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Principles of Marketing

Product, Services, and

Branding Strategy

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 What Is a Product?

Products, Services, and Experiences

Product is anything that can be offered in a
market for attention, acquisition, use, or
consumption that might satisfy a need or
want of the customer.
-Physical Goods; like Soap, Shampoo, Toothpaste,
Biscuits, Soft drinks etc.

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 What Is a Product?
Products, Services, and Experiences
-Service is a form of product that consists of activities,
benefits, experience or satisfactions offered for sale
that are essentially intangible and do not result in
ownership of anything.
• Telecom companies, Hotels, Banks, Insurances,
Hospitals, Airlines etc.

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 What Is a Product?

Products, Services, and Experiences

-Experiences have always been an important part of
marketing for some companies. To differentiate their
offers, beyond simply making products and
delivering services, companies are producing,
marketing and delivering memorable customer
experiences
• Fantasy Kingdom - Theme Parks, Jamuna Future
Park – Shopping Mall, Star Cineplex – Movie Theatre

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What Is a Product?
Levels of Product and Services

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What Is a Product?
Levels of Product

Augmented Product

Actual Product
Brand
Name After
Delivery Features
Sales
& Credit Core Benefit
Service

Quality Packaging
Level
Design

Installation Warranty
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 What Is a Product?
Levels of Product and Services

Core Benefits represent the main fundamental value

what the buyer is really buying while purchasing any
physical goods or services.
- This basically the principal benefit of that particular
product. And it may vary depending on the nature of
product.
Example: A hotel guest is buying comfortable “rest and
sleep”.
- The purchaser of Car is buying ‘transport solution’.
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 What Is a Product?
Levels of Product and Services

Actual Product represents the way (using design,

features brand name, and packaging) that delivers
the core benefit to the customer.
Essential/mandatory parts of a product that ensure
benefits.
Example: Thus a hotel room includes a bed, bathroom,
towels, desk, dresser and others to ensure rest and
sleep.

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 What Is a Product?

Levels of Product and Services

Augmented Product represents additional services or
benefits of the actual product. These may be the
essential parts or the extra facilities along with the
main product.
- It is actually a set of attributes and conditions that
buyers normally expect when they buy the product.

Example: A hotel guest expect clean bed, fast room

service, better laundry services, fresh towels, gym
facilities and entertainment system etc.
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 What Is a Product?

Product and Service Classifications

• Consumer products
• Industrial products

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 What Is a Product?

Product and Service Classifications

Consumer Products are physical goods and

services for personal consumption.

- Classified by how Consumers buy them?

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What Is a Product?

Consumer Products Classification

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 What Is a Product?
Product and Service Classifications
Convenience Products are consumer goods and
services that the customer usually buys frequently,
immediately, and with a minimum comparison and
buying effort.
Example: Fast Moving Consumer Goods [FMCG] like
Newspaper, Soft drinks, Fast-food, Candy etc.

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 What Is a Product?

Product and Service Classifications

These type of products are of low price & highly available

and that’s why consumers provide less effort at the
time of buying this category of goods.

- Marketers of these products must make the products

cheaper and available (follow production concept), so
that consumers can buy with minimum buying effort.

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 What Is a Product?
Product and Service Classifications

Shopping Products are consumer goods and services that the

customer compares carefully on suitability, quality, price, and
style in the process of selection and purchase.
Example: Dress materials, Furnitures, Mobile phones, Refrigerators
and other Home Appliances etc.

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 What Is a Product?

Product and Service Classifications

At the time of buying shopping products consumer give

high effort to make the comparison. And the products
may be of high priced than the convenience goods &
company offer lots of varieties for the customers.

- Marketers of these products sell their products through

their authorized show rooms, maintain quality, charge
high price (follow product/marketing concept) and
sometimes demonstrate the product, so that
consumers can make the comparison with other
substitute products.
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 What Is a Product?
Product and Service Classifications
Specialty products are consumer goods and services with unique
characteristics or brand identification for which a significant
group of buyers is willing to make a special purchase effort.
Example: Special Medical services, Designer clothes, Exclusive
and branded products.

