Marketing Products & Services

1. Product and Services

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

3. 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

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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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
18. 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

19. 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

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

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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

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

30. 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

31. 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

32. 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

33. 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.”

34. 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
35. Brand Decisions  Brands can convey six levels of meaning:  Attributes  Benefits  Values  Culture  Personality 
User

36. 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.

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

38. 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

39. 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

XMR, preference, and loyalty among consumers.  Valuable and powerful brands enjoy high levels of brand loyalty.

XMRthat knowing the brand name has on customer response to the product or service 8-43

XMR has on customers.  Brand equity:  is related to many factors.  allows for reduced marketing costs.  is a major
contributor to customer equity.

43. 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

44. 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

45. 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

46. 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

47. 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

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

49. 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

50. 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

51. 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
52. 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.

53. 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

54. 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

55. 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.

56. 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

57. 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

58. 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 .

59. 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

60. 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

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

62. 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

63. 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.

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

65. 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.

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

67. 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
68. 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

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

70. 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

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

72. Marketing Strategies for Service Firms

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

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

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