1. Product, Services, and Branding Strategy
Chapter Seven
Product, Services, and Branding Strategy

2. Define product and the major classifications of products and services.
4/21/2017
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 firms 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.
Copyright 2007, Prentice Hall, Inc.
Copyright 2005 Brainy Betty, Inc.

3. FIJI Water – “The Taste of Paradise”
Case Study
FIJI Water – “The Taste of Paradise”
Product
Brand name: FIJI Natural Artesian Water.
Product source: comes from an underground location in Fiji islands.
Key benefits: ultra-clean taste, no impurities or pollutants.
Brand image: “The Taste of Paradise”
Promotion
It’s a brand experience!
Name, packaging, label, celebrity endorsers and places through which it is sold contributes to “Taste of Paradise” imagery.
Ads evoke exotic origins: tropical forest, volcanoes.
High price charged supports premium appeal.
Copyright 2007, Prentice Hall, Inc.

4. 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.
Copyright 2007, Prentice Hall, Inc.

5. 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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6. 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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7. Levels of a Product Core benefit Actual product Augmented product
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.
Copyright 2007, Prentice Hall, Inc.

8. Consumer Products
Products and services bought by final consumers for personal consumption.
Also includes other marketable entities.
Classified by how consumers buy them.
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9. Convenience Products Purchased frequently and immediately Low priced
Mass advertising
Many purchase locations
Examples: candy, soda, newspapers
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10. Shopping Products Bought less frequently Higher price
Fewer purchase locations
Comparison shop
Examples: furniture, clothing, cars, appliances
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11. Specialty Products Special purchase efforts High price
Unique characteristics
Brand identification
Few purchase locations
Example: Lamborghini, Rolex Watch
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12. 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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13. 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.
Copyright 2007, Prentice Hall, Inc.

14. 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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15. 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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16. Individual Product Decisions
Product attributes
Branding
Packaging
Labeling
Product support services
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17. 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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18. 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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19. 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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20. 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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21. 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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22. 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.
Copyright 2007, Prentice Hall, Inc.

23. 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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24. 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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25. 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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26. Major Brand Strategy Decisions
Brands are assets that must be carefully developed and managed via:
Brand positioning
Brand name selections
Brand sponsorship
Brand development
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27. Brand Positioning Can position brands at any of three levels:
Product attributes
Product benefits
Beliefs and values
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28. 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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29. Brand Sponsorship Manufacturer’s brands Private brands Licensed brands
Also called national brands
Private brands
Also called store or distributor brands
Licensed brands
Co-branding
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30. 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.
Copyright 2007, Prentice Hall, Inc.

31. 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.
Copyright 2007, Prentice Hall, Inc.

32. Nature and Characteristics of a Service
Intangibility:
Services cannot be seen, tasted, felt, heard, or smelled before purchase.
Inseparability:
Services cannot be separated from their providers.
Variability:
Quality of services depends on who provides them and when, where, and how they are delivered.
Perishability:
Services cannot be stored for later sale or use.
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33. The Service-Profit Chain
Internal service quality
Satisfied and productive service employees
Great service value
Satisfied and loyal customers
Healthy service profits and growth.
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34. Services Marketing External marketing: Internal marketing:
Traditional marketing via the 4 “P’s”
Internal marketing:
Effective training and motivation of customer contact employees
Interactive marketing:
Delivering interactions during the service encounter that are satisfying to the buyer
Copyright 2007, Prentice Hall, Inc.

35. Major Service Marketing Tasks
Managing service differentiation:
Develop a differentiated offer, delivery, and image.
Managing service quality:
Be customer obsessed, set high service quality standards, have good service recovery, empower front-line employees.
Managing service productivity:
Train current employees or hire new ones, increase quantity and sacrifice quality, harness technology.
Copyright 2007, Prentice Hall, Inc.

36. International Product and Services Marketing
Decide which products and services to introduce.
Decide how much to standardize or adapt.
Packaging presents new challenges.
Services marketers face special challenges.
Trend toward global service companies will continue.
Copyright 2007, Prentice Hall, Inc.

37. Define product and the major classifications of products and services.
4/21/2017
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 firms 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.
Copyright 2007, Prentice Hall, Inc.
Copyright 2005 Brainy Betty, Inc.