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Product, Services,
and Branding
Strategies
Chapter 9
Objectives
Be able to define product and know
the major classifications of products
and services.
Understand the decisions companies
make regarding their individual
products and services, product lines,
and product mixes.
Understand how firms build and
manage their brands.
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Objectives
Know the four characteristics of
services and the additional
marketing considerations that
services require.
Review additional product issues
related to social responsibility and
international marketing.
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Cosmeticsc Industry
Cosmetics
companies sell
billions of
dollars worth of
products
Consumers buy
more than just a
particular smell
The “promise”,
image, company,
name, package,
and ingredients
are all part of the
product, as are
the stores where
it is sold.
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Definition
Product
 Anything offered
to a market for
attention,
acquisition,
consumption or
use that might
satisfy a need
or want.
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Definition
Service
 Any activity or
benefit that one
party can offer to
another that is
essentially
intangible and
does not result in
the ownership of
anything.
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What is a Product?
Products,
Services, &
Experiences
 Market
offerings,
pure
tangible
goods, pure
services,
experiences
Experiences include zoos and aquariums
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Figure 9-1:
Three Levels of Product
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Discussion Question
Describe the core
benefit, actual
product, and
augmented product
aspects of an
automobile purchase.
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What is a Product?
Product and service
classifications fall into
two broad classes based
on the types of buyers
who use them:
 Consumer products
 Industrial products
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What is a Product?
Types of
Consumer Products
Convenience
Shopping
Specialty
Unsought
Frequent purchases
bought with minimal
buying effort and
little comparison
shopping
Low price
Widespread
distribution
Mass promotion
by producer
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What is a Product?
Types of
Consumer Products
Convenience
Shopping
Specialty
Unsought
Less frequent
purchases requiring
more shopping effort
and price, quality, and
style comparisons.
Higher priced than
convenience goods
Selective distribution in
fewer outlets
Advertising and
personal selling by
producer and reseller
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What is a Product?
Types of
Consumer Products
Convenience
Shopping
Specialty
Unsought
Strong brand preference
and loyalty, requires
special purchase effort,
little brand
comparisons, and low
price sensitivity
High price
Exclusive distribution
Carefully targeted
promotion by producers
and resellers
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Discussion Question
How can tropical fish
be a convenience
good, specialty good,
or shopping good to
different consumers?
Provide examples.
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What is a Product?
Types of
Consumer Products
Convenience
Shopping
Specialty
Unsought
Little product
awareness and
knowledge (or if aware,
sometimes negative
interest)
Pricing varies
Distribution varies
Aggressive advertising
and personal selling by
producers and resellers
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Pay Now . . . Die Later
Selling Cemetery Plots
The Goal:
Sell plots to baby
boomers prior to an
actual death in the family
– “preneed policies”.
Special Challenges:
Emotional – marketing
done at the wrong time
could boomerang.
Opportunities:
Many states treat
preneed policies as
tax exempt, and now
allow cemeteries to
have funeral homes.
On-site funeral
homes provide
greater convenience.
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Pay Now . . . Die Later
Selling Cemetery Plots
Unusual Promotions:
 Buy one plot get a second
for a penny
 “Heaven Can Wait”
cemetery run
 Boy Scout campouts at
cemeteries
Other Advertising:
 Freestanding inserts
 “Penny pincher” bags
Lakeview Cemetery:
 Brochure direct mail
with map and open
plots designated
 Stresses need to
preplan as a method of
sparing loved ones
Other Sales Methods:
 Grief information
 Via clergy members
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What is a Product?
Product and Service Classifications
 Industrial products are those
purchased for use in conducting a
business or those purchased as
ingredients or components to be used
in manufacturing.
Materials and parts
 Capital items
 Supplies and services

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Industrial
products also
include
business
services, such
as landscaping,
technology, food
services, or
custodial.
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What is a Product?
Product and Service Classifications
 “Products” also include organizations,
persons, places, and ideas




