Chapter Eight
Products, Services, and Brands:
Building Customer Value
Copyright © 2009 Pearson Education, Inc.
Chapter 8 - slide 1
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Product, 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
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What Is a Product?
Products, Services, and Experiences
• Product is anything that can be offered in a
market for attention, acquisition, use, or
consumption that might satisfy a need or
want
• Products include more than just tangible
objects such as cars, computers or cell
phones.
Copyright © 2010 Pearson Education, Inc.
Chapter 8 - slide 3
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What Is a Product?
Products, Services, and Experiences
• Broadly defined, “products” also include
service, events, persons , places ,
organizations , ideas , or mixes of these.
• Services are the form of product that
consists of activities, benefits or
satisfactions offered for sale that are
essentially intangible and don’t result in the
ownership of anything such as Banking
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What Is a Product?
Products , services and experiences
• Product is a key element in the overall
marketing offering, marketing mix planning
begins with building an offering that brings
value to target customers.
• This offering becomes the basis upon which
the company builds profitable customer
relationships
• A company’s market offering includes both
tangible goods and services
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Chapter 8 - slide 5
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What Is a Product?
Products , services and experiences
• The offer may consist of a pure tangible
good such as soap, toothpaste or salt.
• At the other extreme are the pure services
for which the offer consists primarily of a
service.
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Chapter 8 - slide 6
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What Is a Product?
Products , services and experiences
• Experiences represent what buying the
product or service will do for the customer
• Experiences have always been an important
part of marketing for some companies
• Companies that market experiences realize
that customers are really buying much more
that just products and services, they are
buying what those offers will do for them
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Chapter 8 - slide 7
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A ________ is anything that can be offered to a
market that might satisfy a need or a want.
1. position
2. product
3. promotion
4. none of the above
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Chapter 8 - slide 8
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A ________ is anything that can be offered to a
market that might satisfy a need or a want.
1. position
2. product
3. promotion
4. none of the above
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Chapter 8 - slide 9
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What Is a Product?
Levels of Product and Services
• Product planners need to think about products
and services on three levels, each level adds
more customer value. The most basic level is
the core customer value, which addresses the
question “ what is the buyer really buying ? “
• When designing products, marketers must first
define the core, problem solving benefits or
services that consumers seek
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Chapter 8 - slide 10
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What Is a Product?
Levels of Product and Services
• At the second level, product planners must
turn the core benefits into an actual product,
they need to develop product and service
features, design, a quality level or a brand
name and packaging.
• For Ex. The BlackBerry is an actual product. Its
name , parts, styling, features have all been
combined to deliver the core customer value
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Chapter 8 - slide 11
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What Is a Product?
Levels of Product and Services
• Finally , product planners must build an
augmented product around the core
benefit and actual product by offering
additional consumer services and benefits.
• For ex. The BlackBerry solution offers more
than just a communication device, it
provides customers with a complete
solution to mobile connectivity problems.
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What Is a Product?
Levels of Product and Services
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The most basic level of a product is called its
________.
1. augmented product
2. actual product
3. core benefit
4. position
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The most basic level of a product is called its
________.
1. augmented product
2. actual product
3. core benefit
4. position
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Chapter 8 - slide 15
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What Is a Product?
Product and Service Classifications
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Chapter 8 - slide 16
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What Is a Product?
Product and Service Classifications
• Consumer products are products and
services for personal consumption
• Classified by how consumers buy them
– Convenience products
– Shopping products
– Specialty products
– Unsought products
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Chapter 8 - slide 17
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What Is a Product?
Product and Service Classifications
• 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
• They are usually low priced, and marketers place
them in many locations to make them available
when consumers need them
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Chapter 8 - slide 18
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What Is a Product?
Product and Service Classifications
• Shopping products are consumer products and
services that the customer compares carefully on
suitability, quality, price, and style
• Furniture
• Cars
• Shopping products marketers distribute their
products through fewer outlets but provide
deeper sales support to help customers in their
comparison efforts.
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Chapter 8 - slide 19
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What Is a Product?
Product and Service Classifications
• 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
• Buyers normally don’t compare specialty products,
they invest only the time needed to reach dealers
carrying the wanted products
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Chapter 8 - slide 20
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What Is a Product?
Product and Service Classifications
• 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
• Unsought products require a lot of advertising,
personal selling, and other marketing efforts
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Chapter 8 - slide 21
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What Is a Product?
