1. Product, Service, and Branding Strategies
Chapter 10
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Principles of Marketing, Sixth Canadian Edition

2. Learning Objectives
After studying this chapter, you should be able to:
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
Principles of Marketing, Sixth Canadian Edition

3. Three Levels of Product
Product: anything that can be offered for attention, acquisition, use, or consumption to satisfy a need or want
Figure 10.1
Service: any activity or benefit that can be offered that is intangible and does not result in the ownership of anything
Experiences: are memorable
Principles of Marketing, Sixth Canadian Edition

4. Product Classifications
Consumer goods:
Convenience goods
Shopping goods
Specialty goods
Unsought goods
Industrial goods:
Materials and parts
Capital items
Supplies and services
Marketable offerings:
Organizations
Person marketing
Place marketing
Social (ideas) marketing
Principles of Marketing, Sixth Canadian Edition

5. Product and Service Decisions
Product attributes:
Product quality
Product features
Product style and design
Branding:
Name, term, sign, or symbol
Used to identify the goods of a seller
Differentiate from its competition
Figure 10.2
Principles of Marketing, Sixth Canadian Edition

6. Product and Service Decisions (continued)
Packaging:
Hold the contents
Protect the product
Store, identify, and ship the product
Place for labelling
Used as a promotional tool
Labelling:
Identify the product
Weights/measures
Description/instructions
Ingredients
Nutritional information
Figure 10.2
Principles of Marketing, Sixth Canadian Edition

7. Product Line Decisions
Group of closely related products due to function, similar target markets, outlets sold in, or similar pricing
Length: number of items in the line
Line stretching: adding items to either end of the line, can be upwards, downwards, or both
Line filling: adding items within the product line
Product mix: set of all product lines
Width: # of product lines
Length: # of products in lines
Depth: # of versions of each product carried
Consistency: how closely related the product lines are
Principles of Marketing, Sixth Canadian Edition

8. Major Brand Strategy Decisions
Brand equity:
Positive differential effect that knowing the brand name has on customer response to the product or service
Value of the brand based on awareness, recognition, loyalty
Used for line and brand extension strategies
Figure 10.3
Principles of Marketing, Sixth Canadian Edition

9. Major Brand Strategy Decisions (continued)
Brand name selection:
Suggest something about the product’s benefits
Easy to pronounce, recognize, and remember
Distinctive
Extendable
Ability to be translated into other languages
Capable of being registered and legally protected
Figure 10.3
Principles of Marketing, Sixth Canadian Edition

10. Major Brand Strategy Decisions (continued)
Brand sponsorship:
Manufacturer’s (national) brands
Private (store) brand
Issues:
Slotting fees:
Profitability of private label to retailers
Control of shelf space
Figure 10.3
Principles of Marketing, Sixth Canadian Edition

11. Brand Development Strategies
Figure 10.4
Principles of Marketing, Sixth Canadian Edition

12. Four Service Characteristics
Service: any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything
Figure 10.5
Principles of Marketing, Sixth Canadian Edition

13. The Service Profit Chain
Internal service quality
The Service Profit Chain
The chain that links service firm profits with employee and customer satisfaction
Internal service quality
Internal service quality
Internal service quality
Internal service quality
Principles of Marketing, Sixth Canadian Edition

14. Marketing in Service Industries
Internal marketing: marketing by a service firm to train and motivate customer contract employees to provide customer satisfaction
Interactive marketing: marketing by a service firm that recognizes that service quality depends on the quality of the buyer-seller interaction
Figure 10.6
Principles of Marketing, Sixth Canadian Edition

15. Managing Service Differentiation
Price competition
Differentiate offer by:
Innovative features
Service delivery
Images or symbols
Service quality
Service recovery
Service productivity
Principles of Marketing, Sixth Canadian Edition

16. Additional Product Considerations
Product decisions and social responsibility
Government regulation
Food and product safety
Pricing and advertising
Labelling, weights, and measures
Hazardous products
Product liability
International product and service marketing
Standardization versus local adaptation
Electrical standards, packaging
Cultural differences in meaning
Barriers to trade
Principles of Marketing, Sixth Canadian Edition

17. In Conclusion… The learning objectives for this chapter were:
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
Principles of Marketing, Sixth Canadian Edition