chp 8-1

presents…

Kazi Adeeb HasanId no. 10111101068

23rd Intake (2)

A Presentation On

Products, Services and Brands: Building Customer Value

INTRODUCTION

The marketing process of creating value for customers and build customer relationships to capture value from customers in return is performed by satisfying customers with various types of products, services and brands.

Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want

• Soap• Toothpaste

What Is a Product?Products, Services, and Experiences

Service is a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in ownership

• Doctor’s exam• Financial services


Experiences represent what buying the product or service will do for the customer

• Disney• American Girl• Toys “R” Us


basic level is the core customer value. It represents what the buyer is really buying

Second level is turning the core benefits into an actual product. It represents the design, brand name, and packaging that delivers the core benefit to the customer

In the third stage building an augmented product by offering additional consumer services and benefits

What Is a Product?

Levels of Product & Services

Augmented product

Delivery After and sale credit service

Productsupport Warranty

Three Levels of Product

Actual product

Brand Featuresname

Quality Design level

Packaging

CoreCustomer

value

What Is a Product?Product and Service Classifications

There are two types of products:

Consumer Products Industrial Products


Consumer products are products and services for personal consumption

• It is classified by how consumers buy them

Consumer Products

Specialty Products

Unsought Products

Shopping Products

Convenience Products

Convenience products consumer products and services that the customer

usually buys frequently, immediately, and with a minimum comparison and buying effort

• Newspapers• Candy• Fast food


Shopping productsconsumer products and services that the customer

compares carefully on suitability, quality, price, and style

• Furniture• Cars• Appliances


Specialty productsconsumer 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


Unsought productsconsumer products that the consumer does not

know about or knows about but does not normally think of buying

• Life insurance• Funeral services• Blood donations


Industrial products are products purchased for further processing or for use in conducting a business


Materials AndParts

CapitalItems

Suppliesand

Services

Industrial Products

Materials and parts include raw materials and manufactured materials and parts usually sold directly to industrial users

• Wheat• Lumber• Iron• Cement


Capital items are industrial products that aid in the buyer’s production or operations

• Buildings• Elevators• Computers


Supplies and services include operating supplies, repair and maintenance items, and business services


• Organizations-Profit (businesses) and Nonprofit (colleges, churches and museums)

• Persons –Entertainers, doctors, lawyers and architects

• Places-Tourist attracting sites, new residents, company offices and factories

• Social –Reduce smoking, drug abuse, family planning and human rights

What Is a Product?Organizations, Persons, Places, and Ideas

Product and Service Decisions

INDIVIDUAL PRODUCT AND SERVICE DECISION LINE DECISION PRODUCT MIX

DECISION

Product and Service Decisions Individual Product and Service Decisions

Product attributes LabelingBranding Packaging

ProductSupportservices

Product attributes are the benefits of the product or service


Quality Features

Styles&

Design

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


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. It goes to the very heart of a product


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

The primary function of the package was to hold and protect the product


Labeling identifies the product or brand, describes attributes, and provides promotion


The label might also describe several things about the product-

• who made it • where it was made• when it was made• its contents• how it is to be used and• how to use it safely


Product support services augment actual products

Companies must continually:• Assess the value of current services to obtain ideas

for new ones• Assess the costs of providing these services• Develop a package of services to satisfy customers

and provide profit to the company


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 and Service DecisionsProduct Line Decisions

Product line length is the number of items in the product line


Product Line Length

Line FillingLine

Stretching

Both Ways UpwardDownward

• Line filling: adding more items within the present range of the line

More profits Satisfying dealers• Line stretching: when a company lengthens its product

line beyond its current range• Downward: add low-end products• Upward: add prestige to the current products• Both ways: achieve both goals of line filling and line

stretching


Product mix consists of all the products and items that a particular seller offers for sale

• A company's product mix has four important dimensions

Product and Service DecisionsProduct Mix Decisions

Product Mix

Width: total number of different product lines the company carries Length: total number of items the company carries within its

product lines Depth: number of versions offered of each product in the line Consistency: how closely related the various product lines are in end

use, production requirements, distribution channels or some other way

Product and Service DecisionsProduct Mix Decisions

Brand represents the consumer’s perceptions and feelings about a product and its performance.

