Product brand equity

Lecture 6:
Product, Service,
and Branding


Definition of products
Layers of product
Types of products

Outline

Product line and product mix
Product portfolio managment decisions
Service definition & characteristics
Service Marketing Tasks
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What is a
product?

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Definition
of 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.

• Broadly defined, “products” also include
services, events, persons, places,
organizations, ideas, or mixes of these.
An MSG company, i.e. Ajinomoto,
decided to sell coffee to the Vietnamese
market. Question: how Ajinomoto
acquires attention from customers?
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Value-based prices
Components of the
Market Offering

Attractiveness
of the market
offering
Product
features
and quality
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Services
mix and
quality


Five product levels
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Classfication Of Products

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Industrial
products

Types of Product?
Consumer
products
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Convenience

Shopping

Specialty

Unsought

Consumer
Goods
Classification


Convenience
Product

• …Customers usually buy frequently,
immediately, and with a minimum of
comparison and buying effort.

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• less frequently purchased
• customers compare carefully on suitability,
quality, price, and style


Specialty Product
• Unique characteristics or brand
identification
• Buyers are willing to make a special
purchase effort.

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Unsought Product

• …consumer either does not know
about or knows about but does not
normally think of buying.

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Industrial
Products

• Industrial products are those
purchased for further processing or for
use in conducting a business,
including:
• Materials and parts
• Capital items
• Supplies and services.

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Raw
Materials/Parts

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Capital
Items

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Supplies/Services
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Test your
knowledge

• Which of the following are examples of
shopping products?
• A. Furniture, clothing, used cars, major
appliances, and hotel and airline services
• B. Laundry detergent, candy, magazines,
and fast food
• C. Branded cars, high-priced photographic
equipment, and designer clothes
• D. Life insurance, preplanned funeral
services, and blood donations to the Red
Cross

Lectured by Khoa Nguyen


Test your
knowledge

• Which of the following are examples of
shopping products?
• A. Furniture, clothing, used cars, major
appliances, and hotel and airline services
• B. Laundry detergent, candy, magazines,
and fast food
• C. Branded cars, high-priced photographic
equipment, and designer clothes

• D. Life insurance, preplanned funeral
services, and blood donations to the Red
Cross

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Product
Differentiation
• Product form
• Features
• Customization
• Performance

• Conformance
• Durability
• Reliability
• Repairability

• Style


Product Line &
Product Mix

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Product Line

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

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Product line filling.

Product Line
Decisions
Product line stretching.

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Product
Mix
• Product mix consists of
all the products and
items that a particular
seller offers for sale.
• Also called: Product
poftfolio
• A company’s product
mix has four dimensions:
width, length, depth,
and consistency.

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Four dimensions
of product mix
• Product mix width refers to the number of
different product lines the company carries.
• Product mix length refers to the total number
of items the company carries within its
product lines.
• Product mix depth refers to the number of
versions offered of each product in the line.
• Product mix consistency refers to how
closely related the various product lines are in
end use, production requirements, distribution
channels, or some other way.

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