Chapter Eight
Product, Services, and Brands:
Building Customer Value
Chapter 8 - slide 1
Products, Services, and
Branding Strategy
Topic Outline
• What Is a Product?
• Product and Services Decisions
• Branding Strategy: Building
Strong Brands
• Services Marketing
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What Is a Product?
Products, Services, and Experiences
A 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
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What Is a Product?
Levels of Product and Services
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Chapter 8 - slide 4
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What Is a Product?
Product and Service Classifications
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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
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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
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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
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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
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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
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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
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What Is a Product?
Product and Service Classifications
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
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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
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Chapter 8 - slide 13
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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
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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
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Product and Service Decisions
Individual Product and Service Decisions
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Chapter 8 - slide 16
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Product and Service Decisions
Individual Product and Service Decisions
Product attributes are the benefits of the
product or service
• Quality
• Features
• Style and design
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Chapter 8 - slide 17
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Product and Service Decisions
Individual Product and Service Decisions
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
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Product and Service 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
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Product and Service Decisions
Individual Product and Service Decisions
Style describes the appearance of the
product
Design contributes to a product’s
usefulness as well as to its looks
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Product and Service Decisions
Individual Product and Service Decisions
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
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Product and Service 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
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Product and Service Decisions
Individual Product and Service Decisions
Product support services augment actual products
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Product and Service Decisions
Product Line Decisions
A 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
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Product and Service Decisions
Product Line Decisions
Product line length is the number of items in the
product line
• Line stretching
• Line filling
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Product and Service Decisions
Product Mix Decisions
Product mix consists of all the
products and items that a particular
seller offers for sale
• Width
• Length
• Depth
• Consistency
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Chapter 8 - slide 26
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Branding Strategy: Building Strong Brands
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
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Chapter 8 - slide 27
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Branding Strategy: Building Strong
Brands
Brand Positioning
Brand strategy decisions include:
• Product attributes
• Product benefits
• Product beliefs and values
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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
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Branding Strategy: Building Strong
Brands
Brand Sponsorship
• Manufacturer’s brand
• Private brand
• Licensed brand
• Co-brand
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Branding Strategy: Building Strong Brands
Brand Development Strategies
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Chapter 8 - slide 31
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Services Marketing
Types of Service Industries
• Government
• Private not-for-profit organizations
• Business services
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Services Marketing
Nature and Characteristics of a Service
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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 34
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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
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Chapter 8 - slide 35
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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
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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
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Chapter 8 - slide 37
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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
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Chapter 8 - slide 38
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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
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Chapter 8 - slide 39
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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
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retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
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