CHAPTER 8

PRODUCTS, SERVICES , AND

BRANDS : BUILDING
CUSTOMER VALUE

KENNETH SAMUEL
GABRIOLA
WHAT IS A
PRODUCT ?
WHAT IS A PRODUCT?

Anything that can be offered to

a market for attention,
acquision, use or consumption
that might satisfy a want or
need.
WHAT IS A PRODUCT?

Products includes more than

just tangible objectcs. It also
includes services, events,
persons, places, organizations,
ideas, or a mixture of these.
SERVICES
Services are a form of product that
consists of activities, benefits, or
satisfactions offered for sale that are
essentially intangible and do not
result in the ownership of anything.
PRODUCTS, SERVICES AND EXPERIENCES
• Market Offering
Products are key to basis of building profitable customer relationships.

• Pure Tangible Good - Pure good without any accompanying products.

• Pure Services - Pure service without any goods.

• Customer Experience
Customer experience is the sum total of customers’ perceptions and
feelings resulting from interactions with a brand’s product and services.
LEVELS OF PRODUCT AND SERVICES
Augmented Product

Delivery After-sale
and
Actual Product service
credit
Brand
Features
name Core
Customer
Quality Value
level Design
Product
support Packaging
Warranty
LEVELS OF PRODUCT AND SERVICES
Augmented Product

Core Customer Value

Delivery After-sale
and
credit
Actual Product service The core customer value level
Brand
Core
Features contains the basic values, the
name
Customer pure benefits that each
Quality Value
level Design product/service brings to satisfy
Product
support Packaging
a certain need of the customer.
Warranty
LEVELS OF PRODUCT AND SERVICES
Augmented Product
Actual Product
Delivery
and After-sale The actual product level consist of
credit Actual Product service
basic elements combined with core
Brand
name Core
Core
Features
values to create a finished product
Customer
Customer
Quality Value
Value that can be commercialized. Those
Design
Product
level
elements include: Quality, Features,
support Packaging Tradmark, Design & packaging.
Warranty
LEVELS OF PRODUCT AND SERVICES
Augmented Product
Augmented Product
Delivery
and After-sale To increase the competitiveness
credit service
Actual Product
of product and services, business
Brand
name Core
Core
Features
can add the augmented level to
Customer
Customer
Quality Value
Value
their products/services. This
Design
level
includes brand value and support
Product
support Packaging services.
Warranty
PRODUCT AND SERVICE CLASSIFICATIONS

• Consumer Products
are products and services bought by final consumers for personal
consumption. Marketers usually classify these products and services further
based on how consumers go about buying them. Consumer products include
convenience products, shopping products, specialty product, and unsought
products. These products differ in the ways consumers buy them and,
therefore, in how they are marketed.
• Convenience products
are consumer products and services that customers usually buy frequently,
immediately, and with minimal comparison and buying effort.

• Shopping products
are less frequently purchased consumer products and services that customers
compare carefully on suitability, quality, price, and style. When buying
shopping products and services, consumers spend much time and effort in
gathering information and making comparisons.
• Specialty products
are consumer products and services with unique characteristics or brand
identifications for which a significant group of buyers is willing to make a
special purchase effort.

• Unsought products
are consumer products that a consumer either does not know about or knows
about but does not normally consider buying. Most major new innovations are
unsought until consumers become aware of them through marketing.
• Industrial Products
• are those products purchased for further processing or for use in
conducting a business.
Product and Service Decisions

A product’s unique selling points are features

that differentiate it from its competitors. In
other words, it is what the business can offer
but others can’t. For instance, a product can
be cheaper, safer, faster, chiner, more
friendly, or visually appealling.
Individual Product and Service Decisions
Product
Product Labeling and
Branding Packaging support
Attributes logos
services

• Product Quality
The quality of a product is crucial for its marketing. It plays a key role in positioning as products can
be positioned based on their high quality.

• Product Feature
Products features are crucial for differentiation. Adding additional feature makes a product stand out
from similar products offered by competitors.

• Product Design
Similarly to product features, product design can help marketers differentiate their offerings
from competitors.
Individual Product and Service Decisions
Product
Product Labeling and
Branding Packaging support
Attributes logos
services

Branding
A name, term, sign, symbol, or 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.
Individual Product and Service Decisions
Product
Product Labeling and
Branding Packaging support
Attributes logos
services

Packaging
involves designing and producing the container or wrapper for a product. Traditionally, the
primary function of the package was to hold and protect the product. In recent times, however,
packing has become an important tool as well.
Individual Product and Service Decisions
Product
Product Labeling and
Branding Packaging support
Attributes logos
services

Labelling and logos

Labels and logos range from simple tags attached to products to complex graphics that are part of the
packaging. The label also describe several things about the product - who made it, where it wasmade,
when it was made, its contents, how it is to be used, and how to use it safely. Finally, might help to
promote the brand and engage customer.
Individual Product and Service Decisions
Product
Product Labeling and
Branding Packaging support
Attributes logos
services

Product support services

Companies often pair support services with products to increase the value they bring to the
customer. Support services can be of significant value, like helping a company integrate a new
software system into its operations after purchasing a new software. On the other hand, support
services can be minor, like offering free returns on products purchased online. Support services like
post-sales communications can help a brand strengthen its customer relationships.
PRODUCT LINE DECISIONS
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 type of outlets, or
fall within given price ranges.
PRODUCT MIX
DECISIONS
• A product mix (Product assortment) is the set of all
products and items that a particular seller offers for
sales.
• A company’s product mix refers to how many different
product lines the company carries.
4 IMPORTANT DIMENSIONS OR CATEGORIES
• Product Mix Width - referts to the number of product lines a
company carries
• Product Mix Length - refers to the number of products within
each product line
• Product Line Depth - refers to the number of varieties available
in each product line
• Product Line Consistency - refers to how closely product line is
related. Refer to consistency in terms of the actual product
line itself, its distribution, production, etc.
 -----------------Product Mix Width--------------
SOFT DRINKS MINUTE MAID MINERAL WATER

Product
Line
Length
 -----------------Product Mix Width--------------
SOFT DRINKS

Product Line Depth

THANK YOU