Instructor’s Visual Index Kotler/Armstrong

Chapter 8: Products and Services Strategy

8-1
What is a Product? 8-2

PRINCIPLES OF MARKETING • Anything that can be offered to a market

for attention, acquisition, use or
consumption.
• Satisfies a want or a need.
Chapter 5 • Includes:
–Physical Products
–Services
Product and Services –Persons
Strategy –Places
–Organizations
–Ideas
–Combinations of the above

Levels of Product Augmented

8-3
Product Classifications 8-4

Product
Consumer Products
Installation Convenience Products Shopping Products
> Buy frequently & immediately > Buy less frequently
Packaging > Low priced > Gather product information
> Many purchase locations > Fewer purchase locations
Brand Features > Includes: > Compare for:
Name Core • Staple goods • Suitability & Quality
Benefit After- • Impulse goods
Delivery • Price & Style
Sale • Emergency goods
& Credit or
Service
Quality Service
Level
Design Specialty Products Unsought Products

> Special purchase efforts > New innovations

> Unique characteristics
> Brand identification
> Few purchase locations
Warranty
> Products consumers don’t
want to think about
> Require much advertising &
personal selling

Actual Core
Product Product

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Instructor’s Visual Index Kotler/Armstrong
Chapter 8: Products and Services Strategy

Product Classifications 8-5

Product Classifications 8-6

Industrial Products Other Marketable Entities

• Marketed to create, maintain, or change the
Materials attitudes or behavior toward the following:
and
Parts
• Organizations - Profit (businesses) and
nonprofit (schools and
Capital churches).
Items • Person - Political and sports figures,
entertainers, doctors and lawyers.
• Place - Business sites and tourism.
Supplies
and • Social - Reduce smoking, clean air,
Services conservation.

Individual Product Decisions 8-7

Product Attribute 8-8

Product Attributes Decisions

Branding

Quality Features
Packaging

Design
Labeling

Product Support Services

 Copyright 1999 Prentice Hall

Instructor’s Visual Index Kotler/Armstrong
Chapter 8: Products and Services Strategy

Brands 8-9
Major Brand Decisions 8-10

Brand Name Selection

Consistency Quality & Value Selection
Protection

Attributes Advantages Identification

of Brand Sponsor
Brand Names Manufacturer’s Brand
Private Brand
Brand Licensed Brand
Association Loyalty Co-branding
Equity
Brand Strategy
Credibility Awareness Line Extensions
Brand Extensions
Multibrands
New Brands

Brand Strategy 8-11

Brand Strategy 8-12

• Line Extension
Product Category –Existing brand names extended to new
forms, sizes, and flavors of an existing
Existing New
product category.
Brand Name

Existing Line Brand • Brand Extension

Extension Extension
–Existing brand names extended to new
product categories.
New
New Multibrands
Brands • Multibrands
–New brand names introduced in the same
product category.
• New Brands
–New brand names in new product categories.

 Copyright 1999 Prentice Hall

Instructor’s Visual Index Kotler/Armstrong
Chapter 8: Products and Services Strategy

Packaging 8-13
Product - Support Services 8-14

Companies should design its support services to

Competitive profitably meet the needs of target customers.
Advantages How?
Sales Product
Tasks Packaging Safety • Step 1. Survey customers to determine
satisfaction with current services and any
Labeling desired new services.
Identifies Promotes
• Step 2. Assess costs of providing desired
Describes services.

• Step 3. Develop a package of services to delight

customers and yield profits.

Product Line Decisions 8-15

Product Mix Decisions 8-16

Width - number of
Product Line Length different product
Number of Items in the Product Line lines
Consistency

Stretching Filling Length - total Product Mix -

Lengthen beyond Lengthen within number of items all the product
current range current range within the lines lines offered

Downward
Depth - number
of versions of
each product
Upward

 Copyright 1999 Prentice Hall

Instructor’s Visual Index Kotler/Armstrong
Chapter 8: Products and Services Strategy

Characteristics of Services 8-17

The Service-Quality Chain 8-18

Internal Service Quality

Intangibility Can’t be seen, tasted, felt, heard,

or smelled before purchase.

Inseparability Can’t be separated from service

Satisfied and
providers. Health Service
Productive Service
Profits and Growth
Variability Quality depends on who provides
Employees
them and when, where and how.
Perishability
Can’t be stored for later sale or use.

Satisfied and Loyal Greater Service

Customers Value

Marketing Strategies for Service 8-19

Firms
• Managing Service Differentiation
– Develop offer, delivery and image with competitive
advantages.
• Managing Service Quality
– Empower employees
– Become “Customer obsessed”
– Develop high service quality standards
– Watch service performance closely
• Managing Service Productivity
– Train current or new employees
– Increase quantity by decreasing quality
– Utilize technology

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