7-1

Chapter Seven

Product, Services, and Branding Product, Services, and Branding StrategyStrategy

7-2

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.

7-3

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.

7-4

The Product-Service Continuum

Sugar Restaurant University Education

Pure Tangible Good

Pure Service

7-5

Levels of a Product

7-6

Core Benefit:-Core Benefit:-

• The most basic level of a product is the CORE BENEFIT which answers the question “What is the buyer really buying?”

• When designing the products, marketers must first define the core, problem solving benefits or services that consumers seek.

7-7

Actual product:-

• At this second level, product planners At this second level, product planners must must turn the core benefit into actual turn the core benefit into actual product. product.

• They need to develop product and service They need to develop product and service features, design a quality level, a brand features, design a quality level, a brand name, and packagingname, and packaging..

7-8

Augmented product:-

• Finally all product manufactures must build an augmented product around the core benefit and actual product by offering additional customer services and benefits.

7-9

Comparison of the Product Concepts of Full Service vs. No Frills or Budget Airlines

7-10

7-11

The Evolving Product Concept in Coffee Marketing

7-12

Products and Service Classifications

• Based on the type of consumers that use the products, we can classify the products and services into two groups.

• One is Industrial products and the other is Consumer products

7-13

Consumer Products

• Products and services bought by final consumers for personal consumption.

7-14

Convenience Products

• Purchased frequently and immediately

• Low priced

• Mass advertising

• Many purchase locations– Examples: candy, soda, newspapers

7-15

Shopping Products

• Bought less frequently

• Higher price

• Fewer purchase locations

• Comparison shop – Examples: furniture, clothing, cars, appliances

7-16

Specialty Products

• Special purchase efforts

• High price

• Unique characteristics

• Brand identification

• Few purchase locations– Examples: Ferrari, Rolex Watch

7-17

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

7-18

Industrial Products

• Those purchased for further processing or for use in conducting business.

7-19

Supplies and Services Operating supplies, repair,

and maintenance items

Supplies and Services Operating supplies, repair,

and maintenance items

Materials and PartsRaw materials, manufactured

materials, and parts

Materials and PartsRaw materials, manufactured

materials, and parts

Capital ItemsProducts that aid in

buyer’s production or operations

Capital ItemsProducts that aid in

buyer’s production or operations

Industrial Products

7-20

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.

7-21

Individual Product Decisions

7-22

Product and Service Attributes

Quality Quality

FeaturesFeatures

Style & DesignStyle & Design

Performance and Satisfaction Includes Level & ConsistencyPerformance and Satisfaction Includes Level & Consistency

Differentiates a product from the competition; assessed based on

value and cost

Differentiates a product from the competition; assessed based on

value and cost

Style = AppearanceDesign = heart of the product

Style = AppearanceDesign = heart of the product

7-23

Branding

• 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.

7-24

Branding

• Advantages to buyers:– Product identification– Product quality

• Advantages to sellers:– Basis for product’s quality story– Provides legal protection– Helps to segment markets

7-25

Packaging

• Designing and producing the container or wrapper for a product.

• Developing a good package:– Packaging concept

– Package elements

– Product safety

– Environmental concerns

7-26

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

7-27

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.

7-28

Stretching

Lengthen beyond current range.

Can be:

Downward

Upward

Both Directions

Product Line LengthProduct Line LengthNumber of Items in the Product Line

Product Line LengthProduct Line LengthNumber of Items in the Product Line

Filling

Lengthen within current range

Product Line Decisions

7-29

Product line of Passenger cars of Toyota

7-30

Product Line Stretching

7-31

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.

7-32

Product Mix Decisions

Product Mix: all of the product lines and items that a particular seller offers for sale.

• Width: the number of different product lines the company carries.

• Length: the total number of items the company carries in its product line

• Depth: the number of versions offered of each product in the line.

• Consistency: how closely related the various lines are.

Product mix

7-33

7-34

The Product Mix and

Implications for

Marketing Strategy

Figure 7.6

7-35

Brand Development Strategies

7-36

Brand Development

• Line 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.

7-37

Brand Development

• Multibranding: 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.