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Chapter 3
Product Planning and Development

Chapter Four
Products, Services, and Branding Strategies
By
Rafique Ahmed

Definitions
Product
 Anything offered to a market
for attention, acquisition, use, or
consumption that might satisfy
a need or want.
 Products; includes goods,
services, places, persons, and
ideas
 Some products are sold only to
consumers, while others are
sold to organizations
 Whether a product is a
consumer product or a business
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Seller’s
services
Product
quality Physical
characteristics
of goods
Price
Brand
Design
Packaging
Product
warranty
Seller’s
reputation
Colour
The Total Product

Classification of product
 Consumer product
Product that are bought by the consumers for personal use. Consumer
products include Convenience, Shopping, Specialty and Unsought
Products
 Business or Industrial Product
Product bought by individuals and organizations for further processing
or for use in conducting a business.

Classification of Consumer Goods
 Consumer goods are further classified as
 Convenience Goods
 Shopping Goods
 Specialty Goods
 Unsought Goods

Convenience Goods
 Convenience goods are close goods the customer
usually purchased frequently, immediately and with
minimum effort
 For Example.
 Soap, candy, newspaper and fast food, cosmetics
jeans etc
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Types of consumer products
 Convenience products

Shopping Goods
 Consumer product that the consumer, in the process of selection
and purchases, characteristically compares on such basis as
suitability, quality, price and style.
 Less frequent purchases
 More shopping effort for comparisons.
 Higher than convenience good pricing
 Selective distribution in fewer outlets
 Advertising and personal selling
 For example. Furniture, clothing, cars, major appliances, hotel
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Types of consumer products
 Shopping products

Specialty Goods
 Consumer product with unique characteristics or brand
identification for which a significant group of buyers are willing
to make a special purchasing effort.
 High price
 Exclusive distribution
 Carefully targeted promotions
 For example, specific brand types of cars, BMW, Armani.
 Designer clothes
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Unsought Goods
 Unsought Products are products you haven't
actively been looking for.
 Unsought goods are those now unknown to the
consumer or, if known, undesired.
 For example: life insurance. Gravestone etc
 Smoke detectors
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Classifying Business Products
1.Raw materials: unprocessed, become part of
other manufactured products
2.Manufactured parts and materials:
processed products that become part of
other products
3.Installations: plant & machinery, major
buildings and equipment etc
4.Accessory equipment: used in operations,
include computers, desks, tools
5.Operating supplies: low value goods, like
pencils, stationery, convenience products
for businesses
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15

1) The Core Products
 The basic product which you wants to
purchase for satisfaction of your needs
and wants.
 Actual Product
The actual product may have as many as five
characteristics that combine to deliver the
core product benefits.
 The characteristics are:
 Quality
 Feature , Design
 Brand name , Packaging

3) Augmented product
 Any additional consumer services
and benefits built around the core
and actual products.
 For example:
 Warranty/ guarantee
 After sales services
 Installation
 delivery

Service
A service is defined as any activity or benefit
that one party can offer to another which is
basically intangible and does not result in
the ownership
of anything.

Examples of Service Industries
 Health Care
 hospital, medical practice, dentistry, eye care
 Professional Services
 Accounting, legal, architectural
 Financial Services
 Banking , insurance
 Hospitality
 restaurant, hotel
 Travel
 airline, travel agency, theme park
 Others
 hair styling, plumbing, lawn maintenance, counseling services, health club, interior
design

Service characteristics
 Intangibility
 Inseperarability
 Variability
 Perishability
 Lack of ownership

Intangibility
 Cannot be seen,
 Tasted,
 Felt,
 Heard
 Services cannot be readily displayed
 or Smell before they are bought.

Inseparability
 Services produced and consumed at the same time.
 Cannot be separated from providers, whether people
or machines.
 Customers are always involved

Variability
 Quality may vary greatly depending on who provides
the service, when and how.
 Staff need to know how to do something well.
 Staff must be well motivated to maintain high
standards of service.

Perishability
 Services cannot be stored for later sale or use.

Lack of ownership
No physical product is exchanged and
therefore nothing owned.

7 P’S of Service Marketing Mix…
Product
Price
Promotion
Place
People
Physical evidence
Process

PEOPLE
 All human actors who play a part in service
delivery and thus influence the buyer’s
perceptions: namely, the firm’s personnel, the
customer, and other customers in the service
environment.

PEOPLE
People are important because:
 Providing a service, rather than selling a product.
 Quality of personal relationships between company
and clients becomes vital.
Technicians
Dealers
Other Employees

Process
 The actual procedures, mechanisms, and flow of
activities by which the service is delivered—the service
delivery and operating systems.

Process of Taking a Mobile connection
Go to Etisalat Shop
Choose a product (Say Pre-paid connection)
Pay the appropriate fees
Take the Respective product (Like SIM Card in this case)
Avail the facilities
Give the feedback

Physical Evidence
 The environment in which the service is delivered and where the
firm and customer interact, and any tangible components that
facilitate performance or communication of the service.

Physical Evidence….
Sim cards Bills
Before and
After sale
documents
PHYSICAL
EVIDENCE

Brand represents the consumer’s perceptions and
feelings about a product and its performance. It is
the company’s promise to deliver a specific set of
features, benefits, services, and experiences
consistently to the buyers
OR
Brand is the name, term, sign, or design—or a
combination of these—that identifies the maker
or seller of a product or service
Branding Strategy: Building Strong Brands

Brand Name Selection
Desirable qualities
1. Suggest benefits and qualities
2. Easy to pronounce, recognize, and remember
3. Distinctive
4. Extendable
5. Translatable for the global economy
6. Capable of registration and legal protection
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