Kotler pom 15e_inppt_04

1. 8-1
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter Eight
Product, Services, and Brands: Building Customer Value
Copyright ©2014 by Pearson Education, Inc. All rights reserved

2. 8-2
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Product, Services, and Branding
Strategy
Product, Services, and Experiences
Product and Services Decisions
Services Marketing
Branding Strategy: Building Strong Brands
Topic Outline
Copyright ©2014 by Pearson Education, Inc. All rights reserved

3. 8-3
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Product is anything that can be offered in a
market for attention, acquisition, use, or
consumption that might satisfy a need or want
Service is a product that consists of activities,
benefits or satisfaction that is essentially
intangible and does not result in the ownership
of anything
Products, Services, and Experiences
Copyright ©2014 by Pearson Education, Inc. All rights reserved

4. 8-4
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Experiences represent what buying the
product or service will do for the customer
Products, Services, and Experiences
Copyright ©2014 by Pearson Education, Inc. All rights reserved

5. 8-5
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Product and Service Classifications
Copyright ©2014 by Pearson Education, Inc. All rights reserved

6. 8-6
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Consumer products are products and
services for personal consumption
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Product and Service Classifications

7. 8-7
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Classified by how consumers buy them:

8. 8-8
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Consumer Product
Classifications
Convenience products
consumer products and services that
the customer usually buys
frequently, immediately, and with a
minimum comparison and buying
effort
Newspapers
Candy
Fast food
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Product and Service Classifications

9. 8-9
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Shopping products
consumer products and services that
the customer compares carefully on
suitability, quality, price, and style
Furniture
Cars
Appliances
Product and Service Classifications
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Consumer Product
Classifications

10. 8-10
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Specialty products
consumer products and services with unique
characteristics or brand identification for
which a significant group of buyers is willing
to make a special purchase effort
Medical services
Designer clothes
High-end electronics
Product and Service Classifications
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Consumer Product
Classifications

11. 8-11
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Unsought products
consumer products that the consumer does
not know about or knows about but does not
normally think of buying
Life insurance
Funeral services
Blood donations
Product and Service Classifications
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Consumer Product
Classifications

12. 8-12
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Industrial products
products purchased for further processing or
for use in conducting a business
Classified by the purpose for which the
product is purchased
Materials and parts
Capital
Raw materials
Product and Service Classifications
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Industrial Product
Classifications

13. 8-13
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Capital items are industrial products that aid
in the buyer’s production or operations
Materials and parts include raw materials and
manufactured materials and parts usually
sold directly to industrial users
Supplies and services include operating
supplies, repair and maintenance items,
and business services
Product and Service Classifications
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Industrial Product
Classifications

14. 8-14
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Individual Product and Service Decisions
Copyright ©2014 by Pearson Education, Inc. All rights reserved

15. 8-15
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Product or service attributes
communicate and deliver the benefits
Quality
Features
Style and design
Product Attributes
Copyright ©2014 by Pearson Education, Inc. All rights reserved

16. 8-16
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Product Quality Level is the level of
quality that supports the product’s
positioning
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Product Attributes

17. 8-17
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Product features
are a competitive tool for
differentiating a product from
competitors’ products
are assessed based on the value to
the customer versus the cost to
the company
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Product Attributes

18. 8-18
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Style describes the
appearance of the
product
Design contributes to a
product’s usefulness as
well as to its looks
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Product Attributes

19. 8-19
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Brand is the name, term, sign, or design—or a
combination of these—that identifies the
maker or seller of a product or service
Branding
Copyright ©2014 by Pearson Education, Inc. All rights reserved

20. 8-20
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Packaging involves designing and producing
the container or wrapper for a product
Labels identify the product or brand,
describe attributes, and provide
promotion
Packaging and Labeling
Copyright ©2014 by Pearson Education, Inc. All rights reserved

21. 8-21
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Product support services augment actual products.
Product Support Services
Copyright ©2014 by Pearson Education, Inc. All rights reserved

22. 8-22
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Product line is a group of products that are
closely related because they function in
a similar manner, are sold to the same
customer groups, are marketed through
the same types of outlets, or fall within
given price ranges
Product Line Decisions
Copyright ©2014 by Pearson Education, Inc. All rights reserved

23. 8-23
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Services Marketing
Government
Private not-for-profit organizations
Business services
Types of Service Industries
Copyright ©2014 by Pearson Education, Inc. All rights reserved

24. 8-24
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Services Marketing
Nature and Characteristics of a Service
Copyright ©2014 by Pearson Education, Inc. All rights reserved

25. 8-25
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Services Marketing
Managing service productivity refers to the cost
side of marketing strategies for service
firms
Employee recruiting, hiring, and training
strategies
Service quantity and quality strategies
Marketing Strategies for Service Firms
Copyright ©2014 by Pearson Education, Inc. All rights reserved

26. 8-26
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Branding Strategy: Building Strong
Brands
Brand equity
The differential effect that knowing the
brand name has on customer response to
the product or its marketing.
Copyright ©2014 by Pearson Education, Inc. All rights reserved

27. 8-27
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Branding Strategy: Building Strong
Brands

28. 8-28
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Branding Strategy: Building Strong
Brands
Brand strategy decisions
include:
Product attributes
Product benefits
Product beliefs and
values
Brand Positioning
Copyright ©2014 by Pearson Education, Inc. All rights reserved

29. 8-29
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Desirable qualities
1.Suggest benefits and qualities
2.Easy to pronounce, recognize, and
remember
3.Distinctive
4.Extendable
5.Translatable for the global economy
6.Capable of registration and legal protection
Brand Name Selection
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Branding Strategy: Building Strong
Brands

30. 8-30
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Manufacturer’s brand
Private brand
Licensed brand
Co-brand
Brand Sponsorship
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Branding Strategy: Building Strong
Brands

31. 8-31
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Brand Development Strategies
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Branding Strategy: Building Strong
Brands

32. 8-32
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Marketing Plan :
SWOT Analysis

33. 8-33
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
SWOT Analysis
Analysing a company’s:
•Strengths
•Weaknesses
•Opportunities
•Threats1eg:M,iecPgP
nhrugeM-SPw
Analyzing a
company’s :

34. 8-34
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
“
”
History of SWOT Analysis
Developed at Stanford
Funded by Fortune 500 companies
Took 9 years to develop
Involved 5000 interviews

35. 8-35
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
“
”
35
SWOT Analysis is…
… A strategic planning tool that separates
influences on a business’s future success
into internal and external factors.

36. 8-36
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
SWOT Analysis
Marketing Analysis – SWOT Analysis
Copyright ©2014 by Pearson Education, Inc. All rights reserved

37. 8-37
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
A strength
Superior product
quality
Lowest price
Best expertise
Location
Can be a competitive
advantage like…

38. 8-38
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
A weakness
A tired brand
Inferior location
High overheads
A lack of R&D
Can be a
disadvantage such
as…

39. 8-39
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
An opportunity can be…
A regulatory or tax change
A high-profile event (marketing
opportunity)
An untapped market
A gap left by a failed competitor

40. 8-40
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
A threat can be…
Unfavourable regulation changes
A new entrant into the market
Problems with the economy
Market shrinkage

41. 8-41
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Let us consider the example of Proton. This company’s
SWOT can be summarised as follows: