Product
Anything that can 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.
Consumer product
A product bought by final consumer for personal consumption.
Convenience product
A consumer product that customers usually buy frequently, immediately, and with a minimum of comparison and buying effort.
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.
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.
Unsought product
A consumer product that the consumer either does not know about or knows about but does not normally think of buying.
Industrial product
A product bought by individuals and organizations for further processing or for use in conducting a business.
Social marketing
The use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well-being and that of society.
Product quality
The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.
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 differentiates them from those of competitors.
Packaging
The activities of designing and producing the container or wrapper for a product.
Product line
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 fail within given price ranges.
Product mix (or product portfolio)
The set of all product lines and items that a particular seller offers for sale.
Brand equity
The differential effect that knowing the brand name has on customer response to the product or its marketing.
Store brand (or private brand)
A brand created and owned by a reseller of a product or service.
Co-branding
The practice of using the established brand names of two different companies on the same product.
Line extension
Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category.
Brand extension
Extending an existing brand name to new product categories.
Service intangibility
A major characteristic of services -- they cannot be seen, tasted, felt, heard, or smelled before they are bought.
Service inseparability
A major characteristic of services -- they are produced and consumed at the same time and cannot be separated from their providers.
Service variability
A major characteristic of services�their quality may vary greatly, depending on who provides them and when, where, and how.
Service perishability
A major characteristic of services�they cannot be stored for later sale or use.
Service-profit chain
The chain that links service firm profits with employee and customer satisfaction.
Internal marketing
Orienting and motivating customer-contact employees and supporting service people to work as a team to provide customer satisfaction.
Interactive marketing
Training service employees in the fine art of interacting with customers to satisfy their needs.
Goods and Services
some products are all physical goods (nails),
others are pure service (financial planning);
some are combination of both
Consumer goods
Convenience goods (staples, impulse, emergency);
Shopping goods;
Specialty goods;
Unsought goods (new unsought and regularly unsought)
Convenience goods
staples (bread or milk),
impulse buys (gum),
emergency(can't wait)
Shopping goods
take time to shop around and choose a brand
Specialty goods
looking for a specific brand;
will go out of the way to find it
Unsought goods (new unsought and regularly unsought)
don't actually pursue or shop for;
might be something we don't like to buy (funeral services) or a new product
Industrial Goods
Material and parts;
Capital goods;
Supplies and services
Material and parts
mostly purchased based on price
Capital goods
machinery, specialty item
Supplies and services
pens, pencils, paper
Other products
Organizations
Persons
Places
Ideas
Other products: Organizations
an organization may market itself to create, change or maintain the attitudes and behavior of its target market
Other products: Persons
create, change or maintain the attitudes about a specific person;
Tiger Woods, Michael Vick; Jimmy Buffet
Other products: Places
create, change or maintain the attitudes towards a particular place;
Colorado tourism
Other products: Ideas
create, change or maintain the attitudes about social ideas;
also called social marketing;
public health, environment, education
Product quality
must meet customers' expectations;
must align with 4Ps: Product, Price, Place, Promotion;
might have qualification to indicate quality: ISO 9000
Branding
Continue to advertise because even if the target market is the same, new people enter and old customers leave target market
Value of branding
Buyer;
Seller;
Society;
Critique of branding
Buyer
brand helps buyers identify products they may want,
conveys the products quality and value
Seller
brand helps seller quickly identify product and process order, segment market, offers legal protection for product, attracts following, portrays corporate image, gain brand equity
Society
gains higher and consistent level of quality over time;
as brand grows society gains from economies of scale
Critique of branding
false differentiation (unnecessary number of products);
excessive advertising (raises sales, lower unit costs);
increases status consciousness
Packaging
Communication / perceptual benefits;
Functional benefits;
Safety / environmental benefits
Communication / perceptual benefits
what do people think; colors and meanings; recognition of product; atmosphere
Functional benefits
example: beer case acts as ice chest
Safety / environmental benefits
safety packaging for drugs
Labeling
Current Laws; Issues Pending
Labeling: Current Laws
food labeling laws;
definitions of serving size;
some limits on health claims
Labeling: Issues Pending
need more uniformity; expiration dates are voluntary;
genetically modified food;
organic v. natural;
hormones,
country of origin,
dietary supplements
"eat smart / drink smart
Product Line
Length: number of products in the line;
Stretching: expand line by introducing lower or higher cost products;
Filling: adding products with noticeably different features
Product Mix
Width: number of different product lines;
Depth: number of versions within a product line
Brand Equity
measure of availability, preference and loyalty; awareness, familiarity, association with other products
Brand Name Selection
must be unique and not mean bad things in other languages;
simple, distinctive, descriptive, appropriate, no legal restrictions;
often combine parts of descriptive words to make new word
Brand sponsorship
Manufacturer's brand;
Private (store) brand (store names product line to distinguish from other stores);
Licensing (buy right to use brand name);
Co-branding (two or more manufactures named in brand)
Brand Development
How to build on a successful brand;
Line extensions;
Brand extensions;
Multi-brands;
New brands
Line extensions
modify basic product
Brand extensions
move into new product, new product lines;
can dilute image;
poor performing line can harm brand
Multi-brands
create similar brands;
give illusion of competition
New brands
create new line to avoid diluting brands (Toyota, Lexus)
4 I's of services
Intangibility;
Inconsistency (Variability);
Inseparability;
Inventory (Perishability)
Intangibility
service is not a product; nothing to take with you
Inconsistency (Variability)
quality depends on who serves you;
Training reduces variability;
some companies might be deliberately inconsistent;
Inseparability
cannot separate service from the experience (other aspects of service and provider)
Inventory (Perishability)
cannot keep service to sell later;
once the time has passed, the opportunity is lost
Customer Contact Audit
track and evaluate at every point of contact
Marketing of Services
Target market and the 4 P's;
Product - more important since no physical product;
Price - must attract customer;
Promotion - often seen as lowering profession (doctors, lawyers);
Place - location