PRINCIPLES OF MARKETING

Chapter 8

PRODUCTS, SERVICES,
AND BRANDS
BUILDING CUSTOMER VALUE

What is a Product?

Anything that can be offered to a market for
attention, acquisition, use or consumption.
Satisfies a want or a need.
Includes:
 Physical Products
 Services
 Persons
 Places
 Organizations
 Ideas
 Combinations of the above

Augmented Augmented Levels of Product Product Product Installation Packaging Brand Features Name Core Core After- Delivery Benefit Benefit Sale & Credit or or Service Quality Service Service Design Level Warranty Actual Actual Core Core Product Product Product Product .

Product Classifications Consumer Products Convenience Products Shopping Products > Buy frequently & immediately > Buy less frequently > Low priced > Gather product information > Many purchase locations > Fewer purchase locations > Includes: > Compare for: • Staple goods • Suitability & Quality • Impulse goods • Price & Style • Emergency goods Specialty Products Unsought Products > Special purchase efforts > New innovations > Unique characteristics > Products consumers don’t > Brand identification want to think about > Few purchase locations > Require much advertising & personal selling .

Product Classifications Industrial Products Materials Materials and and Parts Parts Capital Capital Items Items Supplies Supplies and and Services Services .

clean air.Reduce smoking.Profit (businesses) and nonprofit (schools and churches). maintain. . Person . conservation. or change the attitudes or behavior toward the following: Organizations . entertainers.Political and sports figures. Social . Product Classifications Other Marketable Entities Marketed to create. Place . doctors and lawyers.Business sites and tourism.

Individual Product Decisions Product Product Attributes Attributes Branding Branding Packaging Packaging Labeling Labeling Product Product Support Support Services Services .

Product Attribute Decisions Quality Quality Features Features Design Design .

Brands Consistency Consistency Quality Quality & & Value Value Attributes Attributes Advantages Identification Identification of Brand Names Association Brand Loyalty Association Equity Loyalty Credibility Credibility Awareness Awareness .

Major Brand Decisions Brand Brand Name Name Selection Selection Selection Selection Protection Protection Brand Brand Sponsor Sponsor Manufacturer’s Manufacturer’s Brand Brand Private Private Brand Brand Licensed Licensed Brand Brand Co-branding Co-branding Brand Brand Strategy Strategy Line Line Extensions Extensions Brand Brand Extensions Extensions Multibrands Multibrands New New Brands Brands .

Brand Strategy Product Category Existing New Brand Name Existing Line Brand Extension Extension New New Multibrands Brands .

Multibrands  New brand names introduced in the same product category. . Brand Strategy Line Extension  Existing brand names extended to new forms. and flavors of an existing product category. Brand Extension  Existing brand names extended to new product categories. New Brands  New brand names in new product categories. sizes.

Packaging Competitive Sales Advantages Product Tasks Safety Packaging Packaging Labeling Labeling Identifies Promotes Describes .

Support Services Companies should design its support services to profitably meet the needs of target customers. Step 2. How? Step 1. Survey customers to determine satisfaction with current services and any desired new services. . Develop a package of services to delight customers and yield profits. Step 3. Assess costs of providing desired services. Product .

Product Product Line Line Decisions Decisions Product Product Line Line Length Length Number Number of of Items Items in in the the Product Product Line Line Stretching Filling Lengthen beyond Lengthen within current range current range Downward Upward .

number number of of versions versions of of each each product product .number number of of different different product product lines lines Consistency Length Length -.Product Product Mix Mix Decisions Decisions Width Width -.total total Product Product MixMix -- number number of of items items all all the the product product within within the the lines lines lines lines offered offered Depth Depth -.

Intangibility Intangibility or smelled before purchase.Characteristics Characteristics of of Services Services Can’t be seen. Inseparability Inseparability Can’t be separated from service providers. Variability Variability Quality depends on who provides them and when. tasted. where and how. . heard. felt. Perishability Perishability Can’t be stored for later sale or use.

The The Service-Quality Service-Quality Chain Chain Internal Internal Service Service Quality Quality Satisfied Satisfiedand and Health Health Service Service Productive ProductiveService Service Profits Profitsand andGrowth Growth Employees Employees Satisfied Satisfiedand andLoyal Loyal Greater Greater Service Service Customers Customers Value Value .

delivery and image with competitive advantages. Managing Service Quality  Empower employees  Become “Customer obsessed”  Develop high service quality standards  Watch service performance closely Managing Service Productivity  Train current or new employees  Increase quantity by decreasing quality  Utilize technology . Marketing Strategies for Service Firms Managing Service Differentiation  Develop offer.

Additional Product Considerations Product Decisions and International Product Social Responsibility and Services  Government regulation Marketing  Food and product safety  Standardization versus  Pricing and advertising local adaptation  Labelling. measures packaging  Hazardous products  Cultural differences in  Product liability meaning  Barriers to trade . weights. and  Electrical standards.