The major product line decision involves

Marketing: An Introduction

Thirteenth Edition

Chapter 7

Products, Services, and Brands: Building Customer value

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved

1

Learning Objectives (1 of 4)

7-1. Define product and describe the major classifications of products and services.

7-2. Describe the decisions companies make regarding their individual products and services, product lines, and product mixes.

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved

This chapter defines product and describes the major classifications of products and services. It also describes the decisions companies make

regarding their individual products and services, product lines, and product mixes.

2

Learning Objectives (2 of 4)

7-3. Identify the four characteristics that affect the marketing of services and the additional marketing considerations that services require.

7-4. Discuss branding strategy—the decisions companies make in building and managing their brands.

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This chapter also identifies the four characteristics that affect the marketing of services and the additional marketing considerations that services require. Finally, this chapter discusses branding strategy, which involves the decisions companies make in building and managing their brands.

3

First Stop Go Pro: Be a Hero

GoPro’s runaway success comes from understanding that it’s selling much more than wearable sports- action video cameras.

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GoPro’s amazing little cameras let even the rankest video amateurs take stunning videos, giving them a way to celebrate the action-charged moments

and emotions of their lives with others.

GoPro’s runaway success comes from a deep-down understanding that it’s selling much more than just tiny, wearable sports action video cameras. GoPro

helps people capture, share, and celebrate with others the most meaningful experiences in their lives.

4

Learning Objective 7-1

Define product and describe the major classifications of products and services.

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What Is a Product?

A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

A service is an activity, benefit, or satisfaction offered for sale; it is intangible and does not result in ownership of anything.

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A product is 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 services, events, persons, places, organizations, and ideas, or a mixture of these.

Services are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.

6

Products, Services, and Experiences (1 of 2)

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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A company’s market offering often includes both tangible goods and services. At one extreme, the market offering may consist of a pure tangible good and at the other extreme a pure service. Between these two extremes, however, many goods-and-services combinations are possible. Today, as products and services become more commoditized, many companies are moving to a new level in creating value for their customers. To differentiate their offers, beyond simply making products and delivering services, firms are creating and managing customer experiences with their brands or companies.

7

Products, Services, and Experiences (2 of 2)

Verizon’s redesigned Smart Stores create lifestyle experiences.

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Verizon’s redesigned Smart Stores don’t just sell phones. they create lifestyle experiences—a kind of “rec room for geeks” in which customers can hang around and experience the wonders of mobile technology.