Product, Services, and

Branding Strategy
What is a Product?

• Anything that can be offered to a

market for attention, acquisition, use,
or consumption and that might
satisfy a want or need.
– Includes: physical objects, services,
events, persons, places, organizations,
ideas, or some combination thereof.

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What is a Product?
• Product and Service
Classifications
– Consumer products
– Industrial products
• Materials and parts
• Capital items
• Supplies and services

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Consumer Products

• Products and
services bought
by final
consumers for
personal
consumption.

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Convenience Products

• Purchased frequently and

immediately
• Low priced
• Mass advertising
• Many purchase locations
– Examples: candy, soda, newspapers

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Shopping Products

• Bought less frequently

• Higher price
• Fewer purchase locations
• Comparison shop
– Examples: furniture, clothing, cars,
appliances

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Specialty Products

• Special purchase efforts

• High price
• Unique characteristics
• Brand identification
• Few purchase locations
– Examples: Lamborghini, Rolex Watch

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Unsought Products

• New innovations
• Products consumers do not want to
think about
• Require much advertising and
personal selling
• Examples: life insurance, cemetery
plots, blood donation

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Industrial Products
• Those purchased
for further
processing or for
use in conducting
business.

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Industrial Products

Materials
Materials and
and Parts
Parts
Raw
Rawmaterials,
materials,manufactured
manufactured
materials,
materials,and
andparts
parts

Capital
Capital Items
Items
Products
Productsthat
thataid
aidin
in
buyer’s
buyer’sproduction
productionororoperations
operations

Supplies
Supplies and
and Services
Services
Operating
Operatingsupplies,
supplies,repair,
repair,
and
andmaintenance
maintenanceitems
items
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Product and Service
Decisions

Key • Product attributes

Decisions – Quality, features,
style and design
• Individual Product • Branding
• Product Line • Packaging
• Product Mix • Labeling
• Product support
services

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Product and Service
Decisions

Key • Product line length

Decisions – Line stretching: adding
products that are
• Individual Product higher or lower priced
• Product Line than the existing line
– Line filling: adding
• Product Mix more items within the
present price range

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Product and Service
Decisions

Key • Product line width:

Decisions – number of different
product lines carried by
• Individual Product company
• Product Line • Product line depth:
– Number of different
• Product Mix versions of each product
in the line
• Product line
consistency

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Levels of a Product

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Additional Product
Considerations

• Product Decisions and Social

Responsibility
– Acquisitions and mergers
– Legal compliance
– Product liability issues
– Warranties

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 Product Mix Decisions
• Product Mix: all of the product lines and
items that a particular seller offers for sale.
• Width: the number of different product
lines the company carries.
• Depth: the number of versions offered of
each product in the line.
• Consistency: how closely related the
various lines are.

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Individual Product Decisions

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Packaging

• Designing and producing the

container or wrapper for a
product.
• Developing a good package:
– Packaging concept
– Package elements
– Product safety
– Environmental concerns
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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
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Branding

• Creating, maintaining, protecting, and

enhancing products and services.

• A brand is a name, term, sign, symbol,

or design, or a combination of these,
that identifies the maker or seller of a
product or service.

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Branding

• Advantages to buyers:
– Product identification
– Product quality
• Advantages to sellers:
– Basis for product’s quality story
– Provides legal protection
– Helps to segment markets

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Branding Strategy
• Brands are powerful assets that
must be carefully developed /
managed.
• Brands with strong equity have
many competitive advantages:
– High consumer awareness
– Strong brand loyalty
– Helps when introducing new products
– Less susceptible to price competition

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Brand Strategy

Key • Three levels of

Decisions
Brand Positioning
positioning:
• – Product attributes
• Brand Name Selection • Least effective
• Brand Sponsorship – Benefits
• Brand Development – Beliefs and values
• Taps into emotions

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Brand Strategy

Key • Good Brand Names:

Decisions
Brand Positioning
– Suggest something
about the product or its
• benefits
• Brand Name Selection – Are easy to say,
• Brand Sponsorship recognize and
remember
• Brand Development
– Are distinctive
– Are extendable
– Translate well into
other languages
– Can be registered and
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Brand Strategy

