Product, Services & Brands

Topic 6
 Product and service definition
 Levels of products and Service
 Product classifications
 Individual Product and Service Decisions
 Product Line Decisions
 Product Mix Decisions
 Service Marketing 01
  Product definition
pg 248
Product (include services, events,
persons, places, organizations, ideas, or
mixes of these)
- anything that can be offered to a
market for attention, acquisition, use,
or consumption that might satisfy a
want or need.

Services
- are 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.
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 Products
Tangible Intangible

GOODS SERVICES

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 AUGMENTED Warranty, delivery, support website
ACTUAL
Honda lawnmower
CORE

Lawn that neighbors envy

or a well maintained lawn

Levels of Product pg 249

Core Product: all the benefits the product will provide for
consumers or business customers
Actual Product: the physical good/service that supplies the desired
PRODUCT
benefit; including product’s unique features such
as appearance, styling, packaging & brand name
Augmented Product: the actual product plus other supporting features
such as warranty, credit, delivery, installation &
repair service after the sale
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 Types of Product:

Consumer
products Industrial
products
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  Consumer Products Classification
(refer table Type of Consumer Product, pg 251)

1) CONVENIENCE

2) SHOPPING

3) SPECIALTY

4) UNSOUGHT

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Convenience
Product

Convenience products
products and services that customers usually buy frequently,
immediately & with minimum comparison and buying effort.

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 Shopping
Product

Shopping products
less frequently purchased consumer
products & services that customers
compare carefully on suitability,
quality, price, and style.

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Specialty
Product

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.

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 Unsought
Product

Unsought products
consumer products that the consumer either does not know
about or knows about but does not normally think of buying.

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Industrial Products Classifications
pg 251

1) Raw Materials & Parts

include manufactured materials and parts, and raw
materials, like farm products and natural products.

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2) Capital Items
industrial products that aid in the buyer’s production or
operations, including installations and accessory
equipment

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3) Supplies/Services
include operating supplies and maintenance and
repair services
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Inc. Publishing as Prentice Hall

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 Product and Service Decisions
pg 253

PRODUCT ATTRIBUTES

BRANDING
PACKAGING

LABELING

SUPPORT SERVICES

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 1) Product attributes
Developing a product involves defining its attributes such as quality, features,
and style and design:
i. Product Quality
2 dimensions:
a. level - means performance quality or the ability of a product
to perform its functions.
b. consistency - quality conformance means quality consistency,
freedom from defects, and consistency in delivering a
targeted level of performance.

ii. Product Features

It should continue to be utilized as a competitive tool to differentiate from
competitor’s products, hence company need to continuously
upgrade/modify features that are preferred by consumers

iii. Product Style & Design

Style describes the appearance of a product.
Design contributes to a product’s usefulness & its looks.
Both can be utilized to add value to customer
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For example:
Oxo has prospered by
offering superior design for
mundane/unexciting goods.

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2) Branding
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.

Advantages of branding:
i. help consumers identify products that might benefit
them.
ii. say something about product quality and consistency.
iii. become the basis on which a whole story can be built
about a product.
iv. provide legal protection for unique product features.
v. help the seller to segment markets. 17
 3) Packaging
Packaging is the activities
of designing and producing
the container or wrapper for
a product

Functions of packaging:
i. Primarily to hold, handle & protect product
ii. Attract customers’ attention as it create immediate
recognition of a brand
iii. Describe the product
iv. To boost sales because it communicate brand
personality.
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4) Labeling
Labels range from simple tags
attached to products to complex
graphics that are part of the
packaging.

Functions of labeling:
i. identifies the product or brand
ii. describe attributes
iii. Promote the brand where it
enhance a brand’s positioning and
personality

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5) Support services
A company’s offer usually includes some support services
which can be a minor part or a major part of the total offering
to customers.
- Hence companies must continually assess the value
of current services to obtain ideas for new ones. They
also need to develop a package of services to satisfy
customers and provide profit to the company.

