Product, Services, and

Branding Strategy
 Definitions

• Product
 Anything offered to a market for attention,
acquisition, use, or consumption that might
satisfy a need or want.
• 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.

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 What is a Product?

• Products, Services, and Experiences

 Market offerings may consist of a
combination of goods and services
 Experiences are used to differentiate
offerings
• Levels of Product and Services
 Core benefit, actual and augmented
product
• Product and Service Classifications
 Consumer products and industrial products

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Three Levels of Product

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 Product Classification
Schemes

Durability

Tangibility

Use

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Durability and Tangibility

Nondurable
goods

Durable
Services
goods

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 Product Classifications
Consumer Products
Convenience Products
 Buy frequently & immediately
 Low priced
 Mass advertising
 Many purchase locations
i.e Candy, newspapers
Specialty Products
 Special purchase efforts
 High price
 Unique characteristics
 Brand identification
 Few purchase locations
i.e can be anything
Shopping Products
 Buy less frequently
 Higher price
 Fewer purchase locations
 Comparison shop
i.e Clothing, appliances
Unsought Products
 New innovations
 Products consumers don’t
want to think about these products
 Require much advertising &
personal selling
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i.e Life insurance, blood donation
 Product and Service
Classifications
• Consumer products
• Industrial products
 Materials and parts
 Capital items
 Supplies and services

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 Product and Service
Decisions

Key Decisions • Product attributes

 Quality, features,
style and design
• Individual
• Branding
Product
• Packaging
• Product Line • Labeling
• Product Mix • Product support
services
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 Packaging: The 5th P

All the activities of designing and producing

the container for a product.

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Packaging has been influenced
by…

Consumer affluence

Company/brand image

Innovation opportunity

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Functions of Labels

Identifies

Grades

Describes

Promotes

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 Product and Service
Decisions
• Product line
Key Decisions  A group of products
that are closely
related because
• Individual they may:
Product • function in a similar
manner
• be sold to the same
• Product Line customer groups,
• be marketed through
• Product Mix the same types of
outlets
• fall within given price
ranges 8 - 13
 Product and Service
Decisions

Key Decisions • Product line length

 Line stretching:
• Individual adding products
that are higher or
Product lower priced than
the existing line
• Product Line
 Line filling: adding
• Product Mix more items within
the present price
range 8 - 14
 Product and Service
Decisions

Key Decisions • Product mix

 Also known as
product assortment
• Individual  Consists of all the
Product product lines and
items that a
• Product Line particular seller
offers for sale
• Product Mix

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 Product and Service
Decisions

Key Decisions • Product mix width:

 Number of different
product lines carried by
• Individual company
Product • Product mix depth:
 Number of different
• Product Line versions of each
product in the line
• Product Mix • Product mix
consistency
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 Brand

A name, term, sign, symbol

or design, or a combination of them,
intended to identify the goods
or services of one seller or group
of sellers and to differentiate
them from those of competitors.

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The Role of Brands

Identify
Identify the
the maker
maker

Simplify
Simplify product
product handling
handling

Organize
Organize choices
choices

Offer
Offer legal
legal protection
protection

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The Role of Brands

Signify
Signify quality
quality

Create
Create barriers
barriers to
to entry
entry

Serve
Serve as
as aa competitive
competitive
advantage
advantage

Secure
Secure price
price premium
premium

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 Brand Equity

The differential effect that brand

knowledge has on consumer
response to the
marketing of that brand.

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 Branding Strategy

• Brands with strong equity have

many competitive advantages:
 High consumer awareness
 Strong brand loyalty
 Helps when introducing new
products
 Less susceptible to price competition

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The 10 Most Valuable Brands
(Source: Millward Brown)
Brand 2007 Brand Value (Billions)
Google $86.06
GE $71.38
Microsoft $70.89
CocaCola $58.21
China Mobile $57.23
IBM $55.33
Apple $55.21
McDonald’s $49.50
Nokia $43.98
Marlboro $37.32

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 Brand Elements
Brand
names URLs

Slogans
Elements
Logos

Characters
Symbols
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Brand Element Choice
Criteria

• Memorable • Transferable
• Meaningful • Adaptable
• Likeability • Protectible

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 Brand Strategy

Key Decisions • Three levels of

positioning:
• Brand Positioning  Product attributes
• Brand Name • Least effective
Selection  Benefits
• Brand Sponsorship  Beliefs and values
• Brand Development • Taps into
emotions

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 Brand Strategy
• Good Brand Names:
Key Decisions  Suggest something
about the product or its
benefits
• Brand Positioning
 Are easy to say,
• Brand Name recognize and
Selection remember
 Are distinctive
• Brand Sponsorship
 Are extendable
• Brand Development  Translate well into
other languages
 Can be registered and
legally protected 8 - 26
 Brand Strategy

Key Decisions • Manufacturer brands

• Private (store) brands
• Brand Positioning  Costly to establish and
promote
• Brand Name  Higher profit margins
Selection
• Co-branding
• Brand Sponsorship  Advantages /
• Brand Development disadvantages

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 Services Marketing

• Service
 Service industries include
business organizations,
government, and private not-
for-profit organizations.

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 Four Services
Characteristics

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Characteristics of Services

• Intangibility
 Consumers look for service quality signals
• Inseparability
 Services can’t be separated from providers
• Variability
 Employees and other factors result in
variability
• Perishability
 Services can’t be inventoried for later sale
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