KRD5

Knowledge Review & Discussion

Products,
Services, and
Brands
Objectives & Key terms

- Products, Services and Brands

- New Product Development
- Product Life Cycle (PLC)
Marketing Mix – 4Ps

What How much

How Where
1. Product & Service
Product • is anything that can be offered in a market for attention, acquisition,
use, or consumption that might satisfy a need or want

• Also include services, events, persons, places, organizations, ideas, or a

mix of these. (broadly defined)

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.
Companies may now focus on creating and managing customer experiences with
their brands or company.
Product and Service Classifications
For personal consumption
For further processing

Consumer Products Industrial Products

How consumers go about buying them

Convenience products Materials and parts

Shopping products Capital items

Specialty products Supplies and services

Unsought products
Product & Service Classifications
Product & Service Classifications
Types of Industrial Product
• Materials and parts
Yar Computer
o Raw materials n s
 Farm products
 Natural products Wire Cemen
s Building
t Factorie
s
o Manufactured materials Cotto
n
s
Fis
 Component materials h
 Component parts

• Capital items: industrial products that aid in the buyer’s production or operations
o Installations (buildings, factories, offices, elevators, computer systems, etc.)
o Accessory equipment (factory equipment, office equipment, etc.)

• Supplies and services: operating supplies, repair and maintenance items, and business services.
Product & Service Decisions
 Individual Product and Service Decisions

Designing and producing Identifies the product or

the container or wrapper brand; describes several
for a product. things about the product

 Product Line Decisions

• Line filling
Product line is a group of products that are closely related • Line stretching
because they function in a similar manner, are sold to the o Downward
same customer groups, are marketed through the same o Upward
types of outlets, or fall within given price ranges. o Both directions

 Product Mix Decisions

Product mix consists of all the product lines and items that a particular seller offers for sale.
What is Brand?

the name, term, sign, or design or a

combination of these, that identifies
the maker or seller of a product or
service.
 Some New Terms about Brand
• Brand equity describes a brand’s value determined by how consumers response/
think and feel about the brand.

How familiar customers are
with your brand, and how
comfortable they feel with it.
Ex: Recognition, Recall, TOM,…
Consumer's opinions on the
extent to which a particular
product will be able to meet
his/ her expectations
Anything (concept, image,
emotion, etc.) which link to the
brand and is deep seated in
customer's mind.
Ex: CocaCola vs Happiness, Red,…
The positive feelings towards a
brand and dedication to
purchase the same product or
service repeatedly

Brand Equity Model (Aaker, 1991)

 Some New Terms about Brand
• Brand identity is a unique set of brand elements (e.g. brand names, logos and symbols,
slogans, product and packaging design, brand colors, characters, spokespeople, and jingles) that
a firm builds for a meaningful and unique interpretation of the brand.

© Copyright 2010-2020 Dr Liem Viet Ngo

Brand Development Strategies
Line extension Brand extension
Extend existing brand names to new Extend a current brand name to
forms, colors, sizes, ingredients, or flavors a new or modified products in a
of an existing product category. new category.
Ex: CocaCola Zero, CocaCola Cherry,… Ex: SamSung washing
machine, SamSung
smartphones, SamSung TV,…

Multibrands
Company offers different brands in a
given product category.
Ex: PepsiCo – 5 brands in soft
drinks: Pepsi, Sierra Mist, Slice,
Mountain Dew,…)
New brands
Create a new brand name to
enter a new product category.
Ex: Vinamilk
- Fruit juice: Vfresh
- Roasted rice milk: Zori
- Infant Cereals: Redielac
Pros and Cons of Branding Strategies
What are the Pros and
Cons of these 4 Branding
Strategies?
ACTIVITY 1:
Product & Service Decisions
 Product Mix Decisions

No. of versions offered

by a product line.

Product Total number of items the

Line company carries within its
Depth product lines
Product Mix Length

Product Mix Width

No. of different product lines

 Services Marketing
TYPES OF
SERVICE INDUSTRIES

Business
Governments
organizations

airlines, banks, hotels,

Private insurance companies,
not-for-profit consulting firms, medical and legal
courts, employment services,
practices, entertainment and
hospitals, military services, police organizations
telecommunications companies, real
and fire departments, the postal
estate firms, retailers, and others.
service, and schools.

museums, charities, churches,

colleges, foundations, and hospitals.
Services Marketing
Services Marketing
2. New-Product Development Strategy
2 ways to obtain new products
• Acquisition refers to the buying of a • New Products Development refers to original
whole company, a patent, or a license products, product improvements, product
to produce someone else’s product. modifications, and new brands developed from
the firm’s own research and development.
2. New-Product Development Process
• Internal resources (R&D, Internal social network & intrapreneurial programs)
• External resources (Distributors & Suppliers, Competitors, Customers)
• Crowdsourcing – Calling for external collaboration
• Target market
description
• Value proposition
• Is it real? • Product idea planned
• Can we win? • Product concept • Sales, market-share,
• Is it worth doing? • Product image and marketing mix
2. New-Product Development Process
Customer-centered new product development
focuses on finding new ways to solve customer
problems and creating more customer-satisfying
experiences.

Team-based new product development involves

various company departments working closely
together, overlapping the steps in the product
development process to save time and increase
effectiveness.

Systematic New Product Development

Innovation management system
• Creates an innovation-oriented company culture
• Yields a large number of new product ideas
3. Product Life-circle Strategies

Product
Extension
Table 9.2 Summary of Product Life-Cycle Characteristics, Objectives, and Strategies
 • Review Chapter 8, 9
FOR THE NEXT CLASS

• Read Chapter 10-11