Products, Services, and
Brands
Chapter Eight
Learning
Objectives
-Define product and describe the major classifications of
products and services
-Describe the decisions companies make regarding their
individual products and services, product lines, and
product mixes.
-Identify the four characteristics that affect the marketing
of services and the additional marketing considerations
that services require
-Discuss branding strategy—the decisions companies
make in building and managing their brands.
What Is a Product?
-Anything that can be offered to a market for attention,
acquisition, use, or consumption that might satisfy a
want or need.
-include more than just tangible objects
-include services, events, persons, places, organizations,
and ideas or a mixture of these.
What Is a 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
Products, Services, and Experiences
Pure Tangible Goods- e.g., shampoo, chips, chocolates
Pure Services- Legal service, financial consultancy
Combination of both- Restaurant
Tangible = food and drink;
Intangible= dining, service, customer care
-Companies now focus on creating unique customer
experiences to differentiate their brands.
Levels of Product and Services
Product and Service Classifications
Consumer Convenience
Products
Shopping
Product Types
Specialty
Industrial
Products
Unsought
Levels of Product and Services
Convenience Shopping
Products Products
Specialty Unsought
Products Products
Industrial Products
A product bought by individuals and organizations for
further processing or for use in conducting a business.
Materials and Parts Capital Items Supplies and Services
include raw materials as industrial products that Includes operating
well as manufactured aid in the buyer’s supplies (papers, pencils)
materials and parts. production or operations and maintenance items
(brooms, paint etc.)
Materials and
Parts
Capital Items
Supplies and
Services
Product and Service Decisions
Product Quality
- Assurance of creating customer value and satisfaction.
-There can be several approaches to product quality
• Total quality management (TQM)
• Return on quality (ROQ)
Quality level
Product Quality
Quality Consistency
Product and Service Decisions
• Product Features
• Product Style and Design
• Branding
A brand is a name, term, sign, symbol, or design or a
combination of these that identifies the maker or seller of a
product or service.
Product and Service Decisions
• Packaging
• Labeling and Logos
• Product support services
Product Line Decisions
-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—the number of items in the product line
-A company can expand its product line in two ways:
1. Line filling
2. Line stretching
Product Mix Decisions
A product mix (or product portfolio) consists of all the
product lines and items that a particular seller offers to sale.
Width Length
Depth Consistency
Unilever
Product Mix
Width
Personal Care Home Care
Dove
Sunlight
Sunsilk
Product Mix
Vaseline Length Pureit
(8 items)
Lux Surf Excel
Clear
Services Marketing
-A company must consider four special service
characteristics when designing marketing programs.
Intangibility Inseparability
Service
s
Variability Perishability
Marketing Strategies for Service Firms
Service profit chain
• The chain that links service firm profits with employee and
customer satisfaction.
• Consists of five links-
Satisfied and Productive
Internal Service Quality Greater Service Value
Employees
Satisfied and Loyal Healthy Service Profits
Customers and Growth
Marketing Strategies for Service Firms
• Services marketing requires more than just traditional external
marketing using the four Ps.
Branding Strategy
Brand Equity
The differential effect that knowing the brand name has on customer
response to the product or its marketing.
Brand Value
The total financial value of a brand.
Branding Strategy
Major Brand Strategy Decisions
Brand Positioning
Marketers can position brands at any of three levels-
Example: Toyota can position on attributes such
Position on Product
as reliability, quality, fuel efficiency, value for
or Service Attributes
money
Position Highlighting Example: Toyota can position on benefits such
Desirable Benefit as “peace of mind”
Example: Toyota’s “Let’s Go Places”
Position on Beliefs,
showcases a spirit of adventure, progress, and
Values, and Feelings
exploration. Experiencing life’s journeys with
confidence, curiosity, and joy
Brand Name Selection
-Finding a brand name begins with-
• A careful review of the product and its benefits
• The target market
• Proposed marketing strategies.
-Desirable qualities for a brand name:
Suggest something
about the product’s Easy to pronounce Distinctive
benefit
Should translate easily Should be capable of
Extendable
to other language registration
Brand Sponsorship
-Four sponsorship options:
National Brand Example: Nike
Store (or private)
brand Example: Agora’s own products
Licensing Example: Star Wars and Lego
Co-branding Example: Apple and Nike
Brand Development
