Marketing 7 Chapter 2 Additional

Products, Services,
and Brands
Building Customer Value
Chapter 2
Rest Stop: Previewing the Concepts
1.
2.
3.
4.
Define product and the major classifications of

products and services.
Describe the decisions companies make
regarding their individual products and
services, product lines, and product mixes.
Identify the four characteristics that affect the
marketing of services and the additional
marketing considerations that services
require.
Discuss branding strategythe decisions
companies make in building and managing
their brands.
Copyright 2011, Pearson Education Inc. Publishing as Prentice-Hall
7-2
First Stop
ESPN Its A Brand!
Brand Experience
ESPN: More than a network
or Web site, ESPN is a
meaningful part of customers
lives that is synonymous with
sports entertainment, and
linked with consumers sports
memories, realities, and
anticipations.
Global Power: ESPN truly
lives up to its tagline, The
Worldwide Leader in Sports.
Strong Brand Equity: ESPN
is as much recognized and
revered as Nike, Google, or
Coca-Cola megabrands.
ESPN Media Presence
Television: Grown to 7 ESPN

networks. Partners with ABC to
produce NASCAR, college
sports, World Cup soccer, and
more. Pioneered high-definition
broadcasting. Achieves high
advertising and cable revenues.
Online and Publishing: Web
sites are #1 in respective
categories; partnered with
YouTube to post sports content.
Magazine and book title sales
are strong.
ESPN is Everywhere: Airports,
health clubs, gas stations.
7-3
What Is a Product?
Products are:
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.
7-4
What Is a Service?
Services are:
Any
activity, benefit, or satisfaction

offered for sale that is essentially
intangible and does not result in the
ownership of anything.
E.g., banking, hotel, airline tickets, retail,
tax preparation, home repairs.
7-5
Products, Services, and Experiences
Marketing offerings:
Includes
both tangible goods and services, as

well as combinations of both.
Pure good: Camay soap
Pure service: Legal representation
Combination: Restaurant meal
Creating and managing customer
experiences differentiates marketing offers

from the competition.
7-6
Levels of Product and Services
Core customer value:

What
the consumer is really buying.
Actual product:
Includes
the brand name, features, design,

packaging, and quality level.
Augmented product:
Additional
services and benefits such as

delivery and credit, instructions, installation,
warranty, and service.
7-7
Product and Service Classification
Consumer products:
Products
and services bought by final

consumers for personal consumption.
Also included are other marketable
entities.
Classified by how consumers buy them:
Convenience, shopping, specialty, and
unsought goods.
7-8
Types of Consumer Goods
Convenience goods:
Purchased
frequently and immediately

with little comparison shopping.
Low priced.
Mass advertising and promotion.
Widespread distribution with many
convenient locations.
E.g., candy, soda, newspapers.
7-9
Shopping products:
Bought
less frequently, more planning and effort,

brand comparisons on basis of price, quality,
style.
Higher price.
Selective distribution in fewer purchase locations.
Advertising and personal selling is undertaken by
both producer and reseller.
E.g., furniture, clothing, cars, appliances.
7 - 10
Specialty products:
Strong
brand preference and loyalty, special

purchasing effort, little comparison shopping.
High price.
Exclusive distribution in only one or a few
outlets per market area.
Carefully targeted promotion by both producer
and reseller.
E.g., Lamborghini, Rolex watches.
7 - 11
Unsought products:
Little
product awareness or knowledge of the

brand, sometimes negative interest.
Pricing strategies vary.
Distribution strategies vary.
Require aggressive advertising and personal
selling by both producer and resellers.
E.g., life insurance, cemetery plots, blood
donation.
7 - 12
Product and Service Classification
Industrial products:
Those
purchased for further processing

or for use in conducting business.
Distinction between consumer and
industrial products is based on the
purpose for which an item is bought
(e.g., home or business use).
7 - 13
Types of Industrial Goods
Materials and parts:

