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Chapter 8 - slide 1Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Eight
Products, Services, and Brands: Building Customer Value
Chapter 8 - slide 2Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Product, Services, and Branding Strategy
• What Is a Product?• Product and Services
Decisions• Branding Strategy:
Building Strong Brands
• Services Marketing
Topic Outline
Chapter 8 - slide 3Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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
• Products include more than just tangible objects such as cars, computers or cell phones.
Products, Services, and Experiences
Chapter 8 - slide 4Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
What Is a Product?
• Broadly defined, “products” also include service, events, persons , places , organizations , ideas , or mixes of these.
• Services are the form of product that consists of activities, benefits or satisfactions offered for sale that are essentially intangible and don’t result in the ownership of anything such as Banking
Products, Services, and Experiences
Chapter 8 - slide 5Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
What Is a Product?
• Product is a key element in the overall marketing offering, marketing mix planning begins with building an offering that brings value to target customers.
• This offering becomes the basis upon which the company builds profitable customer relationships
• A company’s market offering includes both tangible goods and services
Products , services and experiences
Chapter 8 - slide 6Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
What Is a Product?
• The offer may consist of a pure tangible good such as soap, toothpaste or salt.
• At the other extreme are the pure services for which the offer consists primarily of a service.
Products , services and experiences
Chapter 8 - slide 7Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
What Is a Product?
• Experiences represent what buying the product or service will do for the customer
• Experiences have always been an important part of marketing for some companies
• Companies that market experiences realize that customers are really buying much more that just products and services, they are buying what those offers will do for them
Products , services and experiences
Chapter 8 - slide 8Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
A ________ is anything that can be offered to a market that might satisfy a need or a want.1. position2. product3. promotion 4. none of the above
Chapter 8 - slide 9Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
A ________ is anything that can be offered to a market that might satisfy a need or a want.1. position2. product3. promotion 4. none of the above
Chapter 8 - slide 10Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
What Is a Product?
• Product planners need to think about products and services on three levels, each level adds more customer value. The most basic level is the core customer value, which addresses the question “ what is the buyer really buying ? “
• When designing products, marketers must first define the core, problem solving benefits or services that consumers seek
Levels of Product and Services
Chapter 8 - slide 11Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
What Is a Product?
• At the second level, product planners must turn the core benefits into an actual product, they need to develop product and service features, design, a quality level or a brand name and packaging.
• For Ex. The BlackBerry is an actual product. Its name , parts, styling, features have all been combined to deliver the core customer value
Levels of Product and Services
Chapter 8 - slide 12Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
What Is a Product?
• Finally , product planners must build an augmented product around the core benefit and actual product by offering additional consumer services and benefits.
• For ex. The BlackBerry solution offers more than just a communication device, it provides customers with a complete solution to mobile connectivity problems.
Levels of Product and Services
Chapter 8 - slide 13Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
What Is a Product?Levels of Product and Services
Chapter 8 - slide 14Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The most basic level of a product is called its ________.1. augmented product2. actual product3. core benefit4. position
Chapter 8 - slide 15Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The most basic level of a product is called its ________.1. augmented product2. actual product3. core benefit4. position
Chapter 8 - slide 16Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
What Is a Product?
Product and Service Classifications
Chapter 8 - slide 17Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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
Product and Service Classifications
Chapter 8 - slide 18Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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• They are usually low priced, and marketers place
them in many locations to make them available when consumers need them
Product and Service Classifications
Chapter 8 - slide 19Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
What Is a Product?
• Shopping products are consumer products and services that the customer compares carefully on suitability, quality, price, and style
• Furniture• Cars• Shopping products marketers distribute their
products through fewer outlets but provide deeper sales support to help customers in their comparison efforts.
Product and Service Classifications
Chapter 8 - slide 20Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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• Buyers normally don’t compare specialty
products, they invest only the time needed to reach dealers carrying the wanted products
Product and Service Classifications
Chapter 8 - slide 21Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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• Unsought products require a lot of advertising,
personal selling, and other marketing efforts
Product and Service Classifications
Chapter 8 - slide 22Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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– Supplies and services
Product and Service Classifications
Chapter 8 - slide 23Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Types of consumer products include convenience products, shopping products, specialty products, and ________ products.1. unique2. luxury3. unsought4. all of the above
Chapter 8 - slide 24Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Types of consumer products include convenience products, shopping products, specialty products, and ________ products.1. unique2. luxury3. unsought4. all of the above
Chapter 8 - slide 25Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
________ products are purchased frequently, with little comparison or shopping effort.1. Convenience2. Shopping3. Industrial4. Unsought
Chapter 8 - slide 26Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
________ products are purchased frequently, with little comparison or shopping effort.1. Convenience2. Shopping3. Industrial4. Unsought
Chapter 8 - slide 27Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Consumer product with unique brand identification for which buyers are willing to make a special purchase effort is called _________ product.1. convenience2. shopping3. specialty4. unsought
Chapter 8 - slide 28Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Consumer product with unique brand identification for which buyers are willing to make a special purchase effort is called _________ product.1. convenience2. shopping3. specialty4. unsought
Chapter 8 - slide 29Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
________ products are those purchased for further processing or for use in conducting a business.1. Industrial2. Shopping3. Unsought4. Physical
Chapter 8 - slide 30Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
________ products are those purchased for further processing or for use in conducting a business.1. Industrial2. Shopping3. Unsought4. Physical
Chapter 8 - slide 31Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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
Product and Service Classifications
Chapter 8 - slide 32Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Your visit to a doctor’s office is an example of a ________.1. pure tangible good2. pure intangible good3. unsought product4. impure tangible good
Chapter 8 - slide 33Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Your visit to a doctor’s office is an example of a ________.1. pure tangible good2. pure intangible good3. unsought product4. impure tangible good
Chapter 8 - slide 34Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
What Is a Product?
• Organization marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward an organization
• Both profit and non profit organization practice organization marketing
• Business firms sponsor public relations or corporate image advertising campaign to market themselves and polish their images
Organizations, Persons, Places, and Ideas
Chapter 8 - slide 35Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
What Is a Product?
• Person marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people.
• People use person marketing to build their reputation
Organizations, Persons, Places, and Ideas
Chapter 8 - slide 36Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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
Organizations, Persons, Places, and Ideas
Chapter 8 - slide 37Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
What Is a Product
• Social marketing programs include public health campaigns to reduce smoking , alcoholism, drug abuse, and obesity
• Other social marketing efforts include environmental campaign to promote clean air and conservation
• Still others address issues such as family planning and human rights and racial equality
Organizations, Persons, Places, and Ideas
Chapter 8 - slide 38Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Product and Service Decisions
Individual Product and Service Decisions
Chapter 8 - slide 39Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Product and Service Decisions
Product attributes are the benefits of the product or service
• Quality • Features• Style and design
Individual Product and Service Decisions
Chapter 8 - slide 40Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Product and Service Decisions
• Quality has a direct impact on product or service performance, thus , its closely linked to customer value and satisfaction.
• Quality can be defined as “ freedom from defects”
• The American society for quality defines quality as the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs
Individual Product and Service Decisions
Chapter 8 - slide 41Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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
Individual Product and Service Decisions
Chapter 8 - slide 42Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The two dimensions of product quality are ________ and ________.1. value; features2. style; design3. level; consistency4. style; value
Chapter 8 - slide 43Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The two dimensions of product quality are ________ and ________.1. value; features2. style; design3. level; consistency4. style; value
Chapter 8 - slide 44Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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
Individual Product and Service Decisions
Chapter 8 - slide 45Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Product and Service Decisions
Style describes the appearance of the product
Design contributes to a product’s usefulness as well as to its looks. It goes to the very heart of a product
Individual Product and Service Decisions
Chapter 8 - slide 46Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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
Individual Product and Service Decisions
Chapter 8 - slide 47Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Product and Service Decisions
• Branding helps buyers in many ways. Brand names help consumers identify products that might benefit them. Brands also say something about product quality and consistency
• Buyers who always buy the same brands know that they will get the same features , benefits and quality each time they buy.
Individual Product and Service Decisions
Chapter 8 - slide 48Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Product and Service Decisions
Packaging involves designing and producing the container or wrapper for a product
The primary function of the package was to hold and protect the product
Individual Product and Service Decisions
Chapter 8 - slide 49Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Product and Service Decisions
• Labels range from simple tags attached to products to complex graphics that are part of the package
• Labels identify the product or brand, describe attributes, and provide promotion
Individual Product and Service Decisions
Chapter 8 - slide 50Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Product and Service Decisions
Product support services augment actual products
Individual Product and Service Decisions
Chapter 8 - slide 51Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Product and Service Decisions
• Customer service is another element of the product strategy. A company’s offer usually includes some support services, which can be a minor or a major part of the total offering.
Individual Product and Service Decisions
Chapter 8 - slide 52Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
A(n) ________ is a name, term, sign, symbol, or combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.1. package2. position3. image4. brand
Chapter 8 - slide 53Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
A(n) ________ is a name, term, sign, symbol, or combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.1. package2. position3. image4. brand
Chapter 8 - slide 54Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The designing and producing of the container or wrapper for a product is called ________.1. packaging2. labeling3. manufacturing4. industrial design
Chapter 8 - slide 55Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The designing and producing of the container or wrapper for a product is called ________.1. packaging2. labeling3. manufacturing4. industrial design
Chapter 8 - slide 56Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Product and Service 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
Chapter 8 - slide 57Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Product and Service Decisions
Product line length is the number of items in the product line
• Line stretching• Line filling
Product Line Decisions
Chapter 8 - slide 58Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Product and Service Decisions
Product mix consists of all the products and items that a particular seller offers for sale
• Width• Length• Depth• Consistency
Product Mix Decisions
Chapter 8 - slide 59Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
• Width : refers to the number of different product lines the company carries
• Length : refers to the total number of items the company carries within its product lines
• Depth: refers to the number of the versions offered of each product in the line
• Consistency: how closely related the various product lines in the end use
Product Mix Decisions
Chapter 8 - slide 60Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
• Is the differential effect that knowing the brand name has on customer response to the product and its marketing
• It’s a measure of the brand ability to capture customer preference and loyalty
• A brand has positive brand equity when consumers talk favorably about the product and vice versa
Brand Equity
Chapter 8 - slide 61Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
• Marketers measure the brand strength along four dimensions which are :
1.Differentiation2.Knowledge3.Relevance “ how consumers feel it meets
their needs”4.Esteem
Brand Equity
Chapter 8 - slide 62Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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
Branding Strategy: Building Strong Brands
Chapter 8 - slide 63Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Branding Strategy: Building Strong Brands
Desirable qualities 1. Suggest benefits and qualities2. Easy to pronounce, recognize, and remember3. Distinctive4. Extendable5. Translatable for the global economy6. Capable of registration and legal protection
Brand Name Selection
Chapter 8 - slide 64Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Branding Strategy: Building Strong Brands
Manufacturer’s brandPrivate brandLicensed brandCo-brand
Brand Sponsorship
Chapter 8 - slide 65Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Branding Strategy: Building Strong BrandsBrand Development Strategies
Chapter 8 - slide 66Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Services Marketing
Nature and Characteristics of a Service