By

CHAPTER 8

Product, Services,

and Branding Strategy

CHAPTER SUMMARY AND

OBJECTIVES

Shakeel Anjum 083277 Ali Adnan Khalid 073178 Khuram Shahzad 083268 Muhammad Usman 083248

What Is a Product? 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? 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.– Examples: banking, hotel, airline, retail, tax preparation, home repairs.

Figure 8-1Three Levels of Product

Levels of product and services

Product and service classificationProduct and services fall into two broad classes based on the type of consumers that use them-consumer products and industrial products.

Consumer products Products and services bought by final consumers for personal consumption.

– Also includes other marketable entities. Classified by how consumers buy them:

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– Convenience goods– Shopping goods– Specialty goods– Unsought goods

Convenience & Shopping Products

Specialty & Unsought Products

Industrial products Products bought by individuals and organizations for further processing or for use in conducting a business.

Those purchased for further processing or for use in conducting business.

– Includes materials and parts, capital items, supplies, and services. Distinction between consumer and industrial products is based on the purpose for

which an item is bought.

Other Market Offerings Organizations: Profit (businesses) and nonprofit (schools and churches).

– Includes corporate image advertising. Persons: Politicians, entertainers, sports figures, doctors, and lawyers.

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Convenience Goods– Bought frequently and

immediately– Low priced– Mass advertising– Many purchase

locations– Examples: candy, soda,

newspapers

Shopping Goods– Bought less frequently– Higher price– Fewer purchase locations– Comparison shop – Examples: cars, furniture,

appliances

Specialty Products– Special purchase

efforts– High price– Unique

characteristics– Brand identification– Few purchase

locations– Example: Rolex

watches, Ferrari cars

Unsought Products– New innovations– Are often products

consumers do not want to think about

– Require a lot of advertising and personal selling

– Examples: blood donation, cemetery plots, insurance

Places: 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 and service decisionsMarketers make product and service decision at three levels

Individual product decisions Product line decisions Product mix decisions

Individual product and service decisionsWe will focus on decision about product attributes, branding, packing, labeling and product support services (Fig. 8-2)

Figure 8-2Individual Product and service Decisions

Product & Service AttributesProduct and service attributes are the benefits that the product will offer such as quality, features and, style and design.

Product qualityThe ability of a product to perform its functions; it includes the product’s overall durability, reliability precision, ease of operation and repair, and other valued attributes.

– Performance quality– Conformance quality

Features– Value to consumer– Cost to company

Style and design– Influences experience

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Branding

Branding Advantages to buyers:

– Product identification– Product quality

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

Packaging

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A brand is a name, term, sign, symbol, or design, or a combination of these intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors. Branding has become strong that hardly anything goes unbranded, even fruits and vegetables.

Designing and producing the container or wrapper for a product.

Developing a good package:o Market the brando Protect the elementso Ensure product safetyo Address environmental

concerns

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 Assess the value of current services and obtain ideas for new services. Assess the cost of providing the services. Put together a package of services that delights the customers and yields profits for the company.

Product line decisionsA 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 fail within given price ranges.

Product mix decisionsThe set of all product lines and items that a particular seller offers for sale

Branding Strategy: Building Strong BrandsBrand Equity

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

Provides:– Greater brand awareness and loyalty– Basis for strong, profitable customer

relationships

Building strong brandsFigure 8.3 shows major brand strategy decisions involve brand positioning, brand sponsorship, and brand development.

Figure 7-3Major Brand Strategy Decisions

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Brand positioning Brand Positioning Can position brands at any of three levels:

– Product attributes Least desirable; easily copied.

– Product benefits– Beliefs and values

Hits consumers on a deeper level, touching universal emotions.Brand Name Selection

Desirable qualities for a brand name include:1. It should suggest product’s benefits and qualities.2. It should be easy to pronounce, recognize, and remember.3. It should be distinctive.4. It should be extendable.5. It should translate easily into foreign languages.6. It should be capable of registration and legal protection.

Brand Sponsorship

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Manufacturer’s brands– Also called national brands

Private brandsA brand created and owned by a reseller of a product or service.– Also called store or distributor

brands Licensed brands Co-branding

The practice using the established brand names of two different companies on the same product.

Mi Casa brand products are only available at Stop & Shop stores.

Brand Development

Figure 7-4Brand Development Strategies

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). Brand extension:

– Using a successful brand name to launch a new or modified product in a new category. Multi branding:

– Offers a way to establish different features and appeal to different buying motives. 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.

Services marketing

Nature and characteristics of a service– Service intangibility

A major characteristic of service-they cannot be seen, tasted, felt, herd or smelted before they are bought.– Service inseparability

A major characteristic of service- that are produced and consumed at the same time and cannot be separated from their providers

– Service variabilityA major characteristic of service- their quality may vary greatly, depending on who provides them and when, where and how.– Service perish ability

A major characteristic of service- they cannot be stored for later sale or use. 8

Figure 7-5Four Service Characteristics

Marketing strategies for service firms

The Service-Profit ChainThe chain that links service firm with employee and customer satisfaction

Internal service quality. Satisfied and productive service employees. Great service value. Satisfied and loyal customers. Healthy service profits and growth.

Figure 7-6Three Types of Service Marketing

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Major Service Marketing Tasks Managing service differentiation:

– Develop a differentiated offer, delivery, and image. Managing service quality:

– Be customer obsessed, set high service quality standards, have good service recovery, empower front-line employees.

Managing service productivity:– Train current employees or hire new ones, increase quantity and sacrifice quality, harness

technology.

Additional Product Considerations Product Decisions and Social Responsibility International Product and Service Marketing

– Which products & services to introduce?– Whether to standardize or adapt?– Packaging presents challenges.– Services marketers face special challenges; growth will continue.

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Objective questions

Question 1 Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need

o Serviceo Product*o Needo Want

Question 2 Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of any thing

o Groupo Leado Service*o Core

Question 3 The design, implementation and control of programs seeking to increase the acceptability of a social idea, cause or practice among a target group

o Product qualityo Specialtyo Social marketing*o Actual

Question 4 A name, term, sign, symbol, or design, or a combination of these intended to identify the goods services at seller or group of sellers and to differentiate them from those of competitors.

o Packagingo Convenienceo Shoppingo Brand*

Question 5 The set of all product lines and items that a particular seller offers for sale

o Brand equityo Unsoughto Product lineo Product mix*

Question 6A brand created and owned by a reseller of a product or service.

o Brand equityo Product mixo Private brand*

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o Product line

Question 7 The chain that links service firms profits with employee and customer satisfaction.

o Internal marketingo Brand equityo Service-profit chain*o Core

Question 8 A major characteristic of services ---- they cannot be stored for later sale or use.

o Service variabilityo Service intangibilityo Service perish ability*o Service-profit chain

Question 9 Convenience products, shopping products, specialty products, unsought products ---Which kind of products they are;

o Local productso Imported productso Market productso Consumer products*

Question 10 Product bought by individuals and organizations for further processing or for use in conducting a business.

o Industrial product*o Unsought producto Convenience producto Customer product

Question 11 The practice of using the established brand names of two different companies on the same product.

o Brand extensiono Line extensiono Co- branding*o Brand equity

Question 12 Marketing by a service firm that recognizes that perceived service quality depends heavily on the quality of buyer-seller interaction

o Interactive marketing*o Internal marketingo Service - profit chaino Core

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