Chap 7 Product Services and Branding Strategies 2.Ppt 2022

Chapter 9
Product, Services,
and Branding
Strategies
Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Learning Goals
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
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
Copyright © 2008 Pearson Education Canada 9-2 Principles of Marketing, Seventh Canadian Edition
What Is a Product?
• A product is anything that can be offered to a
market for attention, acquisition, use, or
consumption that might satisfy a need or want.
• A service is 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.
What Is a Product?
• Products, Services, and Experiences
– Market offerings may consist of a combination
of goods and services
– Experiences are used to differentiate offerings
– Core benefit, actual and augmented product
What Is a Product?
• Figure 9.1 - Three Levels of Product
Discussion Question
• Consider Starbucks
– What goods and
services do they offer?
– How do they
differentiate through
experience?
– What is their core,
actual and augmented
product offering?
Product Classifications 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
Fast Food, Candy, Newspapers
Clothing, cars, appliances
Specialty Products Unsought Products

> Special purchase efforts > New innovations
> High price > Products consumers don’t
> Unique characteristics want to think about
> Brand identification > Require much advertising &
> Few purchase locations personal selling
Lamborghini, Rolex Life insurance, blood donation
Types of Consumer Products
Product and Service Classifications
• Consumer Products
• Business Products
– Materials and parts
– Capital items
– Supplies and services
Product and Service Classifications
• Organizations, persons,
places, and ideas
– Organizational marketing
makes use of corporate
image advertising
– Person marketing applies
to political candidates,
entertainment sports
figures, and professionals
– Place marketing relates to
tourism
– Social marketing promotes
ideas
Marketing a City
Individual Product and
Service Decisions
Individual Product
Decisions Product
Attributes
Branding
Packaging
Labeling
Product Support
Services
Service Decisions
• Product and Service Attributes
– Quality
• Lined to customer value and satisfaction
– The whole company needs to be involved (TQM)
– Features
• Competitive tool for differentiating product
• Should be valued by the customer as determined through
market research
– Style and Design
• Good design contributes to product’s usefulness as well as
looks
Service Decisions
• Branding
– Brand: a name, term, sign, symbol, or design that
identifies the product
– Branding can add value to a product
– Branding helps buyers
• Identify products
• Determine quality
– Branding helps sellers
• Convey product quality
• Provide legal protection
• Segment markets
Brand
s
Consistency Quality & Value
Attributes Advantages Identification

of
Brand Names
Defense Against Brand

Competition Equity Loyalty
Credibility Awareness
Service Decisions
• Packaging
– Often includes primary, secondary and
shipping packages
– Functions of packaging
• Contain and protect
• Promote the product
• Differentiate the product
Packaging Can Differentiate
POM brand
Pomegranate
juice used a
distinctively
shaped bottle
to gain
attention on
the grocery
shelf
Packaging and Labeling
Products
Competitive
Advantages
Sales Tasks Product Safety
Packaging
Labeling
Identifies Promotes
Describes
Service Decisions
• Product support services
– Survey customers regularly to assess current
customer service
– Companies use a mix of phone, email, fax,
Internet and interactive voice and data
technologies
Product Line Decisions
• Product line
– A group of products that are closely related because
they may…
• function in a similar manner
• are sold to the same customer groups
• Market through the same types of outlets
• fall within given price ranges
• Product line length
– Line stretching: adding products that are higher or
lower priced than the existing line
– Line filling: adding more items within the present
price range
Product Line Decisions
Product Line Length

Number of Items in the Product Line
Stretching Filling
Lengthen beyond Lengthen within
current range current range
Downward
Upward
Product Mix Decisions
Width - number
of different
product lines
Consistency
Length - total Product Mix -

number of items all the product
in product lines lines & items
offered
Depth - number
of versions of
each product
Branding Strategy
• Brand equity is the positive differential effect
that knowing the brand name has on customer
response to the product or service
• One measure of equity is the extent to which
customers are willing to pay more for the brand
• Brand valuation is the process of estimating the
total financial value of a brand
Branding Strategy
• Brands with strong equity have many
competitive advantages:
– High consumer awareness
– Strong brand loyalty
– Helps when introducing new products
– Less susceptible to price competition
Figure 9.3
Building Strong Strategy
Major Branding Decisions
Brand Name Selection
Selection
Protection
Brand Sponsor
Manufacturer’s Brand
Private Brand
Licensed Brand
Co-branding
Brand Strategy
New Brands
Line Extensions
Brand Extensions
Multibrands
Figure 9.4
Brand Development Strategies
Managing Brands
• Brands are known through advertising, personal
experience, word of mouth, the Internet
• Everyone in the company represents the brand
• Companies need to periodically run a brand
audit
Video Snippet
Reebok transforms to
fit pop culture
Services Marketing
• Services
– Account for 68% of Canada’s GDP, almost
75% of employment, and nearly 90% of new
job creation.
– Service industries include business
organizations, government, and private not-
for-profit organizations
Figure 9.5
Four Service Characteristics
Marketing Strategies for
Service Firms (Figure 9.6)
• The Service-Profit Chain
– Internal Marketing
– Interactive Marketing
The Service-Profit Chain
Internal Service Quality
Satisfied and
Healthy Service Productive Service
Profits and Growth Employees
Satisfied and Loyal Greater Service

Customers Value
Additional Product Considerations
• Product Decisions and • International Product and
Social Responsibility Services Marketing
– Government regulation – Standardization versus
– Food and product safety local adaptation
– Pricing and advertising – Electrical standards,
– Labeling, weights, and packaging
measures – Cultural differences in
– Hazardous products meaning
– Barriers to trade
– Product liability
• A range is characterized by 3 dimensions:
width, depth and length.
• The width of a range: It is equal to the

number of lines or family of products.
• For example, a product X includes a men's
range and a women's range.
• The men's range is made up of different
lines: moisturizing cream, shaving foam,
eau de toilette, after-shave...
• The depth of a range: It is equal to the
number of different models within each
row.
• The lenght
• It includes the total number of products
that make up the entire range.
A loss leader designates any product,
whatever its quality, the price of which,
particularly low, is generally the subject of
reinforced communication, in order to
attract consumers to a point of sale and, if
possible, other sales, generating better
margins.
The tactical product is intended to occupy a
niche against the competition with the
intention of responding to its attacks. It aims
to recover the attractiveness lost to the
benefit of the competitor, and is therefore
not necessarily the most profitable product.
The leader product or flagship product is
the emblematic product of your range.
Turnover is based on its success, as well as
the brand image of the company. The entire
range is built around this product and its
presence is essential.
Regulatory products: are created for
financial reasons. They are intended to
absorb fixed costs and amortize variations in
turnover. They must compensate for
fluctuations in the sales of leading products.
For example, a manufacturer of raincoats
has a seasonal business.

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Chapter 9

Convenience Products Shopping Products

Specialty Products Unsought Products

Lamborghini, Rolex Life insurance, blood donation

Attributes Advantages Identification

Defense Against Brand

Product Line Length

Length - total Product Mix -

Internal Service Quality

Satisfied and Loyal Greater Service

• The width of a range: It is equal to the

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