Product, Services

and Branding
Strategies
 What is a Product?
◼ A Product is anything that can be offered to a
market for attention, acquisition, or consumption
and that might satisfy a need or want.

 Includes:
◼ Physical Objects

◼ Services

◼ Events

◼ Persons

◼ Places

◼ Organizations

◼ Ideas

◼ Combinations of the above

 What is a Service?

◼ A Service is a form of product that consist of

activities, benefits, or satisfactions offered for sale
that are essentially intangible and do not result in
the ownership of anything.
 Examples include:
◼ Banking
◼ Hotels
◼ Repair Services
 Products, Services, and Experiences

Tangible Good Service With

Pure With Accompanying
Accompanying Hybrid Pure
Tangible Minor Goods
Services Offer Service
Good

Auto with Airline Trip

Soap Restaurant Doctor’s
Accompanying with
Repair Accompanying Exam
Services Snacks
 Levels of Product
Augmented Product

Installation

Packaging
Brand Features
Name Core After-
Delivery Benefit or Sale
& Credit Service
Quality Service
Design
Level

Warranty

Actual Product Core Product

Which Product level?
 Product Classifications -
Consumer Products
Convenience Products Shopping Products
• Frequent purchases/with minimal • Less frequent purchases
buying effort&little comparison • More shopping effort for comparisons
shopping • Gather prod.information
• Low priced • Suitability & Quality
• Mass advertising • Price & Style
• Many purchase locations • Higher price
• Staple goods • Selective distribution in fewer outlets
• Impulse goods • Advertising and personal selling
• Emergency goods

Specialty Products Unsought Products

• Strong brand identification, brand
preference&loyalty
• Unique characteristics/Little brand
comparisons
• Special purchase effort
• High price (low price sensitivity)
• Exclusive distribution- Few purchase
locations
• Carefully targeted promotions
• Little product awareness and knowledge
(or if aware, sometimes negative interest)
• New innovations
• Pricing varies
• Distribution varies
• Require much advertising & personal
selling
 Product and Service Classifications -
Other Marketable Entities
◼ Activities undertaken to create, maintain, or change the
attitudes and behavior toward the following:
 Organizations - Profit (businesses) and nonprofit (schools)
◼ Organizational marketing makes use of corporate image
advertising
 Persons – Politicians, entertainers, sports figures, and
professionals (doctors, lawyers, etc.)
 Places - Business sites and tourism.
 Ideas (social marketing) – public health campaigns,
environmental campaigns, and others (family planning or
human rights)
 Product Strategy

◼ Product Strategy decisions includes 

decisions on product attributes, branding,
packaging, labeling and services for
individual products

◼ Product Strategy also calls for

managing the product lines and product
mix.
 Product and Service Decisions

Key Decisions
◼ Product attributes
◼ Individual Product ◼ Branding
◼ Packaging
◼ Product Line
◼ Labeling
◼ Product Mix ◼ Product support
services
 Product Attributes

Developing a Product or Service Involves 

Defining the Benefits that it Will Offer Such as:
Ability of a Product to Perform Its
Product Quality Functions; Includes Level &
Consistency

Help to Differentiate the Product

Product Features from Those of the Competition

Product Style Process of Designing a Product’s

& Design Style & Function
 Packaging
◼ Activity of designing and producing the container
or wrapper for a product
◼ Packaging used to just contain and protect the
product
◼ Packaging now has promotional value
◼ Marketers should:
 Establish a packaging concept,
 Develop specific elements of the package,
 Tie together elements to support the positioning and
marketing strategy.
 Packaging (cont.)

◼ Packaging as a crucial marketing tool

◼ Self-service the package must perform many of
the sales tasks
◼ Consumer affluence consumers are willing to pay
a little more for convenience, appearance, and
prestige for better packages
◼ Company & brand image Packages contribute to
instant recognition of the company or brand
◼ The packaging offer an opportunity for innovation
Packaging can differentiate

POM brand :
Pomegranate juice
used a distinctively
shaped bottle to
gain attention on
the grocery shelf
 Labeling

◼ Printed information appearing on or with the

package.

