Chapter Eight
Products, Services, and Brands:
Building Customer Value
Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 1
Product, Services, and
Branding Strategy
Topic Outline
• What Is a Product?
• Product and Services
Decisions
• Branding Strategy:
Building Strong
Brands
• Services Marketing
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 8 - slide 2
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
• Products include more than just tangible
objects such as cars, computers or cell
phones.
Copyright © 2010 Pearson Education, Inc.
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Chapter 8 - slide 3
What Is a Product?
Products, Services, and Experiences
• Broadly defined, “products” also include
service, events, persons , places ,
organizations , ideas , or mixes of these.
• Services are the form of product that
consists of activities, benefits or
satisfactions offered for sale that are
essentially intangible and don’t result in the
ownership of anything such as Banking
Copyright © 2010 Pearson Education, Inc.
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Chapter 8 - slide 4
What Is a Product?
Products , services and experiences
• Product is a key element in the overall
marketing offering, marketing mix planning
begins with building an offering that brings
value to target customers.
• This offering becomes the basis upon which
the company builds profitable customer
relationships
• A company’s market offering includes both
tangible goods and services
Copyright © 2010 Pearson Education, Inc.
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Chapter 8 - slide 5
What Is a Product?
Products , services and experiences
• The offer may consist of a pure tangible
good such as soap, toothpaste or salt.
• At the other extreme are the pure services
for which the offer consists primarily of a
service.
Copyright © 2010 Pearson Education, Inc.
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Chapter 8 - slide 6
What Is a Product?
Products , services and experiences
• Experiences represent what buying the
product or service will do for the customer
• Experiences have always been an important
part of marketing for some companies
• Companies that market experiences realize
that customers are really buying much more
than just products and services, they are
buying what those offers will do for them
Copyright © 2010 Pearson Education, Inc.
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Chapter 8 - slide 7
A ________ is anything that can be offered to a
market that might satisfy a need or a want.
1.
2.
3.
4.
position
product
promotion
none of the above
Copyright © 2010 Pearson Education, Inc.
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Chapter 8 - slide 8
A ________ is anything that can be offered to a
market that might satisfy a need or a want.
1.
2.
3.
4.
position
product
promotion
none of the above
Copyright © 2010 Pearson Education, Inc.
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Chapter 8 - slide 9
What Is a Product?
Levels of Product and Services
• Product planners need to think about
products and services on three levels, each
level adds more customer value. The most
basic level is the core customer value, which
addresses the question “ what is the buyer
really buying ? “
• When designing products, marketers must
first define the core, problem solving benefits
or services that consumers seek
Copyright © 2010 Pearson Education, Inc.
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Chapter 8 - slide 10
What Is a Product?
Levels of Product and Services
• At the second level, product planners must
turn the core benefits into an actual product,
they need to develop product and service
features, design, a quality level or a brand
name and packaging.
• For Ex. The BlackBerry is an actual product. Its
name , parts, styling, features have all been
combined to deliver the core customer value
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Chapter 8 - slide 11
What Is a Product?
Levels of Product and Services
• Finally , product planners must build an
augmented product around the core
benefit and actual product by offering
additional consumer services and benefits.
• For ex. The BlackBerry solution offers more
than just a communication device, it
provides customers with a complete
solution to mobile connectivity problems.
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Chapter 8 - slide 12
What Is a Product?
Levels of Product and Services
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Chapter 8 - slide 13
The most basic level of a product is called its
________.
1.
2.
3.
4.
augmented product
actual product
core benefit
position
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Chapter 8 - slide 14
The most basic level of a product is called its
________.
1.
2.
3.
4.
augmented product
actual product
core benefit
position
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Chapter 8 - slide 15
What Is a Product?
Product and Service Classifications
Consumer
products
Industrial
products
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Chapter 8 - slide 16
What Is a Product?
Product and Service Classifications
• Consumer products are products and
services for personal consumption
• Classified by how consumers buy them
–
–
–
–
Convenience products
Shopping products
Specialty products
Unsought products
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Chapter 8 - slide 17
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
• They are usually low priced, and marketers place
them in many locations to make them available
when consumers need them
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Chapter 8 - slide 18
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
Shopping products marketers distribute their
products through fewer outlets but provide
deeper sales support to help customers in their
comparison efforts.