Raw
materials, manufactured materials,

and parts.
Capital items:
Products
that aid in buyers production or

operations.
Supplies and services:

Operating
supplies, maintenance, and

repair items.
7 - 14
Other Market Offerings
Organizations:
Profit
and nonprofit (schools and churches).
Persons:
Politicians,
Places:
sports figures, doctors, etc.
Create,
maintain, or change attitudes or behavior

toward particular places.
Ideas (social marketing):

Public
health campaigns, environmental

campaigns, family planning, or human rights.
7 - 15
Individual Product Decisions
Product (and service) attributes

Branding
Packaging
Labeling
Product support services
7 - 16
Product and Service Attributes
Product quality dimensions:

Performance
quality
Conformance quality
Product feature considerations:

Value
to consumer
Cost to company
Product style and design:

Shapes
the buyers usage experience
7 - 17
Branding
Branding involves building and

managing brands.
A brand:
Is
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.
7 - 18
Branding
Advantages to buyers:
Helps
identify products.
Cue to product quality and consistency.
Advantages to sellers:
Basis
for products quality story.

Provides legal protection.
Helps to segment markets.
7 - 19
Packaging
Packaging:
Involves
designing and producing the

container or wrapper for a product.
Ideally, good packages should:

Help
to market the brand.

Protect the contents.
Provide convenience and ease of use.
Ensure product and user/child safety.
Address environmental concerns.
7 - 20
Labeling
Labeling refers to printed information
appearing on or with the package,

including the product name.
Performs several functions:
Identifies
product or brand.
Describes several things about the product.
Promotes the product through attractive
graphics.
Labeling is regulated by the government.

7 - 21
Product Support Services
Monitoring of support services is key:

Talk
with customers to assess the value and

quality of current services and to obtain ideas
for new services.
Fix problems and put together a package of
new services that delights the customers and
yields profits for the company.
New technologies can often enhance many
support service offerings.
7 - 22
Product Line Decisions
Product line:
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.
Product line length is a major decision.

Filling
(adding more).
Stretching (downward, upward, or both ways).
7 - 23
Product Mix Decisions
Product mix:
The
set of all of the product lines and items

that a particular seller offers for sale.
Product mix dimensions include:

Width:
the number of different product lines

the company carries.
Length: the number of items in a line.
Depth: the number of versions offered of each
product in the line.
Consistency: how closely related various lines
are.
7 - 24
Nature and Characteristics

of a Service
Intangibility:
Variability:
Inseparability:
Perishability:
Services
cannot
be seen, tasted,
felt, heard, or
smelled before
purchase.
Services
cannot
be separated from
their providers.
Quality
of services
depends on who
provides them and
when, where, and
how they are
delivered.
Services
cannot be
stored for later sale or
use.
7 - 25
The Service-Profit Chain
The service profit chain links employee
and customer satisfaction to firm profits.

Five links exist within the chain:
Internal
service quality.
Satisfied and productive service employees.
Great service value.
Satisfied and loyal customers.
Healthy service profits and growth.
7 - 26
Services Marketing
External marketing:
Traditional
marketing via the 4 Ps.
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.
7 - 27
Major Service Marketing Tasks
Managing service differentiation:

Develop
image.
a differentiated offer, delivery, and
Managing service quality:

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.
7 - 28
Building Strong Brands
Brand equity:
Is
the differential effect that knowing the

brand name has on customer response
to the product or its marketing.
Is a valuable asset that offers many
competitive advantages.
Builds strong and profitable customer
relationships that result in loyal
customers (customer equity).
7 - 29
Major Brand Strategy Decisions
Brands are assets that must be
carefully developed and managed

via:
Brand
positioning
Brand name selection
Brand sponsorship
Brand development
7 - 30
Brand Positioning
Marketers can position brands clearly in

customers minds at any of three levels:
Product
attributes
Product benefits
Beliefs and values
Marketers should create a brand mission
and vision of what the brand must be and

do when positioning the brand.
7 - 31
Brand Name Selection
Desirable qualities for a brand name:

