The document discusses various topics related to products and services, including: - Definitions of products, goods, services and experiences. Products satisfy needs and wants. - Classification of consumer and industrial products. Consumer products are for personal use and classified by purchase patterns. Industrial products are for business use. - Levels of products including core benefits, actual products, and augmented products. - Product mix dimensions of width, length, depth and consistency. - Types of product decisions around product lines, branding, packaging and labeling. Strong brands create loyalty and value. Packaging and labels identify and promote products. - Nature of services being intangible, inseparable from the provider, and

1. Product and Services

3. What is a Product?
 Goods
 Services
 Experiences
 Events
 Persons
 Places
 Properties
 Organizations
 Information
 Ideas

4. 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
8-4

5. What Is a Product?
Product and Service Classifications
• Consumer products
• Industrial products
8-9

6. What Is a Product?
Product and Service Classifications
Consumer products are products and
services for personal consumption
• Classified by how consumers buy them
• Convenience product
• Shopping products
• Specialty products
• Unsought products
8-10

7. What Is a Product?
Product and Service Classifications
Convenience products are consumer
products and services that the customer
usually buys frequently, immediately, and
with a minimum comparison and buying
effort
• Newspapers
• Candy
• Fast food
8-11

8. What Is a Product?
Product and Service Classifications
Shopping products are consumer products
and services that the customer compares
carefully on suitability, quality, price, and
style
• Furniture
• Cars
• Appliances
8-12

9. What Is a Product?
Product and Service Classifications
Specialty products are 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
8-13

10. What Is a Product?
Product and Service Classifications
Unsought products are 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
8-14

11. What Is a Product?
Product and Service Classifications
Industrial products are products purchased for
further processing or for use in conducting a
business
Classified by the purpose for which the product is
purchased
• Raw Materials and parts
• Capital
• Supplies and services
8-15

12. 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
• Lumber
• Iron
• Cement
8-16

13. 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
8-17

16. What Is a Product?
Organization marketing consists of
activities undertaken to create, maintain, or
change attitudes and behavior of target
consumers toward an organization
8-18
Organizations, Persons, Places, and Ideas

17. What Is a Product?
Person marketing consists of activities
undertaken to create, maintain, or
change attitudes and behavior of target
consumers toward particular people
• Rakhi’s swayamwar
8-19
Organizations, Persons, Places, and Ideas

18. What Is a Product?
Organizations, Persons, Places, and Ideas
Place marketing consists of activities
undertaken to create, maintain, or change
attitudes and behavior of target consumers
toward particular places
• Tourism
8-20

19. What Is a Product?
Organizations, Persons, Places, and Ideas
Social marketing is the use of commercial
marketing concepts and tools in programs
designed to influence individuals’ behavior
to improve their well-being and that of
society
• Public health campaign
• Tourism
8-21

20. What Is a Product?
Experiences represent what buying the product
or service will do for the customer
• Treasure Land
• Disney land
8-6
Products, Services, and Experiences

21. 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
• Legal advice
8-5

22. The Product and Product Mix
 Potential customers judge product
offerings according to three elements:
 Product features and quality
 Services mix and quality
 Value-based prices

23. The Product and Product Mix
 The customer value hierarchy:
 Core benefit
 Basic product
 Expected product
 Augmented product
 Potential product

25. What Is a Product?
• Core benefits
• Actual product
• Augmented product
8-7
Levels of Product and Services

26. What Is a Product?
Levels of Product and Services
Core benefits represent what the buyer is really
buying
Actual product represents the design, brand name,
and packaging that delivers the core benefit to the
customer
Augmented product represents additional services or
benefits of the actual product
8-8

27. Product and Service Decisions
Product Mix Decisions
Product mix consists of all the products and
items that a particular seller offers for sale
• Width
• Length
• Depth
• Consistency
8-39

28. The Product and Product Mix
 Product mix dimensions:
 Width: number of product lines
 Length: total number of items in mix
 Depth: number of product variants
 Consistency: degree to which product lines
are related

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
8-33

30. Product and Service Decisions
Product Mix Decisions
Product mix width is the number of different
product lines the company carries
Product mix length is the total number of
items the company carries within its product
lines
8-40

31. Product and Service Decisions
Product Line Decisions
Product line depth is the number of versions
offered of each product in the line
Consistency is how closely the various
product lines are in end use, production
requirements, or distribution channels
8-41

32. Product and Service Decisions
Product Line Decisions
Product line length is the number of items in
the product line
• Line stretching
• Line filling
• Line pruning
8-34

33. Line stretching
 Down mkt stretch
 Up mkt stretch
 Two way stretch / combination line
stretching

34. Product and Service Decisions
Product Line Decisions
Combination line stretching is used by
companies in the middle range of the market
to achieve both goals of upward and
downward line stretching
8-37

35. Product and Service Decisions
Product Line Decisions
Product line filling occurs when companies
add more items within the present range of
the line
• More profits
• Satisfying dealers
• Excess capacity
• Plugging holes to fend off competitors
8-38

36. 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
8-29
Individual Product and Service Decisions

37. Brand Decisions
 The AMA definition of a brand:
“A name, term, sign, symbol, or design, or a
combination of these, intended to identify
the goods or services of one seller or
group of sellers and to differentiate them
from the competition.”