Copyright © 2010 Pearson Education, Inc.
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Chapter 8 - slide 19
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
• Buyers normally don’t compare specialty
products, they invest only the time needed to
reach dealers carrying the wanted products
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Chapter 8 - slide 20
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
• Unsought products require a lot of advertising,
personal selling, and other marketing efforts
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Chapter 8 - slide 21
What Is a Product?
Product and Service Classifications
• Industrial products are products purchased for
further processing or for use in conducting a
business
• Classified by the purpose for which the product is
purchased
– Materials and parts
– Capital
– Supplies and services
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Chapter 8 - slide 22
Types of consumer products include convenience
products, shopping products, specialty
products, and ________ products.
1.
2.
3.
4.
unique
luxury
unsought
all of the above
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Chapter 8 - slide 23
Types of consumer products include convenience
products, shopping products, specialty
products, and ________ products.
1.
2.
3.
4.
unique
luxury
unsought
all of the above
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Chapter 8 - slide 24
________ products are purchased frequently,
with little comparison or shopping effort.
1.
2.
3.
4.
Convenience
Shopping
Industrial
Unsought
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Chapter 8 - slide 25
________ products are purchased frequently,
with little comparison or shopping effort.
1.
2.
3.
4.
Convenience
Shopping
Industrial
Unsought
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Chapter 8 - slide 26
Consumer product with unique brand
identification for which buyers are willing to
make a special purchase effort is called
_________ product.
1.
2.
3.
4.
convenience
shopping
specialty
unsought
Copyright © 2010 Pearson Education, Inc.
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Chapter 8 - slide 27
Consumer product with unique brand
identification for which buyers are willing to
make a special purchase effort is called
_________ product.
1.
2.
3.
4.
convenience
shopping
specialty
unsought
Copyright © 2010 Pearson Education, Inc.
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Chapter 8 - slide 28
________ products are those purchased for
further processing or for use in conducting a
business.
1.
2.
3.
4.
Industrial
Shopping
Unsought
Physical
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Chapter 8 - slide 29
________ products are those purchased for
further processing or for use in conducting a
business.
1.
2.
3.
4.
Industrial
Shopping
Unsought
Physical
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Chapter 8 - slide 30
What Is a Product?
Product and Service Classifications
Capital items are industrial products that aid in the
buyer’s production or operations
Materials and parts include raw materials and
manufactured materials and parts usually sold
directly to industrial users
Supplies and services include operating
supplies, repair and maintenance items, and
business services
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Chapter 8 - slide 31
Your visit to a doctor’s office is an example of a
________.
1.
2.
3.
4.
pure tangible good
pure intangible good
unsought product
impure tangible good
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Chapter 8 - slide 32
Your visit to a doctor’s office is an example of a
________.
1.
2.
3.
4.
pure tangible good
pure intangible good
unsought product
impure tangible good
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Chapter 8 - slide 33
What Is a Product?
Organizations, Persons, Places, and Ideas
•
•
•
Organization marketing consists of activities
undertaken to create, maintain, or change
attitudes and behavior of target consumers
toward an organization
Both profit and non profit organization
practice organization marketing
Business firms sponsor public relations or
corporate image advertising campaign to
market themselves and polish their images
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Chapter 8 - slide 34
What Is a Product?
Organizations, Persons, Places, and Ideas
•
•
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Person marketing
consists of activities
undertaken to create,
maintain, or change
attitudes and behavior of
target consumers toward
particular people.
People use person
marketing to build their
reputation
Chapter 8 - slide 35
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
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Chapter 8 - slide 36
What Is a Product
Organizations, Persons, Places, and
Ideas
• Social marketing programs include public
health campaigns to reduce smoking ,
alcoholism, drug abuse, and obesity
• Other social marketing efforts include
environmental campaign to promote clean air
and conservation
• Still others address issues such as family
planning and human rights and racial equality
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Chapter 8 - slide 37
Product and Service Decisions
Individual Product and Service Decisions
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Chapter 8 - slide 38
Product and Service Decisions
Individual Product and Service Decisions
Product attributes are the benefits of the product
or service
• Quality
• Features
• Style and design
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Chapter 8 - slide 39
Product and Service Decisions
Individual Product and Service Decisions
• Quality has a direct impact on product or
service performance, thus , its closely linked
to customer value and satisfaction.
