Copyright 2017 Pearson Education, 7-1

Ltd.
Learning Objectives
7-1. Define product and describe the
major
classifications of products and
services.

7-2. Describe the decisions companies

make
regarding their individual products
and services, product lines, and
product mixes.
Copyright 2017 Pearson Education, 7-2
Ltd.
Learning Objectives
7-3. Identify the four characteristics
that affect the marketing of services
and the additional marketing
considerations that services require.
7-4. Discuss branding strategythe
decisions companies make in
building and managing their
brands.

Copyright 2017 Pearson Education, 7-3

Ltd.
First Stop : IKEA
Building a Cult Brand

IKEA stores are

designed for the
customer to
experience the
whole store and
be drawn by a
wide variety of
items along the
way.
Copyright 2017 Pearson Education, 7-4
Ltd.
Learning Objective 7-1
Define product and describe the major
classifications of products and
services.

Copyright 2017 Pearson Education, 7-5

Ltd.
What Is a Product?
A product is anything that can be
offered to a market for attention,
acquisition, use, or consumption that
might satisfy a want or need.
A service is an activity, benefit, or
satisfaction offered for sale; it is
intangible and does not result in
ownership of anything.

Copyright 2017 Pearson Education, 7-6

Ltd.
Products, Services,
and Experiences
Market offerings include both
tangible goods and services.
Companies create and manage
customer experiences with their
brands or companies.
To differentiate their offers from that of
the competitors

Copyright 2017 Pearson Education, 7-7

Ltd.
Products, Services,
and Experiences

Verizons
redesigne
d Smart
Stores
create
lifestyle
experience
s. Copyright 2017 Pearson Education, 7-8
Ltd.
Figure 7.1 - Three Levels of
Product

Copyright 2017 Pearson Education, 7-9

Ltd.
Product and Service
Classifications
Consumer products are bought by
final consumers for personal
consumption.
Industrial products are bought by
individuals and organizations for
further processing or for use in
conducting a business.
Materials and parts, capital items, and
supplies and services
Copyright 2017 Pearson Education, 7 - 10
Ltd.
 Table 7.1 - Marketing
Considerations for Convenience
and Shopping Products
Marketing Convenience Shopping
Consideratio
ns
Customer Frequent purchase; Less frequent purchase;
buying little much planning and
behavior planning, little shopping effort;
comparison comparison of brands on
or shopping effort; price, quality, and style
low
customer involvement
Price Low price Higher price
Distribution Widespread Selective distribution in
distribution; fewer outlets
convenient locations
Promotion Mass promotion by Advertising and personal
the selling by both the
producer producer and resellers
Copyright 2017 Pearson Education, 7 - 11
Ltd.
Table 7.1 - Marketing
Considerations for Specialty and
Unsought Products
Marketing Specialty Unsought
Consideratio
ns
Customer Strong brand preference Little product
buying and loyalty; special awareness or
behavior purchase effort; little knowledge (or, if
comparison of brands; aware, little or even
low price sensitivity negative interest)
Price High price Varies
Distribution Exclusive distribution in Varies
only one or a few outlets
per market area
Promotion More carefully targeted Aggressive
promotion by both the advertising and
producer and resellers personal selling by
the producer and
resellers
Copyright 2017 Pearson Education, 7 - 12
Ltd.
Other Market Offerings

Copyright 2017 Pearson Education, 7 - 13

Ltd.
Learning Objective 7-1
Summary
What is a product? physical products,
services, and experiences
Actual and augmented product core
customer value
Consumer products convenience,
shopping, specialty, and unsought
Industrial products materials and parts,
capital items, and supplies and services
Organization, person, place, and idea
marketing

Copyright 2017 Pearson Education, 7 - 14

Ltd.
Learning Objective 7-2
Describe the decisions companies
make
regarding their individual products and
services, product lines, and product
mixes.

Copyright 2017 Pearson Education, 7 - 15

Ltd.
Product and Service
Decisions

Copyright 2017 Pearson Education, 7 - 16

Ltd.
Figure 7.2 - Individual
Product and Service
Decisions

Copyright 2017 Pearson Education, 7 - 17

Ltd.
Product Line Decisions
A product line is closely related
products that:
Have similar functions and customer
groups
Are sold through similar outlets or fall
within given price ranges
Product line length is the number of
items in the product line.
Product line filling
Product line stretching
Copyright 2017 Pearson Education, 7 - 18
Ltd.
Product Line Decisions

Samsungs
bulging
Galaxy mobile
devices line
now offers a
size for any
need or
preference.
Copyright 2017 Pearson Education, 7 - 19
Ltd.
Product Mix (or Product
Portfolio)

The Clorox
Company has a
nicely contained
product mix
consistent with its
mission to make
everyday life
better, every day.
Copyright 2017 Pearson Education, 7 - 20
Ltd.
Product Mix Decisions

Copyright 2017 Pearson Education, 7 - 21

Ltd.
 Learning Objective 7-2
Summary
Product attribute decisions quality,
features, and style and design
Branding, packaging, and labeling
decisions
Product support services enhance
customer service and satisfaction
Product line and product mix decisions

Copyright 2017 Pearson Education, 7 - 22

Ltd.
Learning Objective 7-3
Identify the four characteristics that
affect the marketing of services and
the additional marketing
considerations that services require.

Copyright 2017 Pearson Education, 7 - 23

Ltd.
Figure 7.3 - Four
Service Characteristics

Copyright 2017 Pearson Education, 7 - 24

Ltd.
Service Profit Chain
Links service firm profits with
employee and customer satisfaction
The chain consist of five links:
Internal service quality
Satisfied and productive service
employees
Greater service value
Satisfied and loyal customers
Healthy service profits and growth
Copyright 2017 Pearson Education, 7 - 25
Ltd.
Figure 7.4 - Three Types of
Services Marketing

Copyright 2017 Pearson Education, 7 - 26

Ltd.
Service Profit Chain

Zappos knows
that delivering
customer
happiness
begins
with happy,
dedicated,
energetic
employees. 7 - 27
Copyright 2017 Pearson Education,
Ltd.
Marketing Tasks for
Service Companies

Copyright 2017 Pearson Education, 7 - 28

Ltd.
Learning Objective 7-3
Summary
Services characteristics: intangible,
inseparable, variable, and perishable
Service profit chain - internal and
interactive marketing
Competitive differentiation, service
quality, and service productivity

Copyright 2017 Pearson Education, 7 - 29

Ltd.
Learning Objective 7-4
Discuss branding strategythe
decisions companies make in
building and managing their
brands.

Copyright 2017 Pearson Education, 7 - 30

Ltd.
Brand Equity
The differential effect that knowing
the brand name has on customer
response to the product or its
marketing

With positive brand equity,

consumers react more favorably to
the brand than to an unbranded
version of the same product.
Copyright 2017 Pearson Education, 7 - 31
Ltd.
Brand Equity
Consumer perception dimensions:
Differentiation
Relevance
Knowledge
Esteem
Brand value is the total financial
value of a brand.
Customer equity is the value of
customer relationships that the
brand creates.Copyright 2017 Pearson Education, 7 - 32
Ltd.
Major Brand Strategy
Decisions

Copyright 2017 Pearson Education, 7 - 33

Ltd.
Major Brand Strategy
Decisions

Nickelodeon
has developed
a stable full of
hugely popular
characters.

Copyright 2017 Pearson Education, 7 - 34

Ltd.
 Brand Positioning and
Brand Name Selection
Marketers should establish a mission
and vision for the brand when
positioning it.
Desirable qualities for a brand name
should be
Based on the products benefits and
qualities
Easy to pronounce, recognize, and
remember
Distinctive and extendable
Copyright 2017 Pearson Education, 7 - 35
Ltd.
Brand Sponsorship

Copyright 2017 Pearson Education, 7 - 36

Ltd.
Figure 7.6 - Brand
Development Strategies

Copyright 2017 Pearson Education, 7 - 37

Ltd.
 Managing Brands

Managing brands
requires managing
touch points.

Copyright 2017 Pearson Education, 7 - 38

Ltd.
Managing Brands

Communicate the brands

positioning
Manage all brand touch points
Train employees to be customer
centered
Audit the brands strengths and
weaknesses

Copyright 2017 Pearson Education, 7 - 39

Ltd.
Learning Objective 7-4
Summary
Brand equitys positive effect
Brand positioning
Brand name selection
Brand sponsorship options -
national, private, licensed and co-
brand
Brand development through line and
brand extensions, multibrands or
new brands
Copyright 2017 Pearson Education, 7 - 40
Ltd.
Learning Objectives
7-1. Define product and describe the
major
classifications of products and
services.

7-2. Describe the decisions companies

make
regarding their individual products
and services, product lines, and
product mixes.
Copyright 2017 Pearson Education, 7 - 41
Ltd.
Learning Objectives
7-3. Identify the four characteristics
that affect the marketing of services
and the additional marketing
considerations that services require.
7-4. Discuss branding strategythe
decisions companies make in
building and managing their
brands.

Copyright 2017 Pearson Education, 7 - 42

Ltd.