Chapter 7: Products, Services & Brands

Product

Anything offered to a market to satisfy a want or need.

Service

An intangible activity or benefit offered for sale without ownership.

Market Offerings

A mix of tangible goods and intangible services.

Service Intangibility

Services cannot be seen, tasted, or touched before purchase.

Service Inseparability

Services are produced and consumed simultaneously with customer involvement.

Service Variability

Quality depends on who provides the services and how.

Service Perishability

Services cannot be stored for later sale or use.

Core Customer Value

The fundamental benefit the customer is really buying.

Actual Product

Brand name, features, design, packaging, and quality level.

Augmented Product

Additional services and benefits like warranty and delivery.

Product Attributes

Quality, features, style, and design of a product.

Branding

A distinguishing name, term, sign, or symbol.

Packaging

The design of a container or wrapper creating value.

Labeling

Identifies, describes, and promotes a product.

Product Support Services

Additional customer services like warranties and assistance.

Product Line

A group of closely related products.

Product Line Length

The total number of items in a product line.

Line Filling

Adding more items within the present product range.

Line Stretching

Adding items beyond the current product range.

Product Mix Width

The total number of product lines a company carries.

Product Mix Length

The total number of items across all product lines.

Product Mix Depth

The number of versions offered for each product.

Product Mix Consistency

How closely related the various product lines are. (Colgate's various oral products)

Brand Equity

The differential effect brand knowledge has on consumer response.

Positive Brand Equity

When consumers heavily favor branded over unbranded products.

Brand Positioning

Mission and vision built to create loyalty and differentiation.

Line Extension

Using an existing brand name in an existing category.

Brand Extension

Using an existing brand name in a new category.

Multibrands

Introducing a new brand name in an existing category.

New Brands Strategy

Creating a completely new brand name and new category.

National Brands

Manufacturer brands using the company's own name.

Store Brands

Private brands created and sold by resellers.

Licensing

Paying a fee to use another's name or symbols.

Co-Branding

Using two separate companies' brands on a single product.