1. Product and Services Strategy
Chapter 8
Product and Services Strategy

2. What is a Product?
Anything that can be offered to a market for attention, acquisition, use or consumption.
Satisfies a want or a need.
Includes:
Physical Products
Services
Persons
Places
Organizations
Ideas
Combinations of the above

3. What is a Service?
A Service is a form of product that consist of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.
Examples include:
Banking
Hotels
Tax Preparation
Home Repair Services

4. Products, Services, and Experiences
Service With Accompanying Minor Goods
Tangible Good With Accompanying Services
Pure Tangible Good
Hybrid Offer
Pure Service
Auto With Accompanying Repair Services
Airline Trip With Accompanying Snacks
Soap
Restaurant
Doctor’s Exam
The Product-Service Continuum

5. Product Levels Fig 8-1 Core Benefit or Service Augmented Product
Installation
Fig 8-1
Packaging
Brand
Name
Features
Delivery
& Credit
After-
Sale
Service
Core
Benefit or
Service
Quality
Styling
Warranty
Actual Product
Core Product

6. Product Classifications Consumer Products
Convenience Products
Buy frequently & immediately
Low priced
Mass advertising
Many purchase locations
i.e Candy, newspapers
Shopping Products
Buy less frequently
Higher price
Fewer purchase locations
Comparison shop
i.e Clothing, cars, appliances
Specialty Products
Special purchase efforts
High price
Unique characteristics
Brand identification
Few purchase locations
i.e Lamborghini, Rolex
Unsought Products
New innovations
Products consumers don’t
want to think about these products
Require much advertising &
personal selling
i.e Life insurance, blood donation

7. Product Classifications Industrial Products
Materials
and
Parts
Capital
Items
Supplies
and
Services

8. Product Classifications Other Marketable Entities
Activities undertaken to create, maintain, or change the attitudes and behavior toward the following:
Organizations - Profit (businesses) and nonprofit (schools and churches).
Persons – Politicians, entertainers, sports figures, doctors and lawyers.
Places - Business sites and tourism.
Ideas (social ideas marketing) – public health campaigns, environmental campaigns, and others such as family planning, or human rights.

9. Individual Product Decisions (Fig. 8.2)
Product Attributes
Branding
Labeling
Packaging
Product Support Services

10. Product Attributes
Developing a Product or Service Involves Defining the Benefits that it Will Offer Such as:
Product Quality
Product Features
Product Style
& Design
Ability of a Product to Perform Its Functions; Includes Level & Consistency
Help to Differentiate the Product from Those of the Competition
Process of Designing a Product’s Style & Function

11. Branding Advantages of Brand Names Brand Equity Consistency
Quality & Value
Attributes
Identification
Advantages of
Brand Names
Brand
Equity
High Brand
Loyalty
Strong Brand
Association
Name Awareness
Perceived Quality

12. Major Branding Decisions (Fig. 8.3)
Brand Name Selection
Selection
Protection
Major Branding Decisions (Fig. 8.3)
Brand Sponsor
Manufacturer’s Brand
Private Brand
Licensed Brand
Co-branding
Brand Strategy
Line Extensions
Brand Extensions
Multibrands
New Brands

13. Four Brand Strategies (Fig. 8.4)
Line Extension
Dannon Yogurt Flavors
Multibrands
Seiko Lasalle & Pulsar
Brand Extension
Barbie Electronics
New Brands
Windex (by acquisition)
Brand Name
Existing
New
Product Category

14. Good Brand Names: Become distinctive Are free from poor foreign
language meanings
Suggest product qualities
Suggest product benefits
Are easy to pronounce,
recognize, remember

15. Packaging
Activity of designing and producing the container or wrapper for a product.
Packaging used to just contain and protect the product.
Packing now has promotional value and marketers should:
Establish a packaging concept,
Develop specific elements of the package,
Tie together elements to support the positioning and marketing strategy.

16. 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.

17. Product - Support Services
Companies should design its support services to profitably meet the needs of target customers and gain competitive advantage.
How?
Step 1. Survey customers to assess the value of current services and to obtain ideas for new services.
Step 2. Assess costs of providing desired services.
Step 3. Develop a package of services to delight customers and yield profits to the company.

18. Product Line Decisions
Product Line Length
Number of Items in the Product Line
Stretching
Lengthen beyond current range
Filling
Lengthen within current range
Downward
Upward

19. Product Mix Decisions Consistency
Width - number of different product lines
Length - total number of items
within the lines
Product Mix -
all the product
lines offered
Consistency
Depth - number of versions of each product

20. Nature and Characteristic of a Service
Intangibility
Inseparability
Can’t be seen, tasted, felt, heard, or smelled before purchase.
Can’t be separated from service
providers.
Quality depends on who provides them and when, where and how.
Can’t be stored for later sale or use.
Variability
Perishability

21. Marketing Strategies for Service Firms
Managing Service Differentiation
Develop differentiated offer, delivery and image.
Managing Service Quality
Empower front-line employees,
Become “Customer obsessed”,
Develop high service quality standards,
Watch service performance closely.
Managing Service Productivity
Train current or new employees better,
Work on quality as well as quantity,
Utilize technology.

22. Service Differentiation
Offer
Delivery
Image 1

23. Service Firm Marketing Strategies
Additional Ps to service marketing:
People
Physical evidence
Process
Interactive marketing
Functional quality
Technical quality