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Product, Services, and Brands:
Building Customer Value
Copyright © 2012 Pearson Education, Inc.
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Product, Services, and
Branding Strategy
Topic Outline
• What Is a Product?
• Product and Services
Decisions
• Services Marketing
• Branding Strategy: Building
Strong Brands
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What Is a Product?
Products, Services
Product is anything that can be offered in a
market for attention, acquisition, use, or
consumption that might satisfy a need or
want
Service is a product that consists of
activities, benefits or satisfaction that is
essentially intangible.
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What Is a Product?
Levels of Product and Services
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What Is a Product?
Product Classifications
Consumer
products
Industrial
products
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What is Product?
Product 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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What Is a Product?
Product Classifications
Convenience products
consumer products and services that the
customer usually buys frequently,
immediately, and with a minimum
comparison and buying effort
– Newspapers
– Candy
– Vegetable
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What Is a Product?
Product Classifications
Shopping products
consumer products and services that
the customer compares carefully on
suitability, quality, price, and style
– Furniture
– Tv
– Refregerator
– Sari
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What Is a Product?
Product Classifications
Specialty products
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
• RADO watch
• Designer clothes
• BMW car
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What Is a Product?
Product Classifications
Unsought products
consumer products that the consumer does not
know about or knows about it but does not
normally think of buying
• Life insurance
• Funeral services
• Blood donations
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What Is a Product?
Product Classifications
Industrial products
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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What Is a Product?
Product Classifications
Capital items are industrial products that aid
in the 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(paper,pencil,pen,file), repair and
maintenance items(colour paint, cleaning
materials)and business services(advocate)
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Product and Service Decisions
Individual Product and Service Decisions
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PRODUCT LINE
• Close related products are called
PRODUCT LINES
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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.
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Product and Service Decisions
Product Mix
Product mix consists of all the products and items
that a particular seller offers for sale
Product mix width: the number of different product
line company carry.
Length: total number of items company carrries
within product line.
Depth: number of version offered of each productin
the line
Consistency: how closely related various product line.
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Unilever products
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Product Life Cycle
• “The course of a product's sales and profit
over its life time.
• It involves five distinct stages- product
development,introduction, growth,
maturity and decline of a product in the
market
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Product Life Cycle
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Introduction stage
A new product starts in this stage sales and profits are low
during a products introductory stage. The company may
spend a great deal of money to inform potential
customers about the product and convince them that it
will satisfy their needs and wants.
Example: Nokia 1100
Key term:
Test Marketing : “A business introduces a
product in strategic geographic locations, rather than
every where, to assess consumer response”
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GROWTH
• If purchasers are satisfied with the product
its reputation will spread and it will enter
the growth stage. The product will become
more widely available and sales will
increase
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Maturity
• After growth, competitors versions will then
appear and eventually the maturity stage will be
reached, in which the supply and demand are
matched and sales stabilize.
• The maturity stage is the longest period,
characterized by “intense competition
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Decline
• After maturity stage , new products will be
available in market to satisfy additional needs. So
the decline stage will be entered. The important
skill in this stage is to know when to leave the
market. The firm reforms their product line
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New product development
process
• Idea generation(searching new ideas)
• Idea screening(selecting idea)
• Concept development and testing(product
idea,image,concept testing)
• Marketing strategy development
• Business analysis
• Product development(product idea turned into
workable product)
• Test marketing
•
Copyright
Commercialization(introduce
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Services Marketing
Types of Service Industries
• Government
• Private not-for-profit organizations
• Business services
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Services Marketing
Nature and Characteristics of a Service
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Services Marketing
Marketing Strategies for Service Firms
In addition to traditional
marketing strategies, service
firms often require additional
strategies
• Service-profit chain
• Internal marketing
• Interactive marketing
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Services Marketing
Marketing Strategies for Service Firms
Service-profit chain links service firm profits
with employee and customer satisfaction
• Internal service quality
• Satisfied and productive service
employees
• Greater service value
• Satisfied and loyal customers
• Healthy service profits and growth
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Services Marketing
Marketing Strategies for Service Firms
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
Internal marketing must precede external marketing
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Services Marketing
Marketing Strategies for Service Firms
Interactive marketing means that service quality
depends heavily on the quality of the buyer-
seller interaction during the service
encounter
• Service differentiation
• Service quality
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BRAND
A brand name is a letter , a word or a group of
letters or words used to identify the
product.
Example : Lux , Toyota, Tata, Honda, Maruti
Brand mark is a symbol or design used to
identify the product and to distinguish it.
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Branding Strategy: Building Strong Brands
Brand equity
The differential effect that knowing the
brand name has on customer response to
the product or its marketing.
Brand equity is the value of a brand name.
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Branding Strategy: Building Strong Brands
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Branding Strategy: Building Strong
Brands
Brand Positioning
Brand strategy decisions
include:
• Product attributes
• Product benefits
• Product beliefs and values
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Branding Strategy: Building Strong Brands
Brand Name Selection
Desirable qualities
1. Easy to pronounce, recognize, and
remember
2. Distinctive
3. Extendable
4. Translatable for the global economy
5. Capable of registration and legal
protection
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Branding Strategy: Building Strong
Brands
Brand Sponsorship
Manufacturer’s brand
Private brand
Licensed brand
Co-brand
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Branding Strategy: Building Strong Brands
Brand Development Strategies
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Advantages of Strong Brands
• Improved product performance
• Greater loyalty
• Less vulnerability to competitive
marketing actions
• Less vulnerability to crises
• More inelastic consumer response
• Greater trade cooperation
• Increased marketing communications
effectiveness
• Possible licensing opportunities
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