| Lecture 7 | Maira Junejo
Product, Services and
Brands
Product, Services, and
Experiences and Decisions
Product,
Services,
and Services Marketing
Branding
Strategy
Branding Strategy: Building
Strong Brands
What is a product?
Products, Services,
and Experiences
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
What is a service/service product?
• Service is a product that consists of
activities, benefits or satisfaction that is
essentially intangible and does not result in
the ownership of anything
• Experiences represent what buying the
product or service will do for the customer
Levels of
Product
and
Services
Product and Service Classifications
Types of Consumer Products
Consumer products are products and Classified by how consumers buy them
services for personal consumption
1. Convenience products
2. Shopping products
3. Specialty products
4. Unsought products
1. Convenience products
consumer products and
services that the customer
usually buys frequently,
immediately, and with a
minimum comparison and
buying effort – Low
involvement products
2. Shopping products
consumer products and
services that the customer
compares carefully on
suitability, quality, price, and
style – slightly high
involvement
• Furniture
• Cars
• Appliances
3. Specialty products
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
4. Unsought
products
• 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
Types of Industrial products
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
Classificati
ons of
products
and
services
• Capital items Capital goods are
tangible assets such as buildings, machinery,
equipment, vehicles and tools that an
Product organization uses to produce goods or services
Classifica in order to produce
consumer goods and goods for other
tions businesses.
• 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
Product and
service decisions
Product Quality Level is the level of quality that supports the product’s
positioning
Product Conformance Quality is the product’s freedom from defects
and consistency in delivering a targeted level of performance
Product
features • are a competitive tool for
differentiating a product
from competitors’ products
• are assessed based on the
value to the customer versus
the cost to the company
Product • Style describes the
and appearance of the product
• Design contributes to a
Service product’s usefulness as
well as to its looks
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
Packaging involves designing and
producing the container or wrapper
for a product
Labels identify the product or brand,
describe attributes, and provide
promotion
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
Product line length
Product line
length is the
Line stretching Line filling
number of items
in the product line
Product
Mix • Product mix consists of all
Decisions the products and items that
a particular seller offers for
sale or the total range of
products offered by a
company.
Services Marketing
Nature and Characteristics
of a Service
Service-profit chain
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
Internal marketing
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.
Services Marketing
Managing service differentiation creates a competitive
advantage from the offer, delivery, and image of the
service
1. Offer can include distinctive features
2. Delivery can include more able and reliable customer
contact people, environment, or process
3. Image can include symbols and branding
Managing service quality
Managing service quality provides a competitive Service quality always varies depending on
advantage by delivering consistently higher interactions between employees and customers
quality than its competitors
Branding Strategy: Building Strong
Brands
Branding Strategy: Building Strong Brands
Brand equity
The differential effect that knowing the
brand name has on customer response to
the product or its marketing.
Steps to develop strong brands
Brand • Brand strategy decisions
Positioning include:
• Product attributes
• Product benefits
• Product beliefs and values
Brand Name Selection
Desirable qualities
Suggest benefits and qualities
Easy to pronounce, recognize, and remember
Distinctive
Extendable
Translatable for the global economy
Capable of registration and legal protection
1. Which Disney SBU is Promoted in the
Ad? Can you identify more Disney
SBUs?
2. How has Disney Resorts expanded
the Service product mix?
3. Do a little more research and explain
how are services different from
products.
4. Explain how Disney Resorts have used
Value Addition in their advertisements.
Ad Link:
Walt Disney World Resorts Commercial - YouTube
The end!
