Marketing Ch.7 Products, Services, and Brands


anything that can be offered to a market or attention, acquisition, use, ,or consumption that might satisfy a want or need.


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.

The Core Customer Value can be viewed on 3 Levels:

1. Core customer value (core problem solving benefits that consumers seek when they buy a product)
2. Actual Product (exists around the core and includes the quality level, features, design, brand name, and packaging)
3. Augmented Product(is the actual pr

When developing products,

- marketers first must identify the core customer value that consumers seek from the product.
- They must then design the actual product
- and find ways to augment it to create customer value and a full and satisfying brand experience.

Consumer Products

are products and services bought by final consumers for personal consumption.
Consumer P. include:
- convenience products
- shopping products
- specialty products
- unsought products

Convenience Product

are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort .
Convenience P include:
- laundry detergent
- candy magazines
- fast food

Shopping Products

are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.
Shopping P includes:
- furniture
- clothing
- major appliances
- hotel and airline services

Specialty Products

are consumer products and services with unique characteristics or brand identifications for which a significant group of buyers is willing to make a special purchase effort.
- specific brands of cars
- high-priced photography equipment
- designer clothes

Unsought Products

are consumer products that the consumer either does not know about or knows about but does not normally consider buying.
- life insurance
- preplanned funeral services
- blood donations
- Red Cross

industrial Products

are those product purchased for further processing or for use in conducting business.

Difference between a Consumer Product and a Industrial Product

is based on the PURPOSE for which the product is purchased.
If a consumer buys a lawn mower for use around home, the lawn mower is a consumer product. If the same consumer buys the same lawn mower for use in a landscaping business, the lawn mower is an in

3 Groups of Industrial Products and Services

- Material and Parts
- Capital Items
- Supplies and Services

Material and Parts include

- raw materials
- farm products (wheat, cotton, livestock, fruits, vegetables.
- natural products (fish, lumber, crude petroleum, iron ore).
- manufactured materials and parts
- iron
- yarn
- cement
- wires

Person Marketing

consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people.

Social Marketing

the use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well-being and that of society.

Marketers make product and service decisions at 3 levels:

- individual product decisions
- product line decisions
- product mix decisions

Individual Product and Service Decisions

- Product attributes
- Branding
- Packaging
- Labeling
- Product support services

Product Quality

is the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.
Quality affects product or service performance; thus, it is closely linked to customer value and satisfaction.
Siemens defines quality thi

TQM(Total Quality Management)

is an approach in which all of the company's people are involved in constantly improving the quality of products, services, and business processes.


a name, term, sign, symbol, or 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 also say something about brand:
- Quality
- Consistency


involves designing and producing the container or wrapper for a product.
packages must now perform many sales tasks:
- from attracting buyers
- Communicating brand positioning
- Other promotions

Labeling, says an analyst,

highlight a powerful connection people have to the visual representations of their....brands.

Labeling has been affected in recent times by:

- unit pricing (stating the price per unit of a standard measure)
- open dating(stating the expected shelf life of a product)
- Nutritional labeling(stating the nutritional values in the product).
*Sellers must ensure that their labels contain all the req

Product Line

is a group of products that are related in function, customer-purchase needs, or distribution channels.
for example, Nike produces several lines of athletic shoes and apparel, and Marriott offers several lines of hotels.

The Major product line decision involves Product Line Length which is,

the number of items in the product line.
the line is too short if the manager can increase products by adding items; the line is too long if the manager can increase profits by dropping items.

A company can expand its product line in two ways:

- Line Filling
- Line Stretching

Product Line Filling involves

adding more items within the present range of the line.

Product Line Stretching occurs

when a company lengthens its product line beyond its current range. The company can stretch its line downward, upward, or both ways.
for example, Acer is know for affordable budget friendly computers, BUT they stretched the product line UPWARD by adding M

Product Mix(or product portfolio)

are all product lines and items offered to customers by a particular seller. The mix can be described by four dimension: width, length, depth, and consistency.
for example, Campbell Soup Company's product mix consists of three major product lines: healthy

A Product Mix has 4 important dimensions:

- width
- length
- depth
- consistency
- width refers to the number of different product lines the company carries
- length refers to the total number of items a company carries within its product lines
- depth refers to the number of versions offered for

Service Intangibility

are services that cannot be seen, tasted, felt, heard, or smelled before they are bought.

To reduce uncertainty, buyers look for signals of service quality. They draw conclusions about quality from the:

- place
- price
- equipment
- communications

Service Inseparability

are services that are produced and consumed at the same time and cannot be separated from their providers.

