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

Self-service
groceries

Pacific cruise

Almost
pure
service
Personal
training

People-based

Shostacks 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
Cant 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
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 cant 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
Cant 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