Chap2 Product Part1

Product, Services, and Brands:
Building Customer Value
Chapter 2
Product, Services, and Branding Strategy

Topic Outline
• What Is a Product?
• Product and Services Management
• New Product Development
• Branding Strategy
Copyright ©
1
Topic Outline
– Product definition
– Product and service classifications
– Other marketing subjects : Organizations,
Individuals, Places, and Social marketing
– Product, Experience & Customer Value
Copyright ©
What Is a Product?
Product definition
A brand’s or product’s value proposition is the set of

benefits or values it promises to deliver to customers
to satisfy their needs
water
pure and safe water
easy to transport
Copyright ©
2
What Is a Product?
Product definition
A product’s benefit is the positive value that a product

or service provides to a consumer.
- inherent to the product or service’s characteristics
- something intangible that the consumer might
perceive about the product or service (eg. brands…)
Copyright ©
What Is a Product?
Product and Service Classifications
Consumer products
Industrial products
Copyright ©
3
What Is a Product?
• Consumer products are products and services for

personal consumption
• Classified by how consumers buy them
– Convenience products
– Shopping products
– Specialty products
– Unsought products
Copyright ©
What Is a Product?
Convenience products are consumer products and

services that the customer usually buys frequently,
immediately, and with a minimum comparison and
buying effort
Shopping products are consumer products and services
that the customer compares carefully on suitability,
quality, price, and style
Copyright ©
4
What Is a Product?
Specialty products are products and services with

unique characteristics or brand identification for
which a significant group of buyers is willing to make
a special purchase effort
Unsought products are products that consumers are
not thinking about spontaneously or do not think
about buying with pleasure
Copyright ©
What Is a Product?
Industrial products are 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
– Raw materials
Copyright ©
5
What Is a Product?
Capital items are industrial products that aid in the

buyer’s production or operations
Materials and parts include raw materials and
manufactured materials and parts usually sold
directly to industrial users
Supplies and services include operating supplies, repair
and maintenance items, and business services
Copyright ©
What Is a Service?
Nature and Characteristics of a Service
Copyright ©
6
What Is a Service?
• Customer services
• Business services
• Private not-for-profit organizations services
• Government services
Copyright ©

Topic Outline
– Other marketing subjects: Organizations,
Copyright ©
7
Other Marketing Subjects
Organizations, Persons, Places, and Ideas
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 individual
Copyright ©
Other Marketing Subjects

Organizations, Persons, Places, and Ideas
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
Copyright ©
8
Topic Outline
– Other marketing subjects: Organizations,
Copyright ©
Product and Service Management

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 expectation
Experiences represent what consumers feel when

buying or consuming the product or service
Copyright ©
9
Compelling reasons for a

Facts, or Characteristics product/service adoption Value for the customer
• Technical How the product / service will • In comparison to what he.she

• Aesthetics • Fit the customer’s needs, his already has
• Commercial motivations • In comparison to competitors
• Associated services • Improve his situation
• Notoriety, Reputation, • Solve his problems > Subjective
Image… > Appeals to emotions
Copyright ©

Compelling reasons for a

Facts, or Characteristics Value for the customer
product/service adoption
Explain product/service advantages in a factual, concrete,

or measurable way (proof) such as:
• key numbers (tests, sales, number of customers…)
• demonstration (samples, salesperson…)
• consumer’s testimony, influencer…
• Editorial support (packaging, press…)
• Labels, certifications, price…
Copyright ©
10
Topic Outline
• Product and Services Management
• New Product Development
• Branding Strategy
Copyright ©

Topic Outline
• Product and Service Management

– Levels of Product and Services
– Mix and Line Product Strategies
– Marketing Strategies for Service Firms
Copyright ©
11
Specific Product and Service Decisions
Copyright ©

