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1. PRODUCT, SERVICE and BRANDS:
BUILDING CUSTOMER VALUE

2. CHAPTER 8: LEARNING
OBJECTIVES
• Define Product
• Understand the levels of product and
services
• Understand the decisions companies make
regarding their individual products and
services, product lines, and product mixes
• Explain how companies build and manage
their brands
• Enumerate the four characteristics of
service marketing

3. WHAT IS A PRODUCT?
Product is anything that can be offered to a
market for attention, acquisition, use, or
consumption that might satisfy a want or
need.
—Also include services, events, persons,
place, organizations, ideas, or a mixture of
these—

4. EXAMPLES OF PRODUCT
EVENT PLACE IDEAS(new product)

5. SERVICES
 SERVICES are 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.
EXAMPLE
S
Doctor’s HAIR CUT
Examination

6. Product, Service, Experience
 PURE TANGIBLE GOOD  PURE SERVICE
COMBINATION OF THIS TWO

7. Levels of Product
CORE ACTUAL AUGMENTED
CUSTOMER PRODECT PRODUCT
VALUE
To develop
What is Offering
product and
additional
the buyer service features,
consumer
really design, a quality
services and
level, a brand
buying? name, and
benefits.
packaging.

8. AUGMENTED:
ACTUAL: DELIVERY
INSTALLATI
ON
BRAND PACKAGING
CORE:
BASIC
CREDIT/ NEED, FEATURES
WARRANTY
PAYMENT QUALITY BENEFIT
TERMS LEVEL
DESIGN
AFTER SALES SERVICES

9. NOKIA N8:
THE CORE
PRODUCT:
 COMMUNICATION
 MESSAGING

10. THE ACTUAL PRODUCT
 PACKAGING-Anodised
Aluminium case, available
in 6 different colours.
Size: 113.5 x 59 x 12.9 mm
Weight (with battery): 135 g
Volume: 86 cc
 FEATURES-Works on
Symbian ^3, Has a 12 MP
camera, Radio and Music
player and Gaming.
 QUALITY LEVEL: Phone
camera is of exceptional
quality with HD recording.
 BRAND: Nokia, which
happens to be one of the
most trusted cell phone
brands in India.

11. AUGMENTED PRODUCT
 DELIVERY: Then
product can be
purchased from any
Electronic goods
showroom. It can be
also ordered online.
 INSTALLATION: Not
required.
 WARRANTY: The
product has a warranty
period of 1 year.
 AFTER SALE
SERVICES: Can be
acquired from any
Nokia service centre.
 CREDIT/PAYMENT

12. Product and
service
classification

13. Product and services classes
Consumer products Industrial Products
Are products and A product brought by
services bought by individuals and
final consumers for organizations for
personal further processing for
consumption. use in conducting a
business.

14. Types of consumer product
 Consumer Product
 Convenience Product
 Shopping Product
 Specialty Product
 Unsought Product

15. Marketing Convenience Shopping Specialty Unsought
Consideratio
ns
Customer Frequent purchase, little Less frequent Strong brand Little product
buying behavior planning, little purchase, much preference and loyalty, awareness
comparison or shopping planning and special purchase
effort, low customer shopping effort, effort, little comparison
involvement comparison of of brands, low price
brands on price, sensitivity
quality, style
Price Low price Higher Price High Price Varies
Distribution Widespread distribution, Selective Exclusive distribution Varies
convenient locations distribution in in only one or few
fewer outlets outlets per market
area
Promotion Mass promotion by the Advertising and More carefully Aggressive advertising
producer personal selling targeted promotion by and personal selling
by both the both the producer and by the producer and
producer and reseller reseller
resellers
Examples Toothpaste, magazines Clothing and Luxury goods such Life insurance and red
and detergent appliances Rolex or fine crystals cross blood donations

16. Industrial Product types
 Materials and parts - Raw materials and
manufactured materials and parts.
 Capital Items – Industrial products that
aid in the buyer’s production or operation.
 Supplies and services – Operating
supplies and repair and maintenance
items.

