CHAPTER 8
Product,
Services, and
Branding
Strategy
CHAPTER SUMMARY
AND OBJECTIVES
By
Shakeel Anjum
083277
Ali Adnan Khalid
073178
Khuram Shahzad
083268
Muhammad Usman 083248
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.
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.
Figure 8-1
Three Levels of Product
Levels of product and services
Product and service classification
Product and services fall into two broad classes based on the type of consumers that use them-consumer
products and industrial products.
Consumer products


Products and services bought by final consumers for personal consumption.
– Also includes other marketable entities.
Classified by how consumers buy them:
– Convenience goods
2
–
–
–
Shopping goods
Specialty goods
Unsought goods
Convenience & Shopping Products

Convenience Goods
– Bought frequently and
immediately
– Low priced
– Mass advertising
– Many purchase
locations
– Examples: candy, soda,
newspapers

Shopping Goods
– Bought less frequently
– Higher price
– Fewer purchase locations
– Comparison shop
– Examples: cars, furniture,
appliances

Unsought Products
– New innovations
– Are often products
consumers do not want to
think about
– Require a lot of
advertising and personal
selling
– Examples: blood
donation, cemetery plots,
insurance
Specialty & Unsought Products

Specialty Products
– Special purchase
efforts
– High price
– Unique
characteristics
– Brand identification
– Few purchase
locations
– Example: Rolex
watches, Ferrari cars
Industrial products
Products bought by individuals and organizations for further processing or for use in conducting a business.
 Those purchased for further processing or
for use in conducting business.
– Includes materials and parts, capital items, supplies, and services.
 Distinction between consumer and industrial products is based on the purpose for
which an item is bought.
Other Market Offerings



Organizations: Profit (businesses) and nonprofit (schools and churches).
– Includes corporate image advertising.
Persons: Politicians, entertainers, sports figures, doctors, and lawyers.
Places: Create, maintain, or change attitudes or behavior toward particular places (e.g., tourism).
3

Ideas (social marketing): Public health campaigns, environmental campaigns, family planning, or
human rights.
Product and service decisions
Marketers make product and service decision at three levels
 Individual product decisions
 Product line decisions
 Product mix decisions
Individual product and service decisions
We will focus on decision about product attributes, branding, packing, labeling and product support services
(Fig. 8-2)
Figure 8-2
Individual Product and service Decisions
Product & Service Attributes
Product and service attributes are the benefits that the product will offer such as quality, features and, style
and design.
Product quality
The ability of a product to perform its functions; it includes the product’s overall durability, reliability
precision, ease of operation and repair, and other valued attributes.
– Performance quality
– Conformance quality
Features
–
–
Value to consumer
Cost to company
Style and design
–
Influences experience
4
Branding
A brand is a name, term, sign, symbol, or
design, or a combination of these
intended to identify the goods and
services of one seller or group of sellers
and to differentiate them from those of
competitors.
Branding has become strong that
hardly anything goes unbranded, even
fruits and vegetables.
Branding
 Advantages to buyers:
–
–

Product identification
Product quality
Advantages to sellers:
–
–
–
Basis for product’s quality
Provides legal protection
Helps to segment markets
Packaging


Designing and producing the
container or wrapper for a
product.
Developing a good package:
o
o
o
o
Market the brand
Protect the elements
Ensure product safety
Address environmental
concerns
5


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.
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.
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 fail within given price ranges.
Product mix decisions
The set of all product lines and items that a particular seller offers for sale
Branding Strategy: Building Strong Brands
Brand Equity


The positive differential effect that knowing the brand name has on customer response to the product
or service.
Provides:
– Greater brand awareness and loyalty
– Basis for strong, profitable customer
relationships
Building strong brands
Figure 8.3 shows major brand strategy decisions involve brand positioning, brand sponsorship, and brand
development.
Figure 7-3
Major Brand Strategy Decisions
6
Brand positioning

Brand Positioning Can position brands at any of three levels:
–
–
–
Product attributes
 Least desirable; easily copied.
Product benefits
Beliefs and values
 Hits consumers on a deeper level, touching universal emotions.
Brand Name Selection

