products, services & brands

Ainiezean Awang Jual (Dec 2013) JP-PKK 1
CHAPTER 5
PRODUCT, SERVICES
&
BRANDS

Anything tangible that can be
offered to a market for attention,
acquisition, use or consumption
that might satisfy a want or need
2Ainiezean Awang Jual (Dec 2013) JP-PKK

Any activity or benefit that one
party can offer to another that
is essentially intangible and
does not result in the
ownership of anything

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

BRANDS

BRANDS
The use of slogan &
logo to identify a brand

Amongst the many brand
names, list five brand names
that you remember best and
explain why?

LEVELS OF PRODUCT
1) Core Product
2) Actual Product
3) Augmented
Product
Three (3) levels of
product

LEVELS OF PRODUCTS
1) Core Product
- Addresses the question “what is buyer really buying” and
“what is the core benefit your product?”
- Marketers must first define the core, problem solving benefits
or services that consumers seek
- The ultimate benefit that the customer will receive when they
purchase your product
- E.g. People who buy a Blackberry smart phone are buying
more than a cell phone, e-mail device or personal
organizer. They are buying freedom and on-the-go
connectivity to people and resources.

LEVELS OF PRODUCTS
2) Actual Product
- At this level, marketers must turn the core benefit into an
actual product
- They need to develop product & service features, design,
quality level, brand name & packaging.
- E.g. the Blackberry is an actual product.
- Its name, parts, styling, features, packaging & other
attributes have all been carefully combined to deliver the
core customer value of staying connected.

LEVELS OF PRODUCTS
3) Augmented Product
- Product planners must build augmented product around the core
benefit & actual product by offering additional services & benefits
- This includes the personal attention, after – sales services, warranty,
money, back guarantee, delivery, credit facilities, etc.
- E.g. The Blackberry solution offers more than just communication
services. It provides consumers with a complete solution to mobile
connectivity problems. Thus, when consumer buy Blackberry, the
company & its dealers also might give warranty on parts &
workmanship, instructions on how to use the device, quick repair, etc.

LEVELS OF PRODUCTS
Consumers see products as complex bundles of benefits
that satisfy their needs. When developing products,
marketers must first identify the core customer value
that consumers seek from the product. They must then
design the actual product and find ways to augment it in
order to create this value and the most satisfying
customer experience

LEVELS OF PRODUCTS
Can you describe level of
products for these items?
Pen
Perfume
MPV car

Product and services fall
into two broad classes;
Consumer Products
and
Industrial Products

 A product bought by final consumer for personal
consumption
 Consumer products include convenience products,
shopping products, specialty products and
unsought products
 These product differs in the way consumer buy
them and therefore, in how they are marketed

CONSUMER
PRODUCTS
Convenience
Products
Shopping
Products
Specialty
Products
Unsought
Products

1. Convenience Product
 A consumer product that customers usually buy
frequently, immediately and with a minimum of
comparison and buying effort
 Usually low price and marketers place them in many
locations to make them readily available when
customers need them.
 E.g. Newspapers, magazines, candies, snacks, etc.

2. Shopping Product
 Less frequent purchased consumer product that
customers carefully compare on stability, quality, price
and style.
 Consumers spend much time and effort in gathering
information and making comparisons.
 Marketers usually distribute their products through fewer
outlets but provide deeper sales support to help
customers in their comparison efforts
 E.g. Furniture, TV set, electrical goods, cloths

3. Specialty Product
 Goods with unique and special characteristics or brand
identification for which a significant group of buyers is
habitually willing to make a special purchasing effort.
 Buyer normally do not compare specialty products
 Buyers usually are willing to spend time and more efforts to
buy Specialty Product
 E.g. Jewelries, high – end products

4. Unsought Product
 Goods that consumer either does not know about or
knows about but does not normally think of buying
 Most new and recently introduced products will fall into
this class until the consumer becomes aware of them
through advertising
 Aggressive and continuous promotion is necessary for
them
 E.g. Life- insurance, funeral services, coffin, etc.

Marketing
Considerations
Type of Consumer Product
Convenience Shopping Specialty Unsought
Buying
Behaviour
Frequent
purchase, less
concern on
brand
Less frequent
purchase, more
concern on
brand
Seldom
purchase,
strong brand
preferences
Rare purchase,
little product
awareness
Price Low price Moderate price High price Varies
Distribution
Widespread,
convenient
location
Selective
distribution in
fewer outlets
Exclusive
distribution
Varies
Shopping Effort Low Moderate High Varies
Promotion
Mass
promotion
Advertising &
personal selling
Targeted
promotion
Aggressive
advertising 28Ainiezean Awang Jual (Dec 2013) JP-PKK

What is industrial product?
 A product bought by individuals and organizations for
further processing or for use in conducting a business
 The distinction between consumer and industrial goods
is based on the purpose for which the particular product
was bought.
 The three (3) groups of industrial products and services
are: Material & parts, capital items & supplies & services

INDUSTRIAL
PRODUCTS
Material
& Parts
Capital
Items
Supplies &
Services

1. Materials & Parts
 Include raw materials and manufactured material and parts
 Raw materials consist of farm products (wheat, cotton,
livestock, fruits and vegetables) and natural product (fish,
lumber, iron, crude petroleum etc.)
 Manufactured materials and parts consist of component
material (iron, cement, wires) and component parts (small,
motors, tires)
 Most manufactured materials and parts are sold directly to
industrial users