• Quality can be defined as “ freedom from
defects”
• The American society for quality defines
quality as the characteristics of a product or
service that bear on its ability to satisfy stated
or implied customer needs
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Chapter 8 - slide 40
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
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Chapter 8 - slide 41
The two dimensions of product quality are
________ and ________.
1.
2.
3.
4.
value; features
style; design
level; consistency
style; value
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Chapter 8 - slide 42
The two dimensions of product quality are
________ and ________.
1.
2.
3.
4.
value; features
style; design
level; consistency
style; value
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Chapter 8 - slide 43
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
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Chapter 8 - slide 44
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. It goes
to the very heart of a product
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Chapter 8 - slide 45
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
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Chapter 8 - slide 46
Product and Service Decisions
Individual Product and Service
Decisions
• Branding helps buyers in many ways. Brand
names help consumers identify products
that might benefit them. Brands also say
something about product quality and
consistency
• Buyers who always buy the same brands
know that they will get the same features ,
benefits and quality each time they buy.
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Chapter 8 - slide 47
Product and Service Decisions
Individual Product and Service
Decisions
Packaging involves designing and
producing the container or
wrapper for a product
The primary function of the
package was to hold and
protect the product
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Chapter 8 - slide 48
Product and Service Decisions
Individual Product and Service
Decisions
• Labels range from simple tags attached to
products to complex graphics that are part
of the package
• Labels identify the product or brand,
describe attributes, and provide promotion
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Chapter 8 - slide 49
Product and Service Decisions
Individual Product and Service
Decisions
Product support services augment actual products
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Chapter 8 - slide 50
Product and Service Decisions
Individual Product and Service
Decisions
• Customer service is another element of the
product strategy. A company’s offer usually
includes some support services, which can
be a minor or a major part of the total
offering.
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Chapter 8 - slide 51
A(n) ________ is a name, term, sign, symbol, or
combination of these intended to identify the
goods or services of one seller or group of
sellers and to differentiate them from those of
competitors.
1.
2.
3.
4.
package
position
image
brand
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Chapter 8 - slide 52
A(n) ________ is a name, term, sign, symbol, or
combination of these intended to identify the
goods or services of one seller or group of
sellers and to differentiate them from those of
competitors.
1.
2.
3.
4.
package
position
image
brand
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Chapter 8 - slide 53
The designing and producing of the container or
wrapper for a product is called ________.
1.
2.
3.
4.
packaging
labeling
manufacturing
industrial design
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Chapter 8 - slide 54
The designing and producing of the container or
wrapper for a product is called ________.
1.
2.
3.
4.
packaging
labeling
manufacturing
industrial design
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Chapter 8 - slide 55
Product and Service Decisions
Product Line Decisions
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
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Chapter 8 - slide 56
Product and Service Decisions
Product Line Decisions
Product line length is the number of items in the
product line
• Line stretching
• Line filling
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Chapter 8 - slide 57
A company can lengthen its product line by
________ it or by ________ it.
1.
2.
3.
4.
modifying; stretching
stretching; switching
filling; stretching
brushing; combing
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Chapter 8 - slide 58
A company can lengthen its product line by
________ it or by ________ it.
1.
2.
3.
4.
modifying; stretching
stretching; switching
filling; stretching
brushing; combing
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Chapter 8 - slide 59
Product and Service Decisions
Product Mix Decisions
Product mix consists of
all the products and
items that a
particular seller
offers for sale
• Width
• Length
• Depth
• Consistency
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Chapter 8 - slide 60
Which of the following is not a dimension in a
company’s product mix?
1.
2.
3.
4.
Width
Depth
Consistency
Age
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Chapter 8 - slide 61
Which of the following is not a dimension in a
company’s product mix?
1.
2.
3.
4.
