PRODUCT, SERVICE and BRANDS:
BUILDING CUSTOMER VALUE
CHAPTER 8: LEARNING
OBJECTIVES
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Define Product
Understand the levels of product and
services
Understand the decisions companies make
regarding their individual products and
services, product lines, and product mixes
Explain how companies build and manage
their brands
Enumerate the four characteristics of
service marketing
WHAT IS A PRODUCT?
Product is anything that can be offered to a
market for attention, acquisition, use, or
consumption that might satisfy a want or
need.
—Also include services, events, persons,
place, organizations, ideas, or a mixture of
these—
EXAMPLES OF PRODUCT
EVENT
PLACE
IDEAS(new product)
SERVICES

SERVICES are 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.
EXAMPLE
S
Doctor’s
Examination
HAIR CUT
Product, Service, Experience

PURE TANGIBLE GOOD

PURE SERVICE
COMBINATION OF THIS TWO
Levels of Product
CORE
CUSTOMER
VALUE
What is
the buyer
really
buying?
ACTUAL
PRODECT
To develop
product and
service features,
design, a quality
level, a brand
name, and
packaging.
AUGMENTED
PRODUCT
Offering
additional
consumer
services and
benefits.
AUGMENTED:
ACTUAL:
INSTALLATI
ON
PACKAGING
BRAND
CREDIT/
PAYMENT
TERMS
QUALITY
LEVEL
DELIVERY
CORE:
BASIC
NEED,
BENEFIT
FEATURES
DESIGN
AFTER SALES SERVICES
WARRANTY
NOKIA N8:
THE CORE
PRODUCT:
 COMMUNICATION
 MESSAGING
THE ACTUAL PRODUCT
 PACKAGING-Anodised
Aluminium case, available
in 6 different colours.
Size: 113.5 x 59 x 12.9 mm
Weight (with battery): 135 g
Volume: 86 cc
 FEATURES-Works on
Symbian ^3, Has a 12 MP
camera, Radio and Music
player and Gaming.
 QUALITY LEVEL: Phone
camera is of exceptional
quality with HD recording.
 BRAND: Nokia, which
happens to be one of the
most trusted cell phone
brands in India.
AUGMENTED PRODUCT
 DELIVERY: Then
product can be
purchased from any
Electronic goods
showroom. It can be
also ordered online.
 INSTALLATION: Not
required.
 WARRANTY: The
product has a warranty
period of 1 year.
 AFTER SALE
SERVICES: Can be
acquired from any
Nokia service centre.
 CREDIT/PAYMENT
Product and
service
classification
Product and services classes
Consumer products
Are products and
services bought by
final consumers for
personal
consumption.

Industrial Products
A product brought by
individuals and
organizations for
further processing for
use in conducting a
business.

Types of consumer product

Consumer Product

Convenience Product

Shopping Product

Specialty Product

Unsought Product
Marketing
Consideratio
ns
Convenience
Shopping
Specialty
Unsought
Customer
buying behavior
Frequent purchase, little
planning, little
comparison or shopping
effort, low customer
involvement
Less frequent
purchase, much
planning and
shopping effort,
comparison of
brands on price,
quality, style
Strong brand
preference and loyalty,
special purchase
effort, little comparison
of brands, low price
sensitivity
Little product
awareness
Price
Low price
Higher Price
High Price
Varies
Distribution
Widespread distribution,
convenient locations
Selective
distribution in
fewer outlets
Exclusive distribution
in only one or few
outlets per market
area
Varies
Promotion
Mass promotion by the
producer
Advertising and
personal selling
by both the
producer and
resellers
More carefully
targeted promotion by
both the producer and
reseller
Aggressive advertising
and personal selling
by the producer and
reseller
Examples
Toothpaste, magazines
and detergent
Clothing and
appliances
Luxury goods such
Rolex or fine crystals
Life insurance and red
cross blood donations
Industrial Product types

Materials and parts - Raw materials and
manufactured materials and parts.

