CHAPTER 07

PRODUCTS AND
BRANDS

© 2021 McGraw-Hill Education Limited Prepared by: Maria Vincenten, Red River College

Learning Objectives
1. Distinguish between goods and services
2. Describe and apply the total product concept
3. Differentiate between products, product lines, and
product mixes
4. Identify the ways consumer and business goods and
services are classified
5. Explain the elements of branding and how these
can be protected
6. Distinguish between different types of brands

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 Hillberg & Berk
– building a brand

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Types of Products
Product – a good, a service, or an idea, consisting of a bundle of
such attributes as tangible (physical characteristics such as color
or sweetness) and intangible (aspects of a product that cannot be
touched such as how it makes you feel)
1) Non-durable good – item that does not last and that is
consumed only once
2) Durable good – product that lasts for an extended period
of time
3) Service – intangible activity, benefit, or satisfaction
Canada has a strong service-based economy with services
accounting for approximately 71 percent of its gross domestic
product (GDP).
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 The Service Continuum

Many products
cannot be defined
as ‘pure goods’ or
‘pure services’
but are in fact
hybrids.

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The Uniqueness of Services

Intangibility cannot be held, touched, or seen

prior to purchase

quality can vary with each

Inconsistency employee’s capabilities,
experience, motivation, and even
personality

Inseparability cannot separate the deliverer of

service from the service

Inventory cannot necessarily be stored and

accessed when in demand

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 The Uniqueness of Services
(continued)

Inventory – cannot
necessarily be stored and
accessed when in demand
– Issues arise due to fluctuating
demand
– Difficulty in assessing the
requirements needed to
services customers at peak
times
– Idle production capacity –
when the service provider is
available but there is no
demand for the service; costly

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The Total Product Concept

“Marketers view products as having three different layers”

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 Packaging and Labelling
For many products, the packaging
and labels are an integral part of
the product
• Function
• Communication
• Brand Image Packaging the Brand
– Packaging that tells a story
– Sustainable packaging
– What you see is what you get
– Personalized packaging
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Product Lines and

Product Mixes
• Product Line - group of similar
product; satisfy a similar need; and
are directed at the same general
target market
o Product Line Depth – The
assortment of different versions
of each product sold within its
product lines.
o Product Line Length – The total
number of products or brands in The product mix for Proctor &
a product line. Gamble consist of baby,
feminine, and family care;
• Product Mix - consists of all the beauty; fabric and home care;
product lines marketed by a company. and health and grooming
o Product Mix Width – the number product lines.
of different product lines offered
by the company
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 Consumer and Business Products

• Consumer Products – purchased for personal use by

the ultimate consumer
• Business Products – purchased either to run a
business or to be used as a component in another
product or service
– industrial goods or organizational products
• Some products are both depending on their usage

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Consumer Products
The manner in which a consumer product is classified depends on the individual.

frequently purchased with minimal effort, will accept

Convenience substitutes, inexpensive, many outlets, emphasis on
price, availability, and awareness

occasional purchases, comparison shopping,

Shopping preferred brands, fairly expensive, large number of
outlets, differentiation

infrequent purchases, require time to search and

Specialty purchase, very brand loyal, usually very expensive,
limited distribution, emphasis on uniqueness

very infrequent purchases, accept substitutes, price

Unsought varies, often limited distribution, emphasis on
awareness

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 Business Products
Often the result of derived demand
1) Production - Raw materials and component parts
2) Support - used to assist in production
– Installations (buildings and fixed equipment)
– Accessory equipment (tools and office equipment;
usually purchased in small-order sizes by buyers)
– Supplies (stationery, paper clips, and brooms)
– Services (intangible activities needed to assist a
business in its operations such as transportation,
maintenance and repairs)
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Branding
Brand – name, phrase, symbol, or design uniquely given
by a company to a product to distinguish it from the
competition
– Over the long term, the support that goes into
marketing a brand results in strong brand
associations and a certain degree of consumer
loyalty.
– This creates brand equity – the value of a brand
that results from the favorable exposure,
interactions, associations, and experiences that
consumers have with brand over time.

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 Branding (continued)
Ipsos Reid annually conducts its Most Influential Brands study,
which looks at “key dimensions that define and determine
the most influential brands in Canada”
– Trustworthiness (consumers have confidence in
recommending a brand to others)
– Engagement (encourage brand loyalty by creating
interactions, so consumers can learn more about a
brand and share with others)
– Leading edge (unique brands, stands as a benchmark
for other brands)
– Corporate citizenship (caring, connect with consumers
by instilling pride)
– Presence (brands have a high profile and many
advocates to support them)
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Branding (continued)
Global brands - brands that are sold in a variety of
international markets and that enjoy wide
recognition in these markets.

Top 10 Most Influential Brands in Top 10 Global Brands:

Canada:
1. Google 1. Apple
2. Amazon 2. Google
3. Facebook 3. Amazon
4. Microsoft 4. Microsoft
5. Apple 5. Coca-Cola
6. YouTube 6. Samsung
7. Netflix 7. Toyota
8. Samsung 8. Mercedes-Benz
9. Walmart 9. McDonald’s
10.Visa 10.Disney

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 Brand Strategies

Individual
brand name solely used for a specific product category

Family brand name used to cover a number of different product

categories (Crest, Proctor & Gamble)

when new goods and services are introduced under an

Brand existing flagship brand name
Extension
brand that uses the family brand name as well as its own
brand name and identity; can take on the strengths of the
Sub-Brand parent brand but also differentiate itself

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Protecting Brands
Scrabble protected its trademark
from online knock-offs

legally protect new technologies, unique processes, or

Patents formulations from usage by other companies; lasts 20 years
if maintenance fees are paid

Copyrights legally protect the written word, a sound recordings, or

forms of communication from being copied by others

legally protect brand images, names, and designs from usage

Trademarks by others; needs to be done for all parts of world brand is
present; lasts 15 years; can be renewed

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 Brand Loyalty
Brand Loyalty – favourable attitudes that a consumer has over
time toward a brand.
“Marketers work to associate brands with specific personality traits and to
help consumers make emotional connections with their brands.”

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Brand Personality

Brand Personality – set of human characteristics

associated with the brand
– often associate particular human personality traits
with certain brands and prefer those whose
personalities are most appealing
– most successful brands in Canada described as
“creative” and “in control”

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 Riding a Harley-Davidson is a Lifestyle

Newest Yamaha Motorcycles Joining

Industry's Most Sophisticated Lineup of Sports
Bikes in 2022
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Brand Names

A good brand name should:

• suggest the product benefits
• be memorable, distinctive, and positive
• fit the company or product image
• can be legally protected
• be simple (spell, pronounce, read, and remember)

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 Types of Brands

Manufacturer owned and produced by the manufacturer

owned by a retailer that contracts its manufacturing out to

Private-label major suppliers and then sells the product at its own retail
stores, “store brand”

a product that has no branding and is produced as a cheap

Generic alternative to a manufacturer’s brand and to branded
private-label products
(Tylenol by McNeil Consumer vs. Acetaminophen generic)

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