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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.

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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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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

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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

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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

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Figure 7.1 - Three Levels of Product

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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

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Table 7.1 - Marketing Considerations for Consumer Products

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Other Marketable Entities

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Product and Service Decisions

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Figure 7.2 - Individual Product Decisions

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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

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Product Mix (or Product Portfolio)

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

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Product Mix Decisions

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Figure 7.3 - Four Service Characteristics

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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

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Figure 7.4 - Three Types of Service Marketing

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Marketing Tasks for Service Companies

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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.

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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.

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Major Brand Strategy Decisions

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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 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

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Brand Sponsorship

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Figure 7.6 - Brand Development Strategies

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Managing Brands

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

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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.

7 - 28Copyright © 2015 Pearson Education, Inc.

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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