17. Organizations,
Persons,Places
and Ideas

18.  Organization marketing  Person marketing -
- consist of activities consist of activities
undertaken to create, undertaken to create,
maintain, or change the maintain, or change the
attitudes and behavior attitudes or behavior
of target consumers toward particular
towards an people.
organization.

19.  Place marketing -  Ideas – is a concept or
Involves activities mental impression,
undertaken to create, ideas can also be
maintain, or change the marketed. All marketing
attitudes or behavior is the marketing of an
toward particular idea.
people.

20. Social Marketing
 Theuse of commercial marketing
concepts and tools in programs
designed to influence individuals’
behavior to improve their well
being and that of society.

21. Product and Service Decisions
Product
Product
Branding Packaging Labeling Support and
Attributes
Services

22. Product and Service Attributes
Developing a product or service involves defining
the benefits that it will offer.
- Product Quality
- Product Features
- Product Style and Design
- Total Quality Management
- - is an approach in which all of the company’s
people are involved in constantly improving the
quality of the products, services, and business.

23. Branding
 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

24. Packaging
 The activities of designing and producing
the container or wrapper for the product.

25. Labeling
 The label identify the product or brand.

26. Product Support and Services
 Product Line Decisions
- 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
range.
 Product Mix Decisions
- The set of al product lines and items
that particular seller offers for sale

27. • Services Marketing
– is a sub field of marketing, which can be split
into the two main areas of goods marketing
(which includes the marketing of fast moving
consumer goods (FMCG) and durables) and
services marketing. Services marketing typically
refers to both business to consumer (B2C) and
business to business (B2B) services.

28. Nature & Characteristics of a Service
– Company must consider four special characteristics when
designing marketing programs intangibility, inseparability,
variability, and perishability.
SERVICES
Intangibility – Services cannot be seen, tasted, felt, heard or
smelled before purchase.
Inseparability – Services cannot be separated from their
providers.

29. Variability – Quality of services depends on who provides
them, when, where, & how.
Perishability – Services cannot be stored for later sale or use.
 Service-Profit Chain
– Chain that links services firm profits with employee &
costumer satisfaction.
This chain consist of five links:
Internal service quality – Superior employee section &
training, a quality work environment, & strong support for
those dealing with costumer.

30. Satisfied & productive service employees – More satisfied,
loyal & hardworking employees.
Greater service value – More effective & efficient costumer
value.
Satisfied & loyal costumers – Satisfied costumers who
remain loyal, repeat purchase, and refer other costumers.
Healthy service profits & growth – superior service firm
performance.

32. Building Strong Brands
1. Brand Positioning
2.Brand Name Selection
3. Brand Sponsorship
4. Brand Development

33. Brand Positioning
 What are the ATTRIBUTES of the
product
 What are the BENEFITS of the product
 How about VALUES and BELIEFS

34. Brand Name Selection
 It should suggest something about the
product’s benefits and qualities
 Easy to pronounce, recognize and
remember
 Brand name should be distinctive
 Extendable

35. Brand Sponsorship
 Manufacturer’s brand (National Brand)
 Private Brand
 Licensing
 Co- branding

36. Private Brand
 created and owned by reseller of a product
or service

37. Licensing
 is the accreditation of the brand name

38. Co- branding
 the practice of using the established brand
names of two different companies on the
same product

39. Brand Development
 Line Extensions
 Brand Extensions
 Multibrands
 New Brands

40. Line Extensions
 extending an existing brand name to new
forms, color, sizes, ingredients or flavors
of an existing product category

41. Brand Extension
 Extending an existing brand name to new
product categories

42. Multibrands
 companies often market different brands
in a given product category

43. New Brands
 a company might believe that the power
of its existing brand name is wanting, so
new brand name needed