Product quality includes level and consistency
• Quality level is the level of quality that supports
the product’s positioning
• Conformance quality is the product’s freedom
from defects and consistency in delivering a
targeted level of performance
German image of quality
Copyright ©
12
Product features
are a competitive characteristics/elements for
differentiating a product from competitors’ products
are assessed based on the value to the customer
versus the cost to the company
Copyright ©

Style describes the appearance of

the product
Design contributes to a product’s
usefulness as well as to its looks
Copyright ©
13
Packaging involves designing and producing the
container or wrapper for a product
Facilitate the use
of the product
Emphasize on the
product’s benefit
Copyright ©


• Levels of packaging
Copyright ©
14

• Levels of packaging
Copyright ©

Labels identify the product or brand, describe

attributes, and provide promotion
Copyright ©
15
Levels of Product and Services
Additional services
or benefits
Main attributes that

deliver the core benefit
to the customer
What the buyer is

Apps
really buying
Copyright ©

Topic Outline

Copyright ©
16
Product Mix Decisions
Product mix consists of all the products and items

that a particular seller offers for sale
Having a complete set of products with enough
variety in taste, size, color or functionality will help
the company attract different kind of customers
Copyright ©

Product Mix Decisions
Product mix consists of all the products and items

that a particular seller offers for sale
• Width: number of different product lines
• Depth: number of versions offered of each product
in the line
• Length: total number of items the company carries
within its product lines
• Consistency: how closely the various product lines
are
Copyright ©
17
Topic Outline

Copyright ©

Marketing Strategies for Service Firms
In addition to traditional marketing strategies, service

firms often require additional strategies
• Service-profit chain
• Internal marketing
• Interactive marketing
Copyright ©
18
Managing service differentiation creates

a competitive advantage from the
offer, delivery, and image of the
service
• Offer can include distinctive
features
• Delivery can include more able and
reliable customer contact people,
environment, or process
• Image can include symbols and
branding
Copyright ©

Interactive marketing means that service quality depends

heavily on the quality of the buyer-seller interaction
during the service encounter
• Service differentiation
• Service quality
• Service productivity
Copyright ©
19
Service-profit chain links service firm profits with employee

and customer satisfaction
• Internal service quality
• Satisfied and productive service employees
• Greater service value
• Satisfied and loyal customers
• Healthy service profits and growth
Copyright ©

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
Copyright ©
20

Chap2 Product Part1

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chap2 Product Part1

Uploaded by

Copyright:

Available Formats

Product, Services, and Brands:

Building Customer Value

Product, Services, and Branding Strategy

A brand’s or product’s value proposition is the set of

pure and safe water

A product’s benefit is the positive value that a product

Product and Service Classifications

• Consumer products are products and services for

Convenience products are consumer products and

Specialty products are products and services with

Product and Service Classifications

Industrial products are products purchased for further

Capital items are industrial products that aid in the

Product, Services, and Branding Strategy

Organization marketing consists of activities

Person marketing consists of activities undertaken to

Other Marketing Subjects

Place marketing consists of activities undertaken to

Product and Service Management

Product is anything that can be offered in a market for

Experiences represent what consumers feel when

Compelling reasons for a

• Technical How the product / service will • In comparison to what he.she

Product and Service Management

Compelling reasons for a

Explain product/service advantages in a factual, concrete,

Product, Services, and Branding Strategy

• Product and Service Management

Product and Service Management

German image of quality

Product and Service Management

Style describes the appearance of

Product and Service Management

Packaging involves designing and producing the

Packaging involves designing and producing the

Product and Service Management

Labels identify the product or brand, describe

Main attributes that

What the buyer is

Product, Services, and Branding Strategy

• Product and Service Management

Product mix consists of all the products and items

Product and Service Management

Product mix consists of all the products and items

• Product and Service Management

Product and Service Management

In addition to traditional marketing strategies, service

Managing service differentiation creates

Product and Service Management

Interactive marketing means that service quality depends

Service-profit chain links service firm profits with employee

Product and Service Management

Internal marketing means that the service firm must orient

You might also like