2. Capital Items
 Industrial products that aids in the buyer’s production or
operations, including installations and accessory equipment and
form the main assets of production firms.
 Installations consist of major purchase such as building (factories &
offices) and fixed equipment (generators, elevators, computer
system)
 Accessory equipment include portable factory equipment and tools
(lift trucks, hand tools) and office equipment (computers, fax)
 They have a shorter life than installations and simply aid in the
production process

3. Supplies and Services
 Supplies include operating supplies (lubricants, paper,
pencils) and repair and maintenance items (paint, nails).
 Supplies are the convenience products of the industrial
field because they are usually purchased with a minimum
effort or comparison
 Business services include maintenance and repair
services and business advisory (window cleaning,
computer repair)

 The figure below shows the important decisions in
the development and marketing of individual
products and services.
 We will focus on decisions about
a) product attributes,
b) branding,
c) packaging,
d) labeling and
e) product support services

Product
Attributes
Branding Packaging Labeling
Product
support
services

Product attributes can be explain in three aspects:
1) Product Quality, 2) Product features, 3) Product Style & Design
PRODUCT
ATTRIBUTES
Product
Quality
Product
Features
Product
Style&
Design

A. PRODUCT QUALITY
 The characteristics of a product or service that bear
on its ability to satisfy stated or implied customer
needs
 Quality is one of the marketer's major positioning
tools
 In the narrower sense, quality can be defined ad
“freedom from defects”

B. PRODUCT FEATURES
 A product can be offered with varying features
 The company can create higher-level models by adding more
features.
 Features are a competitive tool for differentiating the
company's product from competitors' products
 E.g. Product features:
 Mobile phone – larger built in memories, variety of colours
 Paint – anti rust
 Personal organizer – local & international public holidays info, hard
cover

C. PRODUCT STYLE & DESIGN
 Another way to add customer value is through distinctive product
style and design
 Style simply describes the appearance of a product
 A sensational style may grab attention and produce pleasing
aesthetics, but it does not necessarily make the
product perform better.
 Design is more than skin deep—it goes to the very heart of a
product
 Good design contributes to a product's usefulness as well as to its
looks.
 Good style and design can attract attention, improve product
performance, cut production costs, and give the product a strong
competitive advantage in the target market 43Ainiezean Awang Jual (Dec 2013) JP-PKK

Good product design bring
benefits to consumers
Play me
Play me

 A brand is a name, term, sign, symbol, or design, or a
combination of these, that identifies the maker or seller of a
product or service
 Consumers view a brand as an important part of a product,
and branding can add value to a product
 For example, most consumers would perceive a bottle
marked with DKNY Perfume as a high-quality, expensive
product. But the same perfume in an unmarked bottle would
likely be viewed as lower in quality, even if the fragrance were
identical
 Brand names help consumers identify products that might
benefit them and also tell the buyer something about product
quality

BRAND
helps in
differentiating
identical products

 Malaysia Top 10 Brands 2011:
1) Google
2) 100 Plus
3) Gardenia
4) Sony
5) Air Asia
6) Panasonic
7) Milo
8) Shell
9) Maggi
10) Colgate
BRANDING STRATEGY – Building Strong Brands

 Packaging involves designing and producing the
container or wrapper for a product
 Primary function of packaging is to hold & protect the
product
 However recently, packaging has become one of the
important marketing tools as well
 Attractive packaging may catch consumer’s attention to
buy
 Packaging can also be used as seasonal marketing tools

Seasonal Packaging

 Labels may range from simple tags attached to
products to complex graphics that are part of the
package
 Labels perform several functions:
a. Label identifies the product (label on Sunkist orange)
b. Provide description of products (ingredients,
manufacturer, manufacture & expiry date, etc.)

PRODUCT SUPPORT SERVICES
 Customer service is another element of product
strategy
 Especially applied to technical products i.e. cars,
computers, mobile phone, electrical appliances.

 Usually known as PLC
 The course of a product’s sales and profits over its
lifetime.
 It involves five (5) stages:
1) Product Development
2) Introduction
3) Growth
4) Maturity
5) Decline

1) Product Development
 Begins when the company finds & develops a new-
product idea.
 During product development stage, sales are zero & the
company’s investment cost mount

2) Introduction Stage
 Period of slow sales growth as the product is introduced in
the market
 Profits are non existent in this stage because of heavy
expenses of product introduction
 E.g. HDTV, instant coffee & private colleges lingered for
several years before they entered a stage of more rapid
growth

3) Growth Stage
 A period of rapid market acceptance and increasing profits
 Product sales are climbing quickly
 Profits increase as unit manufacturing cost fall
 E.g. HDTV is on this stage currently

4) Maturity Stage
 A period of slowdown in sales growth because the
product has achieved acceptance by most potential
buyers
 Profits level off or decline because of increased marketing
outlays to defend the product against competition
 This stage normally last longer
 Most products are in the maturity stage therefore most
marketing management deals with the mature product
 E.g. Maggi instant noodles, Kicap Cap Ayam, Ayam Brand’s
canned foods

5) Decline Stage
 Period when sales fall off and profits drop
 The decline may be slow (e.g. oatmeal cereal) or rapid
(e.g. cassette and VHS tapes)
 Sales may plunge to zero or they may drop to a low level
where they continue for many years

End of Chapter Five

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