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Product, Services, and Branding Strategies Chapter 9 Objectives Be able to define product and know the major classifications of products and services. Understand the decisions companies make regarding their individual products and services, product lines, and product mixes. Objectives Understand how firms build and manage their brands. Know the four characteristics of services and the additional marketing considerations that services require. Review additional product issues related to social responsibility and international marketing. Case Study Cosmetics companies sell billions of dollars worth of products Consumers buy more than just a particular smell The “promise”, image, company, name, package, and ingredients are all part of the product, as are the stores where it is sold. Definitions Product Anything offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want. Service Any activity or benefit that one party can offer to another that is essentially intangible and does not result in ownership of anything. What is a Product? Products, Services, and Experiences Market offerings, pure tangible goods, pure services, experiences Levels of Product and Services Core benefit, actual product, and augmented product Product and Service Classifications What is a Product? Convenience Shopping Specialty Unsought Frequent purchases bought with minimal buying effort and little comparison shopping Low price Widespread distribution Mass promotion by producer What is a Product? Convenience Shopping Specialty Unsought Less frequent purchases requiring more shopping effort and price, quality, and style comparisons. Higher than convenience good pricing Selective distribution in fewer outlets Advertising and personal selling by producer and reseller What is a Product? Convenience Shopping Specialty Unsought Strong brand preference and loyalty, requires special purchase effort, little brand comparisons, and low price sensitivity High price E
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