38. Branding Strategy:
Building Strong Brands
Brand represents the consumer’s perceptions
and feelings about a product and its
performance. It is the company’s promise to
deliver a specific set of features, benefits,
services, and experiences consistently to
the buyers
8-42

39. Brand Decisions
 Brands can convey six levels of meaning:
 Attributes
 Benefits
 Values
 Culture
 Personality
 User

40. Brand Decisions
 Aaker identified five levels of customer
attitudes toward brands:
 Will change brands, especially for price. No brand
loyalty.
 Satisfied -- has no reason to change.
 Satisfied -- switching would incur costs.
 Values brand, sees it as a friend.
 Devoted to the brand.

41. Brand Decisions
 Brand identity decisions include:
 Name
 Logo
 Colors
 Tagline
 Symbol
 Consumer experiences create brand bonding,
brand advertising does not.

42. Brand name decision
 Individual name – zen, esteem
 Blanket family name – GE,maruti, tata
 Separate family names- Pantaloons,
Sears, Walmart
 Corporate+individual prod. Name –
Maruti800, honda city

43. Branding Strategy:
Building Strong Brands
Brand Name Selection
Desirable qualities
• Suggests benefits and qualities
• Easy to pronounce, recognize, and
remember
• Distinctive
• Extendable
• Translatable for the global economy
8-48

44. Brand Decisions
 Marketers should attempt to create or facilitate
awareness, acceptability, preference, and
loyalty among consumers.
 Valuable and powerful brands enjoy high levels
of brand loyalty.

45. Branding Strategy:
Building Strong Brands
Brand equity is the positive differential
effect that knowing the brand name has
on customer response to the product or
service
8-43

46. Brand Decisions
 Brand equity refers to the positive differential
effect that a brand name has on customers.
 Brand equity:
 is related to many factors.
 allows for reduced marketing costs.
 is a major contributor to customer equity.

47. Branding Strategy:
Building Strong Brands
Customer equity is the value of the customer
relationships that the brand creates
Brand valuation is the process of estimating
the total financial value of the brand
8-45

48. Brand Decisions
Key Challenges
 To brand or not
 Brand sponsor
 Brand name
 Brand strategy
 Brand repositioning
 Advantages of branding:
 Facilitates order processing
 Trademark protection
 Aids in segmentation
 Enhances corporate image
 Branded goods are desired
by retailers and distributors

49. Brand Decisions
Key Challenges
 To brand or not
 Brand sponsor
 Brand name
 Brand strategy
 Brand repositioning
 Options include:
 Manufacturer (national)
brand
 Distributor (reseller,
store, house, private)
brand
 Licensing the brand
name

50. Brand Decisions
Key Challenges
 To brand or not
 Brand sponsor
 Brand name
 Brand strategy
 Brand repositioning
 Strong brand names:
 Suggest benefits
 Suggest product qualities
 Are easy to say, recognize,
and remember
 Are distinctive
 Should not carry poor
meanings in other
languages

51. Brand Decisions
Key Challenges
 To brand or not
 Brand sponsor
 Brand name
 Brand strategy
 Brand repositioning
 Varies by type of brand
 Functional brands – Maruti 800
( fuel efficient)
 Image brands – raymond
suitings
 Experiential brands-barista,
disneyland
 Line extensions
 Brand extensions
 Multibrands
 New brands
 Co-branding

52. Line ext. Brand
extension
Multi-brands New Brands
Product category
Existing New
Existing
New
Brand
Name

53. Branding Strategy:
Building Strong Brands
Brand Development
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
8-52

54. Branding Strategy:
Building Strong Brands
Brand Development
Multibrands are additional brands in the same
category
New brands are used when existing brands
are inappropriate for new products in new
product categories or markets
8-53

55. Branding Strategy:
Building Strong Brands
Brand Development
• Line extensions e.g: surf excel, excelmatic
• Brand extensions e.g:nature fresh sunflower
oil, fresh flour, honda motorcycle
• Multibrands, e.g:Maruti zen, titan sonata
• New brands
• Co-brands e.g:TATA-IBM, Birla –AT&T etc.
8-51

56. Brand Decisions
Key Challenges
 To brand or not
 Brand sponsor
 Brand name
 Brand strategy
 Brand repositioning
 A brand report card can
be used to audit a brand’s
strengths and
weaknesses.
 Changes in preferences or
the presence of a new
competitor may indicate a
need for brand
repositioning.

