MARKETING AN INTRODUCTION

Armstrong/Kotler

Global Edition
[TUTOR COPY]

Products, Services,
Brands Building Customer Value
and

(Text pp. Pp 228 259)

Copyright Pearson Education

LEARNING OBJECTIVES
A. Define product and the major
classifications of products and
services
B. Describe the decisions of companies
regarding their individual products
and services

L6 Products, Services and Brands Building

Customer Value
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Define product and the

major classifications of
products and services

L6 Products, Services and Brands Building Customer

Value

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1. What is a Product?
A product is anything that can be
offered to a market for attention,
acquisition, use, or
consumption that
might satisfy a want
or need.
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Customer Value
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What is a Service?
A Service is an activity, benefit,
or satisfactions offered for sale
that is essentially intangible
and does not result in the
Ownership of anything.

L6 Products, Services and Brands Building

Customer Value
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Three Levels of Product

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Customer Value
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1.1 Core Customer Value

Core Customer Value -- is the most important
of the three levels as it defines what the
consumer is really buying.
Consumer sees product as package of problemsolving service or core benefit that meets his
need/want

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Customer Value
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1.2. Actual Product

Actual product - the characteristics that
combine to deliver the core product benefits,
eg, features, design, a quality level, a brand
name, packaging

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Customer Value
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1.3. Augmented product

Augmented product - additional services and
benefits that are built around the core and actual
product.

Ex: Travel agencies can offer

insurance coverage
guarantee of a refund as an additional benefit if the tour
did not take off
information kit on the tour destination
reward privileges for repeat customers
Medical kit

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Customer Value
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2. Consumer Products
Consumer products are products and
services bought by final consumer
for personal
consumption.

L6 Products, Services and Brands Building

Customer Value
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2.1 PRODUCT AND SERVICE

CLASSIFICATION

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Customer Value
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2.2 Types of Consumer

Products
MARKETING
CONSIDERATI
ONS

CONVENIEN SHOPPING
CE

SPECIALTY

UNSOUGHT

CUSTOMER
BUYING
BEHAVIOUR

Frequent
purchase,
little
planning,
little
comparison
or
shopping
effort, low
customer
involvemen
t

Less
frequent
purchase,
much
planning
and
shopping
effort,
comparison
of brands on
price,
quality,
style

Strong
brand
preference
and loyalty,
special
purchase
effort, little
comparison
of brands,
low price
sensitivity

Little
product
awareness,
knowledge
for, if aware,
little or
even
negative
interest

Low price

Higher price

High price

Varies

PRICE $
DISTRIBUTIO

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L6 Products, Services and Brands Building

Customer Value

Widespread

Selective

Exclusive

Varies

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Types of Consumer Products

MARKETING
CONSIDERATI
ONS

CONVENIEN SHOPPING
CE

SPECIALTY

UNSOUGHT

PROMOTION

Mass
promotion
by
producer

Advertising
and
personal
selling by
both
producer
and reseller

More
carefully
targeted
promotion
by both
reseller and
producer

Aggressive
advertising
and
personal
selling by
producer
and reseller

EXAMPLES

Toothpaste,
magazines,
laundry
detergent

Major
appliances,
television,
furniture,
clothing

Luxury
goods such
as Rolex
watches, or
fine crystal

Life
insurance,
Red Cross
blood
donations

L6 Products, Services and Brands Building

Customer Value
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Describe the decisions of

companies regarding their
individual products and
services

L6 Products, Services and Brands Building Customer

Value

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3. Individual Product and Service

Decisions

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Customer Value
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(a) Product and Service

Attributes
Characteristics of product or
service that bear on its ability
to satisfy stated or implied
customer needs.

Style describes
appearance of product;
Design contributes to
products usefulness
as well as to its looks.
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Competitive tool for

differentiating the
companys products
from competitors
products.

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Customer Value

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(b) Branding
A brand is a name, term, sign,
symbol, or design, or a
combination of these,
that the
identifies
maker or
seller of a
product or
service.
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Customer Value
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Major Brand Strategy

Decisions

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Customer Value
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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
Be easy to pronounce, recognize, and remember
Be distinctive and extendable
Translate easily into foreign languages
Be capable of registration and legal protection

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Customer Value
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(c) Packaging
Packaging involves
designing and producing
the container or wrapper
for a product.
1.To create immediate consumer
recognition of a brand.
2. Traditionally, to hold and protect the
product
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Customer Value
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(d) Labeling

Labels refers to simple tags to complex graphics that are part of the package
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Customer Value
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(e) Product Support Services

Customer service is an important element of
product strategy. A companys offer usually includes
some support services, which can be a minor or
major part of the total offering.
-Important part of the customers
overall brand experience.
-New sophisticated means: phone,
email, fax, internet, interactive voice and
data technologies to provide support
Services (toll-free services).

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Customer Value
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