◼ Performs several functions:

 Identifies
product or brand
 Describes several things about the product
 Promotes the product through attractive graphics.
 Product - Support Services

Companies should design support services to

profitably meet the needs of target customers and
gain competitive advantage.
How?
Step 1. Survey customers to assess the value of
current services and to obtain ideas for new
services.
Step 2. Assess costs of providing desired services.
Step 3. Develop a package of services to delight
customers and yield profits to the company.
 Product and Service Decisions

Key Decisions
◼ Product Line a group
of products that are closely
◼ Individual Product related because they may:
◼ function in a similar
◼ Product Line manner
◼ be sold to the same
◼ Product Mix customer groups,
◼ be marketed through
the same types of
outlets
◼ fall within given price
ranges
 Product and Service Decisions

Key Decisions ◼ Product Line Length the

number of items in the product
◼ Individual Product line.
• A product line is too short if the
◼ Product Line manager can increase profits by
adding items;
◼ Product Mix • The line is too long if the manager
can increase profits by dropping
items
• Product line length influenced by
company objectives.
• Product lines tend to lenghten
over time
 Product and Service Decisions

Key Decisions ◼ The company can enlarge the

length of its product line in 2
◼ Individual Product ways line length
 Line stretching: adding
◼ Product Line products that are higher or
◼ Product Mix lower priced than the
existing line
 Line filling: adding more
items within the present
price range
 Product and Service Decisions

Key Decisions ◼ Line stretching

 Downward stretch occurs
◼ Individual Product when the company moves
from the high end of the
◼ Product Line market to the lower end
◼ Product Mix  Upward stretch when
companies at the lower end of
the market want to enter the
higher end.
 Two-way stretch when
companies in the middle
range of the market decide to
stretch their lines in both
directions
 Product Line Stretching

Marriott offers a full line of hotel brands,

each aimed at a different market.
 Product and Service Decisions

Key Decisions ◼ Line filling increasing the

product line by adding more
◼ Individual Product items within the present range
of the line
◼ Product Line
 Main reasons:
◼ Product Mix ◼ To reach extra profits,
◼ To try to satisfy dealers,
◼ To use excess capacity,
◼ To be the leading full-line
company
◼ To fill up the holes in the
market in order to keep out
competition
 Product and Service Decisions

Key Decisions
◼ Product Mix
 Also known as product
◼ Individual Product assortment
 Consists of all the
◼ Product Line product lines and items
◼ Product Mix that a particular seller
offers for sale
 Product Mix
Width - number of
different product
lines

Length - total Product Mix -

number of items all the product
within the lines lines offered

Depth - number of
versions of each
product
 Product and Service Decisions

Key Decisions ◼ 4 ways the company can use in

expanding its business:

 can add new product lines,

◼ Individual Product
◼ Product Line
◼ Product Mix
widening its product mix
 can can lengthen each
product line (becoming a more
full-line company)
 can add more versions of
each product, deepening its
product mix
 can pursue more product
line consistency -or less
(depending on the strategic position
that the firm wants to acquire in the
market)
 Product and Service Decisions

Key Decisions ◼ 4 ways the company can use in

expanding its business:

 can add new product lines,

◼ Individual Product
◼ Product Line
◼ Product Mix
widening its product mix
 can can lengthen each
product line (becoming a more
full-line company)
 can add more versions of
each product, deepening its
product mix
 can pursue more product
line consistency -or less
(depending on the strategic position
that the firm wants to acquire in the
market)
 What is a Brand?
◼ A brand a name, term, sign or
design or a combination of
these; intended to identify the
products or services of one seller
or group of sellers and to
differentiate them from those of
competitors.

◼ A brand essentially a
seller’s promise to deliver a
specific set of features,
benefits and services
consistently to the buyers.
 Brand Equity

◼ Brand equity the positive differential effect that

knowing the brand name has on customer
response to the product or service

 One measure of equity is the extent to which

customers are willing to pay more for the brand
 Brand valuation is the process of estimating the total
financial value of a brand
 Brand Equity

Devoted
to Brand

Values the Brand

(brand as friend)

Satisfied & Switching Cost

Satisfied Customer
(no reason to change)

No Brand Loyalty
(customer will change)
 Brand Equity
◼ Brands with strong equity have many competitive
advantages:
 High consumer awareness
 Helps when introducing new products
 Reduced marketing costs
 Charging a higher price than competitors
 More trade leverage in bargaining with distributors
 Strong brand loyalty

◼ A brand needs to be carefully managed so that its

equity doesn’t depreciate.
 Brand-equity managers
Interbrand’s Brand Equity Formula

