Slide 1ProductsWhat is a Product?ServicesThe Product-Service ContinuumThree Levels of ProductLevels of Product and ServicesProduct and Service ClassificationProduct and Service ClassificationTypes of Consumer GoodsTypes of Consumer GoodsTypes of Consumer GoodsTypes of Consumer GoodsTypes of Industrial GoodsOther Market OfferingsOther Market OfferingsOther Market OfferingsOther Market OfferingsIndividual Product DecisionsProduct and Service AttributesProduct DesignPackagingPackagingProduct LineProduct Line DecisionsBrandsBrandingBrand EquityMajor Brand Strategy DecisionsBrand PositioningBrand SponsorshipBrand SponsorshipBrand Development DecisionsBrand DevelopmentBrand DevelopmentBrand DevelopmentServicesWhat is a Service?Four Service CharacteristicsMajor Service Marketing TasksMajor Service Marketing TasksProducts, Services, and Brands: Building Customer ValueChapter 77-2ProductsAnything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.What is a Product?Products include physical objects, services, events, persons, places, organizations, ideas, or some combination thereof.It’s important to NOT limit your thinking about products to be only physical objects!7-4ServicesAny activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.The Product-Service ContinuumPure Tangible GoodPure Service7-6Three Levels of ProductLevels of Product and ServicesCore customer value:What the consumer is really buying.Actual product:Includes the brand name, features, design, packaging, and quality level.Augmented product:Additional services and benefits such as delivery and credit, instructions, installation, warranty, and product support.Product and Service ClassificationIndustrial Products:Those purchased for further processing or for use in conducting business.Distinction between consumer and industrial products is based on the purpose for which an item is bought.Product and Service ClassificationConsumer Products:Products and services bought by final consumers for personal consumption.Also included are other marketable entities.Classified by how consumers buy them.Types of Consumer Goods Convenience goods:Purchased frequently and immediately with little comparison shopping effort.Low effortLow priced.Mass advertising and promotion Widespread distribution with many convenient locations.Types of Consumer Goods Shopping products:Bought less frequently, more planning and effort, brand comparisons on basis of price, quality, style  Advertising and personal selling is undertaken by both producer and resellerTypes of Consumer GoodsSpecialty products:Strong brand preference and loyalty, special purchasing effort, little comparison shoppingHigh price Exclusive distribution in only one or a few outlets per market areaTargeted promotion by producer and reseller Lamborghini, RolexTypes of Consumer GoodsUnsought products:Little product awareness or knowledge of the brand, sometimes negative interestPricing strategies varyDistribution strategies varyRequires aggressive advertising and personal selling by producer & reseller Life InsuranceTypes of Industrial GoodsMaterials and parts:Raw materials, manufacturers materials, and parts Capital items:Products that aid in byers production or operations Supplies and services:Operating supplies, maintenance, and repair itemsOther Market OfferingsOrganization: Profit (businesses) and nonprofit (schools and churches)Person:Politicians, entertainers, sports figures, real estate agents, doctors, and lawyersPlaces:Create, maintain, or change attitudes or behavior toward particular places Ideas (Social Marketing): Public health environmental campaign, family planning, human rightsOther Market OfferingsOrganization: Profit (businesses) and nonprofit (schools and churches)Person: Politicians, entertainers, sports figures, real estate agents, doctors, and lawyersOther Market OfferingsPlace: Create, maintain, or change attitudes or behavior toward particular placesOther Market OfferingsPlace: Create, maintain, or change attitudes or behavior toward particular placesIdeas (social marketing): Public health campaigns, environmental campaigns, family planning, or human rights7-19Individual Product DecisionsProduct and Service AttributesProduct quality dimensions:Performance qualityConformance qualityProduct feature considerations:Value to consumerCost to companyProduct style and design:How will it influence the user experience?7-21Product DesignGood product design begins with an understanding of consumer needs.PackagingPackaging:Involves designing and producing the container or wrapper for a productPackagingIdeally, good packages should:Help to market the brandProtect contents Provide convenience and ease of use safetyAddress environmental concerns7-2424Product LineA 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 DecisionsProduct line length:The number of items in a product lineAdjust line length by:FillingStretchingDownward, upward or in both directionsBrandsA brand is a name, term, sign, symbol, or 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.Branding involves building and managing brands.BrandingAdvantages to buyers:Identifies products Cue to product quality and consistencyAdvantages to sellers:Basis for product’s quality storyLegal protection Helps to segment marketsBrand EquityBrand equity:Measures the brand’s ability to capture consumer preference and loyalty.Is a valuable asset that offers many competitive advantages.Builds strong and profitable customer relationships that result in loyal customers.Major Brand Strategy DecisionsBrand PositioningMarketers can position brands at any of three levels:Product attributesProduct benefitsBeliefs and valuesBrand SponsorshipBrand sponsorship options include:Manufacturer’s brandsAlso called