Chapter 8 Products Services and Brands What is a Product Product anything that can be offered to a market for attention acquisition use or consumption that might satisfy a want or need Service events persons places or organizations Often tangible but not always Service an activity benefit or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything Essentially intangible and do not result in the ownership of anything Banking hotel airline To differentiate their offers beyond simply making products and delivering services more companies are focused on creating and managing customer experiences with their brands or company Market Offering Products are key elements in overall market offering A market offering ranges from pure tangible goods to pure services Levels of Products and Services 1 Core customer value What does the buyer actually want The Core Product consists of all the benefits the product will provide for consumers or business customers Marketing is about simplifying benefits not products 2 Actual Product product planner must turn this a core benefit into an actual product that can be sold The Actual Product Consists of the physical good or delivered service that supplies the desired benefit Example A drill s core product for this example is the ability to make a particular size hole but the actual product is a plastic and metal apparatus with a motor Actual product also includes appearance styling packaging and the brand 3 Augmented product offer additional consumer services and benefits to create customer value and a satisfying experience Example warranties instructions repair services Product and Services Classifications Classify products by How long they last Durable Nondurable 3 years How they are used Consumer B2C Industrial B2B 1 Consumer Products bought for personal consumption Classified by how consumers buy them Convenience Products purchase frequently with a minimum comparison and effort o Characteristics Low price widely available o Think Target Kroger Giant Eagle Vending Machines Shopping Products consumers will spend time and effort gathering info on price product attributes and product quality o Marketers will distribute their products through fewer outlets but provide deeper sales support to help customers in their comparison efforts Specialty Products unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort o Buyers will not accept a substitute Brand names tend to be very important o Examples BMW coach purse specialty doctor o Pseudo specialty products try to pretend their brand is the only brand that will do Choosy Mom s choose Jiff Unsought products a consumer has little awareness or interest until a need arises o Require a good deal of advertising or personal selling to interest people o Examples life insurance retirement investing funeral services 2 Industrial Products sought by individuals and organizations for further processing or for use in conducting a business So difference between consumer and industrial is the PURPOSE for the product Materials and Parts can be raw or manufactured o Wheat cotton fruits yarn cement Capital Items aid the buyer in production or operations including installations and accessory equipment o Installations major purchases building and fixed equipment elevators o Accessory Equipment portable factory equipment lift trucks and office equipment computers Supplies and services o Operating Supplies coal paper pencils o Repair and maintenance items paint nails brooms o Maintenance and repair services window cleaning computer repair o Business advisory services legal consulting Organizations Persons Places Ideas Organization marketing activities undertaken to create maintain or change attitudes and behavior of target consumers toward an organization Corporate image marketing used to market themselves and to polish their image Person marketing activities undertaken to create maintain or change attitudes or behavior toward particular people People in entertainment sports doctors Place marketing Cities states regions Social marketing marketing for ideas Brushing your teeth Product and Service Positions Individual Product and Service Decisions 1 Product and service Attributes Product quality is it able to satisfy stated or implied customer needs Product features Product style and design 2 Branding 3 Packaging Brand A name term sign symbol or design or a combo of these that identifies the products or services of one seller or a group of sellers and differentiates them from those of competitors o Should encompass experiences o What does a brand mean to a consumer It is a signal or a promise Packaging The activities of designing and producing the container or wrapper for a product o Protect the product o Communicate brand personality o Provide specific information label o Make the package more user friendly 4 Labeling Identify the brand Describe the brand Promote the brand 5 Product support services Keeping customers happy after the sale Product Line Decisions Product line 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 Possible Product Line Strategies How long is your product line aka how many items will you offer o Full Line o Limited Line Product Lines can be expanded in 2 ways 1 Product line filling adding more items to a within the present range of products 2 Product line stretching lengthens product line beyond its current range BMW recently stretched its product line upward and downward to appeal to a broader audience Product Mix Decisions Product Mix Product portfolio the set of all product lines and items that a particular seller offers for sale 4 important dimensions Length total of items a company carries within their product lines Width number of product lines a company carries Depth number of versions offered for each product in the line Consistency how closely related the various product lines are in end use production requirements distribution channels or some other way Services Marketing Services Industry Services account for roughly 65 of GDP and 80 of jobs Governments offer services through courts employment services hospitals military services police Private non for profit organizations offer services through charities churches
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