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  Product Line Decisions
pg 258

Definitions:
Product line is a group of products that are closely related because they function
in a similar manner, are sold to the same customer groups, are marketed through
the same types of outlets, or fall within given price ranges, eg. Nike, P & G, etc

Product line length is the number of items in the product line.

Product line filling involves adding more items within the present range of the line.

Product line stretching occurs when a company lengthens its product line beyond
its current range.
eg. companies located at upper end market can stretch their lines downward, lower
end market can stretch upward & middle end market can stretch down &
upward.
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  Product Mix (product portfolio) Decisions
pg 259

Product mix is the set of all product lines and

items that a particular seller offers for sale.

Product mix has 4 dimensions: PRODUCT MIX WIDTH

i. Product mix width refers to the number
of different product lines the company
carries.

PRODUCT LINE
ii. Product mix length refers to the total

LENGTH
number of items the company carries
within its product lines.
iii. Product mix depth refers to the number
of versions offered of each product in the
line.
iv. Product mix consistency refers to how
closely related the various product lines
are in end use, production requirements, 22
Combining product line & product mix
decisions:
The company can increase its business in 4 ways:
i. It can add new product lines, widening its
product mix.
ii. It can lengthen its existing product lines.
iii. It can add more versions of each product,
deepening its product mix.
iv. It can pursue more product line consistency.

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Example of a product mix:
Sony product mix …….

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  Services Marketing
pg 260

Services: Are acts, efforts, or performances exchanged from

producer to user without ownership rights.
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 Service Characteristics:
Intangibility Inseparability

Variability Perishability
Intangibility: customers can’t see, touch, or smell a service. Services
cannot be inspected or handled before purchase, making evaluation
difficult.
Inseparability: it is impossible to separate the production of a service
from the consumption of that service.
Variability: the same service, even if performed by the same individual for
the same customer, can vary.
Perishability: it is impossible to store a service for later sale or
consumption. 26
Since service differ from tangible goods, service often
require additional marketing approaches:
i. Service-Profit chain
It emphasis the 5 service links that links service firm
profits with employee & customer satisfaction

GROWTH AND PROFIT

SATISFIED & LOYAL CUSTOMERS

GREATER SERVICE VALUE

SATISFIED & PRODUCTIVE EMPLOYEES

INTERNAL SERVICE QUALITY

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ii. Internal Marketing
Internal marketing means that the service firm must
orient and motivate its customer-contact employees and
supporting service people to work as a team to provide
customer satisfaction.
note: Internal marketing must precede external marketing

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iii. Interactive Marketing

Interactive marketing means training service employees in

the fine art of interacting with customers to satisfy their needs..

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iv. DIFFERENTIATION
Service companies differentiate service delivery
by having more able & reliable customer-contact
people, by developing a superior physical
environment in which the service product is
delivered, or by designing a superior delivery
process. Service companies can work on
differentiating their images through symbols and
branding.

v. SERVICE QUALIT
Service quality is harder to define & judge than
product quality. Service quality will always vary,
depending on the interactions between
employees and customers. Good service
recovery can turn angry customers into loyal
ones.

v. SERVICE PRODUCTIVITY
Firm can train current employees better or hire
new ones who will work harder or more skillfully. 30
Branding strategy
(note: Further reading at your own
time on branding strategy, pg 267

Attributes
Benefits
Beliefs

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Good Name
SUGGEST
BENEFITS

EASY TO
SAY/SPELL/READ

DISTINCTIVE

EXTENDABLE

WORKS
WORLDWIDE

CAN BE LEGALLY
PROTECTED
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Education, Inc. Publishing as

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Prentice Hall
 Brand sponsorship
MANUFACTURER’S

PRIVATE

LICENSED

CO-BRAND

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Education, Inc. Publishing as

33
Prentice Hall
 Brand Development
EXISTING

Line Extension Brand Extension

Brand Name
NEW

Multibrands New Brands

EXISTING NEW
Product Category
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Publishing as Prentice Hall