Service Variability

are the quality of services that may vary greatly depending on who provides them and when, where, and how they are provided.
for example, within a given Marriott Hotel, one registration-counter employee may be cheerful and efficient, whereas another stand

Service Perishability

are services that cannot be stored for later sale or use.
for example, some doctors charge patients for missed appointments because the service value existed only at that point and disappeared when the patient did not show up. The perish-ability of servic

Service Profit Chain

the chain that links service firm profits with employee and customer satisfaction.
- Internal service quality
- Satisfied and productive service employees
- Greater service value
- Satisfied and loyal customers
- Healthy Service profits and growth

Internal Marketing

is orienting and motivating customer-contact employees and supporting service employees to work as a team to provide customer satisfaction.

Interactive Marketing

is training service employees in the fine art of interacting with customers to satisfy their needs.
in services marketing, service quality depends on both the service deliverer and the quality of delivery. Service marketers, therefore, have to master inte

Service Companies face 3 major marketing tasks: They want to increase their

- Service differentiation
- Service Quality
- Service Productivity

Good Service Recovery

can turn angry customers into loyal ones.
For example, Southwest Airlines has a proactive customer communications team whose job is to find the situations in which something went wrong -- a mechanical delay, bad weather, a medical emergency, or a berserk

Brands are more than just names and symbols. They are the

key elements in the company's relationships with consumers.
Brands represent consumers' perceptions and feelings about a product and its performance -- everything that the product or the service means to 221

As one well-respected marketer, Jason Kilar, former CEO of the online video service HULU once said,

Products are created in the factory, but brands are created in the mind." pg. 221

Brand Equity

is the differential effect that knowing the brand name has on customer response to the product and its marketing. It's a measure of the brand's ability to capture consumer preference and loyalty.

Ad agency Young & Rubicam's Brand Asset Valuator measures brand strength along four consumer perception dimensions:

- Differentiation(what makes the brand stand out)
- Relevance(how consumers feel it meets their needs)
- Knowledge(how much consumers know about the brand)
- Esteem(how highly consumers regard and respect the brand)
pg. 222

Brand Valuation

is the process of estimating the total financial value of a brand.

Customer Equity

the value of customer relationships that the brand creates.

Trade that is not integrated into the Western market economy is called


Major Brand Strategy decisions involve:

- Brand Positioning(attributes, benefits, beliefs and values)
- Brand Name Selection(selection protection)
- Brand Sponsorship(manufacturer's brand Private brand Licensing Co-branding)
- Brand Development(line extensions, brand extensions, multi-brands, n

3 levels of Brand Positioning
pg. 224

lowest level: brand attributes
mid level: benefit
highest level:
Marketers need to position their brands clearly in target customers' minds.

Brand name selection

begins with a careful review of the product and its benefits, the target market, and proposed marketing strategies.
1)should suggest something about the product's benefits
2) should be easy to pronounce, recognize, and remember
3) should be distinctive

Store Brand (or private brand)

a brand created and owned by a re-seller of a product or service.


occurs when two established brand names of different companies are used on the same product.
*for example, Nike and Apple co-branded the Nike + iPod Sport Kit, which lets runners link their Nike shoes with their iPods to track and enhance running performa

4 choices of Brand Development

- Line Extensions
- Brand Extensions
- Multibrands
- New Brands

Line Extensions

occur when a company extends existing brand names to new forms, colors, sizes, ingredients, or flavors of an existing product category.
Thus, the Cheerios line of cereals includes Honey Nut, Frosted, yogurt Burst, Multi-Grain, Banana Nut, and several othe

Brand Extensions

extends a current brand name to new or modified products in a new category.
For example, Starbucks extended its retail coffee shops by adding packaged supermarket coffees and even a single-serve home coffee, espresso, and latte machine -- the Verismo.


companies often market many different brands in a given product category. For example, in the U.S., PepsiCo markets at least five brands of soft drinks (Pepsi, Sierra Mist, Slice, Mountain Dew, and Mug root beer), four brands of sports and energy drinks (

New Brands

a company might believe that the power of its existing brand name is waning, so a new brand name is needed. or it may create a new brand name when it enters a new product category for which non of its current brand names are appropriate.
For example, Toyo

Managing Brands

Companies must manage their brands carefully. First, the brand's positioning must be continuously communicated to consumers. Major brand marketers often spend huge amounts on advertising to create brand awareness and build preference and loyalty.
For exam

Product and Services fall into two broad classes based on the types of consumers who use them.

- Consumer products: those bought by final consumers; are usually classified according to consumer shopping habits (convenience products, shopping products, specialty products, and unsought products).
- Industrial Products: those purchased for further pro

Services are characterized by four key aspects:

- intangible
- inseparable
- variable
- perishable