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CHAP 8: PRODUCTS, SERVICES AND BRANDS

I. Products
- Product: anything offered in a market for attention, acquisition, use, or consumption that might
satisfy a need or want
• Physical object (ex: laptop, books..)
• Service: an activity, benefit, or satisfaction offered for sale, intangible and do not have
onwnership (hotel, banking services..)
• Events, persons, places, organizations, ideas, or mixtures of these entities
- Experience: brand try to create experience to differentiate themselves

1. Level of product & services

- Core customer value: try to answer the question: what is the buyer really buying? (sp/dvu
đang giải quyết vấn đề nào của khách hàng)
Ex: Customers not buy a Iphone but entertainment, self-expression, productivity, and
connectivity, you don’t buy a lipstick but buying your beauty, recognition, fullfilling
- Actual product: turn the core benefit into an actual product
- Augmented product: increase the value of the products

2. Product and Service Classifications

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Consumer products: personal consumption >< Industrial products: further processing or

conducting a business
Convenience products - buy frequently, immediately, and with minimal comparison
and buying effort, usually low price
ex: FMCG (toothpaste, shampoo; fastfood, etc)
Shopping products - less frequently purchased
- compare carefully about suitablity, price, quality
ex: furniture, electronic devices, cars, etc.
Specialty products - unique characteristics, brand identification > just significant
group will buy
ex: idol card, lightstick , designer clothes, etc.
Unsought products - do not know about or know but rarely buy
ex: life insurance, funeral services, innovations etc.

- Orgainzation marketing: activities undertaken to create, maintain, or change attitudes

and behavior of target consumers toward an organization (ex: AIESEC)
- Person marketing: activities undertaken to create, maintain or change attitudes and
behaviors of target consumers toward people (ex: Pam iu oi)
- Place marketing: activities undertaken create, maintain or change attitudes and
behaviors of target consumers toward place (ex: Việt Nam after born pink tour)
- Social marketing: use mkt concepts > influence behaviors > improve well-being of
society (ex: 5K during covid)

II. Product & services decisions

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- Individual product: a single product

- Product line: a group of products that are related in function, customer-purchase needs,
or distribution channels.
- Product mix: all product lines and items offered to customers by a particular seller

1. Individual product and service decisions

Product attributes:
- Product quality: characteristics of a product or service that bear on its ability to satisfy
stated or implied customer needs
+ Total quality management (TQM): approach constantly improving the quality of
products, services, and business processes.
+ 2 dimensions of product quality: level and consistency
▪ Quality level: support the product’s positioning
• Performance quality: the product’s ability to perform its
functions
▪ Conformance quality: freedom from defects and consistency
- Features: a stripped-down model, company can create higher-level models by adding
more features
- Style & design:

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• Style: appearance of a product (eye catching/boring), not need to make product

perform better
• Design: contributes to a product’s usefulness
Branding: a name, term, sign, symbol, or design, or a combination of these, that identifies the
products or services and differentiates them from those of competitors
Packaging: activities of designing and producing the container or wrapper for a product
Labelling: range from simple tags attached to products to complex graphics that are part of the
packaging > identifies the product or brand, describe several things about the product, promote
the brand,
Product support services: lắp ráp tủ lạnh, hướng dẫn sử dụng, hỗ trợ qua hotline, website...

2. Product line decision

Production line: products closely related to each other, same fuction, same customer groups,
same outlets, in a given price ranges
Product line length: the number of items in the product line, major product line decision
- line filling: add more items within presence range of the line, horizontal
- line stretching: lengthens its product line beyond its current range > vertical
(downward, upward, or both ways)
ex: Dòng iphone của Apple
- line filing: iphone X 64gb, 128gb , 256gb ; iphone X trắng, đen, vàng
- line stretching: iphone 13 (upward) ; iphone SE (downward)

3. Product mix decision

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Product mix (product portfolio): consists of all the product lines and items that a particular
seller offers for sale
- Width: the number of different product lines the company carries. (nhiều lines khác
nhau)
- Length: total number of items within its product lines (tổng sp trong mỗi line)
- Depth: versions offered of each product (version trong từng line)
- Consistency: close relation of products in end use, product requirements, distribution
channels, or some other way
Ex: Apple product mix:
- Width: iphone, ipad, macs, etc.
- Length: iphone 11, 12, 13 // ipad mini, ipad, ipad air, ipad pro // mac mini, imac,
macbook pro, macbook air
- Depth: iPhone 13 Pro (Storage options: 128GB, 256GB, 512GB, 1TB) ; Colors:
Graphite, Gold, Silver, Sierra Blue) // iPad Pro 12.9-inch (Storage options: 128GB,
256GB, 512GB, 1TB, 2TB ; Connectivity options: Wi-Fi, Wi-Fi + Cellular)
- Consistency: hệ sinh thái Apple

III. Services marketing

- Government: court, military services, police an fire departments…
- Private not-for-profit organizations: museums, charities,….
- Business services: airlines, hotels, banks…
Nature & characteristics of service (how it differ from product)
- Intangibility: cannot be seen, felt, heard before purchased
- Inseparability: cannot separate from providers (ex: product: produce from factory >
inventory > customer >< service: attach)
- Variability: quality of service depend on ai serve, serve ở đâu, how (ex: Ms.Thảo serve
dvu dạy mkt sẽ differ from Mr.Khoa)
- Perishability: cannot stored for later sale or use

IV. Brand strategy: build strong brands

1. Brand equity and brand value
- Brand equity: differential effect that knowing the brand name has on customer response
(mua 1 sp có thương hiệu sẽ khác mua sp không có thương hiệu)
- Brand value: total financial value of a brand

2. Build strong brand

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Brand strategy decisions involve brand positioning, brand name selection, brand sponsorship,
and brand development.

2.1 Brand positioning: position the brands clearly in target customers’ minds
- Level of positoning:
• Product attributes: lowest level on which marketers can position their brands, easy
to copy- fluid absorption, fit, and disposability
• Benefits: associate brand w/ desirable benefits - containment and skin-health benefits
from dryness (what attributes will do for customers)
• Beliefs & values: strongest brands go beyond attributes or benefit positioning ,
engage customers on a deep, emotional level - “love, sleep, and play” brand that’s
concerned about happy babies, parent–child relationships, and total baby care
Ex: PamPers
2.2 Brand name selection
- Selection: desirable qualities
o Suggest something about the product’s benefits and qualities
o Easy topronounce, recognize, and remember,
o Distintive
o Be extendable
o Translate easily into foreign languages
o Capable of registration and legal protection
- Protection: once chosen, the brand name must be protected
2.3 Brand sponsorship
- Battle of National brand vs Private brand
• National /Manufacturer brand: brand owned by manufacturers
• Private/Store brand: brand created and owned by reseller of a product or service
ex: Nước rửa chén sunlight vs nước rửa chén coopmart
- Licensing: license names or symbols previously created by manufactureres (mua quyền
sd hình ảnh thương hiệu) (ex: Nike or Adidas licenses logos from sports teams, Logo
- Co-branding: using established brand name of 2 different companies on same product
(Sportify x Starbucks)

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2.4 Brand development

- Line extension: company extends existing brand names to new forms, colors, size,
ingredients, flavor etc. of existing product category (ex: Coca-Cola introduce Diet Coke,
Cherry Coke... )
- Brand extension: extend current brand to new or modified products (ex: Coke introduce
Coke coffee)
- Multi-brands: many brands in a product category (ex: ngành hàng nước có ga – Coke có
Coca-cola, Sprite, Fanta..)
- New brand: creating a completely new brand when entering a new product category. (ex:
Coke introduce Dasani – water cateogory)