1. Products, Services and Brands: Building Customer Value
A Presentation On
Products, Services and Brands: Building Customer Value

2. Products, Services, and Experiences
What Is a Product?
Products, Services, and Experiences
Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want
Soap
Toothpaste

3. Products, Services, and Experiences
What Is a Product?
Products, Services, and Experiences
Service is a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in ownership
Doctor’s exam
Financial services

4. Products, Services, and Experiences
What Is a Product?
Products, Services, and Experiences
Experiences represent what buying the product or service will do for the customer
Disney
Airlines

5. Levels of Product & Services
What Is a Product?
Levels of Product & Services
basic level is the core customer value. It represents what the buyer is really buying
Second level is turning the core benefits into an actual product. It represents the design, brand name, and packaging that delivers the core benefit to the customer
In the third stage building an augmented product by offering additional consumer services and benefits

6. Levels of Product Augmented Product Product Levels Installation
This CTR corresponds to Figure 8-1 on p. 239 and relates to the material on pp
Levels of Product
Installation
Packaging
Brand
Name
Features
Delivery
& Credit
After-
Sale
Service
Core
Benefit or
Service
Product
A product is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. Products can be physical objects, services, persons, places, organizations, and ideas.
Product Levels
Core Product. This concept refers to the use-benefit, problem-solving service that the consumer is really buying when purchasing a product.
Actual Product. The actual product is the tangible product or intangible service that serves as the medium for receiving core product benefits. Five characteristics:
Quality Level refers to product performance.
Features include combinations of product attributes.
Design consists of aesthetic or ergonomic aspects of the product.
Brand Name may help consumers position and identify the product.
Packaging serves to both protect the product and to promote it to consumers.
Augmented Product. The augmented consists of the measures taken to help the consumer put the actual product to sustained use. Measures can include installation, delivery & credit, warranties, and after sale service.
Quality
Level
Design
Warranty
Actual
Product
Core
Product

7. Product and Service Classifications
What Is a Product?
Product and Service Classifications
There are two types of products:
Consumer Products
Industrial Products

8. Product and Service Classifications
What Is a Product?
Product and Service Classifications
Consumer products are products and services for personal consumption
It is classified by how consumers buy them
Consumer Products
Convenience Products
Shopping Products
Specialty Products
Unsought Products

9. Product and Service Classifications
What Is a Product?
Product and Service 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
Soft drinks
Cigarettes.

10. Product and Service Classifications
What Is a Product?
Product and Service Classifications
Shopping products
Consumer products and services that the customer compares carefully on suitability, quality, price, and style
Furniture
Cars
Appliances
Jewelry
Hotel

11. Product and Service Classifications
What Is a Product?
Product and Service Classifications
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

12. Product and Service Classifications
What Is a Product?
Product and Service Classifications
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

13. Product and Service Classifications
What Is a Product?
Product and Service Classifications
Industrial products are products purchased for further processing or for use in conducting a business
Industrial Products
Materials
And
Parts
Capital
Items
Supplies
and
Services

14. Product and Service Classifications
What Is a Product?
Product and Service Classifications
Materials and parts include raw materials and manufactured materials and parts usually sold directly to industrial users.
Wheat
Iron
Cement
Cotton

15. Product and Service Classifications
What Is a Product?
Product and Service Classifications
Capital items are industrial products that aid in the buyer’s production or operations.
Buildings
Elevators
Computers

16. Product and Service Classifications
What Is a Product?
Product and Service Classifications
Supplies and services include operating supplies, repair and maintenance items, and business services.

17. Organizations, Persons, Places, and Ideas
What Is a Product?
Organizations, Persons, Places, and Ideas
Organizations-Profit (businesses) and Nonprofit (colleges, churches and museums)
Persons –Entertainers, doctors, lawyers and architects
Places-Tourist attracting sites, new residents, company offices and factories
Social –Reduce smoking, drug abuse, family planning and human rights

18. INDIVIDUAL PRODUCT AND SERVICE DECISION
Product and Service Decisions
INDIVIDUAL PRODUCT AND SERVICE DECISION
LINE DECISION
PRODUCT MIX DECISION

19. Product and Service Decisions
Individual Product and Service Decisions
Product
attributes
Branding
Packaging
Labeling
Product
Support
services

20. Product and Service Decisions
Individual Product and Service Decisions
Product attributes are the benefits of the product or service
Quality
Features
Styles
&
Design

21. Product and Service Decisions
Individual Product and Service Decisions
Product quality includes level and consistency
Quality level is the level of quality that supports the product’s positioning.
Conformance quality is the product’s freedom from defects and consistency in delivering a targeted level of performance.

22. Product and Service Decisions
Individual Product and Service Decisions
Product features are a competitive tool for differentiating a product from competitors’ products
Product features are assessed based on the value to the customer versus the cost to the company

23. Product and Service Decisions
Individual Product and Service Decisions
Style describes the appearance of the product
Design contributes to a product’s usefulness as well as to its looks. It goes to the very heart of a product

24. Product and Service Decisions
Individual 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
Brand equity is the differential effect that the brand name has on customer response to the product and its marketing

25. Product and Service Decisions
Individual Product and Service Decisions
Packaging involves designing and producing the container or wrapper for a product
The primary function of the package was to hold and protect the product

26. Product and Service Decisions
Individual Product and Service Decisions
Labeling identifies the product or brand, describes attributes, and provides promotion

27. Product and Service Decisions
Individual Product and Service Decisions
The label might also describe several things about the product-
who made it
where it was made
when it was made
its contents
how it is to be used and
how to use it safely

28. Product and Service Decisions
Individual Product and Service Decisions
Product support services augment actual products
Companies must continually:
Assess the value of current services to obtain ideas for new ones
Assess the costs of providing these services
Develop a package of services to satisfy customers and provide profit to the company

29. Product and Service Decisions
Product Line 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.

30. Product and Service Decisions
Product Line Decisions
Product line length is the number of items in the product line
Product Line Length
Line Filling
Line Stretching
Upward
Downward
Both Ways

31. Product and Service Decisions
Product Line Decisions
Line filling: adding more items within the present range of the line
More profits
Satisfying dealers
Line stretching: when a company lengthens its product line beyond its current range
Downward: add low-end products
Upward: add prestige to the current products
Both ways: achieve both goals of line filling and line stretching

32. Product and Service Decisions
Product Mix Decisions
Product mix consists of all the products and items that a particular seller offers for sale
A company's product mix has four important dimensions

33. Product and Service Decisions
Product Mix Decisions
Width:
total number of different product lines the company carries
Length:
total number of items the company carries within its product lines
Depth:
number of versions offered of each product in the line
Consistency:
how closely related the various product lines are in end use, production requirements, distribution channels or some other way

34. Branding Strategy: Building Strong Brands
Brand represents the consumer’s perceptions and feelings about a product and its performance.
Brand Equity
Brand equity is the positive differential effect that knowing the brand name has on customer response to the product or service.

35. Building Strong Brands
Brand positioning
Attributes
Benefits
Beliefs and values
Brand name selection
Selection
Protection
Brand sponsorship
Manufacturer’s brand
Private brand
Licensing
Co-branding
Brand development
Line extensions
Brand extensions
Multibrands
New brands

36. Branding Strategy: Building Strong Brands
Brand Positioning
Brand positioning includes:
Product attributes
Product benefits
Product beliefs and values

37. Branding Strategy: Building Strong Brands
Brand Name Selection
Desirable qualities
Suggest benefits and qualities
Easy to pronounce, recognize, and remember
Distinctive
Extendable
Translatable for the global economy
Capable of registration and legal protection

38. Branding Strategy: Building Strong Brands
Brand Sponsorship
Manufacturer’s brand:
A brand created and owned by a manufacturer of a product or service
Private brand (store)
A brand created and owned by a reseller of a product or service
Licensed brand:
license names or symbols previously created by other manufacturers, names of well-known celebrities, or characters from popular movies and books
Co-brand:
Co-branding occurs when two established brand names of different companies are used on the same product

39. Branding Strategy: Building Strong Brands
Brand Development Strategies
Product Category
Existing
New
Line
Extensions
Brand
Extension
Existing
Brand Name
Multibrands
New Brands
New

40. Branding Strategy: Building Strong Brands
Brand Development Strategies
Line extensions
occur when a company extends existing brand names to new forms, colors, sizes, ingredients, or flavors of an existing product category
Brand extensions
extend a brand name to a new or modified product in a new category
Multibrands
additional brands in the same category
New brands
are used when existing brands are inappropriate for new products in new product categories or markets

41. Branding Strategy: Building Strong Brands
Requires:
Continuous brand communication
Customer-centered training
Brand audits
Managing Brands

42. Types of Service Industries
Services Marketing
Types of Service Industries
Government
Private not-for-profit organizations
Business services

43. Services Marketing 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
Services
Variability
Quality of services depends on who provides them and when, where and how
Perishability
Services cannot be stored for later sale or use.

44. Marketing Strategies for Service Firms
Services Marketing
Marketing Strategies for Service Firms
In addition to traditional marketing strategies, service firms often require additional strategies
Service-profit chain
Internal marketing
Interactive marketing

45. Marketing Strategies for Service Firms
Service-profit chain

46. Marketing Strategies for Service Firms
Services Marketing
Marketing Strategies for Service Firms
Service-profit chain links service firm profits with employee and customer satisfaction
Internal service quality
Satisfied and productive service employees
Greater service value
Satisfied and loyal customers
Healthy service profits and growth

47. Three Types of Service Marketing
Marketing Strategies for Service Firms
Three Types of Service Marketing
Company
Internal Marketing
External Marketing
Employee
Customers
Interactive Marketing

48. Marketing Strategies for Service Firms
Internal marketing
Orienting and motivating customer-contact employees and supporting service people to work as a team to provide customer satisfaction

49. Interactive marketing
Marketing Strategies for Service Firms
Interactive marketing
Training service employees in the fine art of interacting with customers to satisfy their needs

50. Marketing Strategies for Service Firms
External Marketing
Product
Variety
Quality
Design
Features
Brand name
service
Packaging
Price
List Price
Discounts
Allowance
Payment Period Credit terms
4 P’S
Promotion
Advertising
Personal selling
Sales Promotion
Public Relations
Place
Channels
Coverage
Assortments
Locations Inventory
Transportations Logistics

51. Marketing Strategies for Service Firms
Major Marketing Tasks
Managing Service Differentiation
creates a competitive advantage from the offer, delivery, and image of the service
Managing Service Quality
Empower employees
Responsibility
Authority
Incentive
Managing Service Productivity
Train current or new employees
Increase quantity by decreasing qualities technology