chapter 7: products, services, & brands abdullah sultan, phd

Chapter 7: Products, Services, & Brands

Abdullah Sultan, PhD

Copyright 2007, Prentice Hall, Inc. 2

What Is a Product?

Products are: Anything that can be offered to a market for

attention, acquisition, use, or consumption and that might satisfy a want or need. Includes physical objects, services, events, persons,

places, organizations, ideas, or some combination thereof.


What Is a Service?

Services are: Any activity or benefit that one party can offer to

another that is essentially intangible and does not result in the ownership of anything. E.g., banking, hotel, airline, retail, tax preparation, home

repairs.


Products, Services and Experiences

Marketing offerings: Includes both tangible goods and services, as well

as combinations of both. Pure good: Camay soap Pure service: Legal representation Combination: Restaurant meal

Creating and managing customer experiences will differentiate your marketing offers from the competition.


Levels of Product and Services Core customer value:

What the consumer is really buying Actual product:

Includes the brand name, features, design, packaging, and quality level

Augmented product: Additional services and benefits such as delivery and

credit, instructions, installation, warranty, and service


Product and Service Classification

Industrial products: Those purchased for further processing or for use in

conducting business Distinction between consumer and industrial products is

based on the purpose for which an item is bought. Consumer products:

Products and services bought by final consumers for personal consumption

Also included are other marketable entities Classified by how consumers buy them


Types of Consumer Goods

Convenience goods: Purchased frequently and immediately with little

comparison shopping Low priced Mass advertising and promotion Widespread distribution with many convenient

locations E.g., candy, soda, newspapers



Shopping products: Bought less frequently, more planning and effort, brand

comparisons on basis of price, quality, style Higher price Selective distribution in fewer purchase locations Advertising and personal selling is undertaken by both

producer and reseller E.g., furniture, clothing, cars, appliances



Specialty products: Strong brand preference and loyalty, special purchasing

effort, little comparison shopping High price Exclusive distribution in only one or a few outlets per

market area Carefully targeted promotion by both producer and reseller E.g., Lamborghini, Rolex watches



Unsought products: Little product awareness or knowledge of the brand,

sometimes negative interest The consumer either does not know about or knows about

but does not normally think of buying Pricing strategies vary Distribution strategies vary Require aggressive advertising and personal selling by

both producer and resellers E.g., life insurance, cemetery plots, organ donations


Types of Industrial Goods

Materials and parts: Raw materials, manufactured materials, and parts

Capital items: Products that aid in buyer’s production or

operations (e.g., machines, lands, buildings) Supplies and services:

Operating supplies, maintenance, and repair items


Other Market Offerings

Organization: Profit (businesses) and nonprofit (schools and churches)

Person: Politicians, entertainers, sports figures, doctors, and lawyers

Place: Create, maintain, or change attitudes or behavior toward

particular places (e.g., tourism) Ideas (social marketing):

Public health campaigns, environmental campaigns, family planning, or human rights


Product attributes Branding Packaging Labeling Product support services

What Do Consumers Look For When Making Product Decisions?


Product quality dimensions: Performance quality Conformance quality

Product feature considerations: Value to consumer Cost to company Managers need to balance between value and cost

Product style and design (marketing research): How will it influence the user experience?

Product and Service Attributes


Branding

Branding involves building and managing brands.

A brand: Is a name, term, sign, symbol, or design, or a

combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors.


Branding

Advantages to buyers: Helps identify products Cue to product quality and consistency

Advantages to sellers: Basis for product’s quality story Provides legal protection Helps to segment markets


Packaging

Packaging: Involves designing and producing the container or wrapper

for a product Ideally, good packages should:

Help to market the brand Protect the contents Provide convenience and ease of use Ensure product and user/child safety Address environmental concerns


Labeling

Labeling refers to printed information appearing on or with the package.

Performs several functions: Identifies product or brand Describes several things about the product Promotes the product through attractive graphics


Product Support Services

Monitoring of support services is key: Talk with customers to assess the value and

quality of current services and to obtain ideas for new services.

Fix problems and put together a package of new services that delights the customers and yields profits for the company.

New technologies can often enhance many support service offerings.


Brand Equity

Brand equity: Is the positive differential effect that knowing the

brand name has on customer response to the product or service.

Is a valuable asset that offers many competitive advantages.

Builds strong and profitable customer relationships that result in loyal customers.


Brands are assets that must be carefully developed and managed via: Brand positioning Brand name selections Brand development

Major Brand Strategy Decisions


Brand Positioning

Marketers can position brands at any of three levels: Product attributes (e.g., The Body Shop talks

about their products’ natural ingredients, unique scents, and special textures; But easily copied by competitors).

Product benefits (e.g., Volvo (safety), FedEx (on-time delivery, Lexus (quality)).

Beliefs and values (Starbuck’s offers memorable experience, Ritz-Carlton offers luxurious rooms),


Brand Name Selection

Desirable qualities for a brand name:1. It should suggest the product’s benefits and qualities

(e.g., Beautyrest (beds), Curves (women’s fitness centers), Die Hard (batteries)).

2. It should be easy to pronounce, recognize, and remember (Tide, Dove, Pepsi).

3. It should be distinctive (Lexus vs. Apple).4. It should be extendable (Sony vs. Kleenex).5. It should translate easily into foreign languages (Exxon

vs. Enco in Japan).6. It should be capable of registration and legal protection.


Brand Development Line extension:

Introduction of additional items in a given product category under the same brand name (e.g., new flavors, forms, colors, ingredients, or package sizes; Pepsi offers deferent flavors of soft drinks).

Brand extension: Using a successful brand name to launch a new

or modified product in a new category (Dove Soap and Dove Shampoo, Mercedes Benz and Mercedes trucks, Al-ghanim cars and Al-ghanim electronics).


Brand Development

Multibranding: Offers a way to establish different features and

appeal to different buying motives (Pepsi offers deferent drinks and snacks).

New brands: Developed based on belief that the power of its

existing brand is waning and a new brand name is needed. Also used for products in new product category (Toyota and Lexus, Apple computers and Apple iPod, Sony and Playstation).

chapter 7: products, services, & brands abdullah sultan, phd

Documents

consumer products

prentice hall

service slide

phd slide

additional services

levels of product

tangible goods

actual product