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 What Is a Product?

Product and Service Classifications

At the time of buying these type of products, customers

are highly involved since they are very expensive and
offering something special to them.

- Marketers of these products sell their products through

limited outlets or distributors, maintain uniqueness
(follow higher product concept). This is the case of
brand loyalty in fact where not the price rather than
quality and satisfaction is the prime factor of buying
the product.
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 What Is a Product?

Product and Service Classifications

Unsought products are consumer goods and services
that the consumer either does not know about or
knows about, but does not normally think of buying.

Example: Life insurance, Encyclopedia, Yellow pages,

Smoke detectors, Dictionaries etc.

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 What Is a Product?
Product and Service Classifications

Consumers does not usually buy or even think of buying

this type of products until and unless it is required.
So huge Advertisement and promotional activities is
necessesary to make them interested.

- Marketers of these products use lots of communication

tools to knock and motivate the customers (follow
selling concept) even sometimes use door to door
selling to convince them.

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What Is a Product?
Product and Service Classifications

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 What Is a Product?
Product and Service Classifications

Industrial Products are physical goods and

services purchased for further processing or
for use in conducting a business.
- Classified by the Purpose for which the
products are purchased;
• Materials and Parts
• Capital Items
• Supplies and Business Services
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 What Is a Product?
Product and Service Classifications

Materials and parts include raw materials and

manufactured materials and parts that enter
the manufacturer’s product completely.
(Raw materials)
• Farm products: Wheat, Cotton, livestock
• Natural products: Petroleum, Coal for industries
(Manufactured materials)
• Component materials: Iron, Steel, Cement
• Component parts: Small motors, tiers etc
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 What Is a Product?

Product and Service Classifications

Capital items are long-lasting goods that
facilitate developing and managing finished
products. They include two groups:
• Installations consists major purchases such as buildings
(factory and office) and fixed equipment (generators,
heavy machineries etc)

• Accessories Equipments consists portable equipments

& tools and office equipments (hand tools, computers, FAX
machines etc)

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 What is a Product?

Product and Service Classifications

Supplies and Business Services are short-
lasting goods and services that facilitate
developing or managing the finished product.
• Supplies include Operating supplies (stationeries like
paper, pencils etc) and Repair and Maintenance items
(paint, cleaning materials etc)

• Business services include legal advice, management

consultancy, Advertising counseling etc.
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 What Is a Product?
Organizations, Persons, Places, and Ideas
Organization marketing consists of activities undertaken
to create, maintain, or change attitudes and behavior of
target consumers toward an organization.
• Corporate advertising campaign, Public Relations
activities can be strong tools for organizational
marketing.
Example: When companies enhance their company name,
logo, or any sort of symbol in communication.

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 What Is a Product?
Organizations, Persons, Places, and Ideas
Person Marketing consists of activities undertaken to create,
maintain, or change attitudes and behavior of target
consumers toward an organization.
• Organizations are using celebrities to promote their products
and sometimes organization enjoy special privilege for a
certain person/brand ambassador.
Example: Marketing by Famous player, Actors/Actress,
Professionals as brand ambassador.

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 What Is a Product?
Organizations, Persons, Places, and Ideas
Place Marketing consists of activities undertaken to
create, maintain, or change attitudes and behavior of
target consumers toward particular places.
• Sometime government and private organizations are
communicating different natural and historical places of
their country.
Example: Highlighting Tourism (Malaysia, Nepal),
Cox’s Baser, Sylhet & Sundarbans in Bangladesh.

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 What Is a Product?
Organizations, Persons, Places, and Ideas
Social Marketing (Ideas) is the use of commercial
marketing concepts and tools in programs designed to
influence individuals’ behavior to improve their well-
being and that of society.
Example: Public health campaign, Save the environment
campaign, and campaign to reduce drug abuse, acid
terrorism by different organizations like Prothom-alo
daily news paper, Dutch Bangla bank, Unicef etc.

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Product and Service Decisions
Individual Product and Service Decisions

Product Attributes
Branding
Packaging
Labeling
Product Support Services 30
 Product and Service Decisions
Individual Product and Service Decisions

Product Attributes refers to the benefits in a

product or services that will be offered to the
customers. So, Marketer has to define the benefits
they are going to add to their products and
services.

