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Products, Services & Brands
Chapter: 8Lec: 7a
What is a product?
• Product Anything that could be offered to a
market for attention, acquisition, use, or consumption that might satisfy a want or need.
• Service Any activity or benefit that one party
can offer to another that is essentially intangible and does not result in the ownership of anything
Products, Services, and Experiences
• Product is the key element in the overall market offering
-pure tangible goods e.g. soap, toothpaste, pen - pure services e.g. doctor’s exam - combination of goods and services e.g. restaurant (food + service)
Products, Services, and Experiences
Products, Services, and Experiences
• Experiences -customer experience is important - becoming important with each
passing day e.g. Disney, Kingfishers
Service
Levels of Product and Services
• Product planners need to think about products and services on three levels
• Each level adds more customer value 1- what is the buyer really buying? e.g. blackberry (connectivity on the go) 2- Turn the core benefit into an actual product - brand name, packaging, design, features etc. 3- Augmented product - additional consumer services and benefits
Levels of Product and Services
Levels of Product and Services
Brand name
Quality level
Core customer value
Features
Design
Packaging
Actual Product
Augmented
product
After-
Sale service
Warranty
Delivery and credit
Product support
Product and Service Classifications
Products and services fall into two broad categories
• Consumer Products• Industrial ProductsConsumer Products A product bought by final consumer
for personal consumption
Product and Service Classifications
• Convenience product A consumer product that customers
usually buy frequently, immediately, and with minimum of comparison and buying effort
e.g. soft drink, chewing gum• Shopping product A consumer product that the customer, in
the process of selection and purchase, usually compares on such bases as suitability, quality, price and style.
e.g. furniture, clothing
Product and Service Classifications
Convenience productShopping product
Product and Service Classifications
• Specialty product A consumer product with unique
characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort
e.g. designer clothes, refrigerators• Unsought product A consumer product that the consumer
either does not know about or knows about but does not normally think of buying
e.g. preplanned funeral services
Specialty product
Product and Service Classifications
• Industrial product A product bought by
individuals and organizations for further processing or for use in conducting a business.
e.g. raw materials
Product and Service Classifications
• Organizations, persons, Places, and Ideas
- Organizations: non-profit, to raise funds profit, corporate image - person: celebrities e.g. Shahrukh, Imran
khan - Place: e.g. Malaysia truly Asia - Ideas: e.g. what an idea sir jee e.g. social messages
Place Marketing
People Marketing
People Marketing
Product and Service Decisions
• Product Quality The characteristics of a product or
service that bear on its ability to satisfy stated or implied customer needs
- marketers major positioning tool - creating customer value and
satisfaction TQM All the company’s people involved in
constantly improving products quality
Individual product Decisions
Product Attributes Branding Packaging Labeling
Product support services
Product and Service Decisions
• Product style and design
style- appearance of the product
design- product’s usefulness, as well as looks
Product and Service Decisions
• Brand A name, term, sign, symbol,
design, or a combination of these that identifies the products or services of one seller or group of sellers and differentiate them from those of competitors
- same quality every time they’ll buy the product
- legal protection
Brands
Product and Service Decisions
• Packaging The activities of designing
and producing the container or wrapper for a product
- primary function: hold the product
- package becomes a promotional medium
- easy to open - product safety
Packaging
Product and Service Decisions
• Labeling - simple tags to complex
graphics - who made it, where was it
made, contents, how to be used
• Product support services - services that augment
actual product - sales, after-sale services
