Chapter 8:

Product and Services Strategy

What is a Product?

o

o Includes:

What is a Service?

o .

 

o Examples include:

Products, Services, and Experiences

Levels of Product (Fig. 8-1)

 

 

Product Classifications: Consumer

 

 

Product Classifications: Industrial

 

 

Product Classifications:

Other Marketable Entities

o Activities undertaken to create, maintain, or change the attitudes and behavior toward the following:

&endash; Organizations - Profit (businesses) and nonprofit (schools and churches).

&endash; Persons &endash; Politicians, entertainers, sports figures, doctors, and lawyers.

&endash; Places - Business sites, new residents, and tourism.

&endash; Ideas (social ideas marketing) &endash; Public health campaigns, environmental campaigns, and others such as family planning, or human rights.

Individual Product Decisions (Fig. 8-2)

Product Attributes

Branding

o Advantages to Branding

&endash; Buyers:

o

o

&endash; Sellers

o

o

o

 

o Brand Equity

&endash;

&endash;

&endash;

&endash;

&endash;

Brands and Brand Symbols (p. 292)

o Powerful brands such as these have brand equity:

&endash; Coca-Cola brand - $69 billion

&endash; IBM brand - $53 billion

o .

Major Branding Decisions (Fig. 8-3)

Four Brand Strategies (Fig. 8-4)

Brand Strategy

o Line Extension

&endash;

.

o Brand Extension

&endash; .

o Multibrands

&endash; .

o New Brands

&endash; .

Packaging

o Designing and producing the container or wrapper for a product.

o Steps in developing a good package:

&endash;

&endash;

&endash;

Labeling

o

o Performs several functions:

&endash;

&endash;

&endash;

Product Support Services

Product Line Decisions

Product Mix Decisions

Nature and Characteristic of a Service (Fig. 8-5)

The Service-Profit Chain (Fig. 8-6)

Marketing Strategies for Service Firms

o Managing Service Differentiation

&endash; Develop differentiated offer, delivery, and image.

o Managing Service Quality

&endash; Empower front-line employees,

&endash; Become "Customer obsessed,"

&endash; Set high service quality standards,

&endash; Watch service performance closely.

o Managing Service Productivity

&endash; Train current or new employees better,

&endash; Work on quality as well as quantity,

&endash; Utilize technology

&endash; Well-designed Web site