Chapter 8

Product, Services,
and Branding
Strategy
 What Is a Product?

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

Product is a key element in the overall market offerings. This offering becomes
the basis upon which the company builds profitable customer relationships.
At one extreme, the
offer may consist of a
pure tangible good,
such as soap or
toothpaste.

*Please remember this

At the other extreme are
pure services, for which
the offer consists
primarily of a service
To differentiate their offers,
marketers are creating and
managing customer
experiences with their brands
or company.
Experiences represent what
buying the product or service
will do for the customer
Levels of
Product and
Services
Porsche 718

Nissan Sentra
1- Core customer value:

Product planners need to think

about products and services on three
levels.
Each level adds more customer
value. The most basic level is the
core customer value, which
addresses the question: What is the
buyer really buying? When designing
products, marketers must first
define the core, problem-solving
benefits or services that consumers
seek.
2- Actual product:

At the second level, product planners

must turn the core benefit into an
actual product. They need to develop
product and service features, a
design, a quality level, a brand name,
and packaging. For example, the I Pad
is an actual product. Its name, parts,
styling, features, packaging, and
other attributes have all been
carefully combined to deliver the core
customer value of staying connected.
3- Augmented product:

Finally, product planners must build an augmented

product around the core benefit and actual product by
offering additional consumer services and benefits. The
IPad is more than just a digital device.
 Products Classifications

Consumer products are products and services for personal consumption

Classified by how consumers buy them

Convenience products
Shopping products
Specialty products
Unsought products
1. Convenience products

consumer products and

services that the
customer usually buys
frequently, immediately,
and with a minimum
comparison and buying
effort
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Newspapers
Candy
Fast food
2. Shopping products
consumer products and services
that the customer compares
carefully on suitability, quality,
price, and style

Furniture
Cars
Appliances

Carrefour 2021 Black Friday

3. Specialty products
consumer products
and services with
unique characteristics
or brand identification
for which a significant
group of buyers is
willing to make a
special purchase effort
Medical services
Designer clothes
High-end electronics
Mall of Egypt - 2021 Black Friday
4. Unsought products
Consumer products that the
consumer does not know
about or knows about but
does not normally think of
buying
Life insurance
Funeral services
Blood donations
 Type of Consumer Product & Marketing Considerations

Convenience

Customer buying
behavior Price Distribution Promotion Examples

Frequent purchase;
little planning, little
Widespread Mass Toothpaste,
comparison or Low price distribution; promotion by magazines, and
shopping effort; low convenient the producer laundry
customer locations detergent
involvement
 Type of Consumer Product & Marketing Considerations

Shopping

Customer buying
behavior Price Distribution Promotion Examples

Less frequent
Advertising Major
purchase; much Selective
planning and and personal appliances,
distribution
shopping effort; Higher price selling by both televisions,
in fewer the producer
comparison of furniture,
brands on price, outlets and resellers and clothing.
quality, and style
 Type of Consumer Product & Marketing Considerations

Specialty

Customer buying
behavior Price Distribution Promotion Examples

Strong brand Exclusive More carefully

targeted Luxury goods,
preference and distribution in
loyalty; special promotion by such as rolex
High price only one or a watches or
purchase effort; little both the
comparison of brands; few outlets per producer and fine crystal
low price sensitivity market area resellers
 Type of Consumer Product & Marketing Considerations

Unsought

Customer buying
behavior Price Distribution Promotion Examples

Little product Aggressive

Life
awareness or advertising
insurance
and personal
knowledge (or, if Varies Varies and Red
selling by the
aware, little or producer and
Cross blood
even negative resellers. donations.
interest).
Product and Service Decisions
Individual Product and Service Decisions

Product Line Decisions

Product Mix Decisions

Individual Product and Service Decisions
Individual Product and Service Decisions

1. Product or service attributes

Communicate and deliver the benefits Developing a product or

service involves defining the benefits that it will offer. These
benefits are communicated and delivered by product attributes
such as quality, features, and style and design.

Quality
Features
Style and design
A. Product Quality
Quality affects product or service performance; thus, it is closely linked to
customer value and satisfaction. Quality can be defined as "freedom from
defects". But most marketers go beyond this narrow definition. Instead,
they define quality in terms of creating customer value and satisfaction.

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
1-Product Style & Design

Design is more than skin deep it goes to the very heart of a product. Good design
contributes to a product's usefulness as well as to its look.

2. Brand: is the name, term, sign, or design or a combination of these that identifies the
maker or seller of a product or service

Branding helps buyers in many ways.

Brand names help consumers identify products that might benefit them.
Brands say something about product quality and consistency.
 Product Mix Decisions

A product mix (or product portfolio) consists of all the product lines and items that a
particular seller offers for sale, Campbell Soup Company's product mix consists of three
major product lines.

Product mix consists of all the products and items that a particular seller offers for sale

Width
Length
Depth
Consistency
Product mix width refers to the number of different product lines the
company carries.
Product mix length refers to the total number of items the company
carries within its product lines.
Product mix depth refers to the number of versions offered of each
product in the line.
Product mix consistency refers to how closely related the various
product lines are in end-use, production requirements, distribution
channels, or some other way.
Product Mix
Eco-system "Product - Mix"
Xiaomi Smart Home Ecosystem
New-Product Development Process

Co - Creation
Product Life-Cycle Strategies
Product development
Sales are zero and investment costs mount
Introduction
Slow sales growth and profits are nonexistent
Growth
Rapid market acceptance and increasing profits.
Maturity
A slowdown in sales growth and profits level off or decline
Decline
Sales fall off and profits drop
Examples of Product Life Cycles
1. Introduction Stage

Slow sales growth

Little or no profit
High distribution and promotion expense
The introduction stage starts when a new product is first
launched.
The introduction takes time.
Well-known products such as frozen foods and HDTVs lingered
for many years before they entered a stage of more rapid
growth.
2. Growth Stage
Sales increase
New competitors enter the market
Price stability or decline to increase the volume
Consumer education
Promotion and manufacturing costs gain economies of
scale.
Profits increase during the growth stage as promotion
costs are spread over a large volume and as unit
manufacturing costs decrease.
The firm uses several strategies to sustain rapid market
growth as long as possible. It improves product quality
and adds new product features and models.
3. Maturity Stage

Slowdown in sales
Many suppliers
Substitute products
Overcapacity leads to competition
Increased promotion and R&D to support sales and profits

Maturity Stage Modifying Strategies :

Market modifying
Product modifying
Marketing mix modifying
 iPhone

In what stage ?
The company can try modifying the marketing mix-improving
sales by changing one or more marketing mix elements.
The company can offer new or improved services to buyers. It
can cut prices to attract new users and competitors' customers.
It can launch a better advertising campaign or use aggressive
sales promotions – trade deals, cents-off, premiums, and
contests.
The company can try modifying the marketing mix-improving sales by
changing one or more marketing mix elements.
The company can offer new or improved services to buyers. It can cut
prices to attract new users and competitors' customers. It can launch
a better advertising campaign or use aggressive sales promotions –
trade deals, cents-off, premiums, and contests.
4. Decline Stage

Maintain the product

Harvest the product
Drop the product
The sales of most product forms and brands eventually
dip. The decline may be slow, as in the cases of stamps
and oatmeal cereal, or rapid, as in the cases of VHS
tapes. Sales may plunge to zero or they may drop to a
low level where they continue for many years. This is
the decline stage.
How tp play the game ?
 Marketing 4.0

Services In Moder Era

From Exclusive to Inclusive
Step1 : Determine the Use Cases

Step 2 : Design the Key Functionalities and User Interface

Step 3 : Develop the Back - End Integration