1. Chapter 1 Product, Services, and Branding Strategy
Professor Takada

2. ROAD MAP: Previewing the Concepts
Ｍajor classifications of products and services.
Product decisions:
Individual product decisions
Product line decisions
Product mix decisions
Branding strategy:
brand positioning, name selection, sponsorship, and development.
Four characteristics that affect the marketing of a service.
Other issues.
Professor Takada

3. At the heart of a great brand is a great product
Professor Takada

4. ROAD MAP
Product and the major classifications of products and services.
Describe the individual product decisions:
product and service attributes, branding, packaging, labeling, and product support services.
Discuss branding strategy:
brand positioning, name selection, sponsorship, and development.
Identify the four characteristics that affect the marketing of a service.
Discuss other issues.
Professor Takada

5. What is a Product? What is a Service?
Anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.
physical objects, services, events, persons, places, organizations, ideas, or some combination.
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.
banking, hotel, airline, retail, tax preparation, home repairs.
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6. The Product-Service Continuum
College Education
Sugar
Restaurant
Pure Tangible Good
Pure Service
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7. Chapter 1
Levels of a Product
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8. Industrial Products Consumer Products Materials and Parts
Convenience Products
Materials and Parts
Raw materials, manufactured
materials, and parts
Purchased frequently and immediately
Low priced
Mass advertising
Many purchase locations
Examples: candy, soda, newspapers
Shopping Products
Capital Items
Products that aid in
buyer’s production or operations
Bought less frequently
Higher price
Fewer purchase locations
Comparison shop
Examples: furniture, clothing, cars, appliances
Unsought Products
Supplies and Services
Operating supplies, repair,
and maintenance items
　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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9. Other Market Offerings
Organizations:
Profit (businesses) and nonprofit (schools and churches).
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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10. Product Differentiation
Style
Design
Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance
Product form
Features
Performance
Conformance
Durability
Reliability
Reparability
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11. Dunkin’ Donuts’ Differentiation
Chapter 1
Dunkin’ Donuts’ Differentiation
Click on the video icon to see a clip on product differentiation at Dunkin’ Donuts.
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12. Design Differentiation
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13. Maintenance and Repair
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14. ROAD MAP
Define product and the major classifications of products and services.
Product decisions:
Individual product decisions
Product line decisions
Product mix decisions
Discuss branding strategy:
brand positioning, name selection, sponsorship, and development.
Identify the four characteristics that affect the marketing of a service.
Discuss other issues.
Professor Takada

15. Individual Product Decisions
Chapter 1
Individual Product Decisions
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16. Product and Service Attributes
Chapter 1
Product and Service Attributes
Quality
Features
Style & Design
Performance and Satisfaction Includes Level & Consistency
Differentiates a product from the competition; assessed based on value and cost
Style = Appearance
Design = heart of the product
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17. 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.
Advantages to buyers:
Product identification
Product quality
Advantages to sellers:
Basis for product’s quality story
Provides legal protection
Helps to segment markets
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18. Packaging
Designing and producing the container or wrapper for a product.
Developing a good package:
Packaging concept
Package elements
Product safety
Environmental concerns
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19. Labeling Innovative 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
Innovative
Labeling
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20. 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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21. Product Line Decisions
Chapter 1
Product Line Decisions
Product Line Length
Number of Items in the Product Line
Filling
Lengthen within current range
Stretching
Lengthen beyond current range.
Can be:
Downward
Upward
Both Directions
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22. Two-Way Stretch
Marriott added the Renaissance Hotels line to serve the upper end of the market and the TownePlace Suites line to serve the moderate and lower ends.
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23. Two-Way Product-Line Stretch: Marriott Hotels
Chapter 1
Two-Way Product-Line Stretch: Marriott Hotels
Quality
Economy
Standard
Good
Superior
Marriott
Marquis
(Top
executives)
High
Marriott
(Middle
managers)
Price
Above
average
Average
Courtyard
(Salespeople)
Fairfield Inn
(Vacationers)
Low
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24. Line Stretching Down-Market Stretch Up-Market Stretch Two-Way Stretch
Chapter 1
Line Stretching
Down-Market Stretch
Up-Market Stretch
Two-Way Stretch
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25. Line Filling
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26. Product Mix Decisions Product Mix Four important dimensions:
all of the product lines and items that a particular seller offers for sale.
Four important dimensions:
Width
the number of different product lines the company carries.
Length
the total number of items the company carries within its product line.
Depth
the number of versions offered of each product in the line.
Consistency
how closely related the various lines are.
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27. ROAD MAP
Define product and the major classifications of products and services.
Describe the individual product decisions:
product and service attributes, branding, packaging, labeling, and product support services.
Branding strategy:
brand positioning, name selection, sponsorship, and development.
Identify the four characteristics that affect the marketing of a service.
Discuss other issues.
Professor Takada