Product and Service Classifications
• 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
– Supplies and services
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Chapter 8 - slide 22
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Types of consumer products include convenience
products, shopping products, specialty
products, and ________ products.
1. unique
2. luxury
3. unsought
4. all of the above
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Chapter 8 - slide 23
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Types of consumer products include convenience
products, shopping products, specialty
products, and ________ products.
1. unique
2. luxury
3. unsought
4. all of the above
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Chapter 8 - slide 24
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________ products are purchased frequently, with
little comparison or shopping effort.
1. Convenience
2. Shopping
3. Industrial
4. Unsought
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Chapter 8 - slide 25
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________ products are purchased frequently, with
little comparison or shopping effort.
1. Convenience
2. Shopping
3. Industrial
4. Unsought
Copyright © 2010 Pearson Education, Inc.
Chapter 8 - slide 26
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Consumer product with unique brand
identification for which buyers are willing to
make a special purchase effort is called
_________ product.
1. convenience
2. shopping
3. specialty
4. unsought
Copyright © 2010 Pearson Education, Inc.
Chapter 8 - slide 27
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Consumer product with unique brand
identification for which buyers are willing to
make a special purchase effort is called
_________ product.
1. convenience
2. shopping
3. specialty
4. unsought
Copyright © 2010 Pearson Education, Inc.
Chapter 8 - slide 28
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________ products are those purchased for
further processing or for use in conducting a
business.
1. Industrial
2. Shopping
3. Unsought
4. Physical
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Chapter 8 - slide 29
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________ products are those purchased for
further processing or for use in conducting a
business.
1. Industrial
2. Shopping
3. Unsought
4. Physical
Copyright © 2010 Pearson Education, Inc.
Chapter 8 - slide 30
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What Is a Product?
Product and Service Classifications
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 industrial users
Supplies and services include operating
supplies, repair and maintenance items, and
business services
Copyright © 2010 Pearson Education, Inc.
Chapter 8 - slide 31
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Your visit to a doctor’s office is an example of a
________.
1. pure tangible good
2. pure intangible good
3. unsought product
4. impure tangible good
Copyright © 2010 Pearson Education, Inc.
Chapter 8 - slide 32
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Your visit to a doctor’s office is an example of a
________.
1. pure tangible good
2. pure intangible good
3. unsought product
4. impure tangible good
Copyright © 2010 Pearson Education, Inc.
Chapter 8 - slide 33
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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
• Both profit and non profit organization
practice organization marketing
• Business firms sponsor public relations or
corporate image advertising campaign to
market themselves and polish their images
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Chapter 8 - slide 34
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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.
• People use person
marketing to build their
reputation
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Chapter 8 - slide 35
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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
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Chapter 8 - slide 36
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What Is a Product
Organizations, Persons, Places, and Ideas
• Social marketing programs include public
health campaigns to reduce smoking ,
alcoholism, drug abuse, and obesity
• Other social marketing efforts include
environmental campaign to promote clean air
and conservation
• Still others address issues such as family
planning and human rights and racial equality
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Chapter 8 - slide 37
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Product and Service Decisions
Individual Product and Service Decisions
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Chapter 8 - slide 38
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Product and Service Decisions
Individual Product and Service Decisions
Product attributes are the benefits of the product
or service
• Quality
• Features
• Style and design
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Chapter 8 - slide 39
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Product and Service Decisions
Individual Product and Service Decisions
• Quality has a direct impact on product or
service performance, thus , its closely linked to
customer value and satisfaction.
• Quality can be defined as “ freedom from
defects”
• The American society for quality defines quality
as the characteristics of a product or service
that bear on its ability to satisfy stated or
implied customer needs
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Chapter 8 - slide 40
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Product and Service Decisions
Individual Product and Service Decisions
Product quality includes level and consistency
• Quality level is the level of quality that supports
the product’s positioning
• Conformance quality is the product’s freedom
from defects and consistency in delivering a
targeted level of performance
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Chapter 8 - slide 41
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The two dimensions of product quality are
________ and ________.
1. value; features
2. style; design
3. level; consistency
4. style; value
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Chapter 8 - slide 42
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The two dimensions of product quality are
