This document provides an overview of key concepts from Chapter 8 regarding products, services, and branding strategies for building customer value. It discusses what constitutes a product versus a service and how they are classified. It also outlines different types of product decisions companies must make, including individual product decisions, product line decisions, and product mix decisions. Additionally, it covers branding strategies for developing and positioning strong brands, as well as specific marketing strategies that are important for service firms to consider.

1. Chapter 8 - slide 1
Chapter Eight
Product, Services, and Brands:
Building Customer Value

2. Products, Services, and
Branding Strategy
• What Is a Product?
• Product and Services Decisions
• Branding Strategy: Building
Topic Outline
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• Branding Strategy: Building
Strong Brands
• Services Marketing

3. What Is a Product?
A Product is anything that can be offered in a
market for attention, acquisition, use, or
consumption that might satisfy a need or
Products, Services, and Experiences
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consumption that might satisfy a need or
want.
Services Any activity or benefit that one
party can offer to another that is essentially
intangible and does not result in the
ownership of anything.

4. What Is a Product?
Levels of Product and Services
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5. What Is a Product?
Consumer
products
Product and Service Classifications
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products
Industrial
products

6. What Is a Product?
• Consumer products are products and
services for personal consumption
• Classified by how consumers buy them
Product and Service Classifications
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• Classified by how consumers buy them
– Convenience products
– Shopping products
– Specialty products
– Unsought products

7. What Is a Product?
Convenience products are consumer
products and services that the
customer usually buys frequently,
immediately, and with a minimum
Product and Service Classifications
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immediately, and with a minimum
comparison and buying effort
• Newspapers
• Candy
• Fast food

8. What Is a Product?
Shopping products are consumer
products and services that the
customer compares carefully on
suitability, quality, price, and style
Product and Service Classifications
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suitability, quality, price, and style
• Furniture
• Cars
• Appliances

9. What Is a Product?
Specialty products are consumer products and
services with unique characteristics or brand
identification for which a significant group of
Product and Service Classifications
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identification for which a significant group of
buyers is willing to make a special purchase effort
• Medical services
• Designer clothes
• High-end electronics

10. What Is a Product?
Unsought products are consumer products that
the consumer does not know about or knows
about but does not normally think of buying
Product and Service Classifications
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about but does not normally think of buying
• Life insurance
• Funeral services
• Blood donations

11. What Is a Product?
Industrial products are products purchased for
further processing or for use in conducting a
business
• Classified by the purpose for which the product is
Product and Service Classifications
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• Classified by the purpose for which the product is
purchased
– Materials and parts
– Capital
– Raw materials

12. What Is a Product?
Capital items are industrial products that aid in the
buyer’s production or operations
Materials and parts include raw materials and
manufactured materials and parts usually sold
Product and Service Classifications
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manufactured materials and parts usually sold
directly to industrial users
Supplies and services include operating supplies,
repair and maintenance items, and business
services

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
Organizations, Persons, Places, and Ideas
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toward an organization

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
Organizations, Persons, Places, and Ideas
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consumers toward particular people

15. What Is a Product?
Place marketing consists of activities undertaken to
create, maintain, or change attitudes and
behavior of target consumers toward particular
places
Organizations, Persons, Places, and
Ideas
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places
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

16. Product and Services Decision
• Individual product and services decision
• Product line decision
• Product Mix decision
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• Product Mix decision

17. Product and Service Decisions
Individual Product and Service Decisions
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18. Product and Service Decisions
Product attributes are the benefits of the
product or service
• Quality
Individual Product and Service Decisions
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• Quality
• Features
• Style and design

19. Product and Service Decisions
Product quality includes level and consistency
• Quality level is the level of quality that supports
Individual Product and Service
Decisions
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• Quality level is the level of quality that supports
the product’s positioning
• Conformance quality is the product’s freedom
from defects and consistency in delivering a
targeted level of performance

