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PRODUCT,SERVICES AND BRANDS

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(Product, 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
A means of meeting needs and wants
Might be
TANGIBLE -Pure good(product): Soap
INTANGIBLE -Pure service: Legal representation
BOTH -Combination: Restaurant meal
What Is a Product? Physical Products,Services,Persons,Places
Organizations,Ideas,Combinations of the above


Service is a product that consists of activities, benefits or satisfaction that is essentially intangible and does not result in
the ownership of anything.
E.g., banking, hotel, airline tickets, retail, tax preparation, home repairs

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

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Levels of Product and Services

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Core benefits represent what the buyer is really buying.
Actual product represents the physical product, design, features, brand name, packaging and quality level that delivers
the core benefit to the customer.
Augmented product represents additional services or benefits of the actual product such as add-ons, guarantees, delivery
and credit, instructions, installation, warranty, and service.


Consumer Products:
Products that are purchased by consumers for their own personal use.

Business/Industrial Products:
Products purchased by a firm or organization for its own use.
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Product & Service Classification

Organization marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target
consumers toward an organization

Person marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target
consumers toward particular people

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


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Individual Product Decisions


Product or service attributes communicate and deliver the benefits of the product or service(slide 40)
Quality-Product quality is one of the marketers major positioning tools. Quality has a direct impact on product or
service performance; thus, it is closely linked to customer value and satisfaction
Features-are assessed based on the value to the customer versus the cost to the company
Style and design contributes to a products usefulness as well as to its looks

Brand is the name, term, sign, or designor a combination of thesethat identifies the maker or seller of a product or
service
Packaging involves designing and producing the container or wrapper for a product
Function of packaging
Protecting the product until consumed.
Storing the product until consumed.
Facilitating consumption of the product.
Promoting the product.
Facilitating disposal of the product.

Labels identify the product or brand, describe attributes, and provide promotion Identify the product;
Weights/measures,Description,Instructions,Ingredients,Nutritional information

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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
Examples: Warranties, customer service, extended service plans, etc.

(Slide 60)
The product mix of a company involves all of the products that a company has for sale. The product mix could include several
lines of products or individual products that do not fall into a line.
A product line is a group of products that are closely related and are promoted together.

Line stretching
o Product line stretching is when a company lengthens its product line beyond its current range.
o adding products that are higher or lower priced than the existing line
o Downward product line stretching is used by companies at the upper end of the market to plug a market hole or respond to a
competitors attack.Example : Volkswagen Polo 1.6 is around RM 89,000
o Upward product line stretching is by companies at the lower end of the market to add prestige to their current
products.Example : Nestle premium ice cream Haagen Daaz, Dreyers
o Combination line stretching is used by companies in the middle range of the market to achieve both goals of upward and
downward line stretching.


Types of Service Industries (Government,Private not-for-profit organizations,
Business services)





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Nature and Characteristics of a Service



Marketing Strategies for Service Firms
to traditional marketing strategies, service firms often require additional strategies
Service-profit chain
Internal marketing
Interactive marketing

Service-profit chain links service firm profits with employee and customer satisfaction
Internal service quality
Satisfied and productive service employees
Greater service value
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Satisfied and loyal customers
Healthy service profits and growth


Internal marketing means that the service firm must orient and motivate its customer contact employees and supporting
service people to work as a team to provide customer satisfaction//Internal marketing must precede external marketing
Interactive marketing means that service quality depends heavily on the quality of the buyer-seller interaction during the
service encounter
Managing Service Differentiationrefer 72
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 & sacrifice quality,
harness technology.
Branding Strategy:
Building Strong Brands
The AMA definition of a brand:
A name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of
sellers and to differentiate them from the competition.
Brand represents the consumers perceptions and feelings about a product and its performance. It is the companys promise
to deliver a specific set of features, benefits, services, and experiences consistently to the buyers

Brand identity decisions includeNameLogoColorsTaglineSymbol

Brand Name-The element of a brand that can be vocalized. Example : Kit-Kat, Nescafe, Nike, Fab, Lenovo, Perodua etc.
Brand Mark-The element of a brand that cannot be vocalized, the logos.

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WHAT IS A TRADEMARK?
Any sign, or any combination of signs, capable of distinguishing the goods or services of one undertaking from those of other
undertakings, shall be capable of constituting a trademark.

Brands can convey six levels of meaningAttributesBenefitsValuesCulture
PersonalityUser

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


Brand equity provides competitive advantage in terms of :
Consumer awareness and loyalty
Benefits
Beliefs and value

Brand strategy decisions
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Brand positioning
o Product attributes// Product benefits// Product beliefs and values

Brand name selection
-Desirable qualities
1. Suggest benefits and qualities
2. Easy to pronounce, recognize, and remember
3. Distinctive
4. Extendable
5. Translatable for the global economy
6. Capable of registration and legal protection

Brand sponsorship
Individual Brands
Family Brands
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Manufacturers or National brand
Private or Store brand
Generic brand
Licensed brand
Co-branding
Brand development strategies
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