Organizational marketing makes use of
corporate image advertising
Person marketing applies to political
candidates, entertainment sports figures, and
professionals
Place marketing relates to tourism
Social marketing campaigns promote ideas
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Social marketing
promotes ideas or
causes for the
purpose of
improving an
individual’s wellbeing or the wellbeing of society.
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Product & Service Decisions
Key Decisions
Individual
Product
Product Line
Product Mix
Product attributes
 Quality, features,
style and design
Branding
Packaging
Labeling
Product support
services
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Figure 9-2:
Individual Product
and Service Decisions
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Product & Service Decisions
Innovative product
design can help
revitalize a
company, such as
with the Apple iMac.
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Product & Service Decisions
Brand:
 A name, term, sign,
symbol, design, or a
combination of
these, that identifies
the maker or sellers
of a product or
service.
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Product & Service Decisions
Packaging involves designing a
container or wrapper for a product
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Product & Service Decisions
Many aspects of a food product’s
label are dictated by law
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Product & Service Decisions
Support services
via the web
include FAQ files,
email queries, live
chat with
customer service
personnel, and
software updates
1-800 Flowers
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Product & Service Decisions
Key Decisions
Individual
Product
Product Line
Product Mix
Product line length
 Line stretching:
adding products that
are higher or lower
priced than the
existing line
 Line filling: adding
more items within the
present price range
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Discussion Question
Would you classify
Tide’s product line
as an example of
line stretching or
line filling?
Why?
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Product & Service Decisions
Key Decisions
Individual
Product
Product Line
Product Mix
Product line width:
 Number of different
product lines carried
by company
Product line depth:
 Number of different
versions of each
product in the line
Product line
consistency
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Branding Strategy
Brands are powerful
assets that must be
carefully developed
and managed.
 Both Tiger Woods
and Nike can be
considered brands
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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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Figure 9-3:
Major Brand
Strategy Decisions
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Brand Strategy
Key Decisions
Brand Positioning
Brand Name
Selection
Brand
Sponsorship
Brand
Development
Three levels of
positioning:
 Product attributes

Least effective
 Benefits
 Beliefs and values

Taps into
emotions
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Brand Strategy
Key Decisions
Brand Positioning
Brand Name
Selection
Brand
Sponsorship
Brand
Development
Good Brand Names:
 Suggest something
about the product or its
benefits
 Are easy to say,
recognize and
remember
 Are distinctive
 Are extendable
 Translate well into
other languages
 Can be registered and
legally protected
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Discussion Question
Evaluate the brand name
for the product at left
according to the criteria
previously listed.
Would you have chosen
this name for this product?
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Brand Strategy
Key Decisions
Manufacturer brands
Brand Positioning
Brand Name
Selection
Brand
Sponsorship
Brand
Development
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Brand Strategy
Key Decisions
Brand Positioning
Brand Name
Selection
Brand
Sponsorship
Brand
Development
Private (store) brands
 Costly to establish and
promote
 Higher profit margins
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Brand Strategy
Key Decisions
Brand Positioning
Brand Name
Selection
Brand
Sponsorship
Brand
Development
Licensed brands
 Name and character
licensing has grown
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Brand Strategy
Key Decisions
Brand Positioning
Brand Name
Selection
Brand
Sponsorship
Brand
Development
Co-branding
 Advantages
 Broader consumer
appeal
 Greater brand equity
 Efficient means of
expansion into new
product categories
 Limitations
 Complex legal contracts
 Requires careful
coordination of IMC
 Requires that partners
trust one another
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Brand Strategy
Key Decisions
Brand Positioning
Brand Name
Selection
Brand
Sponsorship
Brand
Development
Line extensions
 Minor changes to existing
products
Brand extensions
 Successful brand names
help introduce new
products
Multibrands
 Multiple product entries in
a product category
New brands
 New product category
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Figure 9-4:
Brand Development
Strategies
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Brand Strategy
Line Extensions May
Feature Different Things
Flavors
Colors
Forms
Ingredients
Package Sizes
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Services Marketing
Services
 Account for 74% of
U.S. gross domestic
product.
 Service industries
include business
organizations,
government, and
private not-for-profit
organizations.
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Figure 9-5:
Four Services
Characteristics
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BusinessNow
Site59 Video Clip
The perishability of
services such as
airline seats creates
special challenges
for marketers
Click the picture above to play video
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Figure 9-6:
Three Types of Marketing
in Services Industries
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Services Marketing
Service Firm Marketing Strategies
 The Service-Profit Chain
Internal Marketing: service firms
train and effectively motivate their
employees to work as a team to
satisfy the customer
 Interactive Marketing: recognizes that
service quality depends heavily on the
quality of buyer-seller interaction

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Services Marketing
Service Firm Marketing Strategies
 Managing Service Differentiation
British Airways
differentiates its
service by offering
first-class world
travelers private
“demi-cabins”
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Services Marketing
Service Firm Marketing Strategies
 Managing Service Quality




One method of differentiation
Customer retention is often the best measure
Top service firms are “customer obsessed”
Service recovery and employment
empowerment are key
 Managing Service Productivity


Many methods of enhancing productivity
Key is to avoid reducing quality
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Additional Product
Considerations
Product Decisions and Social
Responsibility
 Acquisitions and mergers
 Legal compliance
 Product liability issues
 Warranties
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Additional Product
Considerations
International Product and Services
Marketing
 Special challenges:
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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