Nintendo began as a playing card company in the late 1800 s Lost market share in the 90 s how do we compete Developed Nintendo wii not to compete with hardcore gaming consoles like Playstation and Xbox cid 127 More family friendly lower priced going after a different market Sold 24 million in a short amount of time cid 127 What is a product Anything that can be offered to satisfy a need the combination of goods and services offered by the firm a good service or idea consisting of a bundle of tangible and intangible benefits Durable vs Nondurable products 3 years most of the time non durable 3 years most of the time durable not set Consumer products convenience products buy frequently not much thought find everywhere laundry detergent shopping products less frequent comparing products appliances hotels clothing specialty products unique characteristic brand etc special effort to go find lamborghini high end photography equipment unsought products cid 127 major innovations that you don t know you need or something you don t think about Dvr life insurance Industrial business products Components what you make into something else tires motors iron etc Support products help support the service being provided Search Goods learn a lot about the product before you buy it A dictionary you can inspect before you buy Experience Goods cannot verify quality until after purchase vacations auto insurance Credence Goods next to impossible verify after purchase vitamins cid 127 Mouthwash A good can have all three dimensions Specific product identified by its ordering code the stock keeping unit SKU Product Item Product line group of closely related products accessory equipment office supplies maintenance repair services accounting services etc cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 campbells chunky soup Product mix the set of product lines sold by a company 3 Levels of the product Core Car must run Actual also called expected Expectation because of brand advertising Volvo expected to be safe Augmented cid 127 Goes above and beyond expectations Free installation special extended warranty whats augmented one day might become expected a bundle of tangible and intangible attributes designed to provide benefits to the customer Seller s view of a products Customer s view of a product A bundle of tangible and intangible benefits Rolls royce and chevy are different levels of quality but they could both deliver at the quality level they are expected Product attributes cid 127 What benefits will the product offer create value above and beyond free of defects cid 127 Quality level and consistency Features Style and Design add value through distinction in style and design style mainly means looks design mainly means integrating style and usefulness Can make a product the product leader even if not necessarily the best product Identifies the products or services of one seller and differentiates them from those of the competitors Build and manage the brand Designing and producing the container or wrapping of the product Branding Packaging Labeling provides identification description promotion Product Support Services customer service including assess me Line Extension w in existing category vertically differentiated extension easily ordered in terms of their benefits cid 127 Good better best horizontally differentiated extensions not easily ordered in terms of their benefits chips ahoy and chips ahoy lo fat Brand Extension into a new category cid 127 When does extension work best Fit Transerability of skills and assets Complementary of use Functional attribute Intangible attributes User Types Brand Equity The added value that a given brand provides a product cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 Adding brand names makes people like the product more Components Awareness Associations Loyalty Perceived quality How do we measure brand equity Blind tests Young and Rubicon Brand Asset Valuation Brand strength differentiation and relevance Brand stature Knowledge and esteem Can be used across brands or across nations for one brand Something you don t have tangible to take away in the end cid 127 Other branding issues Updating changing brands gradual or extreme Consumer brand relationships Brand communities Packaging and Labeling Packaging problems hard to open environmental problems bad re design Services Marketing cid 127 What is a service Airlines Hotels etc Significant Part of the economy At least half of our GDP Account for most of our jobs Can be classified like products Characteristics of services 4 I s Convenience Shopping Specialty Unsought Intangibility Inconsistency Inseparability Inventory cid 127 McDonald s tries to make every experience identical provider and service are wrapped up in each other Delta can t store empty seats on a flight Dimensions of a Service Core Service what the company must do Expected Service what you expect from a certain brand Augmented Service Potential Service There service profit chain growth Service marketing requires Internal service quality satisfied and productive employees greater service value satisfied and loyal customers healthy service profits and cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 External marketing Internal Marketing Interactive Marketing Service Quality Harder to define and measure than product quality cid 127 Greater dissatisfaction with services than products Dimensions of Service Quality RATER MODEL cid 127 Gap Model of