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Chapter8-slide1Copyright©2009PearsonEducation,Inc.PublishingasPrenticeHallChapterEightProduct,Services,andBrands:BuildingCustomerValueChapter8-slide2Copyright©2010PearsonEducation,Inc.Product,Services,andBrandingStrategy•WhatIsaProduct?•ProductandServicesDecisions•BrandingStrategy:BuildingStrongBrands•ServicesMarketingTopicOutlineChapter8-slide3Copyright©2010PearsonEducation,Inc.WhatIsaProduct?Productisanythingthatcanbeofferedinamarketforattention,acquisition,use,orconsumptionthatmightsatisfyaneedorwantExperiencesrepresentwhatbuyingtheproductorservicewilldoforthecustomerProducts,Services,andExperiencesChapter8-slide4Copyright©2010PearsonEducation,Inc.WhatIsaProduct?LevelsofProductandServicesChapter8-slide5Copyright©2010PearsonEducation,Inc.WhatIsaProduct?ConsumerproductsIndustrialproductsProductandServiceClassificationsChapter8-slide6Copyright©2010PearsonEducation,Inc.WhatIsaProduct?•Consumerproductsareproductsandservicesforpersonalconsumption•Classifiedbyhowconsumersbuythem–Convenienceproducts–Shoppingproducts–Specialtyproducts–UnsoughtproductsProductandServiceClassificationsChapter8-slide7Copyright©2010PearsonEducation,Inc.WhatIsaProduct?Convenienceproductsareconsumerproductsandservicesthatthecustomerusuallybuysfrequently,immediately,andwithaminimumcomparisonandbuyingeffort•Newspapers•Candy•FastfoodProductandServiceClassificationsChapter8-slide8Copyright©2010PearsonEducation,Inc.WhatIsaProduct?Shoppingproductsareconsumerproductsandservicesthatthecustomercomparescarefullyonsuitability,quality,price,andstyle•Furniture•Cars•AppliancesProductandServiceClassificationsChapter8-slide9Copyright©2010PearsonEducation,Inc.WhatIsaProduct?Specialtyproductsareconsumerproductsandserviceswithuniquecharacteristicsorbrandidentificationforwhichasignificantgroupofbuyersiswillingtomakeaspecialpurchaseeffort•Medicalservices•Designerclothes•High-endelectronicsProductandServiceClassificationsChapter8-slide10Copyright©2010PearsonEducation,Inc.WhatIsaProduct?Unsoughtproductsareconsumerproductsthattheconsumerdoesnotknowaboutorknowsaboutbutdoesnotnormallythinkofbuying•Lifeinsurance•Funeralservices•BlooddonationsProductandServiceClassificationsChapter8-slide11Copyright©2010PearsonEducation,Inc.WhatIsaProduct?Industrialproductsareproductspurchasedforfurtherprocessingorforuseinconductingabusiness•Classifiedbythepurposeforwhichtheproductispurchased–Materialsandparts–Capital–RawmaterialsProductandServiceClassificationsChapter8-slide12Copyright©2010PearsonEducation,Inc.WhatIsaProduct?Capitalitemsareindustrialproductsthataidinthebuyer’sproductionoroperationsMaterialsandpartsincluderawmaterialsandmanufacturedmaterialsandpartsusuallysolddirectlytoindustrialusersSuppliesandservicesincludeoperatingsupplies,repairandmaintenanceitems,andbusinessservicesProductandServiceClassificationsChapter8-slide13Copyright©2010PearsonEducation,Inc.WhatIsaProduct?Organizationmarketingconsistsofactivitiesundertakentocreate,maintain,orchangeattitudesandbehavioroftargetconsumerstowardanorganizationOrganizations,Persons,Places,andIdeasChapter8-slide14Copyright©2010PearsonEducation,Inc.WhatIsaProduct?Personmarketingconsistsofactivitiesundertakentocreate,maintain,orchangeattitudesandbehavioroftargetconsumerstowardparticularpeopleOrganizations,Persons,Places,andIdeasChapter8-slide15Copyright©2010PearsonEducation,Inc.WhatIsaProductPlacemarketingconsistsofactivitiesundertakentocreate,maintain,orchangeattitudesandbehavioroftargetconsumerstowardparticularplacesSocialmarketingistheuseofcommercialmarketingconceptsandtoolsinprogramsdesignedtoinfluenceindividuals’behaviortoimprovetheirwell-beingandthatofsocietyOrganizations,Persons,Places,andIdeasChapter8-slide16Copyright©2010PearsonEducation,Inc.ProductandServiceDecisionsIndividualProductandServiceDecisionsChapter8-slide17Copyright©2010PearsonEducation,Inc.ProductandServiceDecisionsProductattributesarethebenefitsoftheproductorservice•Quality•Features•StyleanddesignIndividualProductandServiceDecisionsChapter8-slide18Copyright©2010PearsonEducation,Inc.ProductandServiceDecisionsProductqualityincludeslevelandconsistency•Qualitylevelisthelevelofqualitythatsupportstheproduct’spositioning•Conformancequalityistheproduct’sfreedomfromdefectsandconsistencyindeliveringatargetedlevelofperformanceIndividualProductandServiceDecisionsChapter8-slide19Copyright©2010PearsonEducation,Inc.ProductandServiceDecisionsProductfeaturesareacompetitivetoolfordifferentiatingaproductfromcompetitors’productsProductfeaturesareassessedbasedonthevaluetothecustomerversusthecosttothecompanyIndividualProductandServiceDecisionsChapter8-slide20Copyright©2010PearsonEducation,Inc.ProductandServiceDecisionsStyledescribestheappearanceoftheproductDesigncontributestoaproduct’susefulnessaswellastoitslooksIndividualProductandServiceDecisionsChapter8-slide21Copyright©2010PearsonEducation,Inc.ProductandServiceDecisionsBrandisthename,term,sign,ordesign—oracombinationofthese—thatidentifiesthemakerorsellerofaproductorserviceBrandequityisthedifferentialeffectthatthebrandnameha