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Marketing: An Introduction
Product and Services Strategy
•Chapter Eight
•Lecture Slides
–Express Version
•Course
•Professor
•Date
Marketing: An Introduction
Looking Ahead
• After studying this chapter, you should
be able to:
• Define product and the major classifications of
products and services
• Describe the roles of product and service branding,
packaging, labeling, and product services
• Explain the decisions companies make when
developing product lines and mixes
• Identify the four characteristics that affect the
marketing of a service
• Discuss the additional marketing considerations that
services require
8-2
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Products, Services, & Experiences
• Product: anything that can be offered to a market for
attention, acquisition, use, or consumption that might
satisfy a want or need
• Service: are products that consist of activities, benefits,
or satisfactions offered for sale that intangible, and do not
result in the ownership of anything
• Experiences: those aspects of products which take
place in the minds of consumers, and are memorable
8-3
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Levels of Product
Installation
Delivery and credit
Packaging
Brand
name
Quality level
Warranty
8-4
Core
benefit
or service
Augmented
product
Actual
product
Features
Core
product
Design
After-sale service
©Copyright 2004, Pearson Education Canada Inc.
Figure 8-1
Marketing: An Introduction
Types of Consumer Products
• Convenience:
– Frequent purchase, low involvement, widespread
distribution, mass promotion
• Shopping:
– Less frequent purchase, more effort, comparison of
brands, price, and quality, selective distribution and
promotion
• Specialty:
– Strong brand preference, special purchase effort, low
price sensitivity, exclusive distribution, targeted promotion
• Unsought:
– Low product awareness, negative interest, use personal
selling
8-5
©Copyright 2004, Pearson Education Canada Inc.
Table 8-1
Marketing: An Introduction
Types of Business Products
• Materials and parts:
– Raw and manufactured materials, parts
• Capital items:
– Buildings and equipment used in buyer’s production or
operations, long useful life
• Supplies and services:
– Operating supplies, repair and maintenance items, and
services
8-6
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Individual Product Decisions
•
Product attribute decisions
–
•
Branding decisions
–
•
Brand equity, name selection, manufacturer’s versus
private brands, licensing, co-branding, line and brand
extensions
Packaging
–
•
Hold and protect contents, identify and promote the
product and brand
Labelling
–
•
Ingredients, directions for use, identify and promote
Product support services
–
8-7
Product quality, features, style and design
Repair and maintenance, accessories
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Four Brand Strategies
Product category
Existing
Existing
New
Line
extension
Brand
extension
Multibrands
New
brands
Brand name
New
8-8
©Copyright 2004, Pearson Education Canada Inc.
Figure 8-4
Marketing: An Introduction
Product Line Decisions
• Product line
– Group of closely related products
– Length equals number of products
• Line stretching
– Adding products to the line outside of current range
• Line filling
– Adding more products within current range
• Product mix decisions
–
–
–
–
8-9
Width
Length
Depth
Consistency
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Characteristics of Services
8-10
Intangibility
Inseparability
Cannot be seen, tasted,
felt or smelled before
purchasing
Production and,
consumption, and
from the provider
Variability
Perishability
Service quality depends
on who provides and
under what conditions
Cannot be stored,
for resale or
later use
©Copyright 2004, Pearson Education Canada Inc.
Figure 8-5
Marketing: An Introduction
Marketing Strategies for Services
• The service-profit chain consists of:
– Internal service quality
• Superior employee selection and training
• Quality work environment
• Support for those dealing with customers
– Satisfied and productive service employees
– Greater service value
– Satisfied and loyal customers
• Repeat purchasing and word of mouth advertising
– Healthy service profits and growth
• Main marketing tasks: service differentiation, service
quality, and productivity
8-11
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Looking Back
• Classifications of
product and services
• Branding, packaging,
labelling, and support
services
• Product line and mix
decisions
• Characteristics of
services
• Additional marketing
considerations for
services
8-12
©Copyright 2004, Pearson Education Canada Inc.