# Chapter 6 Offering and Branding ## 6.1 What Composes an Offering? ### 6.1.0 Definitions **Offerings:** Products/services delivering value to fulfil customer needs and wants. - **Product:** Tangible items delivering specific benefits. - **Service:** Adds value through intangible elements like warranties, delivery, or customer support. - **Price:** Cost paid, often considered alongside TCO - **Total Cost of Ownership (TCO): **The complete cost of owning a product or service, including the purchase price, maintenance costs, and any additional expenses over time. ### \*6.1.1 Product-Dominant and Service-Dominant | **Aspect** | **Product-Dominant Approach** | **Service-Dominant Approach** | | ------------------------ | ------------------------------------------------------------ | ------------------------------------------------------------ | | **Focus** | Creating **better products at lower prices** | Integrating product, price, and service for better **customer experiences** | | **Customer Perspective** | Product is the central focus; customers choose based on **quality and price** | Prioritizes **customer experience and value** over individual components | | **Key Emphasis** | Innovation and cost competitiveness | Seamless integration of offerings and customer satisfaction | | **Key Point** | Product-focused thinking | Encourages brands to think like customers | | | 物品本身 | 综合体验 | ### 6.1.2 Technology Platforms and Product Lines - **Technology Platform:** Core technology used to create a product. - **Product Line:** A group of related products built on similar platforms. ### 6.1.3 Product Depth vs. Breadth - **Product Depth:** Number of **variations** in one product line. - **Product Breadth:** Number of different **product lines** a company offers. ## \*6.2 Types of Consumer Offerings - **Convenience Offerings**: Low effort, frequent buy, little brand differentiation. - **Shopping Offerings**: Require comparison between brands. - **Specialty Offerings**: Highly exclusive, specific preferences. - **Unsought Offerings**: Not actively sought by consumers. ## \*6.3 Types of Business-to-Business (B2B) Offerings - **Capital Equipment:** Long-lasting tools or machinery. - **Raw Materials:** Basic resources for production. - **OEM (Original Equipment Manufacturer) Offerings:** Components used in the final product. - **MRO (Maintenance, Repair, and Operations) Offerings:** Maintenance supplies for operational upkeep. - **Facilitating Offerings:** Non-product services like banking, logistics. ## 6.4 Branding, Labeling, and Packaging ### 6.4.1 Branding Strategies #### 6.4.1.0 Definitions - **Brand:** A *brand* is a name, picture, design, symbol, or combination that identifies a company’s offering and differentiates it. - **Branding Strategies:** Supporting an organization’s position. - **Brand Extension:** Using an existing brand to market new products. - **Cannibalization Issue:** New products may reduce sales of older ones. #### *6.4.1.1 Branding Strategies | **Branding Strategy** | **Description** | | ----------------------- | ------------------------------------------------------------ | | Brand Differentiation | Focus on unique features to stand out. | | Emotional Branding | Build emotional connections through storytelling. | | Personalized Branding | Create customized, individual experiences. | | Co-Branding | Collaboration between two brands to create value. | | Consistency in Branding | Maintain uniform logo, messaging, and tone across platforms. | | Social Responsibility | Align with ethical or sustainability principles. | | Luxury Branding | Emphasize exclusivity and premium quality. | | Nostalgic Branding | Tap into past trends or memories. | | Rebranding | Refresh identity to align with market trends. | | Cultural or Viral Branding | Use trends/social media to engage customers. | | Cause-Driven Branding | Associate with specific social causes or movements. | | Celebrity Endorsements | Partner with celebrities or influencers for promotion. | | Storytelling | Share compelling stories to inspire and connect. | | Global Branding | Use consistent identity across international markets. | | Experiential Branding | Create unique, customer-engaging experiences. | ### 6.4.2 Packaging #### 6.4.2.0 Definitions - Packaging plays a critical role in **protection, promotion, and branding**. - Real-world examples show how packaging innovation creates a **market advantage**. #### *6.4.2.2 Key Packaging Functions - **Protects the Product:** Prevents damage, contamination, or leaks during transportation and storage. - **Supports In-Store Display:** Creates attractive store setups and promotions. - **Communicates the Brand:** Logos, colors, and other branding elements capture attention. - **Meets Regulations:** Displays required labels or warnings. #### *6.4.2.3 Types of Packaging - **Primary Packaging** *(Direct for Consumers)* - Holds a single retail unit (e.g., Coke bottle, M&Ms bag, ream of paper). - Functions: Protect, promote, get attention, and provide instructions. - **Secondary Packaging** *(For Retailers)* - Contains multiple units (e.g., a case of Coke or M&Ms). - Functions: Protect and support wholesale logistics. - **Tertiary Packaging** *(For Shipping)* - Bulk-level packaging (e.g., products stacked on pallets and wrapped in plastic). - Function: Efficient handling and mass transportation. - **Sustainable Packaging:** Materials and methods that minimize environmental impact. - **Cultural Packaging:** Design elements influenced by cultural preferences and traditions. ## 6.5 Managing the Offering ## 6.6 Discussion Questions and Activities