- Attributes such as product,

• Quality, Features, Style and design, Convenience,

Safety, Reliability, Services etc.
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 Product and Service Decisions
Individual Product and Service Decisions
Brand is the name, term, sign, or design, or any
combination of these, that identifies the maker or
seller of a product or service from those of its
competitors.
Example: Prominent bands for sports wear Nike, addidas,
and Coke, Pepsi for soft drinks.

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 Product and Service Decisions

Individual Product and Service Decisions

Branding is a major issue in product strategy. On

the other hand developing a branded product
requires a huge long-term investment, especially
for advertising, promotion and packaging.
- Because a brand is essentially a seller’s promise to
deliver a specific set of features, benefits, and
services consistently to the buyers.

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 Product and Service Decisions
Individual Product and Service Decisions
Brand Equity (the power and value of a brand in the
marketplace) is the positive differential effect that
knowing the brand name how customers response to the
product or service of an organization.

• One study found that 72% of customers would pay 20%

price premium for their brand of choice relative to the
closest competitor.

Brand Valuation is the process of estimating the total

financial value of the brand.

• Coca-Cola = $ 72,452 million, IBM = $ 64,727 million,

Microsoft = $ 60,895 million, Google = $ 43,557 million etc.
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 Product and Service Decisions
Individual Product and Service Decisions

Packaging involves designing and producing the

container or wrapper for a product. Packaging can
be either Primary or Secondary or both.
- Smart packaging makes the product more convenient,
attractive and dependable to the customers. And
Sometimes packaging is used as a strong tool for
communication.

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 Product and Service Decisions
Innovative Packaging

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 Product and Service Decisions
Individual Product and Service Decisions

Label is a part of packaging that identifies the product

or brand, describes all the detail attributes, and
provides promotion through attracting words and
graphics.
- Labeling includes all the information like:
 Who made it?
 Where and when it was made?
 Nature of product and what it contains?
 How it to be used and how to use it safely?
 Finally it promote the product.
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 Product and Service Decisions
Use of Labeling

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 Product and Service Decisions
Individual Product and Service Decisions

Product support services or Customer service is

another element of product strategy. It is mainly the
augmented support for the principal product (that
might be a major or minor part of the offering).
Example: Sony, Singer and other electronics companies
are offering after sales services like warranty, delivery
& credit purchase and installation facilities.
- Grameen phone and Banglalink have their customer
help lines to provide support services even for 24
hours.
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 Product and Service Decisions

Product Line Decisions

Product line is a group of products that are
closely related because they function in a
similar manner, sold to the same customer
groups, and marketed through the same types
of outlets, or fall within given price ranges.

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 Product and Service Decisions

Product Line Decisions

Product line length is the number of items in
the product line.
- Product line length is influenced by company objective,
resources, market demand and profitability. A
company can lengthen its product line in two ways;
• Line stretching
• Line filling

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Product and Service Decisions

Product Line Decisions

Product line stretching occurs when a

company lengthens its product line beyond
its current range.
- Company can stretch its line by:
• Downward line stretching
• Upward line stretching
• Combination of both ways
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 Product and Service Decisions

Product Line Decisions

Downward product line stretching is used by

companies located at the upper end of the market;
but to fulfill a market gap or to respond to a
competitor’s attack they introduce some low profile
products.

Upward product line stretching is used by

companies located at the lower end of the market;
but to add prestige to their current products and
services they introduce some high profile products.
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 Product and Service Decisions

Product Line Decisions

Combination line stretching is used by

companies located in the upper or middle
range of the market; but to achieve both
goals of upward and downward they offer
both high and low profile products
simultaneously.

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 Product and Service Decisions
Product Line Decisions

Product line filling occurs when companies add

more items within the present range of the line
to ensure competitive position.
- There are several reasons for product line filling:
• Offering more options to the customers
• Earning more profits
• Satisfying dealers who complain about sales lost
• Using excess capacity
• To keep out competitors
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END of CHAPTER : 8

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