Professional Documents
Culture Documents
7-1
Rest Stop: Previewing the Concepts
7-2
Rest Stop: Previewing the Concepts
7-3
First Stop: Emirates Airlines: Building a
Deep-Down Brand-Customer Relationship!
• Emirates is a successful global brand due to
exceptional customer service
• The strategy of “All customers are important” led
to high brand loyalty and awareness
• Doing things differently made Emirates the
fastest growing airline
• Emirates made the largest commercial order in
Boeing’s history, a deal worth $18billion
7-4
Product
• Anything that can be offered to a
market for attention, acquisition, use, or
consumption that might satisfy a want
or need
Service
• An activity, benefit, or satisfaction
offered for sale that is essentially
intangible and does not result in the
ownership of anything
7-5
What Is a Product?
• Tangible objects, services, events, persons,
organizations, places, ideas, or a mixture of
these
• Services are a form of product
• Activities, benefits, or satisfactions offered for
sale
• Essentially intangible
• Do not result in the ownership of anything
7-6
Products, Services and Experiences
• Market offerings
often include both
tangible goods and
services
• Pure tangible good
• Pure service
Olive Garden sells more than just
• Many companies Italian food—it serves up an idealized
Italian family meal experience
now marketing
experiences
7-7
Figure 7.1 - Three Levels of Products
7-8
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
7-9
Consumer Products
• A product bought by final consumers for
personal consumption
• Classified by how consumers buy them
Convenience Shopping
products products
Specialty Unsought
products products
7 - 10
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
• E.g. Laundry detergent, candy, magazines, and
fast food
7 - 11
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 - 12
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
• E.g. Specific brands of cars, high-priced
photographic equipment, designer clothes, and
the services of medical or legal specialists
7 - 13
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 - 14
Industrial Products
• Products bought by individuals and
organizations for further processing or for use
in conducting a business
7 - 15
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 - 16
Organization Marketing
• IBM’s Smarter Planet
campaign markets
IBM as a company
that helps improve
the world’s IQ
7 - 17
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 - 18
Places and Ideas
• Place marketing
• Involves activities undertaken to create,
maintain, or change attitudes or behavior toward
particular places
• Idea marketing
• Social marketing: 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 - 19
Figure 7.2 - Individual Product
Decisions
7 - 20
Product and Service Attributes
• Product quality: The characteristics of a
product or service that bear on its ability to
satisfy stated or implied customer needs
• Product features
• Differentiate the company’s product from
competitors’ products
• Product style and design
7 - 21
Branding
• A name, term, sign, symbol, or design, or a
combination of these, that identifies the
products or services of one seller or group of
sellers and differentiates them from those of
competitors
• Customers attach meanings to brands and
develop brand relationships
7 - 22
Packaging and Labeling
• Packaging: Designing and producing the
container or wrapper for a product
• Protects the product
• Attracts customers and closes the sale
• Labels
• Identify the product
• Describe the product
• Promote the brand
7 - 23
Product Support Services
• An important part of
the customer’s
overall brand
experience
• Firms must survey
customers to assess
the value of current Nordstrom thrives on stories about its
services and obtain after-sale service. It wants to “Take care
of customers, no matter what it takes,”
ideas for new ones before, during, and after the sale
7 - 24
Product line
7 - 25
Product Line Decisions
7 - 26
Product mix
7 - 27
Product Mix Decisions
7 - 29
Figure 7.3 - Four Service
Characteristics
7 - 30
The Nature and Characteristics of a
Service
• The service
provider’s task is to
make the service
tangible in one or
more ways and send
the right signals
about quality
7 - 31
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 - 32
Figure 7.4 - Three Types of Service
Marketing
7 - 33
Services Marketing
External
marketing
Traditional marketing via the 4 “Ps”
Interactive
marketing Training service employees in the fine art of
interacting with customers to satisfy their needs
7 - 34
Marketing at Work
• Web retailer Zappos
prioritizes excellent
customer service
• Zappos knows that
happy customers
begin with happy,
dedicated, and Enthusiastic employees make
energetic employees outstanding brand
ambassadors for Zappos
7 - 35
Managing Service Differentiation
• Developing a differentiated offer, delivery,
and image
• The offer can include features that set one
company’s offer apart from competitors’ offers
• Service delivery can be differentiated with better
customer-contact people or a superior delivery
process
• Images can be differentiated through symbols
and branding
7 - 36
Managing Service Quality and
Productivity
• Managing service quality
• Identify what customers expect
• Set high quality standards
• Emphasize service recovery in case of a mistake
• Managing service productivity
• Train current employees better or hire new ones
• Increase quantity by reducing quality
• Use technology
7 - 37
Building Strong Brands
• 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 isn’t just a cup
of coffee, it’s a deeply satisfying
Dunkin’ Donuts brand experience
7 - 38
Figure 7.5 – Major
Brand Strategy Decisions
7 - 39
Brand Positioning
• Marketers can
position brands
clearly in customers’
minds at any of
three levels
• Product attributes
• Product benefits
• Beliefs and values
Successful brands engage
customers on an emotional level,
as does this ad, which suggests the
connection that hardcore users
have with the WD-40 brand
7 - 40
Brand Name Selection
• A brand name should:
• Suggest the product’s benefits and qualities
• Be easy to pronounce, recognize, and remember
• Be distinctive
• Be extendable
• Translate easily into foreign languages
• Be capable of registration and legal protection
7 - 41
Brand Sponsorship
National Products are marketed under the manufacturer’s
brands own name
7 - 42
Brand Sponsorship
• Sellers of children’s
products attach an
almost endless list of
character names to
clothing, toys, school
supplies, linens,
dolls, lunch boxes,
SpongeBob alone has generated
cereals, and other more than $8 billion in sales and
items licensing fees over the past decade
7 - 43
Marketing At Work
• Consumer frugality
results in increased
sales of store brands
• Store brands now
offer much greater
selection, and are
Walmart’s store brands account
rapidly achieving for a whopping 40 percent of its
name-brand quality sales, and its Great Value brand is
the nation’s largest single food
brand
7 - 44
Brand Development
7 - 45
Figure 7.6 - Brand Development
Strategies
7 - 46
Managing Brands
• Communicate the
brand’s positioning
• Manage all brand
touch points
• Train employees to
live the brand
• Audit the brands’ Brands are not maintained by
strengths and advertising but by customers’
brand experiences
weaknesses
7 - 47
Rest Stop: Reviewing the Concepts
7 - 48
Rest Stop: Reviewing the Concepts
7 - 49