MKT 201, CH 08-New.1

Chapter Eight
Product, Services, and Brands:

Building Customer Value
Chapter 8 - slide 1
Products, Services, and
Branding Strategy
Topic Outline
• What Is a Product?
• Product and Services Decisions
• Branding Strategy: Building
Strong Brands
• Services Marketing
Copyright © 2010 Pearson Education, Inc.

Chapter 8 - slide 2
Publishing as Prentice Hall
What Is a Product?
Products, Services, and Experiences
A Product is anything that can be offered in a
market for attention, acquisition, use, or
consumption that might satisfy a need or
want
Experiences represent what buying the
product or service will do for the customer

Chapter 8 - slide 3
What Is a Product?
Levels of Product and Services

Chapter 8 - slide 4
What Is a Product?
Product and Service Classifications
Consumer
products
Industrial
products

Chapter 8 - slide 5
What Is a Product?
• Consumer products are products and

services for personal consumption
• Classified by how consumers buy them
– Convenience products
– Shopping products
– Specialty products
– Unsought products

Chapter 8 - slide 6
Consumer products
classifications
Convenience Products Shopping Products
Specialty Products Unsought Products

Chapter 8 - slide 7
What Is a Product?
Convenience products are consumer

products and services that the
customer usually buys frequently,
immediately, and with a minimum
comparison and buying effort
• Newspapers
• Candy
• Fast food

Chapter 8 - slide 8
What Is a Product?
Shopping products are consumer

products and services that the
customer compares carefully on
quality, price, and style
• Furniture
• Cars
• Appliances

Chapter 8 - slide 9
What Is a Product?
Specialty products are 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
• Medical services
• Designer clothes
• High-end electronics

Chapter 8 - slide 10
What Is a Product?
Unsought products are consumer products that

the consumer does not know about or knows
about but does not normally think of buying
• Life insurance
• Funeral services
• Blood donations

What Is a Product?
Industrial products are products purchased for

further processing or for use in conducting a
business
• Classified by the purpose for which the product is
purchased
– Materials and parts
– Capital
– Raw materials
– Production Equipment

What Is a Product?
Capital items are industrial products that aid in the

buyer’s production or operations
Materials and parts include raw materials and
manufactured materials and parts usually sold
directly to business or industrial buyers
Supplies and services include operating supplies,
repair and maintenance items, and business
services

What Is a Product?
Organizations, Persons, Places, and Ideas
Organization marketing consists of activities
undertaken to create, maintain, or change
attitudes and behavior of target consumers
toward an organization.
• Corporate image advertising (institutional
Ad) and public relation develop the image of
the company.

What Is a Product?
Organizations, Persons, Places, and Ideas
Person marketing consists of activities
undertaken to create, maintain, or
change attitudes and behavior of target
consumers toward particular people.
Best Cardiac Doctors

What Is a Product?
Organizations, Persons, Places, and
Ideas
Place marketing consists of activities undertaken to
create, maintain, or change attitudes and
behavior of target consumers toward particular
places
Social marketing is the use of commercial marketing
concepts and tools in programs designed to
influence individuals’ behavior to improve their
well-being and that of society (CSR). HER
project

Individual Product Decisions

Branding

Packaging

Product and Service Decisions
Individual Product and Service Decisions
Product attributes are the benefits of the

product or service
• Quality
• Features
• Style and design

Product quality (totality of all attributes) includes

level and consistency
• Quality level is the level of quality that supports
the product’s positioning (Dove = moisturizer)
• Conformance quality is the product’s freedom
from defects and consistency in delivering a
targeted level of performance. / Fed Ex

Product features are a competitive tool for

differentiating a product from competitors’
products (BMW VsToyota)
Product features are assessed based on

• the value to the customer
• the cost to the company
• Ex: Quad Core

Style describes the appearance of the

product
Design contributes to a product’s
usefulness as well as to its looks (style)
Oppo = Slimmest

Brand is the name, term, sign, or design—or a

combination of these—that identifies the maker
or seller of a product or service

Packaging involves designing and

producing the container or
wrapper for a product
Labels identify the product or

brand, describe attributes, and
provide promotion

Product Line Decisions
• Product line: Group of closely related products
due to function, similar target markets, outlets
sold in, or similar pricing.

Length: number of items in the product line.
- Line stretching: adding
items to either end of the line can be
stretched downwards or upwards. E.g.
Marriott, Mercedes, Toyota etc.
- Line filling: adding items within the
product line range.

Branding Strategy : Building strong
Brands
• Brand equity:
– Positive differential effect that knowing the
brand name has on customer response to the
product or service.
– Brands are more than just names and symbols.
Brands represent consumer’s perceptions and
feelings about a product and its performance.
– Brands exits in the mind of consumers.

Product support services augment the actual products

Branding Strategy: Building Strong Brands
Brand represents the consumer’s perceptions and

feelings about a product and its performance. It is
the company’s promise to deliver a specific set of
features, benefits, services, and experiences
consistently to the buyers

Branding Strategy: Building Strong
Brands
Brand Positioning
Brand strategy decisions include:

• Product attributes
(core I = faster performance)
• Product benefits
(pepsodent)
• Product beliefs and values
(Apple; Rolex)

Brand Name Selection
Desirable qualities
1. Suggest benefits and qualities (KFC / Fed Ex)
2. Easy to pronounce, recognize, and remember
3. Distinctive
4. Extendable (Apple i)
5. Translatable for the global economy (coke china)
6. Capable of registration and legal protection

Branding Strategy: Building Strong
Brands
Brand Sponsorship
• Manufacturer’s brand
• Private brand
• Licensed brand
• Co-brand

Brand Development Strategies

Services Marketing
Nature and Characteristics of a Service


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Chapter Eight

Product, Services, and Brands:

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

• Consumer products are products and

Copyright © 2010 Pearson Education, Inc.

Specialty Products Unsought Products

Copyright © 2010 Pearson Education, Inc.

Convenience products are consumer

Copyright © 2010 Pearson Education, Inc.

Shopping products are consumer

Copyright © 2010 Pearson Education, Inc.

Specialty products are consumer products and

Copyright © 2010 Pearson Education, Inc.

Unsought products are consumer products that

Copyright © 2010 Pearson Education, Inc.

Industrial products are products purchased for

Copyright © 2010 Pearson Education, Inc.

Capital items are industrial products that aid in the

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Best Cardiac Doctors

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Individual Product and Service Decisions

Product attributes are the benefits of the

Copyright © 2010 Pearson Education, Inc.

Product quality (totality of all attributes) includes

Copyright © 2010 Pearson Education, Inc.

Product features are a competitive tool for

Product features are assessed based on

Copyright © 2010 Pearson Education, Inc.

Style describes the appearance of the

Copyright © 2010 Pearson Education, Inc.

Brand is the name, term, sign, or design—or a

Copyright © 2010 Pearson Education, Inc.

Individual Product and Service Decisions

Packaging involves designing and

Labels identify the product or

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Product support services augment the actual products

Copyright © 2010 Pearson Education, Inc.

Brand represents the consumer’s perceptions and

Copyright © 2010 Pearson Education, Inc.

Brand strategy decisions include:

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

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