20. Product and Service Decisions
Product features are a competitive tool for
differentiating a product from competitors’
products
Individual Product and Service
Decisions
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products
Product features are assessed based on the
value to the customer versus the cost to the
company

21. Product and Service Decisions
Style describes the appearance of the
product
Design contributes to a product’s
Individual Product and Service
Decisions
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Design contributes to a product’s
usefulness as well as to its looks

22. 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
Individual Product and Service
Decisions
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or seller of a product or service
Brand equity is the differential effect that the brand
name has on customer response to the product
and its marketing

23. Product and Service Decisions
Packaging involves designing and
producing the container or
Individual Product and Service
Decisions
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producing the container or
wrapper for a product
Labels identify the product or
brand, describe attributes, and
provide promotion

24. Product and Service Decisions
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,
Product Line Decisions
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manner, are sold to the same customer groups,
are marketed through the same types of outlets,
or fall within given price ranges

25. Product and Service Decisions
Product line length is the number of items in
the product line
Product Line Decisions
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• Line stretching
• Line filling

26. Product and Service Decisions
Product mix consists of all the
products and items that a particular
seller offers for sale
Product Mix Decisions
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• Width
• Length
• Depth
• Consistency

27. 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
Branding Strategy: Building Strong Brands
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features, benefits, services, and experiences
consistently to the buyers

28. Branding Strategy: Building Strong
Brands
Brand strategy decisions include:
• Product attributes
Brand Positioning
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• Product benefits
• Product beliefs and values

29. Branding Strategy: Building Strong Brands
Desirable qualities
1. Suggest benefits and qualities
2. Easy to pronounce, recognize, and remember
Brand Name Selection
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2. Easy to pronounce, recognize, and remember
3. Distinctive
4. Extendable
5. Translatable for the global economy
6. Capable of registration and legal protection

30. Branding Strategy: Building Strong
Brands
• Manufacturer’s brand
• Private brand
Brand Sponsorship
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• Private brand
• Licensed brand
• Co-brand

31. Branding Strategy: Building Strong Brands
Brand Development Strategies
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32. Services Marketing
• Government
• Private not-for-profit organizations
Types of Service Industries
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• Private not-for-profit organizations
• Business services

33. Services Marketing
Nature and Characteristics of a Service
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34. Services Marketing
In addition to traditional marketing
strategies, service firms often require
additional strategies
Marketing Strategies for Service Firms
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additional strategies
• Service-profit chain
• Internal marketing
• Interactive marketing

35. Services Marketing
Service-profit chain links service
firm profits with employee and
customer satisfaction
• Internal service quality
Marketing Strategies for Service Firms
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• Internal service quality
• Satisfied and productive service
employees
• Greater service value
• Satisfied and loyal customers
• Healthy service profits and
growth

36. Services Marketing
Internal marketing means that the service firm must
orient and motivate its customer contact employees and
supporting service people to work as a team to provide
Marketing Strategies for Service Firms
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supporting service people to work as a team to provide
customer satisfaction
Internal marketing must precede external marketing

37. Services Marketing
Interactive marketing means that service quality
depends heavily on the quality of the buyer–seller
interaction during the service encounter
Marketing Strategies for Service Firms
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interaction during the service encounter
• Service differentiation
• Service quality
• Service productivity

38. Services Marketing
Managing service differentiation creates a
competitive advantage from the offer,
delivery, and image of the service
• Offer can include distinctive features
Marketing Strategies for Service Firms
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• Offer can include distinctive features
• Delivery can include more able and reliable
customer contact people, environment, or
process
• Image can include symbols and branding

39. Services Marketing
Managing service quality provides a
competitive advantage by delivering
consistently higher quality than its
competitors
Marketing Strategies for Service Firms
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competitors
Service quality always varies depending
on interactions between employees and
customers

40. Services Marketing
Managing service productivity refers to the cost
side of marketing strategies for service firms
• Employee recruiting, hiring, and training
Marketing Strategies for Service Firms
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• Employee recruiting, hiring, and training
strategies
• Service quantity and quality strategies