Marketing Chapter 7

Product

anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need

What are the three levels of a product?

• Core customer value – the core problem-solving benefit customers seek when they buy product

• Actual product – exists around the core and includes the quality, features, design, brand name, and packaging.

• Augmented product – actual product plus the various services and benefits offered with it such as warranty, free delivery, installation, and maintenance.

Services

activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything

What is the difference between products and services?

Products can be tangible or intangible offerings.
Services are essentially intangible activities, benefits, or satisfactions offered for sale, such as banking, hotel stays, tax preparation, and home repair.

How are consumer products classified?

• Convenience products

• Shopping products

• Specialty products

• Unsought products

Consumer product

product bought by final consumers for personal consumption

Convenience product

consumer product that consumers usually buy frequently, immediately, and with minimal comparison and buying effort

Shopping product

consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style

Speciality product

consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort

Unsought products

consumer product that the consumer either does not know about or knows about but does not normally consider buying

Industrial products

a product bought by individuals and organizations for further processing or for use in conducting a business

Social Marketing

use of traditional business marketing concepts and tools to encourage behaviors that will create individual and societal well-being

Product quality

characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs

Brand

name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of 1 seller or group of sellers and differentiates them from those of competitors

Packaging

activities of designing and producing the container or wrapper for a product

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 prices ranges

Product mix (or product portfolio)

set of all product lines and items that a particular seller offers for sale

Service intangibility

services cannot be seen, tasted, felt, heard, or smelled before they are bought

Service inseparability

services are produced and consumed at the same time and cannot be separated from their providers

Service variability

quality of services may vary greatly depending on who provides them and when, when, and how they are provided

Service perishability

services cannot be stored for later sale or use

Service profit chain

The chain that links service firm profits with employee and customer satisfaction

Internal marketing

orienting and motivating customer-contact employees and supporting service employees to work as a team to provide customer satisfaction

Interactive marketing

training service employees in the fine art of interacting with customers to satisfy their needs

Brand equity

differential effect that knowing the brand name has on customer response to the product or its marketing

Brand value

total financial value of a brand

Store brand (or private brand)

brand created and owned by a reseller of a product or service

Co-branding

practice of using the established brand names of 2 different companies on the same product

Line extention

extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category

Brand extention

extending an existing brand name to new product categories

What are individual product decisions?

Decisions involving product attributes, branding, packaging, labeling, and product support services.

What are product attribute decisions?

Features, quality, and design of a product.

What are branding decisions?

Selecting a brand name and developing a brand strategy

What is packaging and why is it important?

Packaging involves designing and producing the container or wrapper for a product. It provides protection, economy, convenience, and promotion benefits

What are the four dimensions of a product mix?

• Width

• Length

• Depth

• Consistency

What are product support services?

Services that enhance customer satisfaction and safeguard against competitors (e.g., warranties, maintenance, customer service).

What are the four characteristics of services?

• Intangible

• Inseparable

• Variable

• Perishable

What is competitive differentiation in services?

Creating a unique service experience through high service quality, reliability, and productivity.

What are the four brand sponsorship options?

• National brands (manufacturer’s brands)

• Private brands (store brands)

• Licensed brands

• Co-branding

What are the four brand development strategies?

• Line extensions

• Brand extensions

• Multibrands

• New brands

How do companies build and manage brands?

By continuously communicating brand positioning and managing customer touchpoints and brand experiences.

Products and services fall into 2 broad classes which are?

Consumer products & industrial products