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Chapter 8 Product, Services, and Branding Strategy By Li Xuejia Objectives Define product and the major classifications of products and services Describe the decisions companies make regarding their individual products and services, product lines, and product mixes Discuss branding strategy--- the decisions companies make in building and managing their brands Identify the four characteristics that affect the marketing of a service and the additional marketing considerations that services require Major issues What is a product? Product and service decisions Branding strategy: building strong brands Service marketing What Is a Product? Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. Broadly defined, products include physical objects, services, events, persons, places, organizations, ideas, or mixes of these entities. Levels of Product and Services Core benefit: the core, problem-solving benefit or services Actual product: features, design, a quality level, a brand name, and packaging Augmented product: additional consumer services and benefits Product and Service Classification Consumer products Industrial products Broadly defined--- organizations, persons, places, and ideas Consumer Products Products and services bought by final consumers for personal consumption. Convenience products Shopping products Specialty products Unsought products Convenience Products Consumer products and services that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort. E.g. Soap, newspapers, fast food back Shopping Products Consumer good that the customer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price, and style. E.g. Clothing, furniture, household appliances back Specialty Products Consumer product with unique characteristics or brand identification for which a significant gro