1. Chapter 1 Product, Services, and Branding Strategy7
Product, Services, and Branding Strategy

2. ROAD MAP: Previewing the Concepts
Define product and the major classifications of products and services.
Describe the roles of product and service branding, packaging, labeling, and product support 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.

3. 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.

4. 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.

5. The Product-Service Continuum
College Education
Sugar
Restaurant
Pure Tangible Good
Pure Service

6. A Krispy Kreme isn’t just a doughnut. It’s a truly sweet experience.

7. Chapter 1
Levels of a Product

8. Consumer Products
Products and services bought by final consumers for personal consumption.

9. Convenience Products Purchased frequently and immediately Low priced
Mass advertising
Many purchase locations
Examples: candy, soda, newspapers

10. Shopping Products Bought less frequently Higher price
Fewer purchase locations
Comparison shop
Examples: furniture, clothing, cars, appliances

11. Specialty Products Special purchase efforts High price
Unique characteristics
Brand identification
Few purchase locations
Examples: Lamborghini, Rolex Watch

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

13. Industrial Products
Those purchased for further processing or for use in conducting business.

14. Industrial Products Materials and Parts Capital Items
Chapter 1
Industrial Products
Materials and Parts
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

15. 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.

16. Organization Marketing
Companies use corporate image advertising to market themselves to various publics. General Electric Stands for “imagination at work.”

17. Individual Product Decisions
Chapter 1
Individual Product Decisions

18. Product and Service Attributes
Chapter 1
Product and Service Attributes
Quality
Features
Style & Design
Performance and Satisfaction Includes Level & Consistency
Differentiates a product from the competition; assessed based on value and cost
Style = Appearance
Design = heart of the product

19. Product Design
The innovative Discover 2GO card is a gotta-have-it accessory for people who want to dash off to the gym, the mall, or a restaurant with nothing more than their keys and a credit card.

20. 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.

21. 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

22. Packaging
Designing and producing the container or wrapper for a product.
Developing a good package:
Packaging concept
Package elements
Product safety
Environmental concerns

23. Innovative Packaging
Dutch Boy recently came up with a long overdue innovation—paint in plastic containers with twist-off caps.

24. 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

25. Innovative Labeling
Innovative labeling can help to promote a product.

26. 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.

27. Product Line Decisions
Chapter 1
Product Line Decisions
Product Line Length
Number of Items in the Product Line
Filling
Lengthen within current range
Stretching
Lengthen beyond current range.
Can be:
Downward
Upward
Both Directions

28. 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.

29. Click the picture above to play video
Line Extension
As Marriott’s product extension grew in popularity, it extended the product further.
Click the picture above to play video

30. 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.
Depth: the number of versions offered of each product in the line.
Consistency: how closely related the various lines are.

31. 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

32. Major Brand Strategy Decisions

33. Brand Positioning Product Attributes Product Benefits
Can position brands at any of three levels.
Product Attributes
Product Benefits
Beliefs and Values

34. 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

35. Manufacturer’s Brands
Brand Sponsorship
Manufacturer’s Brands
Four Options
Co-Branding
Private
Brands
Licensed Brands

36. Line Extensions
Morton sells an entire line of salts and seasonings for every occasion.

37. 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.

38. Interactive Student Assignment
Chapter 1
Choose a partner and go to the following website:
Tide Products
Look at the various line extensions (e.g., liquid, powder, etc.) and determine why they were developed.

39. 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.

40. Nature and Characteristics of a Service
Chapter 1
Nature and Characteristics of a Service

41. Chapter 1
Discussion Question
How can an airline deal with the intangibility, inseparability, variability, and perishability of its service offering?

42. The Service-Profit Chain

43. 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.

44. International Product and Services Marketing
Decide Which Products & Services to Introduce
Decide How Much to Standardize or Adapt
Chapter 1
International Product and Services Marketing
Packaging Presents New Challenges
Service Marketers Face Special Challenges
Trend Toward Global Service Companies Will Continue

45. Rest Stop: Reviewing the Concepts
Chapter 1
Rest Stop: Reviewing the Concepts
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 companies make in building and managing their brands.

46. Rest Stop: Reviewing the Concepts
Chapter 1
Rest Stop: Reviewing the Concepts
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.