Desirable qualities for a brand name include:
1. It should suggest product’s benefits and qualities.
2. It should be easy to pronounce, recognize, and remember.
3. It should be distinctive.
4. It should be extendable.
5. It should translate easily into foreign languages.
6. It should be capable of registration and legal protection.
Brand Sponsorship




Manufacturer’s brands
– Also called national brands
Private brands
A brand created and owned by a
reseller of a product or service.
– Also called store or distributor
brands
Licensed brands
Co-branding
The practice using the established
brand names of two different
companies on the same product.
Mi Casa brand products are only available at
Stop & Shop stores.
7
Brand Development
Figure 7-4
Brand Development Strategies

Line extension:
–

Brand extension:
–

Using a successful brand name to launch a new or modified product in a new category.
Multi branding:
–

Introduction of additional items in a given product category under the same brand name (e.g.,
new flavors, forms, colors, ingredients, or package sizes).
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.
Services marketing
Nature and characteristics of a service
–
Service intangibility
A major characteristic of service-they cannot be seen, tasted, felt, herd or smelted before they are bought.
– Service inseparability
A major characteristic of service- that are produced and consumed at the same time and cannot be separated
from their providers
– Service variability
A major characteristic of service- their quality may vary greatly, depending on who provides them and when,
where and how.
– Service perish ability
A major characteristic of service- they cannot be stored for later sale or use.
8
Figure 7-5
Four Service Characteristics
Marketing strategies for service firms
The Service-Profit Chain
The chain that links service firm with employee and customer satisfaction





Internal service quality.
Satisfied and productive service employees.
Great service value.
Satisfied and loyal customers.
Healthy service profits and growth.
Figure 7-6
Three Types of Service Marketing
9
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.
Additional Product Considerations


Product Decisions and Social Responsibility
International Product and Service Marketing
– Which products & services to introduce?
– Whether to standardize or adapt?
– Packaging presents challenges.
– Services marketers face special challenges; growth will continue.
_______________________
10
Objective questions






Question 1
Anything that can be offered to a market for attention, acquisition, use or consumption that might
satisfy a want or need
o Service
o Product*
o Need
o Want
Question 2
Any activity or benefit that one party can offer to another that is essentially intangible and does not
result in the ownership of any thing
o Group
o Lead
o Service*
o Core
Question 3
The design, implementation and control of programs seeking to increase the acceptability of a social
idea, cause or practice among a target group
o Product quality
o Specialty
o Social marketing*
o Actual
Question 4
A name, term, sign, symbol, or design, or a combination of these intended to identify the goods
services at seller or group of sellers and to differentiate them from those of competitors.
o Packaging
o Convenience
o Shopping
o Brand*
Question 5
The set of all product lines and items that a particular seller offers for sale
o Brand equity
o Unsought
o Product line
o Product mix*
Question 6
A brand created and owned by a reseller of a product or service.
o Brand equity
o Product mix
o Private brand*
o Product line
11






Question 7
The chain that links service firms profits with employee and customer satisfaction.
o Internal marketing
o Brand equity
o Service-profit chain*
o Core
Question 8
A major characteristic of services ---- they cannot be stored for later sale or use.
o Service variability
o Service intangibility
o Service perish ability*
o Service-profit chain
Question 9
Convenience products, shopping products, specialty products, unsought products ---Which kind of
products they are;
o Local products
o Imported products
o Market products
o Consumer products*
Question 10
Product bought by individuals and organizations for further processing or for use in conducting a
business.
o Industrial product*
o Unsought product
o Convenience product
o Customer product
Question 11
The practice of using the established brand names of two different companies on the same product.
o Brand extension
o Line extension
o Co- branding*
o Brand equity
Question 12
Marketing by a service firm that recognizes that perceived service quality depends heavily on the
quality of buyer-seller interaction
o Interactive marketing*
o Internal marketing
o Service - profit chain
o Core
_____________________
12