Branding Strategy: Building Strong Brands

Brand equity is the positive differential effect that knowing the brand name has on customer response to the product or service.

Brand Equity

Building Strong BrandsBrand positioning

AttributesBenefits

Beliefs and values

Brand name selectionSelectionProtection

Brand sponsorshipManufacturer’s brand

Private brandLicensing

Co-branding

Brand developmentLine extensions

Brand extensionsMultibrandsNew brands

Brand positioning includes: Product attributes

Product benefits

Product beliefs and values

Branding Strategy: Building Strong Brands Brand Positioning

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

Branding Strategy: Building Strong Brands Brand Name Selection

Manufacturer’s brand:• A brand created and owned by a manufacturer of a product or

service Private brand:• A brand created and owned by a reseller of a product or service Licensed brand:• license names or symbols previously created by other

manufacturers, names of well-known celebrities, or characters from popular movies and books

Co-brand:• Co-branding occurs when two established brand names of

different companies are used on the same product

Branding Strategy: Building Strong Brands Brand Sponsorship


Brand Extension

New BrandsMultibrands

Line Extensions

Existing

New

Existing New

Product Category

Bra

nd

Nam

e

Brand Development Strategies

Line extensions • occur when a company extends existing brand names to new

forms, colors, sizes, ingredients, or flavors of an existing product category

Brand extensions • extend a brand name to a new or modified product in a new

category Multibrands • additional brands in the same category New brands• are used when existing brands are inappropriate for new

products in new product categories or markets

Branding Strategy: Building Strong BrandsBrand Development Strategies


Requires: Continuous brand communication Customer-centered training Brand audits

Managing Brands

Government

Private not-for-profit organizations

Business services

Services Marketing Types of Service Industries

Services Marketing

IntangibilityServices cannot be seen,

tasted, felt, heard or smelled before purchase

Services

VariabilityQuality of services

depends on who provides them and when, where

and how

PerishabilityServices cannot be stored

for later sale or use.

InseparabilityServices cannot be separated from their

providers

Nature and Characteristics of a Service

In addition to traditional marketing strategies, service firms often require additional strategies

• Service-profit chain• Internal marketing• Interactive marketing

Services MarketingMarketing Strategies for Service Firms

Marketing Strategies for Service FirmsService-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

Services MarketingMarketing Strategies for Service Firms

Marketing Strategies for Service Firms

Company

CustomersEmployee

Inte

rnal

Mar

ketin

g External Marketing

Interactive Marketing

Three Types of Service Marketing

Orienting and motivating customer-contact employees and supporting service people to work as a team to provide customer satisfaction

Marketing Strategies for Service FirmsInternal marketing

Training service employees in the fine art of

interacting with customers to satisfy their needs

Marketing Strategies for Service FirmsInteractive marketing

Product Variety Quality Design

Features Brand name

service Packaging

Place Channels Coverage

Assortments Locations

Inventory Transportations

Logistics

Promotion Advertising

Personal selling Sales Promotion Public Relations

Price List Price Discounts Allowance

Payment Period Credit terms

4 P’S

Marketing Strategies for Service FirmsExternal Marketing

Managing Service Differentiation• creates a competitive advantage from the offer, delivery,

and image of the service Managing Service QualityEmpower employees Responsibility Authority Incentive

Managing Service Productivity• Train current or new employees• Increase quantity by decreasing qualities technology

Marketing Strategies for Service FirmsMajor Marketing Tasks

chp 8-1

Education

experiences product

form of product

anactual product

experiences service

types of products

products andservices

products freedom

andbusiness services