________ and ________.
1. value; features
2. style; design
3. level; consistency
4. style; value
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Chapter 8 - slide 43
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Product and Service Decisions
Individual Product and Service Decisions
Product features are a competitive tool for
differentiating a product from competitors’
products
Product features are assessed based on the value to
the customer versus the cost to the company
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Chapter 8 - slide 44
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Product and Service Decisions
Individual Product and Service Decisions
Style describes the
appearance of the product
Design contributes to a
product’s usefulness as
well as to its looks. It goes
to the very heart of a product
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Chapter 8 - slide 45
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Product and Service Decisions
Individual Product and Service Decisions
Brand is the name, term, sign, or design—or a
combination of these—that identifies the maker
or seller of a product or service
Brand equity is the differential effect that the brand
name has on customer response to the product
and its marketing
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Chapter 8 - slide 46
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Product and Service Decisions
Individual Product and Service Decisions
• Branding helps buyers in many ways. Brand
names help consumers identify products
that might benefit them. Brands also say
something about product quality and
consistency
• Buyers who always buy the same brands
know that they will get the same features ,
benefits and quality each time they buy.
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Chapter 8 - slide 47
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Product and Service Decisions
Individual Product and Service Decisions
Packaging involves designing and
producing the container or
wrapper for a product
The primary function of the
package was to hold and
protect the product
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Chapter 8 - slide 48
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Product and Service Decisions
Individual Product and Service Decisions
• Labels range from simple tags attached to
products to complex graphics that are part
of the package
• Labels identify the product or brand,
describe attributes, and provide promotion
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Chapter 8 - slide 49
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Product and Service Decisions
Individual Product and Service Decisions
Product support services augment actual products
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Chapter 8 - slide 50
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Product and Service Decisions
Individual Product and Service Decisions
• Customer service is another element of the
product strategy. A company’s offer usually
includes some support services, which can
be a minor or a major part of the total
offering.
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Chapter 8 - slide 51
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A(n) ________ is a name, term, sign, symbol, or
combination of these intended to identify the
goods or services of one seller or group of
sellers and to differentiate them from those of
competitors.
1. package
2. position
3. image
4. brand
Copyright © 2010 Pearson Education, Inc.
Chapter 8 - slide 52
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A(n) ________ is a name, term, sign, symbol, or
combination of these intended to identify the
goods or services of one seller or group of
sellers and to differentiate them from those of
competitors.
1. package
2. position
3. image
4. brand
Copyright © 2010 Pearson Education, Inc.
Chapter 8 - slide 53
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The designing and producing of the container or
wrapper for a product is called ________.
1. packaging
2. labeling
3. manufacturing
4. industrial design
Copyright © 2010 Pearson Education, Inc.
Chapter 8 - slide 54
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The designing and producing of the container or
wrapper for a product is called ________.
1. packaging
2. labeling
3. manufacturing
4. industrial design
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Chapter 8 - slide 55
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Product and Service Decisions
Product Line Decisions
Product line is 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 the same types of outlets,
or fall within given price ranges
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Chapter 8 - slide 56
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Product and Service Decisions
Product Line Decisions
Product line length is the number of items in the
product line
• Line stretching
• Line filling
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Chapter 8 - slide 57
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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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Chapter 8 - slide 58
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Product Mix Decisions
• Width : refers to the number of different
product lines the company carries
• Length : refers to the total number of items
the company carries within its product lines
• Depth: refers to the number of the versions
offered of each product in the line
• Consistency: how closely related the various
product lines in the end use
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Chapter 8 - slide 59
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Brand Equity
• Is the differential effect that knowing the
brand name has on customer response to
the product and its marketing
• It’s a measure of the brand ability to capture
customer preference and loyalty
• A brand has positive brand equity when
consumers talk favorably about the product
and vice versa
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Chapter 8 - slide 60
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Brand Equity
• Marketers measure the brand strength
along four dimensions which are :
1.Differentiation
2.Knowledge
3.Relevance “ how consumers feel it meets
their needs”
4.Esteem
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Chapter 8 - slide 61
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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
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Chapter 8 - slide 62
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Branding Strategy: Building Strong Brands
Brand Name Selection
Desirable qualities
1. Suggest benefits and qualities
2. Easy to pronounce, recognize, and remember
3. Distinctive
4. Extendable
5. Translatable for the global economy
6. Capable of registration and legal protection
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Chapter 8 - slide 63
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Branding Strategy: Building Strong
Brands
Brand Sponsorship
Manufacturer’s brand
Private brand
Licensed brand
Co-brand
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Chapter 8 - slide 64
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Branding Strategy: Building Strong Brands
Brand Development Strategies
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Chapter 8 - slide 65
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Services Marketing
Nature and Characteristics of a Service
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Chapter 8 - slide 66
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