1、Marketing:An Introduction Thirteenth Edition Chapter 7 Products,Services,and Brands:Building Customer valueLearning Objectives(1 of 4)7-1.Define product and describe the major classifications of products and services.7-2.Describe the decisions companies make regarding their individual products and s
2、ervices,product lines,and product mixes.Learning Objectives(2 of 4)7-3.Identify the four characteristics that affect the marketing of services and the additional marketing considerations that services require.7-4.Discuss branding strategythe decisions companies make in building and managing their br
3、ands.First Stop Go Pro:Be a HeroGoPros runaway success comes from understanding that its selling much more than wearable sports-action video cameras.Learning Objective 7-1Define product and describe the major classifications of products and services.What Is a Product?A product is anything that can b
4、e offered to a market for attention,acquisition,use,or consumption that might satisfy a want or need.A service is an activity,benefit,or satisfaction offered for sale;it is intangible and does not result in ownership of anything.Products,Services,and Experiences(1 of 2)Market offerings include both
5、tangible goods and services Companies create and manage customer experiences with their brands or companies.To differentiate their offers from that of the competitorsProducts,Services,and Experiences(2 of 2)Verizons redesigned Smart Stores create lifestyle experiences.Figure 7.1-Three Levels of Prod
6、uctProduct and Service Classifications Consumer products are bought by final consumers for personal consumption.Industrial products are bought by individuals and organizations for further processing or for use in conducting a business.Materials and parts,capital items,and supplies and servicesTable
7、7.1-Marketing Considerations for Convenience and Shopping ProductsMarketingConsiderationsConvenienceShoppingCustomer buyingbehaviorFrequent purchase;littleplanning,little comparisonor shopping effort;lowcustomer involvementLess frequent purchase;much planning and shopping effort;comparison of brands
8、 on price,quality,and stylePriceLow priceHigher priceDistributionWidespread distribution;convenient locationsSelective distribution in fewer outletsPromotionMass promotion by theproducerAdvertising and personal selling by both the producer and resellersExamplesToothpaste,magazines,and laundry deterg
9、entMajor appliances,televisions,furniture,and clothingTable 7.1-Marketing Considerations for Specialty and Unsought ProductsMarketingConsiderationsSpecialtyUnsoughtCustomer buyingbehaviorStrong brand preference and loyalty;special purchase effort;little comparison of brands;low price sensitivityLitt
10、le product awareness or knowledge(or,if aware,little or even negative interest)PriceHigh price VariesDistributionExclusive distribution in only one or a few outlets per market areaVariesPromotionMore carefully targeted promotion by both the producer and resellersAggressive advertising and personal s
11、elling by the producer and resellersExamplesLuxury goods,such as Rolex watches or fine crystalLife insurance and RedCross blood donationsOther Market Offerings Organizations Persons Places IdeasLearning Objective 7-1 Summary What is a product?physical products,services,and experiences Actual and aug
12、mented product core customer value Consumer products convenience,shopping,specialty,and unsought Industrial products materials and parts,capital items,and supplies and services Organization,person,place,and idea marketingLearning Objective 7-2Describe the decisions companies make regarding their ind
13、ividual products and services,product lines,and product mixes.Product and Service Decisions Individual Product Decisions Product Line Decisions Product Mix DecisionsFigure 7.2-Individual Product and Service DecisionsProduct Line Decisions(1 of 2)A product line is closely related products that:Have s
14、imilar functions and customer groups Are sold through similar outlets or fall within given price ranges Product line length is the number of items in the product line.Product line filling Product line stretchingProduct Line Decisions(2 of 2)Samsungs bulging Galaxy mobile devices line now offers a si
15、ze for any need or preference.Product Mix(or Product Portfolio)The Clorox Company has a nicely contained product mix consistent with its mission to“make everyday life better,every day.”Product Mix DecisionsWidthNumber of different product lines the company carriesLengthTotal number of items a compan
16、y carries within its product linesDepthNumber of versions offered for each product in the lineConsistencyRelativity of the various product lines in end use,production requirements,distribution channels,or some other aspectLearning Objective 7-2 Summary Product attribute decisions quality,features,an
17、d style and design Branding,packaging,and labeling decisions Product support services enhance customer service and satisfaction Product line and product mix decisionsLearning Objective 7-3Identify the four characteristics that affect the marketing of services and the additional marketing considerati
18、ons that services require.Figure 7.3-Four Service CharacteristicsService Profit Chain(1 of 2)Links service firm profits with employee and customer satisfaction The chain consist of five links:Internal service quality Satisfied and productive service employees Greater service value Satisfied and loya
19、l customers Healthy service profits and growthFigure 7.4-Three Types of Services MarketingService Profit Chain(2 of 2)Zappos knows that delivering customer happiness begins with happy,dedicated,energetic employees.Zappos is“Powered by Service.”Marketing Tasks for Service CompaniesManaging service di
20、fferentiation Developing a differentiated offer,delivery,and imageManaging service quality Delivering consistently higher quality than the competitorsManaging service productivity Training current employees or hiring new ones Increasing the quantity of service by giving up some quality Harnessing th
21、e power of technologyLearning Objective 7-3 Summary Services characteristics:intangible,inseparable,variable,and perishable Service profit chain-internal and interactive marketing Competitive differentiation,service quality,and service productivityLearning Objective 7-4Discuss branding strategythe d
22、ecisions companies make in building and managing their brands.Brand Equity(1 of 2)The differential effect that knowing the brand name has on customer response to the product or its marketing With positive brand equity,consumers react more favorably to the brand than to an unbranded version of the sa
23、me product.Brand Equity(2 of 2)Consumer perception dimensions:Differentiation Relevance Knowledge Esteem Brand value is the total financial value of a brand.Customer equity is the value of customer relationships that the brand creates.Major Brand Strategy Decisions(1 of 2)Major Brand Strategy Decisi
24、ons(2 of 2)Nickelodeon has developed a stable full of hugely popular characters.Brand Positioning and Brand Name Selection Marketers should establish a mission and vision for the brand when positioning it.Desirable qualities for a brand name should be Based on the products benefits and qualities Eas
25、y to pronounce,recognize,and remember Distinctive and extendable Easily translated into foreign languages Capable of registration and legal protectionBrand SponsorshipNational brands Marketed under the manufacturers own name Store brands Created and owned by a reseller of a product or service Licens
26、ing Use names and symbols created by other companies or well-known movie characters or celebrities for a fee Co-branding Use the established brand names of two different companies on the same productFigure 7.6-Brand Development StrategiesManaging Brands(1 of 2)Managing brands requires managing touch
27、 points.Managing Brands(2 of 2)Communicate the brands positioning Manage all brand touch points Train employees to be customer centered Audit the brands strengths and weaknessesLearning Objective 7-4 Summary Brand equitys positive effect Brand positioning Brand name selection Brand sponsorship optio
28、ns-national,private,licensed and co-brand Brand development through line and brand extensions,multibrands or new brandsLearning Objectives(3 of 4)7-1.Define product and describe the major classifications of products and services.7-2.Describe the decisions companies make regarding their individual pr
29、oducts and services,product lines,and product mixes.Learning Objectives(4 of 4)7-3.Identify the four characteristics that affect the marketing of services and the additional marketing considerations that services require.7-4.Discuss branding strategythe decisions companies make in building and managing their brands.