57. Branding Strategy:
Building Strong Brands
Brand Sponsorship
• Manufacturer’s brand-Merchandise
bearing a manufacturer's brand name,
rather than a private label brand
• Private brand - Product brands owned
by a retailer or a wholesaler rather
than the manufacturer; also called
house brands. 8-49

58. Branding Strategy:
Building Strong Brands
Private brands provide retailers with
advantages
• Product mix control
• Slotting fees for manufacturers’
brands
• Higher margins
• Exclusivity
8-50
Brand Sponsorship

59. Brand Sponsorship
• Licensed brand - A product or service
using a registered brand name offered
by the brand owner to a licensee for an
agreed fee or royalty.
• Co-branding is a process when two
companies form an alliance to work
together, creating marketing synergy.

60. Co-branding
 According to Prof.Chang there are three
levels of co-branding:
 Level 1 includes joining with another
company to penetrate the market
 Level 2 is working to extend the brand based
on the company's current market share
 Level 3 tries to achieve a global strategy by
combining the two brands

61. Types of co-branding
 Ingredient co-branding – This involves
creating brand equity for materials,
components or parts that are contained
within other products. E.g:
 Pillsbury Brownies with Nestle
Chocolate, Dell Computers with Intel
Processors

62. Types of co-branding
 same-company co-branding This is
when a company with more than one
product promotes their own brands
together simultaneously. E.g;
cosmetics, shampoo+conditioner .

63. Types of co-branding
 Joint venture co-branding two or
more companies going for a strategic
alliance to present a product to the
target audience. British Airways and
Citibank formed a partnership offering a
credit card where the card owner will
automatically become a member of the
British Airway’s Executive club

64. Types of co-branding
 multiple sponsor co-branding
involves two or more companies working
together to form a strategic alliance in
technology, promotions, sales, etc. e.g:
Citibank/American Airlines/Visa credit card
partnership

65. Branding Strategy:
Building Strong Brands
Managing Brands
Requires:
• Continuous brand communication
• Customer-centered training
• Brand audits
8-54

66. Product and Service Decisions
Individual Product and Service Decisions
Packaging involves designing and producing
the container or wrapper for a product
Label identifies the product or brand, describes
attributes, and provides promotion
8-31

67. Packaging and Labeling
 Packaging includes:
 The primary package
 The secondary package
 The shipping package
 Many factors have influenced the
increased use of packaging as a
marketing tool.

68. Packaging and Labeling
 Developing an effective package:
 Determine the packaging concept
 Determine key package elements
 Testing:

Engineering tests

Visual tests

Dealer tests

Consumer tests

69. Packaging and Labeling
 Labeling functions:
 Identifies the product or brand
 May identify product grade
 May describe the product
 May promote the product
 Legal restrictions impact packaging for
many products.

70. Services Marketing
Nature and Characteristics of a Service
• Intangibility
• Inseparability
• Variability
• Perishability
8-56

71. Services Marketing
Nature and Characteristics of a Service
Intangibility refers to the fact that services
cannot be seen, tasted, felt, heard, or
smelled before they are purchased
Inseparability refers to the fact that services
cannot be separated from their providers
8-57

72. Services Marketing
Nature and Characteristics of a Service
Variability refers to the fact that service
quality depends on who provides it as well
as when, where, and how it is provided
Perishability refers to the fact that services
cannot be stored for later sale or use
8-58

74. Services Marketing
Types of Service Industries
• Government
• Private not-for-profit organizations
• Business services
8-55

75. Services Marketing
Marketing Strategies for Service Firms
Managing service quality provides a
competitive advantage by delivering
consistently higher quality than its
competitors
Service quality always varies depending on
interactions between employees and
customers
8-64

76. Services Marketing
Marketing Strategies for Service Firms
Service recovery can turn disappointed
customers into loyal customers
• Empower employees
• Responsibility
• Authority
• Incentive
8-65

77. Marketing Strategies for Service
Firms

78. Managing ServiceManaging Service
DifferentiationDifferentiation
 Develop offer, delivery and image with
competitive advantages.

79. Managing Service QualityManaging Service Quality
 Empower employees
 Become “Customer obsessed”
 Develop high service quality
standards
 Watch service performance
closely

80. Managing Service ProductivityManaging Service Productivity
 Train current or new employees
 Increase quantity by decreasing
quality
 Utilize technology