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Chapter EightProduct, Services, and Brands: Building

Customer Value

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Product, Services, and Branding Strategy

Product, Services, and Experiences Product and Services Decisions Services Marketing Branding Strategy: Building Strong

Brands

Topic Outline

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What Is a Product?

Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want

Service is a product that consists of activities, benefits or satisfaction that is essentially intangible and does not result in the ownership of anything

Products, Services, and Experiences

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What Is a Product?

Experiences represent what buying the product or service will do for the customer

Products, Services, and Experiences

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What Is a Product?

Product and Service Classifications

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What Is a Product?

Consumer products are products and services for personal consumption

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Product and Service Classifications

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Classified by how consumers buy them:

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Consumer Product Classifications

Convenience products consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort Newspapers Candy Fast food

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Product and Service Classifications

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Shopping products consumer products and services

that the customer compares carefully on suitability, quality, price, and style Furniture Cars Appliances

Product and Service Classifications

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Consumer Product Classifications

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Specialty products consumer products and services with

unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort

Medical services Designer clothes High-end electronics

Product and Service Classifications

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Consumer Product Classifications

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Unsought products consumer products that the consumer

does not know about or knows about but does not normally think of buying

Life insurance Funeral services Blood donations

Product and Service Classifications

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Consumer Product Classifications

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Industrial products products purchased for further processing

or for use in conducting a business Classified by the purpose for which the

product is purchasedMaterials and partsCapitalRaw materials

Product and Service Classifications

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Industrial Product Classifications

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Capital items are industrial products that aid in the buyer’s production or operations

Materials and parts include raw materials and manufactured materials and parts usually sold directly to industrial users

Supplies and services include operating supplies, repair and maintenance items, and business services

Product and Service Classifications

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Industrial Product Classifications

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Product and Service Decisions

Individual Product and Service Decisions

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Product and Service Decisions

Product or service attributescommunicate and deliver the

benefits Quality Features Style and design

Product Attributes

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Product and Service Decisions

Product Quality Level is the level of quality that supports the product’s positioning

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Product Attributes

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Product and Service Decisions

Product features are a competitive tool for

differentiating a product from competitors’ products

are assessed based on the value to the customer versus the cost to the company

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Product Attributes

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Product and Service Decisions

Style describes the appearance of the product

Design contributes to a product’s usefulness as well as to its looks

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Product Attributes

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Product and Service Decisions

Brand is the name, term, sign, or design—or a combination of these—that identifies the maker or seller of a product or service

Branding

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Product and Service Decisions

Packaging involves designing and producing the container or wrapper for a product

Labels identify the product or brand, describe attributes, and provide promotion

Packaging and Labeling

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Product and Service Decisions

Product support services augment actual products.

Product Support Services

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Product and Service Decisions

Product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges

Product Line Decisions

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Services Marketing

Government Private not-for-profit

organizations Business services

Types of Service Industries

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Services Marketing

Nature and Characteristics of a Service

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Services Marketing

Managing service productivity refers to the cost side of marketing strategies for service firms

Employee recruiting, hiring, and training strategies

Service quantity and quality strategies

Marketing Strategies for Service Firms

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Branding Strategy: Building Strong Brands

Brand equityThe differential effect that knowing thebrand name has on customer

response tothe product or its marketing.

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Branding Strategy: Building Strong Brands

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Branding Strategy: Building Strong Brands

Brand strategy decisions include:

Product attributes Product benefits Product beliefs and

values

Brand Positioning

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Desirable qualities 1. Suggest benefits and qualities2. Easy to pronounce, recognize, and

remember3. Distinctive4. Extendable5. Translatable for the global economy6. Capable of registration and legal

protection

Brand Name Selection

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Branding Strategy: Building Strong Brands

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Manufacturer’s brandPrivate brandLicensed brandCo-brand

Brand Sponsorship

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Branding Strategy: Building Strong Brands

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Brand Development Strategies

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Branding Strategy: Building Strong Brands

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Marketing Plan :SWOT Analysis

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SWOT Analysis

Analysing a company’s: • Strengths• Weaknesses• Opportunities• Threats

Analyzing a company’s :

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History of SWOT Analysis

Developed at StanfordFunded by Fortune 500 companiesTook 9 years to developInvolved 5000 interviews

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SWOT Analysis is…

… A strategic planning tool that separates influences on a business’s future success into internal and external factors.

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SWOT Analysis

Marketing Analysis – SWOT Analysis

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A strength

Superior product quality Lowest price Best expertise Location

Can be a competitive advantage like…

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A weakness

A tired brand

Inferior location

High overheads

A lack of R&D

Can be a disadvantage such as…

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An opportunity can be… A regulatory or tax change

A high-profile event (marketing opportunity)

An untapped market

A gap left by a failed competitor

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A threat can be… Unfavourable regulation changes

A new entrant into the market

Problems with the economy

Market shrinkage

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Let us consider the example of Proton. This company’s SWOT can be summarised as follows: