Scribd
Upload
20 views7 pages

Chap 8

MKT101 note

Uploaded by

Nguyễn Thu Huyền
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
20 views7 pages

Chap 8

MKT101 note

Uploaded by

Nguyễn Thu Huyền
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 7

CHAP 8: PRODUCT, SERVICES, AND BRANDS: BUILDING CUSTOMER VALUE

A. WHAT IS A PRODUCT?
1. Products, services and experiences
Products is anything that can be offered in a market for attention, acquisition, use, or
consumption that might satisfy a need or want
Service is a product that consists of activities, benefits or satisfaction that is essentially
intangible and does not result in the ownership of anything
Experiences represent what buying the product or service will do for the customer
2. Levels of product and services
Level 1: Core customer value (what is the buyer really buying?)
Level 2: Actual product (brand name, features, design, packaging, quality level)
Level 3: Augmented product (delivery and credit, after-sale service, warranty, product
support)
3. Product and service classifications
a. Consumer product
Consumer product: A product bought by final consumers for personal consumption.
Convenience product: A consumer product that customers usually buy
frequently, immediately, and with minimal comparison and buying effort.
Shopping product: A consumer product that the customer, in the process of
selecting and purchasing, usually compares on such attributes as suitability, quality,
price, and style.
Specialty product: A consumer product with unique characteristics or brand
identification for which a significant group of buyers is willing to make a special
purchase effort.
Unsought product: A consumer product that the consumer either does not know
about or knows about but does not normally consider buying
b. Industrial products
Industrial product: A product bought by individuals and organizations for further
processing or for use in conducting a business.
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
c. Organizations, persons, places, and ideas
Organization marketing consists of activities undertaken to create, maintain, or
change the attitudes and behavior of target consumers toward an organization.
Person marketing consists of activities undertaken to create, maintain, or change
attitudes or behavior 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

B. PRODUCT AND SERVICE DECISIONS


1. Individual Product and Service Decisions

a. Product and Service Attributes


Product quality: The characteristics of a product or service that bear on its ability to
satisfy stated or implied customer needs.
Has two dimensions: level and consistency
Quality level: level of quality that will support the product’s positioning
Conformance quality: freedom from defects and consistency in delivering a
targeted level of performance
Product features:
Are a competitive tool for differentiating a product from competitors’ products
Are assessed based on the value to the customer versus the cost to the company
Product Style and Design
Style describes the appearance of the product
Design contributes to a product’s usefulness as well as to its looks
b. Branding
Brand: A name, term, sign, symbol, design, or a combination of these, that identifies
the products or services of one seller or group of sellers and differentiates them from
those of competitors.
c. Packaging
Packaging: The activities of designing and producing the container or wrapper for a
product.
In recent years, product safety and environmental responsibility have become major
packaging concerns
d. Labeling
Labels identify the product or brand, describe attributes, and provide promotion
 Identifies, describes, promote the brand
Have been affected by :
- Unit pricing (stating the price per unit of standard measure)
- Open dating (stating the expected shelf life of the product)
- Nutritional labeling (stating the nutritional values in the product) (Nutritional
Labeling and Educational Act of 1990)
e. Product support services
Product support services augment actual products: phone, e-mail, fax, Internet, and
other technologies.
2. Product line decisions
Product line: 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.
Product line length (major decision): the number of items in the product line. Expand
in 2 ways:
Product line filling involves adding more items within the present range of the
line.
Product line stretching occurs when a company lengthens its product line beyond
its current range
3. Product Mix decisions
Product mix (or product portfolio) The set of all product lines and items that a
particular seller offers for sale. Have 4 dimensions:
- Width: the number of different product lines the company carries
- Length: the total number of items a company carries within its product line
- Depth: the number of versions offered for 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

C. SERVICES MARKETING
1. The nature and Characterristic of a service (rewrite to remember 4 new
words)

Service intangibility Services cannot be seen, tasted, felt, heard, or smelled before they
are bought.
Service inseparability Services are produced and consumed at the same time and
cannot be separated from their providers.
Service variability The quality of services may vary greatly depending on who
provides them and when, where, and how.
Service perishability Services cannot be stored for later sale or use.
2. Marketing strategies for service firms
a. Service-profit chain
Service-profit chain links service firm profits with employee and customer satisfaction
Consists of 5 links:
Internal service quality
Satisfied and productive service employees
Greater service value
Satisfied and loyal customers
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
Internal marketing must precede external marketing.
Interactive marketing Training service employees in the fine art of interacting with
customers to satisfy their needs

Service companies offer 3 major marketing tasks: want to increase:


- Service differentiation
- Service quality
- Service productivity
b. Managing service differentiation
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
c. Managing service quality
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
d. Managing service productivity
Managing service productivity refers to the cost side of marketing strategies for
service firms
Employee recruiting, hiring, and training strategies
Service quantity and quality strategies
D. BRAND STRATEGY: BUILDING A STRONG BRAND
1. Brand equity
Brand equity The differential effect that knowing the brand name has on customer
response to the product or its marketing.
Measures brand strength along 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)
esteem (how highly consumers regard and respect the brand).
2. Branding strategy: building a strong brand

Brand Positioning: Brand strategy decisions include: Product attributes, Product


benefits, Product beliefs and values
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
Brand Sponsorship: 4 options:
National brands (or manufacturers’ brands) have long dominated the retail scene.
Store brand (or private brand) A brand created and owned by a reseller of a product or
service.
Most manufacturers create their own brand names, others market licensed brands.
Co-branding The practice of using the established brand names of two different
companies on the same product.
Brand Development:

Line extension Extending an existing brand name to new forms, colors, sizes,
ingredients, or flavors of an existing product category
 Low cost, low-risk way to introduce new products, might lose some specific
meanings, can cause confusion
Brand extension Extending an existing brand name to new product categories.
 Instant recognition, faster acceptance, save ad cost; confuse the image of the
main brand
Multibrands. marketing many different brands in a given product category.
 Capture larger market share; might obtain small market share, spreading instead
of building brand with high profit level
New Brands: create a new brand name when enter a new product category.
 Company spreading recources too thin

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy