Marketing Product

product

aims to meet customer needs + wants

object of the exchange process (exchange for something greater than or equal in value)

types of products

1. pure tangible goods

2. pure services

3. goods-and-services combination

services

intangible products

4 characteristics of services

1. intangibility

2. perishability

3. variability

4. inseparability

who came up with the 3 drivers + 5 levels

Phillip Kotler

3 drivers

1. Need - lack of basic requirement

2. Want - specific requirement of a product

3. Demand - wants + desire + ability to pay

5 levels of a product

1. core benefit

2. generic product

3. expected product

4. augmented product

5. potential product

core benefit

the reason customers buy the product

generic product

basic version

features necessary for function only

expected product

set of features customers expect when they buy

augmented product

product variations + extra features

differentiates product from competitors

potential product

all possible improvements that the product may undergo in the future

3 levels of product decision

1. individual product decision

2. product line decisions

3. product mix decision

individual product decision

marketers need to decide on:

1. product attributes

2. branding

3. packaging

4. labelling

5. product support services

product line decisions

group of products closely related (similar functions, customer-base, price range)

product mix decisions

several product lines in the company’s portfolio

product development process

1. idea

2. define

3. test

4. make it perfect

5. launch

product life cycle

1. introduction

2. growth

3. maturity

4. decline

introduction

thru marketing campaigns

little to no competition, low sales

growth

growing demand

increased production

expansion in availability

maturity

most profitable stage

competition is highest

decline

other companies emulate you

loss of market share