BSA

Agricultural
AgEd
Entrepreneurship

PRODUCT AND SERVICES

STRATEGY
CYNTHIA LUPEZ
DIMAYUGA Ph.D.
Subject Professor
 PRINCIPLES OF MARKETING

PRODUCT AND SERVICES

STRATEGY
 Product
LEVELS OF PRODUCT Augmented

Installation

Packaging

Brand Name Core

Core
Features
Delivery & Benefit
Benefit
or
or After Sale
Credit Service Service
Service
Quality Design
Level

Warrant
Product y Product
Product
Actual Core
Core
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
Items

Supplies
and
Product Classifications
Other Marketable Entities
Marketed to create, maintain, or change the
attitudes or behavior toward the following:

Organizations - Profit (businesses) and non

profit (schools and churches).
Person - Political and sports figures,
entertainers, doctors and lawyers.
Place - Business sites and tourism.
Social - Reduce smoking, clean air,
Product
Product Support
Support Services
Services
Labeling
Labeling
Packaging
Packaging
Branding
Branding
Product
Product Attributes
Attributes
DECISIONS
INDIVIDUAL PRODUCT
 PRODUCT
ATTRIBUTE
DECISIONS

Quality Features
Features

Design
Design
 Awareness
Awareness Credibility
Credibility
Loyalty
Loyalty Brand Equity
Association
Association
Brand Names
of
Identification
Identification Advantages
Attributes
Attributes
Quality
Quality &
& Value
Value Consistency
Consistency
S
BRAND
 Line
Line Extensions
Extensions
Brand
Brand Extensions
Extensions
Multi-brands
Multi-brands
New
Brand Strategy
New Brands
Brand Brands
Strategy
Manufacturer’s
Manufacturer’s Brand
Brand
Private
Private Brand
Brand
Licensed
Licensed Brand
Brand
Brand
Brand Sponsor
Co-branding
Sponsor
Co-branding
Selection
Selection
Brand Name
Protection
Brand Protection
Name Selection
Selection
DECISIONS
MAJOR BRAND
 BRAND
STRATEGY

Product Category

Existing New
Brand Name

Extension Extension
Existing Line Brand

Brands
Multibrands
New New
 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 PRODUCT
CATEGORIES.
• MULTI-BRANDS
• NEW BRAND NAMES INTRODUCED IN THE SAME PRODUCT
CATEGORY.
• NEW BRANDS
• NEW BRAND NAMES IN NEW PRODUCT CATEGORIES.
PACKAGIN
G

Competitive
Sales Advantages Product
Tasks Packaging Safety
Labeling

Identifies Promotes
Describes
PRODUCT - SUPPORT
SERVICES
Companies should design its support services to
profitably meet the needs of target customers.
How?
• STEP 1. SURVEY CUSTOMERS TO DETERMINE
SATISFACTION WITH CURRENT SERVICES AND
ANY DESIRED NEW SERVICES.

• STEP 2. ASSESS COSTS OF PROVIDING DESIRED

SERVICES.

• STEP 3. DEVELOP A PACKAGE OF SERVICES TO

DELIGHT CUSTOMERS AND YIELD PROFITS.
Product Line Decisions

Product
Product Line
Line Length
Length
Number
Numberof
ofItems
Itemsin
inthe
theProduct
ProductLine
Line

Stretching
Stretching Filling
Filling
Lengthen
Lengthenbeyond
beyond Lengthen
Lengthenwithin
within
current
current range
range current
currentrange
range

Downward

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

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

Inseparability
Inseparability Can’t
Can’t be
beseparated
separated from
from service
service
providers.
providers.
Variability
Quality
Qualitydepends
dependsononwho
whoprovides
Variability
provides
them
themand
andwhen,
when, where
whereand
andhow.
how.
Perishability
Perishability
Can’t
Can’t be
bestored
storedfor
for later
later sale
sale or
or use.
use.
 Greater
GreaterService
Service Satisfied
Satisfiedand
and Loyal
Loyal
Value
Value Customers
Customers
Satisfied Health
HealthService
Service
Satisfied and
and
Productive Profits
Profitsand
andGrowth
Growth
ProductiveService
Service
Employees
Employees
Internal
Internal Service
Service Quality
Quality
The Service-Quality Chain
MARKETING STRATEGIES FOR
SERVICE
FIRMS
• MANAGING SERVICE DIFFERENTIATION
• DEVELOP OFFER, 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
“ It takes months to find a
customer…
Seconds to lose one.”

-Vince Lombardi
 h an k
T
ou ! ! !
Y
SELF CHECK

• Give your insights about the relationship of products and services and how they differ to each
other?
• How does branding is important to a product?
• How does packaging affects the sales of the business?
• Being an entrepreneur, how will you handle your products and services in order for your
business be successful?