Product, Services and Branding Strategy

Chapter # 8
Part 1
What is a Product?
Products, Services, and Experiences

Product is anything that can be offered in a market for

attention, acquisition, use, or consumption that
might satisfy a need or want.
What is a Product?
Products, Services, and Experiences

Service is a form of product that consists of activities,

benefits, or satisfactions offered for sale that are
essentially intangible and do not result in ownership
of anything

• Banking, Hospitals
• Doctor’s, Legal advice
What is a Product?
Products, Services, and Experiences
Experiences represent what buying the product or
service will do for the customer
- To differentiate their offers, beyond simply making
products and delivering services, companies are
producing, marketing and delivering memorable
customer experiences
• Fantasy Kingdom - Theme Parks
• Pizza Hut
• Star Cineplex – Movie Theatre
What is a Product?
Levels of Product

Augmented Product

Actual Product

Brand After
Features
Delivery Name Sales
& Credit Core Benefit Service

Quality Packaging
Level
Design

Installation Warranty
What is a Product?
Levels of Product

 Core Benefit – The fundamental level is

the core benefit; the service or benefit the
customer is really buying.
Example: A hotel guest is buying “rest and sleep”
The purchaser of a drill is buying “holes”

Marketers must see themselves as benefit

providers.
What is a Product?
Levels of Product

 Actual Product – the marketer must

turn the core benefit into an actual product.
Example: Thus a hotel room includes a bed,
bathroom, towels, desk, dresser and closet.

Customers will look for the Packaging, Brand Name,

Quality, Features and Design for any product.
What is a Product?
Levels of Product

 Augmented Product – a set of

attributes and conditions that buyers normally
expect when they buy the product
Example: Hotel guests expect fast room service,
better laundry service, clean bed, fresh towels, etc

Customers will look for the Installation, Delivery

and Credit, After sales service, Warranty, etc.
What is a Product?
Levels of Product

Core Benefits represent what the buyer is

really buying

Actual Product represents the design, brand

name, and packaging that delivers the core
benefit to the customer

Augmented Product represents additional

services or benefits of the actual product
What is a Product?
Product and Service Classifications

• Consumer Products
• Industrial Products
What is a Product?
Product and Service Classifications

Consumer Products are products and services

for personal consumption
- Classified by how consumers buy them
• Convenience Products
• Shopping Products
• Specialty Products
• Unsought Products
Consumer Products
Classification
What is a Product?
Product and Service Classifications
 Convenience Products are consumer products and
services that the customer usually buys frequently,
immediately, and with a minimum comparison and buying
effort.
 Newspapers
 Soap
 Candy
 Fast foods

These type of products are of low price and that’s why

consumers provide less effort at the time of buying this
category of goods.
Marketers must make these products available, so that
consumers can buy with minimum buying effort.
What is a Product?
Product and Service Classifications
 Shopping Products – goods that consumer in the
process of selection and purchase, characteristically compares on
such bases as suitability, quality, price and style. Consumers do not
buy regularly and they spend time to choose in buying. The products
may be of high priced than the convenience goods. Consumers
collect information to make comparison while buying this category of
products.
Example: Furniture, Clothing, Computers, Electrical Appliances,
Hotel, Airline Services, etc.
Sony sell their products through their authorized show rooms and sometimes
demonstrate the product so that consumers can make the comparison with
other substitute products.
What is a Product?
Product and Service Classifications
 Speciality Products – have unique characteristics
or brand identification for which a sufficient number of
buyers are willing to make a special purchasing effort.
Example: Medical Services, Designer Clothes, Property,
Land, Specific Brands and type of Cars, etc.
Marketers sell their products through selective outlets or distributors.
This is the case of brand loyalty in fact where not the price rather than
quality and satisfaction is the prime factor of buying the product.
What is a Product?
Product and Service Classifications

 Unsought Products – those that the

consumers does not know about or does not normally
think of buying. Consumers does not usually buy this
type of products until and unless it is required.

Example: Life Insurance, Encyclopedias, Smoke

Detectors, Blood Donations, etc.
What is a Product?
Product and Service Classifications
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
• Materials and parts
• Capital
• Raw materials
What is a Product?
Product and Service Classifications

Materials and Parts include raw materials and

manufactured materials and parts usually
sold directly to industrial users
• Farm Products: Wheat, Cotton, Livestock
• Natural Products: Fish, Petroleum, Iron
• Raw Materials: Iron, Steel, Cement for developers
• Component Parts: Small motors, Tires for cars etc
What is a Product?
Product and Service Classifications

Capital Items are industrial products that aid in

the buyer’s production or operations including
installations and accessory equipment. Long
lasting goods that facilitate developing or
managing the finished products.
• Buildings (factories, office)
• Fixed Equipment (elevators, generators)
• Accessory Equipment (computers, hand tools)
What is a Product?
Product and Service Classifications

Supplies and Business Services are short

lasting goods and services that facilitate
developing or managing the finished product.
• Stapler, pen, paper for office use, photocopier,
telephone or fax machine.
• Supplies include operating supplies (paper, pencils,
lubricants, etc.) and repair and maintenance items
(paint, nails, etc.)
What is a Product?
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.
• Public Relations activities (Dutch-Bangla Bank)
• Corporate advertising campaign (British American
Tobacco – creating advertisement campaign
against cigarette smoking for the under 18 years
old people.)
What is a Product?
Organizations, Persons, Places, and Ideas

Person Marketing consists of activities

undertaken to create, maintain, or change
attitudes and behavior of target consumers
toward particular people.
• Famous player (brand ambassador) - Boost -
Sachin Tendulkar
• Miss world (brand ambassador) – Lux –
Aishwaria Rai
What is a Product?
Organizations, Persons, Places, and Ideas

Place Marketing consists of activities

undertaken to create, maintain, or change
attitudes and behavior of target consumers
toward particular places
• Tourism (Malaysia, Nepal)
• Cox’s Bazar, Saint Martin & Sundarban in
Bangladesh
What is a Product?
Organizations, Persons, Places, and Ideas

Ideas (Social Ideas 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
• Public health campaign
• Tourism campaign
Product and Service Decisions
Individual Product and Service Decisions

Product Attributes
Branding
Packaging

Labeling

Product Support Services

Product and Service Decisions
Individual Product and Service Decisions

Product Attributes refers to the benefits in a

product or services that will be offered to
the customers.
- Attributes such as product,
• Quality
• Features
• Style and design
Product and Service Decisions
Individual Product and Service Decisions

Brand is the name, term, sign, or design, or a

combination of these, that identifies the maker or
seller of a product or service from those of its
competitors
Product and Service Decisions
Individual Product and Service Decisions
Packaging involves designing and producing the
container or wrapper for a product
Label identifies the product or brand. It describes-who
made it, where it was made, when it was made, its
contents, how it is to be used, and how to use it
safely. It also promote the product through
attractive graphics.
Product and Service Decisions
Individual Product and Service Decisions
Product support services augment actual products

- Companies must continually:

• Assess the value of current services to obtain ideas

for new ones
• Assess the costs of providing these services
• Develop a package of services to satisfy customers
and provide profit to the company
END OF CHAPTER 8 - Part 1