8-1

PRINCIPLES OF MARKETING

Chapter 8

Product and Services

Strategy
 8-2

Brands

Brand decisions
What is brand?
Attributes
Benefits
Values
Culture
Personality
User
 8-3

Brands

Branding gives the seller several advantages:

Brand name makes it easier for the seller to process orders and
track down problems
Sellers brand name and trademark provide legal protection of
unique product features
Branding gives the seller the opportunity to attract a loyal and
profitable set of customers.
Branding helps the seller segment markets.
Strong brands help build corporate image, making it easier to
launch new brands and gain acceptance by distributors and
consumers.
Major Brand Decisions 8-4

Brand Name Selection

Selection
Protection

Brand Sponsor
Manufacturers Brand
Private Brand
Licensed Brand
Co-branding

Brand Strategy
Line Extensions
Brand Extensions
Multibrands
New Brands
Brand Strategy 8-5

Product Category
Existing New
Brand Name

Existing Line Brand

Extension Extension

New
New Multibrands
Brands
Brand Strategy 8-6

Line Extension
Existing brand names extended to new
forms, sizes, and flavors of an existing
product category.
Brand Extension
Existing brand names extended to new
product categories.
Multibrands
New brand names introduced in the same
product category.
New Brands
New brand names in new product categories.
 8-7

Services

Services - activities or benefits offered for sale that are

essentially intangible and dont result in the ownership of
anything.

Examples: banking, airlines, haircuts, and hotels.

Characteristics of Services 8-8

Intangibility Cant be seen, tasted, felt, heard,

or smelled before purchase.

Inseparability Cant be separated from service

providers.
Variability Quality depends on who provides
them and when, where and how.
Perishability
Cant be stored for later sale or use.
Marketing Strategies for Service 8-9

Firms
Managing Service Differentiation
Develop offer, delivery and image with competitive
advantages.
Managing Service Quality
Empower employees
Become Customer obsessed
Develop high service quality standards
Watch service performance closely
Managing Service Productivity
Train current or new employees
Increase quantity by decreasing quality
Utilize technology