Chapter 8

Chapter 8 - slide 1Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Eight

Products, Services, and Brands: Building Customer Value


Product, Services, and Branding Strategy

• What Is a Product?• Product and Services

Decisions• Branding Strategy:

Building Strong Brands

• Services Marketing

Topic Outline


What Is a Product?

• Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want

• Products include more than just tangible objects such as cars, computers or cell phones.

Products, Services, and Experiences


What Is a Product?

• Broadly defined, “products” also include service, events, persons , places , organizations , ideas , or mixes of these.

• Services are the form of product that consists of activities, benefits or satisfactions offered for sale that are essentially intangible and don’t result in the ownership of anything such as Banking

Products, Services, and Experiences


What Is a Product?

• Product is a key element in the overall marketing offering, marketing mix planning begins with building an offering that brings value to target customers.

• This offering becomes the basis upon which the company builds profitable customer relationships

• A company’s market offering includes both tangible goods and services

Products , services and experiences


What Is a Product?

• The offer may consist of a pure tangible good such as soap, toothpaste or salt.

• At the other extreme are the pure services for which the offer consists primarily of a service.



What Is a Product?

• Experiences represent what buying the product or service will do for the customer

• Experiences have always been an important part of marketing for some companies

• Companies that market experiences realize that customers are really buying much more that just products and services, they are buying what those offers will do for them



A ________ is anything that can be offered to a market that might satisfy a need or a want.1. position2. product3. promotion 4. none of the above


A ________ is anything that can be offered to a market that might satisfy a need or a want.1. position2. product3. promotion 4. none of the above


What Is a Product?

• Product planners need to think about products and services on three levels, each level adds more customer value. The most basic level is the core customer value, which addresses the question “ what is the buyer really buying ? “

• When designing products, marketers must first define the core, problem solving benefits or services that consumers seek

Levels of Product and Services


What Is a Product?

• At the second level, product planners must turn the core benefits into an actual product, they need to develop product and service features, design, a quality level or a brand name and packaging.

• For Ex. The BlackBerry is an actual product. Its name , parts, styling, features have all been combined to deliver the core customer value



What Is a Product?

• Finally , product planners must build an augmented product around the core benefit and actual product by offering additional consumer services and benefits.

• For ex. The BlackBerry solution offers more than just a communication device, it provides customers with a complete solution to mobile connectivity problems.



What Is a Product?Levels of Product and Services


The most basic level of a product is called its ________.1. augmented product2. actual product3. core benefit4. position


The most basic level of a product is called its ________.1. augmented product2. actual product3. core benefit4. position


What Is a Product?

Product and Service Classifications


What Is a Product?

• Consumer products are products and services for personal consumption

• Classified by how consumers buy them– Convenience products– Shopping products– Specialty products– Unsought products



What Is a Product?

• Convenience products are consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort

• Newspapers• Candy• Fast food• They are usually low priced, and marketers place

them in many locations to make them available when consumers need them



What Is a Product?

• Shopping products are consumer products and services that the customer compares carefully on suitability, quality, price, and style

• Furniture• Cars• Shopping products marketers distribute their

products through fewer outlets but provide deeper sales support to help customers in their comparison efforts.



What Is a Product?

• Specialty products are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort

• Medical services• Designer clothes• Buyers normally don’t compare specialty

products, they invest only the time needed to reach dealers carrying the wanted products



What Is a Product?

• Unsought products are consumer products that the consumer does not know about or knows about but does not normally think of buying

• Life insurance• Funeral services• Blood donations• Unsought products require a lot of advertising,

personal selling, and other marketing efforts



What Is a Product?

• Industrial products are products purchased for further processing or for use in conducting a business

• Classified by the purpose for which the product is purchased– Materials and parts– Capital– Supplies and services



Types of consumer products include convenience products, shopping products, specialty products, and ________ products.1. unique2. luxury3. unsought4. all of the above


Types of consumer products include convenience products, shopping products, specialty products, and ________ products.1. unique2. luxury3. unsought4. all of the above


________ products are purchased frequently, with little comparison or shopping effort.1. Convenience2. Shopping3. Industrial4. Unsought


________ products are purchased frequently, with little comparison or shopping effort.1. Convenience2. Shopping3. Industrial4. Unsought


Consumer product with unique brand identification for which buyers are willing to make a special purchase effort is called _________ product.1. convenience2. shopping3. specialty4. unsought


Consumer product with unique brand identification for which buyers are willing to make a special purchase effort is called _________ product.1. convenience2. shopping3. specialty4. unsought


________ products are those purchased for further processing or for use in conducting a business.1. Industrial2. Shopping3. Unsought4. Physical


________ products are those purchased for further processing or for use in conducting a business.1. Industrial2. Shopping3. Unsought4. Physical


What Is a Product?

