product
anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want.
Example of a Product
Soap, toothpaste
service
a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in ownership
Example of a Service
Doctor's Exam, Legal Advice
Experiences
represent what buying the product or service will do for the customer
Example of Experiences
Disney,American Girl,Toys "R" Us
What are the 3 levels of products and services
Core benefits,Actual product,Augmented product
Core benefits
represent what the buyer is really buying
Actual Product
represents the design, brand name, and packaging that delivers the core benefit to the customer
Augmented product
represents additional services or benefits of the actual product
What are the product and service classifications?
Consumer products, Industrial products
Consumer Products
products and services for personal consumption
How are consumer products classified by?
Convenience product
Shopping products
Specialty products
Unsought products
Convenience product
consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort
Example of a convenience product
Newspapers
Candy
Fast food
Shopping Product
consumer products and services that the customer compares carefully on suitability, quality, price, and style
Example of shopping product
Furniture
Cars
Appliances
Specialty product
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
Example of a Specialty Product
Medical services
Designer clothes
High-end electronics
Unsought Products
consumer products that the consumer does not know about or knows about but does not normally think of buying
Examples of unsought products
Life insurance
Funeral services
Blood donations
Industrial Products
products purchased for further processing or for use in conducting a business
How are industrial products classified?
Materials and parts
Capital
Raw materials
Materials and parts
raw materials and manufactured materials and parts usually sold directly to industrial users
Examples of materials and parts
Wheat
Lumber
Iron
Cement
Capital items
industrial products that aid in the buyer's production or operations
Examples of capital items
Buildings
Elevators
Computers
Organization Marketing
consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward an organization
Person Marketing
consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people
Place Marketing
consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places
Example of person marketing
Donald Trump
Example of place marketing
Tourism
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
Examples of social marketing
Public health campaign, tourism
Individual Product and Service Decisions
Product attributes
Branding
Packaging
Labeling
Product support services
Product Attributes
the benefits of the product or service
Examples of Product attributes
Quality, Features, Style and design
Quality in terms of the product or service
the lack of defects
Quality in terms of the customer
the value and satisfaction provided by the product or service
Product quality includes
level and consistency
quality level
the level of quality that supports the product's positioning
performance quality
the ability of a product to perform its functions
quality consistency
the freedom from defects and the delivering of a targeted level of performance
Product Features
a competitive tool for differentiating a product from competitors' products
How are product features assessed?
based on the value to the customer versus the cost to the company
Style
describes the appearance of the product
Design
contributes to a product's usefulness as well as to its looks
Brand
the name, term, sign, or design, or a combination of these, that identifies the maker or seller of a product or service
Consumer benefits
Quality, Consistency
Seller benefits
Segmentation, Communicate product features
packaging
involves designing and producing the container or wrapper for a product
label
identifies the product or brand, describes attributes, and provides promotion
Companies must continually
Assess the value of current services to obtain ideas for new ones
Assess the costs of providing these services
Develop a package of services to satisfy customers and provide profit to the company
Product support services
augment actual products
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 fall within given price ranges
product line length
is the number of items in the product line
Examples of product line length
Line stretching
Line filling
product line stretching
when a company lengthens its product line beyond its current range
Examples of product line stretching
Downward
Upward
Combination of both
Downward product line stretching
used by companies at the upper end of the market to plug a market hole or respond to a competitor's attack
upward product line stretching
is by companies at the lower end of the market to add prestige to their current products
combination line stretching
used by companies in the middle range of the market to achieve both goals of upward and downward line stretching
product line filling
occurs when companies add more items within the present range of the line
Examples of product line filling
More profits
Satisfying dealers
Excess capacity
Plugging holes to fend off competitors
product mix
consists of all the products and items that a particular seller offers for sale
characteristics of the product mix
Width
Length
Depth
Consistency
product mix width
the number of different product lines the company carries
product mix length
the total number of items the company carries within its product lines
product line depth
the number of versions offered of each product in the line
consistency
how closely the various product lines are in end use, production requirements, or distribution channels
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
brand equity
the positive differential effect that knowing the brand name has on customer response to the product or service
brand equity provides
Consumer awareness and loyalty
Benefits
Beliefs and value
customer equity
is the value of the customer relationships that the brand creates
brand valuation
is the process of estimating the total financial value of the brand
brand strategy decisions include
Brand positioning
Brand name selection
Brand sponsorship
Brand development
Product attributes
Product benefits
Product beliefs and values
Desirable qualities in the brand name selection
Suggests benefits and qualities
Easy to pronounce, recognize, and remember
Distinctive
Extendable
Translatable for the global economy
brand sponsorship
Manufacturer's brand
Private brand
Licensed brand
Co-brand
The advantages private brands provide retailers are
Product mix control
Slotting fees for manufacturers' brands
Higher margins
Exclusivity
brand development
Line extensions
Brand extensions
Multibrands
New brands
line extensions
occur when a company extends existing brand names to new forms, colors, sizes, ingredients, or flavors of an existing product category
brand extensions
extend a brand name to a new or modified product in a new category
multibrands
are additional brands in the same category
new brands
are used when existing brands are inappropriate for new products in new product categories or markets
Managing BRands requires
Continuous brand communication
Customer-centered training
Brand audits
Types of service industries include
Government
Private not-for-profit organizations
Business services
The natures and characteristics of a service
Intangibility
Inseparability
Variability
Perishability
intangiblity
refers to the fact that services cannot be seen, tasted, felt, heard, or smelled before they are purchased
inseperability
refers to the fact that services cannot be separated from their providers
variability
refers to the fact that service quality depends on who provides it as well as when, where, and how it is provided
perishability
refers to the fact that services cannot be stored for later sale or use
In addition to traditional marketing strategies, service firms often require additional strategies
Service-profit chain
Internal marketing
Interactive marketing
Service-profit chain
links service firm profits with employee and customer satisfaction
Service profit chain consists of
Internal service quality
Satisfied and productive service employees
Greater service value
Satisfied and loyal customers
Healthy service profits and growth
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
Interactive marketing
means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter
Services that encompass interactive marketing include
Service differentiation
Service quality
Service productivity
Managing service differentiation
creates a competitive advantage from the offer, delivery, and image of the service
Offer
can include distinctive features
Image can include symbols and branding
Delivery
can include more able and reliable customer contact people, environment, or process
Image
can include symbols and branding
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
Empower employees
Responsibility
Authority
Incentive
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