Key • Manufacturer brands

Decisions
Brand Positioning
• Private (store) brands
• – Costly to establish and
• Brand Name Selection promote
– Higher profit margins
• Brand Sponsorship
• Brand Development
• Licensed brands
– Name and character
licensing has grown
• Co-branding
– Advantages /
disadvantages
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Brand Strategy

Key • Line extensions

Decisions
Brand Positioning
– Minor changes to
existing products
•
• Brand Name Selection • Brand extensions
– Successful brand
• Brand Sponsorship names help introduce
• Brand Development new products
• Multibrands
– Multiple product entries
in a product category
• New brands
– New product category 7-26
Brand Equity

• The positive differential effect that

knowing the brand name has on customer
response to the product or service.
• Provides:
– More brand awareness and loyalty
– Basis for strong, profitable customer
relationships

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Brand Positioning
• Can position brands at any of three levels.

Product Attributes

Product Benefits

Beliefs and Values

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 Brand Name Selection
• Desirable qualities for a brand name include:
1. It should suggest product’s benefits and qualities
2. It should be easy to pronounce, recognize, and
remember
3. It should be distinctive
4. It should be extendable
5. It should translate easily into foreign languages
6. It should be capable of registration and legal
protection

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 Brand Sponsorship
Manufacturer’s Brands

Private
Co-Branding Four Options
Brands

Licensed Brands
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Line Extensions

Morton sells an entire line of salts and seasonings for every

occasion.
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Brand Development

• Line Extension: introduction of

additional items in a given product
category under the same brand
name (e.g., new flavors, forms,
colors, ingredients, or package
sizes).
• Brand Extension: using a successful
brand name to launch a new or
modified product in a new category.
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Brand Development

• Multibranding: offers a way to

establish different features and
appeal to different buying motives.
• New Brands: developed based on
belief that the power of its existing
brand is waning and a new brand
name is needed. Also used for
products in new product category.

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Services Marketing
• Services
– Account for 70%of India gross
domestic product.
– Service industries include business
organizations, government, and
private not-for-profit organizations.

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Services Marketing
• Characteristics of Services
– Intangibility
• Consumers look for service quality signals
– Inseparability
• Services can’t be separated from providers
– Variability
• Employees and other factors result in variability
– Perishability
• Services can’t be inventoried for later sale

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What is a Service?

• A form of product that consists of

activities, benefits, or satisfactions
offered for sale that are essentially
intangible and do not result in the
ownership of anything.
– Examples: banking, hotel, airline, retail,
tax preparation, home repairs.

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The Product-Service Continuum

College
Sugar Restaurant
Education

Pure Tangible Pure Service

Good

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 Other Market Offerings
• Organizations: Profit (businesses) and
nonprofit (schools and churches).
• Persons: Politicians, entertainers, sports
figures, doctors, and lawyers.
• Places: create, maintain, or change
attitudes or behavior toward particular
places (e.g., tourism).
• Ideas (social marketing): Public health
campaigns, environmental campaigns,
family planning, or human rights.
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 Product and Service Attributes

Performance
Performance and
and Satisfaction
Satisfaction
Quality
Quality Includes
Includes Level
Level &
& Consistency
Consistency

Differentiates
Differentiates aa product
product from
from the
the
Features
Features competition;
competition; assessed
assessed based
based on
on
value
value and
and cost
cost

Style
Style == Appearance
Appearance
Style
Style &
& Design
Design Design
Design == heart
heart of
of the
the product
product

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Nature and Characteristics of
a Service

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The Service-Profit Chain

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 Major Service Marketing Tasks
• Managing Service Differentiation:
– Develop a differentiated offer, delivery, and
image.
• Managing Service Quality:
– Be customer obsessed, set high service quality
standards, have good service recovery,
empower front-line employees.
• Managing Service Productivity:
– Train current employees or hire new ones,
increase quantity and sacrifice quality, harness
technology.
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THANK YOU

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