1. Marketing Management (MKT 261)
Dr. Mohammed Almossawi
Chapter Seven
Product, Services, and Branding Strategy
Copyright 2007 Prentice Hall Inc.

2. What Is a Product?
Anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.
Includes: physical objects, services, events, persons, places, organizations, ideas, or some combination thereof.
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3. What Is a Service?
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.
Examples: banking, hotel, airline, retail, tax preparation, home repairs.
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4. Market Offerings
Continuum ranges from pure tangible goods (with no services) to pure services (with no good component) with many combinations in between.
Pure good: Camay soap.
Pure service: Legal representation.
Combination: Restaurant meal.
Creating and managing customer experiences differentiates offers.
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5. Levels of a Product (Fig 7.1, page 201)
Core benefit
What the consumer is really buying.
Actual product
Includes the brand name, features, design, packaging, quality level.
Augmented product
Additional services and benefits such as delivery and credit, instructions, installation, warranty, service.
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6. Product and Service Classifications
Consumer Products
Industrial Products
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7. 1. Consumer Products
Products and services bought by final consumers for personal consumption.
Also includes other marketable entities.
Classified by how consumers buy them (Table 7.1,page 201).
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8. Convenience Products Purchased frequently and immediately Low priced
Mass advertising
Many purchase locations
Examples: candy, soda, newspapers
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9. Shopping Products Bought less frequently Higher price
Fewer purchase locations
Comparison shop
Examples: furniture, clothing, cars, appliances
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10. Specialty Products Special purchase efforts High price
Unique characteristics
Brand identification
Few purchase locations
Example: Lamborghini, Rolex Watch
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11. Unsought Products New innovations
Products consumers do not want to think about
Require much advertising and personal selling
Examples: life insurance, cemetery plots, blood donation
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12. 2. Industrial Products
Those purchased for further processing or for use in conducting business.
Distinction between consumer and industrial products is based on the purpose for which an item is bought.
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13. Industrial Products Materials and parts: Capital items:
Raw materials, manufactured materials, and parts
Capital items:
Products that aid in buyer’s production or operations
Supplies and services:
Operating supplies, repair, and maintenance items
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14. Other Market Offerings
Organizations: Profit (businesses) and nonprofit (schools and churches).
Includes corporate image advertising.
Persons: Politicians, entertainers, sports figures, doctors, and lawyers.
Places: Create, maintain, or change attitudes or behavior toward particular places (e.g., tourism).
Ideas (social marketing): Public health campaigns, environmental campaigns, family planning, or human rights.
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15. Individual Product Decisions
Product attributes
Branding
Packaging
Labeling
Product support services
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16. 1. Product & Service Attributes
Product quality
Performance quality
Conformance quality
Features
Value to consumer
Cost to company
Style and design
Influences experience
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17. 2. Branding
Creating, maintaining, protecting, and enhancing products and services.
A brand is a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.
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18. Branding Advantages to buyers: Advantages to sellers:
Product identification
Product quality
Advantages to sellers:
Basis for product’s quality story
Provides legal protection
Helps to segment markets
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19. 3. Packaging
Designing and producing the container or wrapper for a product.
Developing a good package:
Market the brand
Protect the elements
Ensure product safety
Address environmental concerns
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20. 4. Labeling Printed information appearing on or with the package.
Performs several functions:
Identifies product or brand
Describes several things about the product
Promotes the product through attractive graphics
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21. 5. Product Support Services
Assess the value of current services and obtain ideas for new services.
Assess the cost of providing the services.
Put together a package of services that delights the customers and yields profits for the company.
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22. Product Line Decisions
Product line length:
The number of items in a product line.
Adjust line length by:
Stretching
Downward
Upward
Both directions
Filling
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23. Product Mix Decisions Product mix: Product mix dimensions include:
all of the product lines and items that a particular seller offers for sale.
Product mix dimensions include:
Length: the number of items in a line.
Width: the number of different product lines the company carries.
Depth: the number of versions offered of each product in the line.
Consistency: how closely related various lines are.
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24. Branding Strategy 1. Brand Equity
The positive differential effect that knowing the brand name has on customer response to the product or service.
Provides:
More brand awareness and loyalty
Basis for strong, profitable customer relationships
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25. 2. Major Brand Strategy Decisions
Branding Strategy
2. Major Brand Strategy Decisions
Brands are assets that must be carefully developed and managed via:
2.1. Brand positioning
2.2. Brand name selections
2.3. Brand sponsorship
2.4. Brand development
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26. 2.1. Brand Positioning Can position brands at any of three levels:
Product attributes
Product benefits
Beliefs and values
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27. 2.2. Brand Name Selection
Desirable qualities for a brand name include:
It should suggest product’s benefits and qualities.
It should be easy to pronounce, recognize, and remember.
It should be distinctive.
It should be extendable.
It should translate easily into foreign languages.
It should be capable of registration and legal protection.
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28. 2.3. Brand Sponsorship Manufacturer’s brands Private brands
Also called national brands
Private brands
Also called store or distributor brands
Licensed brands
Co-branding
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29. 2.4. Brand Development Line extension: Brand extension:
introduction of additional items in a given product category under the same brand name (e.g., new flavors, forms, colors, ingredients, or package sizes).
Brand extension:
using a successful brand name to launch a new or modified product in a new category.
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30. Brand Development Multibranding: New brands:
offers a way to establish different features and appeal to different buying motives.
New brands:
developed based on belief that the power of its existing brand is waning and a new brand name is needed. Also used for products in new product category.
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