Chapter 6 Offering and Branding

6.1 What Composes an Offering?

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.

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

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.

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.

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.

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.

Packaging plays a critical role in protection, promotion, and branding.
Real-world examples show how packaging innovation creates a market advantage.

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.

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.