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Chapter 7
Product, Services, and
Branding Strategy
1
Concept
Connections
Define Product and the major classifications
of products and services.
Describe the decision companies make regarding
their individual products, product lines and
product mixes.
Discuss branding strategy - building and
managing brands.
Identify the four characteristics that affect the
marketing of a service.
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What’s a product?
Product

Anything offered to a
market for attention,
acquisition, use, or
consumption that might
satisfy a need or want.
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Products
Products
Experiences
Persons
Organizations
Information
Places
Ideas
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Levels of
Product and Services
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Product and Service
Classifications
Products and services fall into two broad
classes based on the types of consumers that
use them:
- Consumer products
(Convenience, Shopping, Specialty, Unsought)
- Industrial products
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Types of Consumer
Products - Convenience
Frequent purchases bought
with minimal buying effort
and little comparison
Low price
Widespread distribution
Mass promotion by producer
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Types of Consumer
Products -Shopping
Less frequent purchases requiring
more shopping effort and
comparisons.
Higher than convenience goods
Selective distribution in fewer
outlets
Advertising and personal selling by
producer and reseller
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Types of Consumer
Products -Specialty
Strong brand loyalty, requires
special purchase effort, little
brand comparisons, and price
sensitivity
High price
Exclusive distribution
Carefully targeted promotion by
producers and resellers
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Types of Consumer
Products - Unsought
Little product awareness and knowledge
(or if aware, sometimes negative interest)
Pricing varies
Distribution varies
Aggressive advertising and personal
selling
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Individual
Product Decisions
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Product Attributes

Quality
- Customer value and satisfaction
- TQM

Features
- Value to consumer
- Competitive tool for differentiation

Style and Design
- Style describes the appearance
- Design is more than skin deep
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What is a Brand?
A brand is a name, term, sign, symbol, or
design, or a combination of these, that
identify the maker or seller of
a product or service.
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Brand Equity
Devoted
to Brand
(brand as a friend)
Values the Brand
Satisfied & Switching Cost
Satisfied Customer
(no reason to change)
No Brand Loyalty
(customer will change)
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Brand Strategy
-Brand Name Selection
Good Brand Names:


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Suggest something about the product, or its
benefits
Are easy to pronounce, recognize and
remember
Are distinctive and unique
Translate well into other languages
Can be registered and legally protected
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Brand Strategy
-Brand Sponsorship
Manufacturer brands
Private (store) brands
 Higher profit margins
Licensed brands
 Name and character licensing has grown
Co-branding
 Advantages / disadvantages
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Brand Strategy
-Brand Development
Brand Name
Product Category
Existing
New
Existing
Line
Extension
Brand
Extension
New
Multibrands
New Brands
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Packaging
Includes primary, secondary
and shipping packages.
Functions
-Contain and protect
-Promote
-Differentiate
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Labeling
Functions
Identifies
Grades
Describes
Promotes
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Product Line Decisions
Product line

A group of products that are closely related
because they may…

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function in a similar manner
are sold to the same customer groups
Market through the same types of outlets
fall within given price ranges
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Product Mix
(Product Assortment)
Width - # of
different product
lines
Length - # of
items
within the lines
Product Mix all the product
lines offered by
a seller
Depth - # of
versions of each
product carried
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Services Marketing
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Service Firm
Marketing Strategies

The Service-Profit Chain


Internal Marketing
Interactive Marketing
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Additional Product
Considerations
Product Decisions and Social Responsibility
International Product and Services
Marketing

Special challenges:
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Which products should be marketed
internationally?
Should the products be standardized or adapted
for world markets?
How should packaging be adapted?
How can other barriers be overcome?
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Review of
Concept Connections
Define Product and the major classifications of
products and services.
Describe the decision companies make regarding
their individual products, product lines and
product mixes.
Discuss branding strategy -building and
managing brands.
Identify the four characteristics that affect the
marketing of a service.
Jian Hong SHAO USTB