firms may choose to follow a policy of using manufacturers’
brands, private brands, or both. The brand name of a manufacturer—such as Kodak, La-Z-Boy, and
Fruit of the Loom—is called a manufacturer’s brand. A private brand, also known as a private label
or store brand, is a brand name owned by a wholesaler or a retailer. Co-branding entails placing
two or more brand names on a product or its package. Co-branding may also be used to increase a
company’s presence in markets where it has little room to differentiate itself or has limited market
share.
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 REVIEW
• Product
• Consumer products: convenience, shopping, specialty, unsoughted
• Industrial products: capital, materials and parts, raw materials
• Product Decisions:
• product line, product mix, width, length, depth, consistency
• New Product Development
• Idea generation, idea screening, concept development, concept
testing, marketing strategy development, test marketing, product
development, commercialization
• Product Life Strategy
• Introduction, growth, maturity, decline