28. 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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29. Major Brand Strategy Decisions
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30. Brand Positioning Product Attributes Product Benefits
Can position brands at any of three levels.
Product Attributes
Product Benefits
Beliefs and Values
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31. 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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32. Manufacturer’s Brands
Brand Sponsorship
Manufacturer’s Brands
Four Options
Co-Branding
Private
Brands
Licensed Brands
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33. Brand Development Line Extension Brand Extension Multibranding
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.
Multibranding
to establish different features and appeal to different buying motives.
New Brands
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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34. Line Extensions
Morton sells an entire line of salts and seasonings for every occasion.
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35. Brand Development Strategies
Chapter 1
Brand Development Strategies
Brand Strategy
This CTR corresponds to Figure 8-4 on p. 251 and relates to the discussion on pp
Line
Extension
Brand
Extension
Product Category
Existing
New
Multibrands
New
Brands
Brand Strategy
Companies may implement at least four brand-name strategies, including:
Line Extension. This strategy occurs when a company introduces additional items in a given product category under the same brand name. The vast majority of new product introductions are line extensions.
Brand Extension. This strategy seeks to extend existing brand qualities to launch new products or modified products in a new category.
Multibrand. This strategy develops two or more products in the same product category. P & G pioneered multibranding.
New Brands. Here a company creates a new brand name when it enters a new product category for which none of the company’s current brand names are appropriate.
Existing
Brand Name
New
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36. ROAD MAP
Define product and the major classifications of products and services.
Describe the individual product decisions:
product and service attributes, branding, packaging, labeling, and product support services.
Discuss branding strategy:
brand positioning, name selection, sponsorship, and development.
Four characteristics that affect the marketing of a service.
Discuss other issues.
Professor Takada

37. Nature and Characteristics of a Service
Chapter 1
Nature and Characteristics of a Service
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38. The Service-Profit Chain
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39. Major Service Marketing Tasks
Differentiation
Develop a differentiated offer, delivery, and image.
Quality
Be customer obsessed, set high service quality standards, have good service recovery, empower front-line employees.
Productivity
Train current employees or hire new ones, increase quantity and sacrifice quality, harness technology.
Professor Takada

40. ROAD MAP
Define product and the major classifications of products and services.
Describe the individual product decisions:
product and service attributes, branding, packaging, labeling, and product support services.
Discuss branding strategy:
brand positioning, name selection, sponsorship, and development.
Identify the four characteristics that affect the marketing of a service.
Other issues.
Professor Takada

41. International Product and Services Marketing
Decide Which Products & Services to Introduce
Decide How Much to Standardize or Adapt
Chapter 1
International Product and Services Marketing
Packaging Presents New Challenges
Service Marketers Face Special Challenges
Trend Toward Global Service Companies Will Continue
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42. Rest Stop: Reviewing the Concepts
Chapter 1
Rest Stop: Reviewing the Concepts
Define product and the major classifications of products and services.
Describe the decisions companies make regarding their individual products and services, product lines, and product mixes.
Discuss branding strategy—the decisions companies make in building and managing their brands.
Identify the four characteristics that affect the marketing of a service and the additional marketing considerations that services require.
Discuss two additional product issues: socially responsible product decisions and international product and services marketing.
Professor Takada