S 2015 CHP 7 Products Services and Brands 2014-5

Chapter 7
Products, Services, and Brands

- Building Customer Value
Veronica Mak
7 -1
Copyright 2011 Pearson Education
Todays Lecture
Lect. 2
Lect. 5
Lect. 5
Lect. 5
Lect. 5
Lect.5-8
Lect. 3 & 4
Lect.5-8
Lect. 6
Lect. 3&4
Lect. 5
Lect. 7
Lect.5-8
Lect. 8
7 -2
What is a Product?
A product is anything that can be offered to a
market for attention,
acquisition, use, or
consumption that
might satisfy a want
or need.
- Include services, events, persons, places,
organizations, ideas or mixes of these.
7 -3
Services
Services are a form of product
of activities,
that consist
benefits, or
satisfactions
offered for sale
that are essentially
intangible and do
not result in the
ownership of
anything.
7 -4
Products, Services and

Experiences
Market offerings
often include both
tangible goods
and services
Pure tangible good
Pure service
Many companies
now marketing
experiences
Olive Garden sells more than

just Italian foodit serves up
an idealized Italian family meal
experience
7 -5
Three Levels of Product

-to create value and satisfying customer
experience.
CCV= What is the
Customer really Buying?
-Steps of product
development:
-1. identify core
customer value
-2. design actual product
-3. find ways to augment
7 -6
Discussion Question
Describe the
THREE levels
of product for
HarleyDavidson?
7 -7
Levels of Products and

Services
Core customer value
What the consumer is really buying
Actual product
Brand name, service features, design, packaging,
and quality level
Augmented product
Additional services and benefits such as delivery
and credit, instructions, installation, warranty,
and service
7 -8
Three Levels of Product

-to create value and satisfying customer
experience.
CCV:
HarleyDavidson
stands for
independence,
freedom,
individuality,
expressing
ones self,
adventure on
the open road,
and
experiencing
life to its
fullest.
Harley-Davidson
Actual product
Augmented product:
Company-sponsored the
Harley Owners Group
(H.O.G): travel adventures,
events, publications.
Clothes and accessories
both for riders and for those
who simply like to associate
with the brand.
7 -9
Core Customer Values
Umpqua Bank vs HSBC

Nike vs Adidas
IBM vs Apple
7 - 10
Consumer Products
A product bought by final consumers
for personal consumption
Classified by how consumers buy
them
7 - 11
Convenience Products
Consumer products that customers

usually buy frequently, immediately, and
with minimal comparison and buying
effort
Low priced
Placed in many locations to make them
readily available
Mass promotion
E.g. Laundry detergent, candy, magazines,
and fast food
7 - 12
Shopping products
Consumer products that the
customer, in the process of selecting
and purchasing, usually compare on
such attributes as suitability, quality,
price, and style
Less frequently purchased

Distributed through fewer outlets
Greater sales support
E.g. Furniture, clothing, used cars
7 - 13
Specialty products
Consumer products with

unique characteristics or
brand identification for
which a significant group of
buyers is willing to make a
special purchase effort
Different brands are not

usually compared
Careful targeted promotion
E.g. Luxury goods, specific
brands of cars, high-priced
photographic equipment,
designer clothes, and the
services of medical or legal
specialists
7 - 14
Unsought Products
Consumer products that the consumer
either does not know about or knows
about but does not normally consider
buying
Require a lot of advertising, personal selling,
and other marketing efforts
New innovations are generally unsought till
advertised
Known but unsought products and services are
life insurance, preplanned funeral services
7 - 15
Industrial Products
Products bought by individuals and
organizations for further processing
or for use in conducting a business
7 - 16
Organizations
Organization marketing consists of
activities undertaken to create,
maintain, or change the attitudes
and behavior of target consumers
toward an organization
Business firms sponsor public
relations or corporate image
marketing campaigns to market
themselves and polish their images
7 - 17
Organization Marketing
IBMs Smarter
Planet campaign
markets IBM as
a company that
helps improve
the worlds IQ
This ad tells how IBM
technologies are helping to
create safer food supply chains
7 - 18
Persons
Person marketing
consists of activities
undertaken to
create, maintain, or
change attitudes or
behavior toward
particular people
Organizations use
well-known
personalities to help
sell their products or
causes
7 - 19
Places
Place marketing
Involves activities undertaken to
create, maintain, or change attitudes or
behavior toward particular places
7 - 20
Ideas: Social Marketing

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.
7 - 21
Figure 7.2 - Individual Product

Decisions
7 - 22
Product and Service

Attributes
7 - 23
Packaging
Packaging : power
of good packaging to
create immediate
consumer recognition
of a brand.
-Visibility,
Information,
Emotion, Workability
7 - 24
Labeling
7 - 25
Product Support Services

An important part
of the customers
overall brand
experience
Firms must survey
customers to
assess the value of
current services
and obtain ideas
for new ones
Nordstrom thrives on stories

about its after-sale service. It
wants to Take care of
customers, no matter what it
takes, before, during, and after
7 - 26
the sale
Branding
A brand is a name, term, sign,
symbol, or design, or a
identifies the
combination of these,
that
maker
or seller of
a product or
service.
Customers attach
meanings to brands
and develop brand
relationships
7 - 27
Building Strong Brands
7 - 28

Brand equity:
The differential
effect that
knowing the
brand name has
on customer
response to the
product or its
marketing
Consumers sometimes
bond very closely with
specific brands. To this
customer, this isnt just a
cup of coffee, its a deeply
satisfying
Starbucks brand
7 - 29

