Chapter Eight
Products, Services, and Brands
Building Customer Value
Copyright 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 1
Product, Services, and Branding
Strategy
Topic Outline
What Is a Product?
Product and Services Decisions
Branding Strategy: Building
Strong Brands
Services Marketing
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 2
What Is a Product?
Products, Services, and Experiences
Product is anything that can be offered in a
market for attention, acquisition, use, or
consumption that might satisfy a need or want
Experiences represent what buying the product
or service will do for the customer
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 3
What Is a Product?
Product and Service Classifications
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 4
What Is a Product?
Product and Service Classifications
Consumer products are products and
services for personal consumption
Classified by how consumers buy them
Convenience products
Shopping products
Specialty products
Unsought products
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 5
What Is a Product?
Product and Service Classifications
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
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 6
What Is a Product?
Product and Service Classifications
Shopping products are consumer products
and services that the customer compares
carefully on suitability, quality, price, and style
Furniture
Cars
Appliances
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 7
What Is a Product?
Product and Service Classifications
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
High-end electronics
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 8
What Is a Product?
Product and Service Classifications
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
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 9
What Is a Product?
Product and Service Classifications
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
Raw materials
Copyright 2010 Pearson Education, Inc.
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Chapter 8 - slide 10
What Is a Product?
Product and Service Classifications
Capital items are industrial products that
aid in the buyers 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
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 11
What Is a Product?
Organizations, Persons, Places, and Ideas
Organization marketing consists of
activities undertaken to create, maintain,
or change attitudes and behavior of
target consumers toward an organization
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 12
What Is a Product?
Organizations, Persons, Places, and Ideas
Person marketing consists of activities
undertaken to create, maintain, or change
attitudes and behavior of target consumers
toward particular people
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 13
What Is a Product?
Organizations, Persons, Places, and Ideas
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
Copyright 2010 Pearson Education, Inc.
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Chapter 8 - slide 14
Product and Services Decisions
Individual Product and Service Decisions
Product attributes are the benefits of the
product or service
Quality
Features
Style and design
Copyright 2010 Pearson Education, Inc.
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Chapter 8 - slide 15
Product and Services Decisions
Individual Product and Service Decisions
Product quality includes level and consistency
Quality level is the level of quality that
supports the products positioning
Conformance quality is the products
freedom from defects and consistency in
delivering a targeted level of performance
Copyright 2010 Pearson Education, Inc.
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Chapter 8 - slide 16
Product and Services Decisions
Individual Product and Service Decisions
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
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 17
Product and Services Decisions
Individual Product and Service Decisions
Style describes the appearance of the product
Design contributes to a products usefulness as
well as to its looks
Copyright 2010 Pearson Education, Inc.
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Chapter 8 - slide 18
Product and Services Decisions
Individual Product and Service Decisions
Brand is the name, term, sign, or designor a
combination of thesethat 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
Copyright 2010 Pearson Education, Inc.
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Chapter 8 - slide 19
Product and Services Decisions
Individual Product and Service Decisions
Packaging involves designing and producing
the container or wrapper for a product
Labels identify the product or brand, describe
attributes, and provide promotion
Copyright 2010 Pearson Education, Inc.
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Chapter 8 - slide 20
Product and Services Decisions
Product Line Decisions
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
Copyright 2010 Pearson Education, Inc.
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Chapter 8 - slide 21
Product and Services Decisions
Product Line Decisions
Product line length is the number of items in
the product line
Line stretching
Line filling
Copyright 2010 Pearson Education, Inc.
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Chapter 8 - slide 22
Product and Services Decisions
Product Mix Decisions
Product mix consists of all the products and
items that a particular seller offers for sale
Width
Length
Depth
Consistency
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 23
Branding Strategy: Building Strong Brands
Brand represents the consumers perceptions
and feelings about a product and its
performance. It is the companys promise to
deliver a specific set of features, benefits,
services, and experiences consistently to
the buyers
Copyright 2010 Pearson Education, Inc.
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Chapter 8 - slide 24
Branding Strategy: Building Strong
Brands
Brand Positioning
Brand strategy decisions include:
Product attributes
Product benefits
Product beliefs and values
Copyright 2010 Pearson Education, Inc.
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Chapter 8 - slide 25
Branding Strategy: Building Strong Brands
Brand Name Selection
Desirable qualities
1. Suggest benefits and qualities
2. Easy to pronounce, recognize, and
remember
3. Distinctive
4. Extendable
5. Translatable for the global economy
6. Capable of registration and legal protection
Copyright 2010 Pearson Education, Inc.
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Chapter 8 - slide 26
Branding Strategy: Building Strong
Brands
Brand Sponsorship
Manufacturers brand
Private brand
Licensed brand
Co-brand
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Chapter 8 - slide 27
Services Marketing
Types of Service Industries
Government
Private not-for-profit organizations
Business services
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Chapter 8 - slide 28
Services Marketing
Marketing Strategies for Service Firms
In addition to traditional marketing
strategies, service firms often require
additional strategies
Service-profit chain
Internal marketing
Interactive marketing
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Chapter 8 - slide 29
Services Marketing
Marketing Strategies for Service Firms
Service-profit chain links service firm
profits with employee and customer
satisfaction
Internal service quality
Satisfied and productive service
employees
Greater service value
Satisfied and loyal customers
Healthy service profits and growth
Copyright 2010 Pearson Education, Inc.
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Chapter 8 - slide 30
Services Marketing
Marketing Strategies for Service Firms
Internal marketing means that the service firm must
orient and motivate its customer contact employees
and supporting service people to work as a team to
provide customer satisfaction
Internal marketing must precede external marketing
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 31
Services Marketing
Marketing Strategies for Service Firms
Interactive marketing means that service quality
depends heavily on the quality of the buyer-seller
interaction during the service encounter
Service differentiation
Service quality
Service productivity
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 32
Services Marketing
Marketing Strategies for Service Firms
Managing service differentiation creates a
competitive advantage from the offer, delivery, and
image of the service
Offer can include distinctive features
Delivery can include more able and reliable
customer contact people, environment, or process
Image can include symbols and branding
Copyright 2010 Pearson Education, Inc.
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Chapter 8 - slide 33
Services Marketing
Marketing Strategies for Service Firms
Managing service quality provides a
competitive advantage by delivering
consistently higher quality than its
competitors
Service quality always varies depending on
interactions between employees and
customers
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 34
Services Marketing
Marketing Strategies for Service Firms
Managing service productivity refers to the cost
side of marketing strategies for service firms
Employee recruiting, hiring, and training
strategies
Service quantity and quality strategies
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 35
