Chapter 7: Products, Services, and Brands- Building Customer Value

Product

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

Service

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

Consumer Products

A product bought by final consumers for personal consumption

Convenience Products

Consumer products that customers usually buy frequently, immediately, and with minimal comparison and buying effort

Shopping products

Consumer products that the customer, in the process of selecting and purchasing, usually compare on such attributes as suitability, quality, price, and style

Specialty products

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

Unsought Products

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

Social marketing

The use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society

Branding

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

Packaging

Designing and producing the container or wrapper for a product

Product line

A 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

Product mix

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

The Nature and Characteristics of a Service

The service provider’s task is to make the service tangible in one or more ways and send the right signals about quality

Brand equity

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

National brands

Products are marketed under the manufacturer’s own name

Store brands

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

Licensing

For a fee, companies use names and symbols created by other companies

Co-branding

Occurs when two established brand names of different companies are used on the same product

Line extension

Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors within a product category

Brand extension

Extending an existing brand name to new product categories-Kellogg’s cookies

Multibrands

Marketing many different brands in a given product category—P&G

New brands

Created for new product category, or when interest in existing brands decreases..Apple’s Watch or TV venture