CH - 8 Product Services Branding

Chapter Eight
Products, Services, and Brands Building

Customer Value
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
What Is a Product?
Product and Service Classifications
What Is a Product?
• Consumer products are products and

services for personal consumption
• Classified by how consumers buy them
– Convenience products
– Shopping products
– Specialty products
– Unsought products
What Is a Product?
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
What Is a Product?
Shopping products are consumer products

and services that the customer compares
carefully on suitability, quality, price, and style
• Furniture
• Cars
• Appliances
What Is a Product?
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
What Is a Product?
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
What Is a Product?
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
What Is a Product?
• 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
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
What Is a Product?
Person marketing consists of activities

undertaken to create, maintain, or change
attitudes and behavior of target consumers
toward particular people
What Is a Product?
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
Product and Services Decisions
Individual Product and Service Decisions
Product attributes are the benefits of the

product or service
• Quality
• Features
• Style and design
Product quality includes level and consistency

• Quality level is the level of quality that supports the
product’s positioning
• Performance quality is the ability of a product to
perform its functions
• 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
Product features are assessed based on the

value to the customer versus the cost to the
company
Style describes the appearance of the product
Design contributes to a product’s usefulness as

well as to its looks
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
Packaging involves designing and producing

the container or wrapper for a product
1. Childproof packaging
2. Product safety
3. Environmental concern
Labels identify the product or brand, describe
attributes, and provide promotion
Product support services- corresponding
services with the products
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 Decisions
Product line length is the number of items in

the product line
• Line stretching
• Line filling
Product Mix Decisions
Product mix consists of all the products and

items that a particular seller offers for sale
• Width
• Length
• Depth
• Consistency
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
Brand Positioning
Brand strategy decisions include:
• Product attributes- least desirable level for brand
positioning
• Product benefits- better than the attributes
 Volvo- safety
 Nike- performance
 Mercedes Benz- quality
• Product beliefs and values- strongest
positioning tool
– Apple
– Harley davidson
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
Branding Strategy: Building Strong
Brands
Brand Sponsorship
• Manufacturer’s brand
• Private brand
• Licensed brand- characters like cartoon
• Co-brand
Brand development
Services Marketing
Types of Service Industries
• Government
• Private not-for-profit organizations
• Business services
4 characteristics of services
• Intangibility
• Inseparability
• Variability
• perishability
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
Services Marketing
• Service-profit chain links service firm profits with

employee and customer satisfaction
1. Internal service quality
2. Satisfied and productive service employees
3. Greater service value
4. Satisfied and loyal customers
5. Healthy service profits and growth
Services Marketing
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
• Harder for service to define the quality than for the goods
• Service recovery
• Empowering the first line employees
Services Marketing
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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Chapter Eight

Products, Services, and Brands Building

Product is anything that can be offered in a

• Consumer products are products and

Convenience products are consumer products

Shopping products are consumer products

Specialty products are consumer products

Unsought products are consumer products

Industrial products are products purchased for

• Capital items are industrial products that

Organization marketing consists of

Person marketing consists of activities

Place marketing consists of activities

Individual Product and Service Decisions

Product attributes are the benefits of the

Product quality includes level and consistency

Product features are a competitive tool for

Product features are assessed based on the

Style describes the appearance of the product

Design contributes to a product’s usefulness as

Brand is the name, term, sign, or design—or a

Brand equity is the differential effect that the

Packaging involves designing and producing

Product Line Decisions

Product line is a group of products that are closely

Product line length is the number of items in

Product mix consists of all the products and

Brand represents the consumer’s perceptions

• In addition to traditional marketing

• Service-profit chain links service firm profits with

Managing service quality provides a

Managing service productivity refers to the cost

• Employee recruiting, hiring, and training

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