marketing chapter-8 from philip kotler. Products, Services and Brands: Building Customer Value.

1. Kazi Adeeb Hasan
Id no. 10111101068
23rd Intake (2)
presents…

2. A Presentation
On
Products, Services and Brands:
Building Customer Value

3. INTRODUCTION
The marketing process of creating value for
customers and build customer relationships to
capture value from customers in return is performed
by satisfying customers with various types of
products, services and brands.

4. 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
• Soap
• Toothpaste

5. 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
• Doctor’s exam
• Financial services

6. What Is a Product?
Products, Services, and Experiences
 Experiences represent what buying the product or
service will do for the customer
• Disney
• American Girl
• Toys “R” Us

7. What Is a Product?
Levels of Product & Services
 basic level is the core customer value. It represents
what the buyer is really buying
 Second level is turning the core benefits into an
actual product. It represents the design, brand
name, and packaging that delivers the core benefit to
the customer
 In the third stage building an augmented product by
offering additional consumer services and benefits

8. Three Levels of Product
Augmented product
Delivery After
and Actual product sale
credit service
Brand Features
name Core
Customer
Quality value Design
level
Product Packaging
support Warranty

9. What Is a Product?
Product and Service Classifications
 There are two types of products:
Consumer Products Industrial Products

10. What Is a Product?
Product and Service Classifications
Consumer products are products and
services for personal consumption
• It is classified by how consumers buy them
Consumer Products
Convenience Shopping Specialty Unsought
Products Products Products Products

11. What Is a Product?
Product and Service Classifications
Convenience products
consumer products and services that the customer
usually buys frequently, immediately, and with a
minimum comparison and buying effort
• Newspapers
• Candy
• Fast food

12. What Is a Product?
Product and Service Classifications
Shopping products
consumer products and services that the customer
compares carefully on suitability, quality, price, and
style
• Furniture
• Cars
• Appliances

13. What Is a Product?
Product and Service Classifications
Specialty products
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
• Medical services
• Designer clothes
• High-end electronics

14. What Is a Product?
Product and Service Classifications
Unsought products
consumer products that the consumer does not
know about or knows about but does not normally
think of buying
• Life insurance
• Funeral services
• Blood donations

15. What Is a Product?
Product and Service Classifications
 Industrial products are products purchased for
further processing or for use in conducting a
business
Industrial
Products
Materials Supplies
Capital
And and
Items
Parts Services

16. 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
• Wheat
• Lumber
• Iron
• Cement

17. What Is a Product?
Product and Service Classifications
 Capital items are industrial products that aid in the
buyer’s production or operations
• Buildings
• Elevators
• Computers

18. What Is a Product?
Product and Service Classifications
 Supplies and services include operating
supplies, repair and maintenance items, and
business services

19. What Is a Product?
Organizations, Persons, Places, and Ideas
• Organizations-Profit (businesses) and Nonprofit
(colleges, churches and museums)
• Persons –Entertainers, doctors, lawyers and
architects
• Places-Tourist attracting sites, new
residents, company offices and factories
• Social –Reduce smoking, drug abuse, family
planning and human rights

20. Product and Service Decisions
INDIVIDUAL PRODUCT PRODUCT MIX
LINE DECISION
AND SERVICE DECISION DECISION

21. Product and Service Decisions
Individual Product and Service Decisions
Product
Product
Branding Packaging Labeling Support
attributes
services

22. Product and Service Decisions
Individual Product and Service Decisions
 Product attributes are the benefits of the product or
service
Quality Features
Styles
&
Design

23. Product and Service Decisions
Individual Product and Service Decisions
 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

24. Product and Service Decisions
Individual Product and Service Decisions
 Product features are a competitive tool for
differentiating a product from competitors’
products
 Product features are assessed based on the value to
the customer versus the cost to the company

25. Product and Service Decisions
Individual Product and Service Decisions
 Style describes the appearance of the product
 Design contributes to a product’s usefulness as well
as to its looks. It goes to the very heart of a product

26. 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
 Brand equity is the differential effect that the brand
name has on customer response to the product and
its marketing

27. Product and Service Decisions
Individual Product and Service Decisions
 Packaging involves designing and producing the
container or wrapper for a product
 The primary function of the package was to hold
and protect the product

28. Product and Service Decisions
Individual Product and Service Decisions
 Labeling identifies the product or brand, describes
attributes, and provides promotion

29. Product and Service Decisions
Individual Product and Service Decisions
 The label might also describe several things about
the product-
• 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

30. 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

31. Product and Service Decisions
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 types of outlets, or fall
within given price ranges

32. Product and Service Decisions
Product Line Decisions
 Product line length is the number of items in the
product line
Product Line Length
Line
Line Filling
Stretching
Downward Both Ways Upward