Width
Depth
Consistency
Age
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Chapter 8 - slide 62
Branding Strategy: Building Strong Brands
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
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Chapter 8 - slide 63
Branding Strategy: Building Strong
Brands
Brand Positioning
Brand strategy decisions
include:
• Product attributes
• Product benefits
• Product beliefs and values
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Chapter 8 - slide 64
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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Chapter 8 - slide 65
Branding Strategy: Building Strong
Brands
Brand Sponsorship
Manufacturer’s brand
Private brand
Licensed brand
Co-brand
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Chapter 8 - slide 66
Branding Strategy: Building Strong Brands
Brand Development Strategies
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Chapter 8 - slide 67
A good brand name should do which of the
following?
1.
2.
3.
4.
Suggest something about the product’s benefits
Be easy to translate into other languages
Be capable of registration and legal protection
All of the above
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Chapter 8 - slide 68
A good brand name should do which of the
following?
1.
2.
3.
4.
Suggest something about the product’s benefits
Be easy to translate into other languages
Be capable of registration and legal protection
All of the above
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Chapter 8 - slide 69
A ________ brand is created by a reseller of a
product or service.
1.
2.
3.
4.
private
tangible
value
shopping
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Chapter 8 - slide 70
A ________ brand is created by a reseller of a
product or service.
1.
2.
3.
4.
private
tangible
value
shopping
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Chapter 8 - slide 71
Purina Tuna would be a poor attempt at a
________.
1.
2.
3.
4.
specialty good
brand extension
multibrand
new brand
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Chapter 8 - slide 72
Purina Tuna would be a poor attempt at a
________.
1.
2.
3.
4.
specialty good
brand extension
multibrand
new brand
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Chapter 8 - slide 73
Services Marketing
Types of Service Industries
• Government
• Private not-for-profit organizations
• Business services
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Chapter 8 - slide 74
Services Marketing
Nature and Characteristics of a Service
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Chapter 8 - slide 75
Which of the following is not a special
characteristic of service?
1.
2.
3.
4.
Tangibility
Inseparability
Variability
Perishability
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Chapter 8 - slide 76
Which of the following is not a special
characteristic of service?
1.
2.
3.
4.
Tangibility
Inseparability
Variability
Perishability
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Chapter 8 - slide 77
Services Marketing
Marketing Strategies for Service Firms
In addition to traditional
marketing strategies, service
firms often require
additional strategies
• Service-profit chain
• Internal marketing
• Interactive marketing
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Chapter 8 - slide 78
Services Marketing
Marketing Strategies for Service Firms
Service-profit chain links service firm profits with employee
and customer satisfaction
• Internal service quality
• Satisfied and productive service employees
• Greater service value
• Satisfied and loyal customers
• Healthy service profits and growth
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Chapter 8 - slide 79
Services Marketing
Marketing Strategies for Service Firms
Internal marketing means that the service firm must orient
and motivate its customer contact employees and
supporting service people to work as a team to provide
customer satisfaction
Internal marketing must precede external marketing
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Chapter 8 - slide 80
Services Marketing
Marketing Strategies for Service Firms
Interactive marketing means that service quality depends
heavily on the quality of the buyer-seller interaction
during the service encounter
• Service differentiation
• Service quality
• Service productivity
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Chapter 8 - slide 81
Services Marketing
Marketing Strategies for Service Firms
Managing service differentiation
creates a competitive advantage
from the offer, delivery, and image
of the service
• Offer can include distinctive
features
• Delivery can include more able and
reliable customer contact people,
environment, or process
• Image can include symbols and
branding
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Chapter 8 - slide 82
Services Marketing
Marketing Strategies for Service Firms
Managing service quality provides
a competitive advantage by
delivering consistently higher
quality than its competitors
Service quality always varies
depending on interactions
between employees and
customers
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Chapter 8 - slide 83
Services Marketing
Marketing Strategies for Service Firms
Managing service productivity refers to the cost side
of marketing strategies for service firms
• Employee recruiting, hiring, and training
strategies
• Service quantity and quality strategies
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Chapter 8 - slide 84
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Chapter 8 - slide 85
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