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Marketing: An Introduction

Armstrong, Kotler

Chapter Seven
Product, services, and branding strategy

Looking Ahead

Define product and the major classifications of

products and services.
Describe the roles of product and service branding,
packaging, labeling and product support services.
Explain the decisions companies make when
developing product lines and mixes.
Identify the four characteristics that affect the
marketing of a service.
Discuss the additional marketing considerations
that services require.

Product Definition

any market offering that is intended to

satisfy a want or need.

a type of product that is intangible and

does not result in the ownership of anything.

a type of product that combines a

service or physical product with a memorable

Product Definition
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.

Service Definition
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.

Levels of product and services

Figure 1
1- Core benefit; What is the buyer is really
buying? Example: People buy camcorders to
capture important moment.
2- Actual product; Features, brand name,
quality, and packaging help the product to
be delivered, like Features of the camcorder.
3- Augmented product; additional consumer
services after sale. Warranty, delivery,
credit, installation, service

Levels of Product

Figure 1

Products and Services Classifications;

1- consumer products; products and services bought by

end users. Convenience, shopping, specialty, and
unsought products ( Figure 2).
2- Industrial products; purchase for further processing or
for use in conducting a business. Material, parts, capital
items, and supplies and services.
3- Organizations, persons, places, and ideas;
- Corporate image advertising
- People; lawyers, doctors,,, market them-selves.
- places; attract people to cities, region
- Ideas; crest create smiles everyday. Social ideas to
create social marketing to influence people

Consumer products
Convenience Products

Shopping Products

Buy frequently & immediately Buy less frequently

Low priced
Mass advertising
Many purchase locations
i.e Candy, newspapers

Higher price
Fewer purchase locations
Comparison shop
i.e Clothing, cars, appliances

Specialty Products

Unsought Products

Special purchase efforts

New innovations

High price
Unique characteristics
Brand identification
Few purchase locations
i.e Lamborghini, Rolex

Products consumers dont

want to think about
Require much advertising &
personal selling
i.e Life insurance, blood donation

Individual Product Decisions

Product and Service decisions

1- Product attributes;


Performance and satisfaction includes level and

Differentiates a product from the competition.
Assessed based on value and cost.

Style and design.

Style equals appearance: Design is the heart of the


2- Branding
Is a name, term, sign, symbol, design or combination of
these that identifies the maker or seller of a product or
Brand Equity
Advantages to Branding
Higher brand loyalty
Name awareness
Quality and value
Perceived quality
Strong brand
Tells a story
Provides legal
Patents, trademarks,
channel relationships

Helps segments

3- Packaging:

Developing a good wrapper for a product.

Packaging concept.
Package elements.
Product safety.
Environmental concerns.

4- Labeling:

Identify the product

Nutritional information

5- Product support services; Customer service

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 Decisions

Product line: Group of closely related

products due to function, similar target
markets, outlets sold in, or similar pricing
- Length: number of items in the product line.
- Line stretching: adding items to either. Highend of the line can be stretched downwards.
Marriott, Mercedes.
- Line filling: adding items within the product line
range. Increase sizes,

Branding Strategy : Building strong Brands

Brand equity:
Positive differential effect that knowing the
brand name has on customer response to
the product or service.
Brands are more than just names and
symbols. Brands represent consumers
perceptions and feelings about a product
and its performance.
Brands exits in the mind of consumers.
Major Brand Strategy Decisions: Figure 3

Major Brand strategy decision

Figure 3

Figure 10.3

Major Brand Strategy Decisions11- Brand positioning;

Can position brands at any of three levels.

Product attributes.
Product benefits.
Consumer beliefs and values.

2 - Brand name selection:

Suggest something about the products benefits

Easy to pronounce, recognize, and remember
Distinctive and Extendable
Ability to be translated into other languages
Capable of being registered and legally protected

Major Brand Strategy Decisions

3- Brand sponsorship:
Manufacturers brand

Brand sponsored and promoted by the producer

of the good, such as Pepsi, IBM.

Private brand

Brand created and owned by a reseller

of a product or service such as Presidents

4- Brand development , Figure 4

Brand Development Strategies

Figure 4

Service Marketing
Service Characteristics



Consumed when it is provided and cannot be

separated from the provider.


Cannot be seen, tasted, felt or smelled before


Quality depends on who provides.


Cannot be stored or resold. Figure 5

Nature and characteristics of service

Figure 5

Marketing in Service Industries

Service profit chain:
1- Internal service quality: selecting, hiring, training, talent
employees leads to :
2- Satisfied employees: loyal productive, happy employees lead to:
3- Greater service value: High quality service delivery leads to:
4- Satisfied and loyal customers; loyal, repeat purchase leads to;
5- Business growth and profit: superior service performance.






Managing Service Differentiation

Differentiate offer by:

Innovative features
Service delivery
Images or symbols
Service quality
Service recovery: retain angry customers

Service productivity
- lowering the overhead costs
- Increase service productivity

Additional Product Considerations

Product decisions and social responsibility

Government regulation
Food and product safety
Pricing and advertising
Labeling, weights, and measures
Hazardous products
Product liability

International product and service


Standardization versus local adaptation

Electrical standards, packaging
Cultural differences in meaning
Barriers to trade