33. Product and Service Decisions
Product Line Decisions
• Line filling: adding more items within the present
range of the line
 More profits
 Satisfying dealers
• Line stretching: when a company lengthens its product
line beyond its current range
• Downward: add low-end products
• Upward: add prestige to the current products
• Both ways: achieve both goals of line filling and line
stretching

34. Product and Service Decisions
Product Mix Decisions
 Product mix consists of all the products and items
that a particular seller offers for sale
• A company's product mix has four important
dimensions

35. Product Mix

36. Product and Service Decisions
Product Mix Decisions
 Width:
total number of different product lines the company
carries
 Length:
total number of items the company carries within its
product lines
 Depth:
number of versions offered of each product in the line
 Consistency:
how closely related the various product lines are in end
use, production requirements, distribution channels or
some other way

37. Branding Strategy: Building Strong Brands
Brand represents the consumer’s perceptions and
feelings about a product and its performance.
Brand Equity
 Brand equity is the positive differential effect that
knowing the brand name has on customer response
to the product or service.

38. Building Strong Brands
Brand positioning
Attributes
Benefits
Beliefs and values
Brand name selection
Selection
Protection
Brand sponsorship
Manufacturer’s brand
Private brand
Licensing
Co-branding
Brand development
Line extensions
Brand extensions
Multibrands
New brands

39. Branding Strategy: Building Strong Brands
Brand Positioning
Brand positioning includes:
 Product attributes
 Product benefits
 Product beliefs and values

40. Branding Strategy: Building Strong Brands
Brand Name Selection
Desirable qualities
1. Suggest benefits and qualities
2. Easy to pronounce, recognize, and remember
3. Distinctive
4. Extendable
5. Translatable for the global economy
6. Capable of registration and legal protection

42. Branding Strategy: Building Strong Brands
Brand Sponsorship
 Manufacturer’s brand:
• A brand created and owned by a manufacturer of a product or
service
 Private brand:
• A brand created and owned by a reseller of a product or service
 Licensed brand:
• license names or symbols previously created by other
manufacturers, names of well-known celebrities, or characters
from popular movies and books
 Co-brand:
• Co-branding occurs when two established brand names of
different companies are used on the same product

43. Branding Strategy: Building Strong Brands
Brand Development Strategies
Product Category
Existing New
Line Brand
Brand Name
Existing
Extensions Extension
New Multibrands New Brands

44. Branding Strategy: Building Strong Brands
Brand Development Strategies
 Line extensions
• occur when a company extends existing brand names to
new forms, colors, sizes, ingredients, or flavors of an
existing product category
 Brand extensions
• extend a brand name to a new or modified product in a
new category
 Multibrands
• additional brands in the same category
 New brands
• are used when existing brands are inappropriate for new
products in new product categories or markets

45. Branding Strategy: Building Strong Brands
Managing Brands
Requires:
 Continuous brand communication
 Customer-centered training
 Brand audits

46. Services Marketing
Types of Service Industries
 Government
 Private not-for-profit organizations
 Business services

47. Services Marketing
Nature and Characteristics of a Service
Intangibility Inseparability
Services cannot be Services cannot be
seen, tasted, felt, heard separated from their
or smelled before providers
purchase
Services
Variability Perishability
Quality of services Services cannot be
depends on who provides stored for later sale or
them and when, where use.
and how

48. Services Marketing
Marketing Strategies for Service Firms
 In addition to traditional marketing
strategies, service firms often require
additional strategies
• Service-profit chain
• Internal marketing
• Interactive marketing

49. Marketing Strategies for Service Firms
Service-profit chain

50. Services Marketing
Marketing Strategies for Service Firms
 Service-profit chain links service firm profits with
employee and customer satisfaction
• Internal service quality
• Satisfied and productive service employees
• Greater service value
• Satisfied and loyal customers
• Healthy service profits and growth

51. Marketing Strategies for Service Firms
Three Types of Service Marketing
Company
Employee Customers
Interactive Marketing

52. Marketing Strategies for Service Firms
Internal marketing
Orienting and motivating customer-contact
employees and supporting service people to work as
a team to provide customer satisfaction

53. Marketing Strategies for Service Firms
Interactive marketing
Training service employees in the fine art of
interacting with customers to satisfy their needs

54. Marketing Strategies for Service Firms
External Marketing
Product
Price
Variety
List Price
Quality
Discounts
Design
Allowance
Features
Payment Period
Brand name
Credit terms
service
Packaging
4 P’S
Place
Promotion Channels
Advertising Coverage
Personal selling Assortments
Sales Promotion Locations
Public Relations Inventory
Transportations
Logistics

55. Marketing Strategies for Service Firms
Major Marketing Tasks
Managing Service Differentiation
• creates a competitive advantage from the
offer, delivery, and image of the service
Managing Service Quality
Empower employees
 Responsibility
 Authority
 Incentive
Managing Service Productivity
• Train current or new employees
• Increase quantity by decreasing qualities technology