1. PRODUCTS, SERVICES,
AND BRANDS: BUILDING
CUSTOMER VALUE

2. How will you define a product?

3.  A product is anything that can be offered to a market to
satisfy a want or need, including physical goods, services,
experiences, events, persons, places, properties,
organizations, information, and ideas.

4.  One can say a product is a good, service, or idea consisting of a bundle of
tangible and intangible attributes that satisfies consumers and is received in
exchange for money or some other unit of value.
 a product therefore is a bundle of physical, chemical and / or intangible
attributes that have the potential to satisfy present and potential customer
wants. In addition to the physical Good itself, other elements include the
warranty, installation, after sales service accessories and package.
 A product cab be define as: includes both physical products (e.g. cars,
washing machines, DVD players) as well as services (e.g. insurance,
banking, private health care).

5. PRODUCT ATTRIBUTES
 Tangible attribute: package. Label, related services
 Intangible attribute: perception, need satisfying ability
 External attribute: social expectations, environmental impact
 PRODUCT PLANNING: the act of making and supervising the
search, screening, development and commercialization of new
products

6. Product Classification
Durability
Use
Tangibility

7. SIGNIFICANCE OF PRODUCT
PLANNING
 Basis of Marketing Programme
 To face competition
 For Survival
 Instrument of growth

8. 5 Product Levels

9. Core benefit
The fundamental or first level is the core benefit. The service or benefit the
customer is really buying. Doors and windows as interiors
Basic product
At the second level, the marketer has to turn the core benefit into a basic product.
Designs and fixtures into doors and windows
Expected product
At the third level, the marketer prepares an expected product, a set of attributes
and conditions buyers normally expect when they purchase this product. Variations
of materials are to be expected as in metal, wooden, fibre etc.
Augmented product
At the fourth level, the marketer prepares an augmented product that exceeds
customer expectations. Now the doors and windows are mere core products but
the market is getting penetrated with interior designing's elements as well.
Potential product
At the fifth level stands the potential product, which encompasses all the possible
augmentations and transformations the product or offering might undergo in the
future. So now the Italian Kitchen model, modular kitchen, vitrified tiles, wooden
flooring…… precisely Home Decorators………… E.g. Gogrej furniture's.

10. Product classification
Marketers have traditionally classified products on the basis of
characteristics:
Nondurable goods
Nondurable goods are tangible goods normally consumed in one or few
uses, like Dairy products, fruits, vegetables, shampoos, soaps ect.
Durable goods
Durable goods are tangible goods that normally survive many uses.
Examples include refrigerators, machine tools and clothing.
Services
Services are intangible inseparable, variable and perishable products.
Examples include haircuts, legal advice, and appliance repairs.

11. Consumer Goods Classification
Convenience
Head & shoulder vs.
Pantene
Unsought
Mutual funds,
Investments scheme
Shopping
Modular kitchen vs.
Indian kitchen
Specialty
Livon hair
Fall Tonic and
White marbles form Jaipur

12. Industrial Goods Classification
Materials and parts
Supplies/
business services
Capital items

13. Product Differentiation
Product form: Size,
Features: Fastrack, smartphones, blackberry
Customization: Various tour packages
Performance: TATA sumo, Maruti 800
Conformance: Uniformity in electronic items in the
same series
Durability: NOKIA, denims over trouser, Jockey over
AMUL Briefs
Reliability: NOKIA, MTNL, Govt. authorized projects
Reparability: DELL services after consumer focus
Style: Burberry, Mango, GUCCI, H. Davidson,
BEETEL

14. Service Differentiation
Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance and repair
Returns

15. TATA Ginger
Hotels has
carved a
profitable niche
through its
innovative
service
configuration

16. The Product Hierarchy
Need family
Product family
Product class
Product line
Product type
Item

17. Product mixes
A product mix is the set of all products and items a particular seller offers for sale. A
product mix consists of various product lines.
Product mixes also called a product assortment.
A company product mix has a certain width length depth and consistency.
Width
The width of a product mix refers s to how many different product lines the company
carries.
Length
The length of a product mix refers to the total number of items in the mix.
Depth
The depth of a product mix refers to how many variants are offered of each product in the
line.
Consistency
The consistency of the product mix refers to how closely relate the various product lines
are in end use.

18. HUL product mix………

19. Branding strategy
 Brand Equity is the positive differential effect that knowing
the brand name has on customer response to the product or
service.
4 consumer perception dimensions:
differentiation (what makes the brand stand out),
relevance (how consumers feel it meets their needs),
knowledge (how much consumers know about the brand),
and
esteem (how highly consumers regard and respect the
brand).

20. Brand valuation is the process of estimating the total
financial value of a brand.
High brand equity provides a company with many
competitive advantages.
High level of consumer brand awareness and loyalty.
More leverage in bargaining with resellers.
More easily launch line and brand extensions.
Defense against fierce price competition.
Forms the basis for building strong and profitable
customer relationships.
The fundamental asset underlying brand equity is
customer equity—the value of the customer
relationships that the brand creates.

21. A company must consider 4 service
characteristics when designing marketing
programs:
 Service intangibility means that services cannot be
seen, tasted, felt, heard, or smelled before they are bought.
 Service inseparability means that services cannot be separated from their
providers, whether the providers are people or machines. Because the
customer is also present as the service is produced, provider-customer
interaction is a special feature of services marketing.
 Service variability means that the quality of services depends on who
provides them as well as when, where, and how they are provided.
 Service perishability means that services cannot be stored for later sale or
use.