Capital items are industrial products that aid in the buyer’s production or operations

Materials and parts include raw materials and manufactured materials and parts usually sold directly to industrial users

Supplies and services include operating supplies, repair and maintenance items, and business services



Your visit to a doctor’s office is an example of a ________.1. pure tangible good2. pure intangible good3. unsought product4. impure tangible good


Your visit to a doctor’s office is an example of a ________.1. pure tangible good2. pure intangible good3. unsought product4. impure tangible good


What Is a Product?

• Organization marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward an organization

• Both profit and non profit organization practice organization marketing

• Business firms sponsor public relations or corporate image advertising campaign to market themselves and polish their images

Organizations, Persons, Places, and Ideas


What Is a Product?

• Person marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people.

• People use person marketing to build their reputation



What Is a Product

Place marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places

Social marketing is the use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society



What Is a Product

• Social marketing programs include public health campaigns to reduce smoking , alcoholism, drug abuse, and obesity

• Other social marketing efforts include environmental campaign to promote clean air and conservation

• Still others address issues such as family planning and human rights and racial equality



Product and Service Decisions

Individual Product and Service Decisions



Product attributes are the benefits of the product or service

• Quality • Features• Style and design




• Quality has a direct impact on product or service performance, thus , its closely linked to customer value and satisfaction.

• Quality can be defined as “ freedom from defects”

• The American society for quality defines quality as the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs




Product quality includes level and consistency• Quality level is the level of quality that supports

the product’s positioning• Conformance quality is the product’s freedom

from defects and consistency in delivering a targeted level of performance



The two dimensions of product quality are ________ and ________.1. value; features2. style; design3. level; consistency4. style; value


The two dimensions of product quality are ________ and ________.1. value; features2. style; design3. level; consistency4. style; value



Product features are a competitive tool for differentiating a product from competitors’ products

Product features are assessed based on the value to the customer versus the cost to the company




Style describes the appearance of the product

Design contributes to a product’s usefulness as well as to its looks. It goes to the very heart of a product




Brand is the name, term, sign, or design—or a combination of these—that identifies the maker or seller of a product or service

Brand equity is the differential effect that the brand name has on customer response to the product and its marketing




• Branding helps buyers in many ways. Brand names help consumers identify products that might benefit them. Brands also say something about product quality and consistency

• Buyers who always buy the same brands know that they will get the same features , benefits and quality each time they buy.




Packaging involves designing and producing the container or wrapper for a product

The primary function of the package was to hold and protect the product




• Labels range from simple tags attached to products to complex graphics that are part of the package

• Labels identify the product or brand, describe attributes, and provide promotion




Product support services augment actual products




• Customer service is another element of the product strategy. A company’s offer usually includes some support services, which can be a minor or a major part of the total offering.



A(n) ________ is a name, term, sign, symbol, or 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.1. package2. position3. image4. brand


A(n) ________ is a name, term, sign, symbol, or 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.1. package2. position3. image4. brand


The designing and producing of the container or wrapper for a product is called ________.1. packaging2. labeling3. manufacturing4. industrial design


The designing and producing of the container or wrapper for a product is called ________.1. packaging2. labeling3. manufacturing4. industrial design



Product line is 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

Product Line Decisions



Product line length is the number of items in the product line

• Line stretching• Line filling

Product Line Decisions



Product mix consists of all the products and items that a particular seller offers for sale

• Width• Length• Depth• Consistency

Product Mix Decisions


• Width : refers to the number of different product lines the company carries

• Length : refers to the total number of items the company carries within its product lines

• Depth: refers to the number of the versions offered of each product in the line

• Consistency: how closely related the various product lines in the end use

Product Mix Decisions


• Is the differential effect that knowing the brand name has on customer response to the product and its marketing

• It’s a measure of the brand ability to capture customer preference and loyalty

• A brand has positive brand equity when consumers talk favorably about the product and vice versa

Brand Equity


• Marketers measure the brand strength along four dimensions which are :

1.Differentiation2.Knowledge3.Relevance “ how consumers feel it meets

their needs”4.Esteem

Brand Equity


Brand represents the consumer’s perceptions and feelings about a product and its performance. It is the company’s promise to deliver a specific set of features, benefits, services, and experiences consistently to the buyers

Branding Strategy: Building Strong Brands



Desirable qualities 1. Suggest benefits and qualities2. Easy to pronounce, recognize, and remember3. Distinctive4. Extendable5. Translatable for the global economy6. Capable of registration and legal protection

Brand Name Selection



Manufacturer’s brandPrivate brandLicensed brandCo-brand

Brand Sponsorship


Branding Strategy: Building Strong BrandsBrand Development Strategies


Services Marketing

Nature and Characteristics of a Service

Documents

Chapter 8