7

Product, Services, and Branding

Strategy
ROAD MAP: Previewing the Concepts

• Define product and the major classifications of

products and services.
• Describe the roles of product and service branding,
packaging, labeling, and product support services.
• Explain the decisions companies make when
developing product lines and mixes.
• Identify the four characteristics that affect the
marketing of a service.
• Discuss the additional marketing considerations that
services require.

7-2
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.

7-3
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.

7-4
The Product-Service Continuum

College
Sugar Restaurant
Education

Pure Tangible Good Pure Service

7-5
Krispy Kreme

A Krispy Kreme isn’t just a doughnut. It’s a truly sweet experience.

7-6
Levels of a Product

7-7
Consumer Products

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

7-8
Convenience Products

• Purchased frequently and immediately

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

7-9
Shopping Products

• Bought less frequently

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

7-10
Specialty Products

• Special purchase efforts

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

7-11
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

7-12
Industrial Products
• Those purchased for
further processing or
for use in conducting
business.

7-13
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
aidinin
buyer’s
buyer’sproduction
productionororoperations
operations

Supplies
Supplies and
and Services
Services
Operating
Operatingsupplies,
supplies,repair,
repair,
and
andmaintenance
maintenanceitems
items
7-14
 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.
7-15
Organization Marketing

Companies use
corporate image
advertising to
market themselves
to various publics.
General Electric
Stands for
“imagination at
work.”

7-16
Individual Product Decisions

7-17
 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

7-18
Product Design

The innovative Discover

2GO card is a gotta-
have-it accessory for
people who want to
dash off to the gym,
the mall, or a
restaurant with nothing
more than their keys
and a credit card.

7-19
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.

7-20
Branding

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

7-21
Packaging

• Designing and producing the

container or wrapper for a product.
• Developing a good package:
– Packaging concept
– Package elements
– Product safety
– Environmental concerns
7-22
Innovative Packaging

Dutch Boy
recently came up
with a long
overdue
innovation—paint
in plastic
containers with
twist-off caps.

7-23
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
7-24
Innovative Labeling

Innovative
labeling can
help to
promote a
product.

7-25
Product Support Services

• Assess the value of current services and

obtain ideas for new services.
• Assess the cost of providing the services.
• Put together a package of services that
delights the customers and yields profits
for the company.

7-26
Product Line Decisions
Product
Product Line
Line Length
Length
Number
Number of
of Items
Itemsin
inthe
theProduct
Product Line
Line

Stretching Filling
Lengthen beyond Lengthen within
current range. current range

Can be:
Downward
Upward
Both Directions
7-27
Two-Way Stretch

Marriott added the Renaissance Hotels line to serve the upper end of the
market and the TownePlace Suites line to serve the moderate and lower ends.
7-28
 Line Extension

As Marriott’s product
extension grew in
popularity, it
extended the
Click the picture above to play video
product further.

7-29
 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.

7-30
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

7-31
Major Brand Strategy Decisions

7-32
Brand Positioning
• Can position brands at any of three levels.

Product Attributes

Product Benefits

Beliefs and Values

7-33
 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

7-34
 Brand Sponsorship
Manufacturer’s Brands

Private
Co-Branding Four Options
Brands

Licensed Brands
7-35
Line Extensions

Morton sells an entire line of salts and seasonings for every occasion.

7-36
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.

7-37
Interactive Student
Assignment

• Choose a partner and go to the following

website:
Tide Products

• Look at the various line extensions (e.g., liquid,

powder, etc.) and determine why they were
developed.
7-38
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.

7-39
Nature and Characteristics of
a Service

7-40
Discussion Question

• How can an airline deal with the

intangibility, inseparability, variability,
and perishability of its service
offering?

7-41
The Service-Profit Chain

7-42
 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.

7-43
International Product and
Services Marketing
Decide
Decide Which
Which Products
Products && Services
Services to
to Introduce
Introduce

Decide
Decide How
How Much
Much to
to Standardize
Standardize or
or Adapt
Adapt

Packaging
Packaging Presents
Presents New
New Challenges
Challenges

Service
Service Marketers
Marketers Face
Face Special
Special Challenges
Challenges

Trend
Trend Toward
Toward Global
Global Service
Service Companies
Companies Will
Will Continue
Continue
7-44
 Rest Stop: Reviewing the Concepts
1. Define product and the major classifications of
products and services.
2. Describe the decisions companies make
regarding their individual products and services,
product lines, and product mixes.
3. Discuss branding strategy—the decisions
companies make in building and managing their
brands.

7-45
 Rest Stop: Reviewing the Concepts
4. Identify the four characteristics that affect the
marketing of a service and the additional
marketing considerations that services require.
5. Discuss two additional product issues: socially
responsible product decisions and international
product and services marketing.

7-46