Services and Branding MKTG 201 Semester 1 2010

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

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

Review: 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 want or need.

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)

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

Shostack’s Continuum

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

Managing Services Characteristic Challenges INTANGIBILITY Cannot be produced and displayed ahead of time Can’t try before you buy Increased perceived risk INSEPARABILITY Interaction required Production/consumption simultaneous Time/place restraints INCONSISTENCY Variances in how the service is delivered via staff May affect actual/perceived quality INVENTORY Unused service goes to waste Fixed and variable costs need to be considered Unmet demand = lost opportunity Strategies

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)

Some Key Terms BRAND

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

Selecting a Brand • The elements of a good brand should be: – – – Memorable & Likeable Meaningful _______ Transferable and Adaptable Protectible _______

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

Are You Pro or No Logo? http: //www. brandchannel. com/forum. asp? bd_id=9 (Naomi Klien “No Logo” Flamingo 2000) Consumers manipulate 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

Product Life Cycle (PLC)

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

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 safety risk 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)

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)

Services and branding Characteristic Challenges INTANGIBILITY Cannot be produced and displayed ahead of time Can’t try before you buy Increased perceived risk INSEPARABILITY Interaction required Production/consumption simultaneous Time/place restraints INCONSISTENCY Variances in how the service is delivered via staff May affect actual/perceived quality INVENTORY Unused service goes to waste Fixed and variable costs need to be considered Unmet demand = lost opportunity Strategies

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