Chapter 8

Product, Services, and

Brands:

Building Customer Value

 Topic Outline
01 Product, Services, and Experiences

02 Product and Services Decisions

03 Services Marketing

04 Branding Strategy: Building Strong Brands

 Topic Outline
01 Product, Services, and Experiences

02 Product and Services Decisions

03 Services Marketing

04 Branding Strategy: Building Strong Brands

 Products, Services, and Experiences

Product is anything that can be offered in a market for attention,

acquisition, use, or consumption that might satisfy a need or want
Service is a product that consists of activities, benefits or
satisfaction that is essentially intangible and does not result in the
ownership of anything
Experiences represent what buying the product or service will do
for the customer
 Levels of
Product and Services
 ØCONSUMER PRODUCTS
products and services for personal
consumption. Classified by how consumers
buy them:
• Convenience products
• Shopping products
• Specialty products
Product and • Unsought products

Service
Classifications ØINDUSTRIAL PRODUCTS
products purchased for further processing
or for use in conducting a business.
Classified by the purpose for which the
product is purchased
• Materials and parts
• Capital items
• Supplies and services
Convenience products Shopping products

Buys frequently, immediately with a Less frequently purchased, the

minimum comparison and buying customer compares carefully on
effort, low priced: newspapers, suitability, quality, price, and style:
candy, fast food, etc furniture, cars, appliances, etc
 Specialty products Unsought products

Unique characteristics or brand identification

The consumer does not know about or
for which a significant group of buyers is
knows about but does not normally think of
willing to make a special purchase effort:
buying: life insurance, funeral services,
medical services, designer clothes, high-
blood donations
end electronics (audio, video, laptop)
INDUSTRIAL
PRODUCTS
• Materials and parts include raw materials
and manufactured materials and parts
usually sold directly to industrial users
• Capital items are industrial products that
aid in the buyer’s production or operations
• Supplies and services include operating
supplies, repair and maintenance items, and
business services
 Organizations, Persons, Places, and Ideas

Organization
Depends marketing
on: consists of activities undertaken to create, maintain, or
change attitudes and behavior of target consumers toward an organization
• Company
Person marketing resources
consists of activities undertaken to create, maintain, or
change attitudes and behavior of target consumers toward particular people
• Product variability
Place marketing consists of activities undertaken to create, maintain, or change
attitudes and behavior
• Product of target
life-cycle stageconsumers toward particular place
Social marketing is the use of commercial marketing concepts and tools in
• Market
programs variability
designed to influence individuals’ behavior to improve their well-
being and that of society
• Competitor’s marketing strategies
https://www.youtube.com/watch?v=zO9aLVN5gHw
 Topic Outline
01 Product, Services, and Experiences

02 Product and Services Decisions

03 Services Marketing

04 Branding Strategy: Building Strong Brands

 Individual Product and Service Decisions
01 02 03 04 05
05
narrowly

Product Branding Packaging Labelling Product

attributes the name, term,
Support
involves identify the Services
Communicate sign, or design product or
designing and
and deliver the or combination
producing the brand, services that
benefits: of these that
identifies the contained or describe augment
• quality attributes, and actual
maker or seller wrapper for a
• features provide products
of a product or product
• style and promotion
service
design
 Product or service attributes

PRODUCT QUALITY
• Product Quality Level is the level of quality that supports the product’s
positioning
• Product 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
• are assessed based on the value to the customer versus the cost to the company
STYLE & DESIGN
• Style describes the appearance of the product
• Design contributes to a product’s usefulness as well as to its looks
 Product Line Decisions
Product line is a group
of products that are Line filling adding more items within the
present range of the line
closely related Pros: extra profits, satisfying dealers, using excess
because they function capacity, leader of full-line company, and plugging holes
to keep out competitors.
in a similar manner, Cons: customer confusion and cannibalization
are sold to the same
customer groups, are Line stretching lengthens its product line
beyond its current range: downward, upward, or
marketed through the both ways
same types of outlets, https://www.youtube.com/watch?v=4CF-752TOMU
or fall within given
price ranges
23,000-27,000 VND

35,000 VND
 Product Mix Decisions

Width the number of different product lines the

company carries
Product mix consists of Length the total number of items a company
all the products and carries within its product lines
items that a particular Depth the number of versions offered of each
seller offers for sale product in the line
Consistency how closely related the
various product lines are in end use, production
requirements, distribution channels, or some
other way
Width

Depth
Length
 Topic Outline
01 Product, Services, and Experiences

02 Product and Services Decisions

03 Services Marketing

04 Branding Strategy: Building Strong Brands

 • Government: courts, employment services,
hospitals, military services, police and fire
departments, the postal service, and
schools
• Private not-for-profit organizations:
museums, charities, churches, colleges,
SERVICE foundations, and hospitals
MARKETING • Business services: airlines, banks, hotels,
insurance companies, consulting firms,
medical and legal practices, entertainment
and telecommunications companies, real
estate firms, retailers, and others
Nature and
Characteristics
of a Service
 Topic Outline
01 Product, Services, and Experiences

02 Product and Services Decisions

03 Services Marketing

04 Branding Strategy: Building Strong Brands

 Brand equity-- The differential effect
that knowing the brand name has on
customer response to the product or its
marketing. It’s a measure of the brand’s
Brand equity ability to capture consumer preference
and loyalty.
4 consumer perception dimensions:
& ** differentiation
** relevance
Brand value ** knowledge
** esteem

Brand value-- The total financial value

of a brand.
Building Strong Brands
 Brand positioning
Brand can be positioned at any of three levels:
Product attributes: From “Earth’s
biggest bookstore.” to “the world’s
largest online retailer.”

Benefits: customers can find anything they’d

like to buy, and some things they would never
buy

beliefs and values: a combination

of extraordinary convenience, instant
access, and comprehensive selection
 Brand name selection

SELECTION: desirable qualities: (1) suggest something about the

product’s benefits and qualities, (2) easy to pronounce, recognize,
and remember, (3) be distinctive, (4) be extendable, (5) translate
easily into foreign languages, (6) capable of registration and legal
protection

PROTECTION: Once chosen, the brand name must be protected

 Brand sponsorship
1. The battle of National Brands versus Store Brands

• National brand- A brand owned by manufacturers

• Store brand (or private brand) - A brand created and owned by a
reseller of a product or service.
• Private labels first appeared in the 1901s => but until 2005 when
private labels were available in FMCG, it’s a global phenomenon
challenging national brands
• Consumers are now buying even more private brand
• Once known as “generic” or “no-name” brands
 Brand sponsorship

2. Licensing- Companies license names or symbols previously

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

3. Co-branding- The practice of using the established brand

names of two different companies on the same product.
Brand Development
 Brand Development

• Line extensions occur when a company extends existing brand

names to new forms, colors, sizes, ingredients, or flavors of an
existing product category.
• A brand extension extends a current brand name to new or
modified products in a new category.
• Multi-brands: Companies often market many different brands in a
given product category.
• New Brands: A company may create a new brand name when it
enters a new product category for which none of its current brand
names is appropriate.