Chp 8 products, service & brands building customer value

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Learning Objectives

• Define product and describe the major classifications of products and services.

• Describe the decisions companies make regarding their individual products and services, product lines, and product mixes.


Learning Objectives

• Identify the four characteristics that affect the marketing of services and the additional marketing considerations that services require.

• Discuss branding strategy—the decisions companies make in building and managing their brands.


First Stop: The ESPN Brand

• ESPN is a brand experience synonymous with sports entertainment.

• ESPN has a variety of entities tied together under its brand.• Television, radio, online, publishing, and event

management

• Reason for success - Customer-focused• Provide the most seamless, high-quality

experience


Product

• Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need

• Services: Activities, benefits, or satisfactions offered for sale • Intangible and do not result in ownership of

anything


Products, Services, and Experiences

• Market offerings include both tangible goods and services.

• Companies create and manage customer experiences with their brands or companies.• To differentiate their offers from that of the

competitors


Figure 7.1 - Three Levels of Product


Product and Service Classifications

• Consumer products: Bought by final consumers for personal consumption

• Industrial products: Bought by individuals and organizations for further processing or for use in conducting a business• Materials and parts, capital items, and supplies

and services


Table 7.1 - Marketing Considerations for Consumer Products


Other Marketable Entities


Product and Service Decisions


Figure 7.2 - Individual Product Decisions


Product Line Decisions

• Product line: Closely related products that: • Have similar functions and customer groups • Are sold through similar outlets or fall within

given price ranges

• Product line length - Number of items in the product line• Product line filling• Product line stretching


Product Mix (or Product Portfolio)

• Set of all product lines and items that a particular seller offers for sale


Product Mix Decisions


Figure 7.3 - Four Service Characteristics


Service Profit Chain

• Links service firm profits with employee and customer satisfaction

• The links include:• Internal service quality • Satisfied and productive service employees • Greater service value• Satisfied and loyal customers• Healthy service profits and growth


Figure 7.4 - Three Types of Service Marketing


Marketing Tasks for Service Companies


Brand Equity

• 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 same product.

• With negative brand equity, consumers react less favorably to the brand than to an unbranded version.


Brand Equity

• Consumer perception dimensions include:• Differentiation • Relevance• Knowledge• Esteem

• Brand valuation is the estimation of the total financial value of a brand.

• Customer equity is the value of customer relationships that the brand creates.


Major Brand Strategy Decisions


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 product’s 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


Brand Sponsorship


Figure 7.6 - Brand Development Strategies


Managing Brands

• Communicate the brand’s positioning• Manage all brand touch points • Train employees to be customer centered• Audit the brands’ strengths and weaknesses


Learning Objectives

• Define product and describe the major classifications of products and services.

• Describe the decisions companies make regarding their individual products and services, product lines, and product mixes.


Learning Objectives

• Identify the four characteristics that affect the marketing of services and the additional marketing considerations that services require.

• Discuss branding strategy—the decisions companies make in building and managing their brands.

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Copyright © 2015 Pearson Education, Inc.Copyright © 2015 Pearson Education, Inc.

Chp 8 products, service & brands building customer value

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