Chapter

5
Products Services and Brands: Building Customer Value

1
 What is a Product?

A Product is 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
Combinations of the above
2
 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
Tax Preparation
Home Repair Services
3
 Products, Services, and Experiences

Tangible Good Service

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

Auto With Airline Trip

Soap Accompanying With Doctor’s
Restaurant
Repair Accompanying Exam
Services Snacks

The Product-Service Continuum 4

Three Levels of Product (Fig. 8.1)

Augmented Product

Delivery Actual Product After-

And Sale
Credit Service
Brand
Features
name Core
Customer
Quality value
Design
level
Support Packaging Warranty
Product

5
Exhibit 8.1
 Classification of Product

Product and Service Classifications

Industrial products
Consumer products

6
 Classifications of Consumer Products

Convenience Products

Shopping Products

Consumer Products
Specialty Products

Unsought Products

7
 Classifications of Consumer Products

Convenience Products Shopping Products

 Buy frequently & immediately  Buy less frequently

 Low priced  Higher price
 Mass advertising  Fewer purchase locations
 Many purchase locations  Comparison shop
i.e Candy, newspapers i.e Clothing, cars, appliances

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 Classifications of Consumer Products
Specialty Products
 Special purchase efforts
 High price
 Unique characteristics
 Brand identification
 Few purchase locations
i.e Lamborghini, Rolex
Unsought Products
 New innovations
 Products consumers don’t
want to think about these
products
 Require much advertising &
personal selling
i.e Life insurance, blood
donation
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Product Classifications Industrial Products

Materials
Materialsand
andParts
Parts

Capital
CapitalItems
Items

Supplies
Suppliesand
andServices
Services

10
 Product Classifications Other Marketable
Entities
Activities undertaken to create, maintain, or change the attitudes and
behavior toward the following:
Organizations - Profit (businesses) and nonprofit (schools and churches).

Persons – Politicians, entertainers, sports figures, doctors and lawyers.

Places - Business sites and tourism.

Ideas (social ideas marketing) – Public health campaigns, environmental

campaigns, and others such as family planning, or human rights.
Social Marketing The use of commercial marketing concepts and tools in programs designed to
influence individuals’ behavior to improve their well-being and that of society.
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Product Decisions (Fig. 8.2)

Product Attributes

Branding

Packaging

Labeling

Product Support Services

12
 Individual product and service decision

Product Attributes

The
The characteristics
characteristics ofof aa product
product oror
Product
Product Quality
Quality service
service that
that bear
bear on
on its
its ability
ability to
to satisfy
satisfy
stated
stated or
or implied
implied customer
customer needs.
needs.

Help
Help to
to Differentiate
Differentiate the
the Product
Product from
from
Product
Product Features
Features Those
Those ofof the
the Competition
Competition

Product
Product Style
Style Process
Process of
of Designing
Designing aa Product’s
Product’s Style
Style &&
&& Design
Design Function
Function

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 Individual product and service decision

Product Attributes

Ability
Ability of
of aa Product
Product to
to Perform
Perform Its
Its
Product
Product Quality
Quality Functions;
Functions; Includes
Includes Level
Level && Consistency
Consistency

Help
Help to
to Differentiate
Differentiate the
the Product
Product from
from
Product
Product Features
Features Those
Those ofof the
the Competition
Competition

Product
Product Style
Style Process
Process of
of Designing
Designing aa Product’s
Product’s Style
Style &&
&& Design
Design Function
Function

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 Individual product and service decision

Branding

A name, term, sign, symbol, or design, or a combination of these that identifies the
product or services on one seller or group of sellers and differentiates them from
those of competitors.

15
 Product and Service Decisions

Individual Product and Service Decisions

Consumer benefits
Quality
Consistency

Seller benefits
Segmentation
Communicate product features

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17
Perceived
Perceived Quality
Quality Name
Name Awareness
Awareness
Strong
Equity
Strong Brand
Brand Equity
Brand High
High Brand
Brand
Association
Association
Brand
Loyalty
Loyalty
Names
BrandNames
Brand
of
of
Identification Attributes
Advantages
Identification Attributes
Advantages
Quality
Quality && Value
Value Consistency
Consistency
Branding
Individual product and service decision
 Product and Service Decisions

Packaging

Activity of designing and producing the container or wrapper for

a product.

Packaging used to just contain and protect the product.