Capital Items – Industrial products that
aid in the buyer’s production or operation.

Supplies and services – Operating
supplies and repair and maintenance
items.
Organizations,
Persons,Places
and Ideas

Organization marketing
- consist of activities
undertaken to create,
maintain, or change the
attitudes and behavior
of target consumers
towards an
organization.

Person marketing consist of activities
undertaken to create,
maintain, or change the
attitudes or behavior
toward particular
people.

Place marketing 
Involves activities
undertaken to create,
maintain, or change the
attitudes or behavior
toward particular
people.
Ideas – is a concept or
mental impression,
ideas can also be
marketed. All marketing
is the marketing of an
idea.
Social Marketing
 The
use of commercial marketing
concepts and tools in programs
designed to influence individuals’
behavior to improve their well
being and that of society.
Product and Service Decisions
Product
Attributes
Branding
Packaging
Labeling
Product
Support and
Services
Product and Service Attributes
Developing a product or service involves defining
the benefits that it will offer.
Product Quality
- Product Features
- Product Style and Design
-
Total Quality Management
- - is an approach in which all of the company’s
people are involved in constantly improving the
quality of the products, services, and business.
-
Branding

A name, term, sign, symbol, design, or a
combination of these, that identifies the
products or services of one seller or group
of sellers and differentiates them from
those of competitors
Packaging

The activities of designing and producing
the container or wrapper for the product.
Labeling

The label identify the product or brand.
Product Support and Services
Product Line Decisions
- 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
range.
 Product Mix Decisions
- The set of al product lines and items
that particular seller offers for sale

• Services Marketing
– is a sub field of marketing, which can be split
into the two main areas of goods marketing
(which includes the marketing of fast moving
consumer goods (FMCG) and durables) and
services marketing. Services marketing typically
refers to both business to consumer (B2C) and
business to business (B2B) services.
Nature & Characteristics of a Service
– Company must consider four special characteristics when
designing marketing programs intangibility, inseparability,
variability, and perishability.
SERVICES
Intangibility – Services cannot be seen, tasted, felt, heard or
smelled before purchase.
Inseparability – Services cannot be separated from their
providers.
Variability – Quality of services depends on who provides
them, when, where, & how.
Perishability – Services cannot be stored for later sale or use.
 Service-Profit Chain
– Chain that links services firm profits with employee &
costumer satisfaction.
This chain consist of five links:
Internal service quality – Superior employee section &
training, a quality work environment, & strong support for
those dealing with costumer.
Satisfied & productive service employees – More satisfied,
loyal & hardworking employees.
Greater service value – More effective & efficient costumer
value.
Satisfied & loyal costumers – Satisfied costumers who
remain loyal, repeat purchase, and refer other costumers.
Healthy service profits & growth – superior service firm
performance.
Building Strong Brands
1. Brand Positioning
2.Brand Name Selection
3. Brand Sponsorship
4. Brand Development
Brand Positioning
What are the ATTRIBUTES of the
product
 What are the BENEFITS of the product
 How about VALUES and BELIEFS

Brand Name Selection
It should suggest something about the
product’s benefits and qualities
 Easy to pronounce, recognize and
remember
 Brand name should be distinctive
 Extendable

Brand Sponsorship
Manufacturer’s brand (National Brand)
 Private Brand
 Licensing
 Co- branding

Private Brand

created and owned by reseller of a product
or service
Licensing

is the accreditation of the brand name
Co- branding

the practice of using the established brand
names of two different companies on the
same product
Brand Development
Line Extensions
 Brand Extensions
 Multibrands
 New Brands

Line Extensions

extending an existing brand name to new
forms, color, sizes, ingredients or flavors
of an existing product category
Brand Extension

Extending an existing brand name to new
product categories
Multibrands

companies often market different brands
in a given product category
New Brands

a company might believe that the power
of its existing brand name is wanting, so
new brand name needed