This document discusses product and service definitions, levels of products and services, product classifications, attributes, branding, packaging, labeling, and service marketing strategies. It defines products and services, explains the core, actual, and augmented levels of products. It also covers consumer and industrial products, attributes like quality, features, style, branding, packaging, and labeling. Finally, it discusses internal, external, and interactive aspects of service marketing and the service profit chain.

1. Product , Product Mix & Branding Strategy
Definition of a Product :
Anything offered to a Market for attention, acquisition ,
consumption purpose and satisfy a want or a need
Definition of a Service :
Services are a form of product that consists of activities, benefits
offered for a price and are essentially intangible and do not result
in the ownership of anything.
Services too like products satisfy the customer and create value.
e.g. services of Banks, Airlines, Hotel, Hospital ( doctor ) .etc.
Market consists of both tangible and intangible goods ( products &
services )
Market offers pure products, pure services and also a combination
of both.

2. Levels of Product and Services :
Product planners ( one who develops products) and service
providers should think on three levels.
The Core Benefit : What is the buyer really buying?
When designing products , marketers must first define the core ,
problem- solving benefits or services that consumers seek.
e.g. a customer buying a Black Berry is buying more than a
wireless mobile phone, e-mail and web browsing device or
personal organizer.
They are buying “ freedom and on-the –go connectivity “
to people and resources.

3. At the second level, product planners must turn the core
benefit into an actual product.
They need to develop product and service features , design ,
quality level, a brand name and packaging.
The Black Berry is an actual product, its name, parts style,
features, packaging and other attributes have been combined
carefully to deliver the core benefit of staying connected.
Finally, product planners must build an augmented product
around the core benefit and actual product by offering
additional consumer services and benefits.

4. Product and Service and Classifications
Two types of Products : Consumer Products & Industrial
Products
A. Consumer products
i. Convenience products : Products bought for immediate
consumption….e.g. toothpaste, soap, cigarette, laundry
services…less planning and comparison.
ii. Shopping products : less frequent purchase, planning, more
effort on selection of the product based on brand, price ,
quality and style.
e.g. major appliances, furniture, clothing

5. iii. Specialty products : Strong brand preference and loyalty,
special purchase effort, little comparison of brand and low price
sensitivity …..
e.g. Luxury items like Rolex watch, or tanishq necklace
iv. Unsought products : little awareness or product knowledge or
even if awareness is there, there is negative demand.
e.g. Life insurance products
B. Industrial Products : are those purchased for further processing
or for use in conducting a business.
Raw materials , capital goods and industrial services.

6. Products and Service Attributes
Product
Attributes
Branding Packaging Labeling
Product
Support
Services
Product attributes refer to the quality, features, style and design.
Product Quality is one of the marketer’s major positioning tools.
Quality has a direct impact on customer value and satisfaction.
TQM –Total Quality Management is an approach in which all the
company’s people are involved in constantly improving the
quality of products, services and business processes.
Product or Service Quality has two aspects – performance Quality
and quality consistency
The bottom line results depend on the efoorts taken on quality.
e.g. Rolls Royce provides higher perf. Quality than Chevrolet.

7. Product features :
A product can be offered with varying features. The company can
create higher - level models or better version by adding more
features. Features are a competitive tool for differentiating
The company should periodically survey buyers who have used the
product and ask questions like ….
how do you like the product ?
Which specific features of the product do you like most ?
Which features should we add to improve the product ?
Features that customers value highly in relation to costs should be
added.

8. Product Style and Design:
Another way to add customer value is thru’ distinctive product style
and design.
Design is a larger concept than style.
Style simply describes the appearance of a product. Style can be eye
catching.
A sensational style may grab the attention , but not necessarily that
it makes the product perform better.
Good design begins with deep understanding of customer needs.
After a careful study of customers on existing products, designs are
developed.
Just as good design improves customer value, cut costs and create
strong competitive edge, poor design can result in lost sales and
embarrassment.
e.g. Ingersoll- Rand ( Kryptonite lock )

9. Branding
The most distinctive skill of professional marketers is their ability
to build and manage brands.
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.
Consumers view a brand as most important part of a product
and branding can add value to a product.
Branding as become so strong, that today hardly anything goes
unbranded.
E.g. Salt is packed in branded containers, so also nuts bolts etc.
are packed with distributor’s label.
Brand also also say something about product quality and
consistency.
Building and managing brands are perhaps the marketer’s most
important tasks.

10. Packaging
Packaging involves designing and producing the container or wrapper for
a product,
Traditionally the primary function of the package was to hold and
protect the product.
In recent times. Numerous factors have made packaging an important
marketing tool.
E.g.. an average supermarket stocks – 15,000 to 17,000 items, and a
typical shopper passes by some 300 items per minute and 60% of all
purchases are made on impulse.
Companies are realising the power of good packaging to create instant
consumer recognition.
Today product safety has become important and also environmentally
responsible packaging materials are used .

11. Labelling
Labels range from simple tags attached to products to complex
graphics that are part of the package..
They perform several functions .
At the very least , the label identifies the product or brand such as
the name.
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.
Finally the label might help to promote the product and support
its positioning.

12. Product Support Services :
Product Line Decisions :
Product strategy calls for building a product line.
A 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.
e.g. H.P sells printers as well as cartridges.

13. Product Mix
A product mix consists of all the product lines and items that a particular seller
offers for sale .
E,g. Colgate’s product mix ….includes more 20 itemsc – like paste , toothbrush ,
oral care, personal care, ( several sublines )
E.g. Johnson and Johnson……product mix
Brand Equity : Brands are more than just names and symbols. They are key
element in the company’s relationships with consumers.
Brands represent consumers’ perceptions and feelings about a product and its
performance.
One measure of a brand ‘s equity is the extent to which customers are willing to pay
more for the brand.
Brand value of Coco-cola is $67 billion, Microsoft - $ 57 billion, IBM -$ 56 billion.
World’s most valuable brands include Nokia, Toyota, McDonald’s….

14. Co-Branding
The practice of using the established brand names of two different companies on the
same product.
Brand Development
Line Extension : Extending an existing brand name to new forms , colors, sizes ,
ingredients or flavors of an existing product category…
e.g. Lays chips
Brand Extension : Extending a current brand name to new or modified product
category.
e.g. Kimberly-Clark extended its market leading Huggies brand from disposable diapers to
a full line of toiletries for tots , ----- from shampoos, lotions, diaper-rash ointments.
New Brand names : A company might believe that the power of its existing
brand name is waning and a new brand name is needed, or it may create a new
brand name when it enters a new product category.

15. Service Marketing : Four characteristics of Service
Services
Intangibility Inseparability
Variability
Perishability
Customer satisfaction is derived and retained by the degree
of the service characteristics.

16. Three types of Service Marketing
Internal
Marketing
External
Marketing
Interactive
Marketing
Company
CustomersEmployees

17. Service Profit Chain :
The chain that links the service firm profits with employee and
customer satisfaction.
Managing Service Differentiation
Managing Service Quality
Managing Service Productivity
Internal Marketing : Orienting and motivating customer- contact employees
and the supporting service people to work as a team to provide customer
satisfaction.
Interactive Marketing : Training service employees in the fine art of
interacting with customers to satisfy their needs.