Product, Services, and
Branding Strategy
Chapter 8
Definitions
• Product
Anything offered to a market for attention,
acquisition, use, or consumption that might
satisfy a need or want.
• Service
A form of product that consists of
activities, benefits or satisfactions offered
for sale that are essentially intangible and
do not result in the ownership of anything.
8-2
What is a Product?
• Products, Services, and Experiences
Market offerings may consist of a
combination of goods and services
Experiences are used to differentiate
offerings
• Levels of Product and Services
Core benefit, actual and augmented
product
• Product and Service Classifications
Consumer products and industrial products
8-3
Three Levels of Product
8-4
What is a Product?
Types of Consumer • Frequent purchases
Products bought with minimal
buying effort and
little comparison
• Convenience shopping
• Shopping • Low price
• Widespread
• Specialty distribution
• Unsought • Mass promotion by
producer
8-5
What is a Product?
Types of Consumer • Less frequent
purchases
Products
• More shopping effort
for comparisons.
• Convenience • Higher than
• Shopping convenience good
pricing
• Specialty • Selective distribution in
fewer outlets
• Unsought
• Advertising and
personal selling 8-6
What is a Product?
Types of Consumer • Strong brand
Products preference and
loyalty, requires
special purchase
• Convenience effort, little brand
comparisons, and low
• Shopping price sensitivity
• Specialty • High price
• Exclusive distribution
• Unsought
• Carefully targeted
promotions 8-7
What is a Product?
Types of Consumer • Little product
Products awareness and
knowledge (or if
aware, sometimes
• Convenience negative interest)
• Pricing varies
• Shopping
• Distribution varies
• Specialty • Aggressive advertising
and personal selling by
• Unsought producers and
resellers
8-8
Product and Service
Classifications
• Consumer products
• Industrial products
Materials and parts
Capital items
Supplies and services
8-9
Product and Service
Decisions
Key Decisions • Product attributes
Quality, features,
style and design
• Individual
• Branding
Product
• Packaging
• Product Line • Labeling
• Product Mix • Product support
services
8 - 10
Product and Service
Decisions
• Product line
Key Decisions A group of products
that are closely
related because
• Individual they may:
Product • function in a similar
manner
• be sold to the same
• Product Line customer groups,
• be marketed through
• Product Mix the same types of
outlets
• fall within given price
ranges 8 - 11
Product and Service
Decisions
Key Decisions • Product line length
Line stretching:
• Individual adding products
that are higher or
Product lower priced than
the existing line
• Product Line
Line filling: adding
• Product Mix more items within
the present price
range 8 - 12
Product and Service
Decisions
Key Decisions • Product mix
Also known as
product assortment
• Individual Consists of all the
Product product lines and
items that a
• Product Line particular seller
offers for sale
• Product Mix
8 - 13
Product and Service
Decisions
Key Decisions • Product mix width:
Number of different
product lines carried by
• Individual company
Product • Product mix depth:
Number of different
• Product Line versions of each
product in the line
• Product Mix • Product mix
consistency
8 - 14
Branding Strategy
• Brand equity is the positive differential
effect that knowing the brand name
has on customer response to the
product or service
• One measure of equity is the extent to
which customers are willing to pay
more for the brand
• Brand valuation is the process of
estimating the total financial value of a
brand
8 - 15
Branding Strategy
• Brands with strong equity have
many competitive advantages:
High consumer awareness
Strong brand loyalty
Helps when introducing new
products
Less susceptible to price competition
8 - 16
Brand Strategy
Key Decisions • Three levels of
positioning:
• Brand Positioning Product attributes
• Brand Name • Least effective
Selection Benefits
• Brand Sponsorship Beliefs and values
• Brand Development • Taps into
emotions
8 - 17
Brand Strategy
• Good Brand Names:
Key Decisions Suggest something
about the product or its
benefits
• Brand Positioning
Are easy to say,
• Brand Name recognize and
Selection remember
Are distinctive
• Brand Sponsorship
Are extendable
• Brand Development Translate well into
other languages
Can be registered and
legally protected 8 - 18
Brand Strategy
Key Decisions • Manufacturer brands
• Private (store) brands
• Brand Positioning Costly to establish and
promote
• Brand Name Higher profit margins
Selection
• Licensed brands
• Brand Sponsorship Name and character
• Brand Development licensing has grown
• Co-branding
Advantages /
disadvantages 8 - 19
Brand Development
Strategies
8 - 20
Services Marketing
• Services
Service industries include
business organizations,
government, and private not-
for-profit organizations.
8 - 21
Four Services
Characteristics
8 - 22
Characteristics of Services
• Intangibility
Consumers look for service quality signals
• Inseparability
Services can’t be separated from providers
• Variability
Employees and other factors result in
variability
• Perishability
Services can’t be inventoried for later sale
8 - 23
