1. Product and Services Strategy
Chapter Eight
Lecture Slides
Express Version
Course
Professor
Date

2. Looking Ahead After studying this chapter, you should be able to:
Define product and the major classifications of products and services
Describe the roles of product and service branding, packaging, labeling, and product services
Explain the decisions companies make when developing product lines and mixes
Identify the four characteristics that affect the marketing of a service
Discuss the additional marketing considerations that services require
©Copyright 2004, Pearson Education Canada Inc.

3. Products, Services, & Experiences
Product: anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
Service: are products that consist of activities, benefits, or satisfactions offered for sale that intangible, and do not result in the ownership of anything
Experiences: those aspects of products which take place in the minds of consumers, and are memorable
©Copyright 2004, Pearson Education Canada Inc.

4. Levels of Product Core benefit or service Figure 8-1 Augmented product
Installation
Delivery and credit
Packaging
Actual
product
Core
benefit
or service
Features
Brand
name
Core
product
Quality level
Design
Warranty
After-sale service
©Copyright 2004, Pearson Education Canada Inc.
Figure 8-1

5. Types of Consumer Products
Convenience:
Frequent purchase, low involvement, widespread distribution, mass promotion
Shopping:
Less frequent purchase, more effort, comparison of brands, price, and quality, selective distribution and promotion
Specialty:
Strong brand preference, special purchase effort, low price sensitivity, exclusive distribution, targeted promotion
Unsought:
Low product awareness, negative interest, use personal selling
©Copyright 2004, Pearson Education Canada Inc.
Table 8-1

6. Types of Business Products
Materials and parts:
Raw and manufactured materials, parts
Capital items:
Buildings and equipment used in buyer’s production or operations, long useful life
Supplies and services:
Operating supplies, repair and maintenance items, and services
©Copyright 2004, Pearson Education Canada Inc.

7. Individual Product Decisions
Product attribute decisions
Product quality, features, style and design
Branding decisions
Brand equity, name selection, manufacturer’s versus private brands, licensing, co-branding, line and brand extensions
Packaging
Hold and protect contents, identify and promote the product and brand
Labelling
Ingredients, directions for use, identify and promote
Product support services
Repair and maintenance, accessories
©Copyright 2004, Pearson Education Canada Inc.

8. Four Brand Strategies Product category Brand name Existing New Line
extension
Brand
extension
Existing
Brand name
Multibrands
New
brands
New
©Copyright 2004, Pearson Education Canada Inc.
Figure 8-4

9. Product Line Decisions
Group of closely related products
Length equals number of products
Line stretching
Adding products to the line outside of current range
Line filling
Adding more products within current range
Product mix decisions
Width
Length
Depth
Consistency
©Copyright 2004, Pearson Education Canada Inc.

10. Characteristics of Services
Intangibility
Cannot be seen, tasted,
felt or smelled before
purchasing
Inseparability
Production and,
consumption, and
from the provider
Variability
Service quality depends
on who provides and
under what conditions
Perishability
Cannot be stored,
for resale or
later use
©Copyright 2004, Pearson Education Canada Inc.
Figure 8-5

11. Marketing Strategies for Services
The service-profit chain consists of:
Internal service quality
Superior employee selection and training
Quality work environment
Support for those dealing with customers
Satisfied and productive service employees
Greater service value
Satisfied and loyal customers
Repeat purchasing and word of mouth advertising
Healthy service profits and growth
Main marketing tasks: service differentiation, service quality, and productivity
©Copyright 2004, Pearson Education Canada Inc.

12. Looking Back Classifications of product and services
Branding, packaging, labelling, and support services
Product line and mix decisions
Characteristics of services
Additional marketing considerations for services
©Copyright 2004, Pearson Education Canada Inc.