1. It should suggest the products benefits and
2.
3.
4.
5.
6.
qualities.
It should be easy to pronounce, recognize, and
remember.
It should be distinctive.
It should be extendable.
It should translate easily into foreign languages.
It should be capable of registration and legal
protection.
7 - 32
Brand Sponsorship
Brand sponsorship options include:

National
brands (e.g., Sony)
Also called manufacturer brands

Store
brands (e.g., Equate)
Also called private brands

Licensed
brands
Name or character licensing

Co-branding
Creates broader appeal and brand equity

7 - 33
Brand Development
Line extension:
Extending
an existing brand name to

new forms, colors, sizes, ingredients, or
flavors within a product category.
Brand extension:
Extending
an existing brand name to

new product categories.
7 - 34
Brand Development
Multibranding:
Offers
a way to establish different features

and appeal to different customer segments,
lock up more reseller shelf space, and capture
a larger market share.
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 a
new product category.
7 - 35
Managing Brands
Continuously communicate the brands

positioning to consumers.
Manage all brand touch points to
maximize the brand experience.
Live the brandthe firm must train
employees to be customer centered.
Implement internal branding campaign
among employees.
Audit brands strengths and weaknesses
on a regular basis.
7 - 36
Rest Stop: Reviewing the Concepts
1.
2.
3.
4.
Define product and the major classifications of

products and services.
Describe the decisions companies make
regarding their individual products and
services, product lines, and product mixes.
Identify the four characteristics that affect the
marketing services and the additional
marketing considerations that services require.
Discuss branding strategythe decisions
companies make in building and managing
their brands.
7 - 37

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Marketing 7 Chapter 2 Additional

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Products, Services,

Rest Stop: Previewing the Concepts

Define product and the major classifications of

ESPN Media Presence

Copyright 2011, Pearson Education Inc. Publishing as Prentice-Hall

Television: Grown to 7 ESPN

that can be offered to a market

Copyright 2011, Pearson Education Inc. Publishing as Prentice-Hall

activity, benefit, or satisfaction

Copyright 2011, Pearson Education Inc. Publishing as Prentice-Hall

Products, Services, and Experiences

both tangible goods and services, as

Creating and managing customer

experiences differentiates marketing offers

Levels of Product and Services

Core customer value:

the consumer is really buying.

the brand name, features, design,

services and benefits such as

Copyright 2011, Pearson Education Inc. Publishing as Prentice-Hall

Product and Service Classification

and services bought by final

Types of Consumer Goods

frequently and immediately

Types of Consumer Goods

less frequently, more planning and effort,

Copyright 2011, Pearson Education Inc. Publishing as Prentice-Hall

Types of Consumer Goods

brand preference and loyalty, special

Types of Consumer Goods

product awareness or knowledge of the

Product and Service Classification

purchased for further processing

Types of Industrial Goods

Materials and parts:

materials, manufactured materials,

that aid in buyers production or

Supplies and services:

supplies, maintenance, and

Copyright 2011, Pearson Education Inc. Publishing as Prentice-Hall

Other Market Offerings

and nonprofit (schools and churches).

sports figures, doctors, etc.

maintain, or change attitudes or behavior

Ideas (social marketing):

health campaigns, environmental

Copyright 2011, Pearson Education Inc. Publishing as Prentice-Hall

Individual Product Decisions

Product (and service) attributes

Product and Service Attributes

Product quality dimensions:

Product feature considerations:

Product style and design:

the buyers usage experience

Copyright 2011, Pearson Education Inc. Publishing as Prentice-Hall

Branding involves building and

a name, term, sign, symbol, design,

Copyright 2011, Pearson Education Inc. Publishing as Prentice-Hall

for products quality story.

designing and producing the

Ideally, good packages should:

to market the brand.

Labeling refers to printed information

appearing on or with the package,