Ch 8 -0 Copyright © 2011 Pearson Education
Principles of Marketing,
Arab World Edition
Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed
Tolba
Presentation prepared by Annelie Moukaddem Baalbaki
CHAPTER EIGHT
Products, Services, and Brands:
Building Customer Value
Lecturer: Marina Badie
Ch 8 -1 Copyright © 2011 Pearson Education
Chapter Learning Outcomes
Topic Outline
8.1 What Is a Product?
8.2 Product and Services Decisions
8.3 Branding Strategy: Building Strong Brands
8.4 Services Marketing
Ch 8 -2 Copyright © 2011 Pearson Education
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.
Service is any activity or benefit that one party can offer to
another that is essentially intangible and does no result in the
ownership of anything.
Experiences represent what buying the product or service will
do for the customer.
Ch 8 -3 Copyright © 2011 Pearson Education
What Is a Product?
Ch 8 -4 Copyright © 2011 Pearson Education
What Is a Product?
Product and Service Classifications
Consumer products
Industrial products
Ch 8 -5 Copyright © 2011 Pearson Education
What Is a Product?
Product and Service Classifications
Consumer products are products and services for personal
consumption.
Classified by how consumers go about buying them.
• Convenience products
• Shopping products
• Specialty products
• Unsought products
Ch 8 -6 Copyright © 2011 Pearson Education
What Is a Product?
Product and Service Classifications
Convenience products are consumer products and services
that the customer usually buys frequently, immediately, and
with a minimum comparison and buying effort.
• Newspapers
• Candy
• Fast food
Ch 8 -7 Copyright © 2011 Pearson Education
What Is a Product?
Product and Service Classifications
Shopping products are consumer products and services that
the customer compares carefully on suitability, quality, price,
and style.
• Furniture
• Cars
• Appliances
Ch 8 -8 Copyright © 2011 Pearson Education
What Is a Product?
Product and Service Classifications
Specialty products are 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
Ch 8 -9 Copyright © 2011 Pearson Education
What Is a Product?
Product and Service Classifications
Unsought products are 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
Ch 8 -10 Copyright © 2011 Pearson Education
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.
Social marketing 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.
Ch 8 -11 Copyright © 2011 Pearson Education
Product and Service Decisions
Ch 8 -12 Copyright © 2011 Pearson Education
Product and Service Decisions
Individual Product and Service Decisions
Product attributes are the benefits of the product or service.
• Quality
• Features
• Style and design
Ch 8 -13 Copyright © 2011 Pearson Education
Product and Service Decisions
Individual Product and Service Decisions
Product quality includes level and consistency.
Quality level is the level of quality that supports the product’s
positioning.
Conformance quality is the product’s freedom from defects
and consistency in delivering a targeted level of performance.
Ch 8 -14 Copyright © 2011 Pearson Education
Product and Service Decisions
Individual Product and Service Decisions
Product features are a competitive tool for differentiating a
product from competitors’ products.
Product features are assessed based on the value to the
customer versus the cost to the company.
Ch 8 -15 Copyright © 2011 Pearson Education
Product and Service Decisions
Individual Product and Service Decisions
Style describes the appearance of the product.
Design contributes to a product’s usefulness as well as to its
looks.
Ch 8 -16 Copyright © 2011 Pearson Education
Product and Service Decisions
Individual 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.
Brand equity is the differential effect that the brand name has
on customer response to the product and its marketing.
Ch 8 -17 Copyright © 2011 Pearson Education
Product and Service Decisions
Individual 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.
Ch 8 -18 Copyright © 2011 Pearson Education
Product and Service Decisions
Individual Product and Service Decisions
Product support services augment actual products.
Ch 8 -19 Copyright © 2011 Pearson Education