Brand earnings Brand strength

◼ Brand sales ◼ Leadership (25%)
◼ Costs of sales ◼ Stability (15%)
◼ Marketing costs ◼ Market (10%)
◼ Overhead ◼ Geographic spread
expenses (25%)
◼ Remuneration of ◼ Trend (10%)
capital charge ◼ Support (10%)
◼ Taxation ◼ Protection (5%)
Most Valuable Brands (Interbrand, 2022)
Most Valuable Brands (Interbrand, 2022)
 Major Branding Decisions

Brand- Brand- Brand- Brand-

Branding Name Strategy Positio-
Decision Sponsor Decision
Decision Decision ning
Decision
• Individual
• Manufac-
turer brand
branding • Line
• Brand extension
• Blanket
• Distribu- family
tor (private) name • Brand • Reposi-
brand extension tioning
• No brand • Separate
• Licensed family • No
brand Names • Multi- reposi-
brands tioning
• Cobrands • Company-
individual • New
names brands
 Branding Decision
◼ makes it easier for the seller to process orders /
track down problems
◼ brand name and trademark provide legal
protection of unique product features gives the
seller the opportunity to attract loyal customers
◼ helps the seller segment markets
◼ results in more product variety and choice for
consumers
◼ helps build the corporate image
 easier to launch new brands
 gain acceptance in the market
 Brand Sponsor Decision
◼ Manufacturer brands
◼ Private (store)
brands

▪Licensed
brands
◼ Co-branding
 Brand Name Decision
◼ Individual names
 (e.g. Unilever: Omo, Cif)
◼ Blanket family names
 (e.g. Arçelik, Bosch, Pınar)
◼ Company trade name combined with individual
product names
 (e.g.Kellog’s Corn Flakes, Eti Crax, Ülker Cici Bebe)
◼ Separate family names for all products
 (e.g.Sears: Kenmore for appliances, Craftsman for tools,
Homart for home installations)
 Good Brand Names

Lack Poor
Foreign
Distinctive
Language
Meanings

Easy to:
Suggest Suggest
Pronounce
Product Product
Recognize
Qualities Benefits
Remember
 Brand Development Strategies

Product Category
Existing New
Brand Name

Existing Line Brand

Extension Extension

New Multibrands New

Brands
 Brand Positioning
▪ Can position
brands at any of
three levels:
▪ Product attributes
◼ Least effective
▪ Product benefits
▪ Beliefs and values
◼ Taps into
emotions
 Managing Brands
▪ Brand building tools: Public relations and press
releases, sponsorships, clubs and consumer
communities, factory visits, trade shows, event
marketing, social cause marketing, high value for the
money, founder’s or a celebrity personality, mobile
marketing

◼ Brands are known through advertising,

personal experience, word of mouth, the
Internet
◼ Everyone in the company represents the
brand
◼ Companies need to periodically run a brand
audit
 Services Marketing

◼ Services
 Account for 74% -- the majority of many
nations’ gross domestic product.
 Service industries include business
organizations, government, and private not-
for-profit organizations.
 Characteristics of Services
Intangibility Inseparability
Services cannot Services cannot
be seen, tasted, be separated
felt, heard, or from their
smelled before providers
purchase

Services

Variability Perishability
Quality of Services cannot
services depends be stored for
on who provides later sale or use
them and when,
where, and how
 Overcoming Service Challenges
Intangibility Inseparability
“Use cues to “Increase
make it tangible” productivity of
providers”

Services

Variability
Perishability
“Standardize
service “Match supply
production and demand”
& delivery”
 The Service-Profit Chain

Healthy Internal
Service Profits Service Quality
and Growth

Satisfied and Satisfied and

Loyal Productive Service
Customers Employees

Greater Service
Value
 Three Types of Marketing in Service Industries

Company

Internal External
marketing marketing

Cleaning/ Financial/
maintenance banking Restaurant
services services industry
Employees Interactive Customers
marketing
Marketing Strategies for Service Firms

◼ Managing Service Differentiation

 Develop differentiated offer, delivery and image.
◼ Managing Service Quality
 Empower front-line employees,
 Become “Customer obsessed”,
 Develop high service quality standards,
 Watch service performance closely.

◼ Managing Service Productivity

 Train current or new employees better,
 Work on quality as well as quantity,
 Utilize technology.