POM
Products, Services, and Brands: Building Customer Value
What is a Product?
Products, Services, Experiences
Product – is anything that can be offered in a market for attention, acquisition,
use, or consumption that might satisfy a need or want
Experiences – represent what buying the product or service will do for the
customer
Levels of product and Services
AUGMENTED
PRODUCT
ACTUAL After-Sale
Delivery
and PRODUCT Service
Credit
Brand Features
Core
Name
Customer
Value
Quality Design
Level
Product
Support Packaging
Warranty
Product and Service Classifications
» Consumer products
» Industrial Products
Consumer products - are products and services for personal consumption
Classified by how consumers buy them
Convenience Products –are consumer products and services that the
customer products and services that the customer usually buys
frequently, immediately, and with a minimum comparison and buying
effort
o Newspapers
o Candy
o Fast Food
Shopping Products – are consumer products and services that the
customer compares carefully on suitability, quality, price, and style
o Furniture
o Cars
o Appliances
Specialty Products – are consumer products and services with unique
characteristics or brand identification for which a significant group of
buyers is willing to make a special purchase effort
o Medical Services
o Designer Clothes
o High-end Electronics
Unsought Products – are consumer products that the consumer does not
know about or knows about but does not normally think of buying
o Life insurance
o Funeral services
o Blood donations
Industrial Products – are products purchased for further processing or for use
in conducting a business
Classified by the purpose for which the product is purchased
Capital items – are industrial products that aid in the buyer’s production
or operations
Materials and Parts – include raw materials and manufactured materials
and parts usually sold directly to industrial users
Supplies and Services - include operating supplies, repair and
maintenance items, and business services
Organizations, Persons, Places, and Ideas
Organization Marketing – consists of activities undertaken to create, maintain,
or change attitudes and behavior of target consumers toward an organization
Person Marketing – consists of activities undertaken to create, maintain, or
change attitudes and behavior of target consumers toward particular people
Place Marketing – consists of activities undertaken to create, maintain, or
change attitudes and behavior of target consumers toward particular places
Social Marketing – is the use of commercial marketing concepts and tools in
programs designed to influence individuals’ behavior to improve their well-
being and that of society
Product and Services Decisions
Individual Product and Service Decisions
Product
Product
Branding Packaging Labeling Support
Attributes Attributes – are the benefits of the product or service
Product Services
o Quality
o Features
o Style and Design
Product Quality includes level and consistency
Quality Level – is the level of quality that supports the product’s
positioning
Conformance Quality – is the product’s freedom from defects and
consistency in delivering a targeted level of performance
Product Features – are competitive tool for differentiating a product
from competitors’ products
- Are assessed based on the value to the customer
versus the cost to the company
Style – describes the appearance of the product
Design – contributes to a product’s usefulness as well as to its looks
Brand – is the name, term, sign, or design – or a combination of these-that
identifies the maker or seller of a product or service
Brand Equity – is the differential effect that the brand name has on
customer response to the product and its marketing
Packaging – involves designing and producing the container or wrapper for a
product
Labels – identify the product or brand, describe attributes, and provide
promotion
Product support services augmented actual products (e.g. HP Total Care)
Product Line Decisions
Product Line – is 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 customer groups, are marketed through the same
types of outlets, or fall within given price ranges
Product Line Length – is the number of items in the product line
Line Stretching
Line Filling
Product Mix Decision
Product Mix – consists of all the products and items that a particular seller of for
sale
Width
Length
Depth
Consistency
Branding Strategy: Building Strong Brands
Brand – represents the consumer’s perceptions and feelings about a product
and its performance
- It is the company’s promise to deliver a specific set of features,
benefits, services, and experiences consistently to the buyers
BRAND BRAND
BRAND SPONSORSHIP DEVELOPMENT
POSITIONING BRAND NAME
Manufacturer's Line Extensions
Attributes SELECTION
Brand Brand
Benefits Seletion
Private Brand Extensions
Beliefs and Protection
Licesing Multibrands
Values
Brand Positioning Co-branding New Brands
Brand Strategy Decisions Include:
o Product Attributes
o Product Benefits
o Product Beliefs and Values
Brand Name Selection
Desirable Qualities
o Suggest benefits and qualities
o Easy to pronounce, recognize, and remember
o Distinctive
o Extendable
o Translatable for the global economy
o Capable of registration and legal protection
Brand Sponsorship
o Manufacturer’s brand
o Private Brand
o Licensed Brand
o Co-brand
PRODUCT CATEGORY
Existing New
Line
Existing Brand
Extension Extension
Multibrands
New New Brands
Services Marketing
» Types of Service Industries
Government
Private not-for-profit organizations
Business Services
Nature and Characteristics of a Service
INTANGIBILITY
Services cannot be seen,
tasted, felt, heard, or
smelled before purchase
VARIABILITY
INSEPARABILITY
Quality of services
Services cannot be
depends on who Services separated from their
provides them and
when, where, and providers
how
PERISHABILITY
Services cannot be stored
for later sale or use
Marketing Strategies for Service Firms
In addition to traditional marketing strategies, service firms often require
additional strategies
Service-profit Chain – links service firm profits with employee and customer
satisfaction
o Internal Service Quality
o Satisfied and productive service employees
o Greater service value
o Satisfied and loyal customers
o Healthy service profits and growth
Internal Marketing – means that the service firm must orient and motivate
its customer contact employees and supporting service people to work as a
team to provide customer satisfaction
- Must precede external marketing
Interactive Marketing – means that service quality depends heavily on the
quality of the buyer-seller interaction during the service encounter
o Service Differentiation
o Service Quality
o Service Productivity
Managing Service Differentiation – creates a competitive advantage from the offer,
delivery, and image of the service
Offer – can include distinctive features
Delivery – can include more able and reliable customer contact people,
environment, or process
Image – can include symbols and branding
Managing Service Quality – provides a competitive advantage by delivering
consistently higher quality than its competitors
Service quality always varies depending on interactions between employees
and customers
Managing Service Productivity – the cost side of marketing strategies for service
firms
o Employee recruiting, hiring, and training strategies
o Service quantity and quality strategies