Young & Rubicams
Brand Asset
Evaluator measures
brand strength
along four consumer
perception
dimensions:
differentiation
(what makes the
brand stand out),
relevance (how
consumers feel it
meets their needs),
knowledge (how
much consumers
know about the
brand), and
esteem (how highly
consumers regard
and respect the
brand).
7 - 30

More easily launch line
Brand valuation is the
process of estimating and brand extensions.
Defense against fierce
the total financial
price competition.
value of a brand.
Many competitive
advantages:
High level of
consumer brand
awareness and
loyalty.
More leverage in
bargaining with
resellers.
Forms the basis for

building strong and
profitable customer
relationships.
The fundamental asset
underlying brand
equity is customer
equitythe value of
the customer
relationships that the
brand creates.
7 - 31
Figure 7.5 Major

Brand Strategy Decisions
7 - 32
- Brand Positioning
Brand
Attributes
Brand Brand Value
Benefits and Belief
7 - 33
Brand Positioning
Marketers can position brands
clearly in customers minds at any of
three levels
Product attributes
Product benefits
Beliefs and values
7 - 34
- Brand Positioning
Red, VRed and
shape
White
PackageBrown
Marlboro logo Adventu
Youth &
Cowboy Energy rous
Filter
Strongly
Freedom
Marlboroand raw Power Built Strong
Boundar Icon of
Tough Taste
y
and
America
Iron Man
Brave
n
Marlboro
Package
Masculine
Opening
Sports
Marlboro
Sponsorship
7 - 35
- Brand Name Selection
Benefits
Remember
Extension
TrAnslation
Distinctive
Protection
7 - 36
- Brand Sponsorship
Manufacturers
brand: Rolex
Private Brand:
Select of Parkn
Shop
Licensing: Hello
Kitty keychain
Co-branding:
7 - 37
Brand Sponsorship
Sellers of childrens
products attach an
almost endless list
of character names
to clothing, toys,
school supplies,
linens, dolls, lunch
boxes, cereals, and
other items
SpongeBob alone has

generated more than $8
billion in sales and licensing
fees over the past decade
7 - 38
Marketing At Work
Consumer frugality
results in increased
sales of store
brands
Store brands now
offer much greater
selection, and are
rapidly achieving
name-brand
quality
Walmarts store brands

account for a whopping 40
percent of its sales, and its
Great Value brand is the
nations largest single food
brand
7 - 39
Figure 7.6 - Brand

Development Strategies
7 - 40
Brand Development
7 - 41
Managing Brands
Communicate
the brands
positioning
Manage all brand
touch points
Train employees
to live the brand
Audit the brands
strengths and
weaknesses
Brands are not

maintained by
advertising but by
customers brand
experiences
7 - 42
Product Line
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.
7 - 43
Product Line Decisions
7 - 44
7 - 45
Product Mix Decisions
7 - 46
The Product Mix
Campbells product mix consists of three major

product lines. Each product line consists of several
sublines. Each line and subline has many individual
items
7 - 47
Figure 7.3 - Four Service

Characteristics
7 - 48
The Nature and

Characteristics of a Service
The service
providers task
is to make the
service tangible
in one or more
ways and send
the right signals
about quality
7 - 49
The Service-Profit Chain

The chain that links service firm profits
with employee and customer
satisfaction
The five links
Internal service quality

Satisfied and productive service employees
Greater service value
Satisfied and loyal customers
Healthy service profits and growth
7 - 50
Figure 7.4 - Three Types of

Service Marketing
7 - 51
Services Marketing
7 - 52
Marketing at Work
Web retailer
Zappos prioritizes
excellent customer
service
Zappos knows that
happy customers
begin with happy,
dedicated, and
energetic
employees
Enthusiastic employees
make outstanding brand
ambassadors for Zappos
7 - 53
Managing Services
7 - 54
Reviewing the Concepts
Define product and the major

classifications of products and
services
Describe the decisions companies
make regarding their individual
products and services, product
lines, and product mixes
7 - 55
Reviewing the Concepts

Identify the four characteristics that
affect the marketing of services

and the additional marketing
considerations that services require
Discuss branding strategythe
decisions companies make in
building and managing their brands
7 - 56

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Chapter 7

Products, Services, and Brands

Copyright 2011 Pearson Education

Products, Services and

Olive Garden sells more than

Three Levels of Product

Levels of Products and

Three Levels of Product

Copyright 2011 Pearson Education

Core Customer Values

Umpqua Bank vs HSBC

Consumer products that customers

Copyright 2011 Pearson Education

Less frequently purchased

Copyright 2011 Pearson Education

Consumer products with

Different brands are not

Copyright 2011 Pearson Education

Ideas: Social Marketing

Figure 7.2 - Individual Product

Product and Service

Product Support Services

Nordstrom thrives on stories

Building Strong Brands

Building Strong Brands

Building Strong Brands

Copyright 2011 Pearson Education

Building Strong Brands

Forms the basis for

Figure 7.5 Major

Building Strong Brands

Building Strong Brands

Building Strong Brands

- Brand Name Selection

Building Strong Brands

SpongeBob alone has

Copyright 2011 Pearson Education

Walmarts store brands

Copyright 2011 Pearson Education

Figure 7.6 - Brand

Brands are not

Copyright 2011 Pearson Education

Product Line Decisions

Product Mix Decisions

The Product Mix

Campbells product mix consists of three major

Figure 7.3 - Four Service

The Nature and

The Service-Profit Chain

Internal service quality

Copyright 2011 Pearson Education

Figure 7.4 - Three Types of

Copyright 2011 Pearson Education

Reviewing the Concepts

Define product and the major

Reviewing the Concepts

affect the marketing of services

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