Packing now has promotional value and marketers should:

 Establish a packaging concept,
 Develop specific elements of the package,
 Tie together elements to support the positioning and marketing
strategy.
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 Product and Service Decisions

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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 Product Line Decisions

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 same type
of outlets, or fall within given price ranges.

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Product Line Decisions

Product
ProductLine
Line Length
Length
Number
Numberof
of Items
Itemsin
in the
theProduct
Product Line
Line

Stretching Filling
Lengthen Lengthen within
beyond current current range
range

Downward
Two-Way

Upward
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 Product Mix Decisions

UNILEVER BANGLADESH Ltd.

Personal Cleaner Skin Hair Oral Care Deodor Tea

Wash Care Care ants
 Fair &
 Wheel  Clinic  Close Up 
Lipton
 Lux Lovely 

 Surf Clear  Pepsodent Rexona Lipton

 Lifebuoy Excel
 Ponds 

 taza
 Rexona Vim
 Fair &
handsome Sunsil


 Harp k

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 Product and Service Decisions

Product Mix Decisions

Product mix consists of all the products and items that a particular
seller offers for sale

 Width

 Length

 Depth

 Consistency

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24
Depth numberof
Depth-- number of
versions
versions of of each
each
product
product
Product
ProductMix Mix--
all
allthe
theproduct
product Length
Length –– total
total
lines number
number of of items
items inin
lines&&items
items
offered product
productlines
lines
offered
Consistency
Width numberof
Width --number of
different
differentproduct
productlines
lines
Product mix Decisions
Product and service Decisions

Product Mix Decisions

Product mix width Product mix length

The number of different The total number of items the
product lines the company company carries within its
carries product lines

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 Product and service Decisions

Product Line Decisions

Product line depth Consistency

How closely the various product
The number of versions lines are in end use, production
offered of each product in requirements, or distribution
the line channels

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 Branding Strategy: Building Strong Brands

Brand equity is the positive differential effect that knowing the brand
name has on customer response to the product or service

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 1
APPLE
Google is in Position
 3
Microsoft

4
Coca-Cola
5 6 7
8 9 10
 Branding Strategy: Building Strong Brands

Brand equity provides competitive advantage

 Consumer awareness and loyalty

 Benefits

 Beliefs and value

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 Branding Strategy: Building Strong Brands

Brand Name Selection

Desirable qualities:
 Suggests benefits and qualities
 Easy to pronounce, recognize, and remember
 Distinctive
 Extendable
 Translatable for the global economy

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35
Brand
Brand Sponsorship
Sponsorship
Manufacturer’s
Manufacturer’s Brand
Brand
Private
Private Brand
Brand
Licensed
Licensed Brand
Brand
Co-branding
Co-branding
Major Branding Decisions
 Four Brand Strategies

Product Category
Existing New

Existing Line Extension Brand Extension

Brand Name

New
Multi brands New Brands

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 Brand Strategy

Line Extension
• Existing brand names extended to new forms, sizes, and flavors of an
existing product category.
Brand Extension
• Existing brand names extended to new or modified product categories.
Multi brands
• New brand names introduced in the same product category.
New Brands
• New brand names in new product categories.
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Nature and Characteristic of a Service

Intangibility
Intangibility Can’t be seen, tasted, felt, heard,
or smelled before purchase.

Can’t be separated from service

providers.
Inseparability
Inseparability

Variability
Variability Quality depends on who provides
them and when, where and how.

Can’t be stored for later sale or

Perishability
Perishability
use.

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The Service-Profit Chain

Healthy
Healthy Internal
Internal
Service
ServiceProfits
Profits Service
ServiceQuality
Quality
and
andGrowth
Growth

Satisfied
Satisfiedand
and Satisfied
Satisfiedand
and
Loyal
Loyal Productive
ProductiveService
Service
Customers
Customers Employees
Employees
Greater
GreaterService
Service
Value
Value
39
 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.
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41
Trend
Trend Toward
Toward Global
Global Service
Service Companies
Companies Will
Will Continue
Continue
Service
Service Marketers
Marketers Face
Face Special
Special Challenges
Challenges
Packaging
Packaging Presents
Presents New
New Challenges
Challenges


Decide
Decide How
How Much
Much to
to Standardize
Standardize or
or Adapt
Adapt
Decide
Decide Which
Which Products
Products && Services
Services to
to Introduce
Introduce
International Product and Services Marketing
 Review of Concept Connections

• 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 for services.

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