Product, Services, and Branding Strategy

1 © 2012 Principles of Marketing: An Asian Perspective

8
 Chapter 8 Outline

8.1 What is a Product?

8.2 Product Decisions
8.3 Branding Strategy: Building Strong Brands
8.4 Services Marketing

2 © 2012 Principles of Marketing: An Asian Perspective

 8.1
What is a Product?

3
8.1
© 2012 Principles of Marketing: An Asian Perspective
 8.1 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
want or need.
• Broadly defined, “products” also include services, events,
persons, places, organizations, ideas, or mixes of these.
• Services are 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.

Tangible Intangible
GOODS SERVICES

4
 8.1 What is a Product?

3 Levels of Products

– Core customer value, which addresses

the question, What is the buyer really
buying?
– Actual product.
– Augmented product, which is created
around the core benefit and actual
product by offering additional
consumer services and benefits.

5 © 2012 Principles of Marketing: An Asian Perspective

 8.1 What is a Product?

Types of Products

Consumer products are Industrial products are

products and services those purchased for further
bought by final consumers processing or for use in
for personal consumption. conducting a business.

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 8.1 What is a Product?
Types of Consumer Products

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 8.1 What is a Product?
Industrial Product

8 © 2012 Principles of Marketing: An Asian Perspective

 8.1 What is a Product?
Raw Materials/Parts
Raw materials and manufactured
materials and parts.

Industrial products that aid in the

buyer’s production or operations,
including installations and accessory
equipment.

Supplies/Services
Operating supplies and
maintenance and repair services

9 © 2012 Principles of Marketing: An Asian Perspective

 8.2
Product Decisions

8.2
10 © 2012 Principles of Marketing: An Asian Perspective
 8.2 Product Decisions
Individual Product Decisions

Quality Name, term, sign, Container or Tags attached Package of

symbol, or design, wrapper for a to packaging services
Features or a combination product offered
of these
Design

11 © 2012 Principles of Marketing: An Asian Perspective

 8.2 Product Decisions

Product Line Decisions

A group of products that are closely

related:
-function in a similar manner,
-sold to the same customer groups,
-marketed through the same types of
outlets, or fall within given price ranges

12 © 2012 Principles of Marketing: An Asian Perspective

 8.2 Product Decisions

Reasons for
Product Line Decisions

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 8.2 Product Decisions

Product Mix Decisions

Width – the number of product line

Length – the number of different

products within product line
PRODUCT MIX WIDTH
Depth – the number of versions offered
in each product in the line

PRODUCT LINE LENGTH

Consistency - how closely related the
various product lines are in end use,
production requirements, distribution
channels, or some other way

14 © 2012 Principles of Marketing: An Asian Perspective

 8.3
Branding Strategy: Building Strong Brands

8.3
15 © 2012 Principles of Marketing: An Asian Perspective
 8.3 Branding Strategy: Building Strong Brands

Major Brand Strategy Decisions

16 © 2012 Principles of Marketing: An Asian Perspective

 8.3 Branding Strategy: Building Strong Brands

Good Brand Name

SUGGEST BENEFITS

EASY TO SAY/SPELL/READ

DISTINCTIVE

EXTENDABLE

WORKS WORLDWIDE

CAN BE LEGALLY PROTECTED

17 © 2012 Principles of Marketing: An Asian Perspective

 8.3 Branding Strategy: Building Strong Brands

Brand Sponsorship

A manufacturer has four sponsorship options.

1. The product may be launched as a manufacturer’s brand (or national

brand).
2. The manufacturer may sell to resellers who give it a private brand
(also called a store brand or distributor brand).
3. The manufacturer can market licensed brands.
4. Two companies can join forces and co-brand a product.

18 © 2012 Principles of Marketing: An Asian Perspective

8.3 Branding Strategy: Building Strong Brands
Brand Development Strategy
• A company has four choices when it comes to developing brands
Product
 8.3 Branding Strategy: Building Strong Brands

Brand Development Strategies

1. Line extensions occur when a company extends existing brand

names to new forms, colors, sizes, ingredients, or flavors of an
existing product category.
2. Brand extensions extend a current brand name to new or modified
products in a new category.
3. Multi-branding introduces additional brands in the same product
category.
4. New brands

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 8.4
Services Marketing

8.4
21 © 2012 Principles of Marketing: An Asian Perspective
 8.4 Services Marketing

22 © 2012 Principles of Marketing: An Asian Perspective

8.4 Services Marketing

Four Service Characteristics

 8.4 Services Marketing

Service-Profit Chain
GROWTH AND
PROFIT

SATISFIED LOYAL
CUSTOMERS

GREATER SERVICE
VALUE

PRODUCTIVE
EMPLOYEES

INTERNAL SERVICE
QUALITY
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 8.4 Services Marketing

Service Marketing Strategies

Service marketing requires internal marketing and interactive

marketing.

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 8.4 Services Marketing

Internal Marketing

Internal marketing
means that the
service firm must
orient and motivate
its customer-contact
employees and
supporting service
people to work as a
team to provide
customer satisfaction.
26 © 2012 Principles of Marketing: An Asian Perspective
 8.4 Services Marketing

Interactive Marketing

Interactive marketing
means that service quality
depends heavily on the
quality of the buyer-seller
interaction during the service
encounter.

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 8.4 Services Marketing

3 Key Services Marketing Tasks

Service Differentiation
Service Quality
Service Productivity

28 © 2012 Principles of Marketing: An Asian Perspective

 8.4 Services Marketing

Managing Service Differentiation

•Service companies can differentiate their service delivery by having

more able and reliable customer-contact people, by developing a
superior physical environment in which the service product is
delivered, or by designing a superior delivery process.

•Servicecompanies can work on differentiating their images through

symbols and branding.

29 © 2012 Principles of Marketing: An Asian Perspective

 8.4 Services Marketing

Managing Service Quality

•Service quality is harder to define and judge than product quality.

•Service
quality will always vary, depending on the interactions
between employees and customers.

•Good service recovery can turn angry customers into loyal ones.

30 © 2012 Principles of Marketing: An Asian Perspective

 8.4 Services Marketing

Managing Service Productivity

Service firms are under great pressure to increase service

productivity.
a)They can train current employees better or hire new ones who will
work harder or more skillfully.
b)They can increase the quantity of their service by giving up some
quality.
c)They can harness the power of technology.

31 © 2012 Principles of Marketing: An Asian Perspective

 8.4 Services Marketing

Balancing Service Quality and Service Productivity

It is important to strive for service

quality without pushing productivity
too hard.

32 © 2012 Principles of Marketing: An Asian Perspective

Thank
you