MRKT CH8 Year 2 Term 1

Product

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

Services

A form of product that consists of activities, benefits, or satisfactions and that is essentially intangible and does not result in the ownership of anything.

Experiences

Products and services are becoming more commoditized. Companies are now creating and managing customer ___ with their brands or company.

Core Benefits

Represent what the buyer is really buying.

Actual Product

Represents the design, brand name, and packaging that deliver core benefit to customers.

Augmented Product

Represents additional services or benefits of the actual product.

Customer experiences

Companies focus on experiences rather than actual products.

Customer Products

Products and services bought by final consumers for personal consumption.

Customer Product Types

Convenience products
Shopping products
Specialty products

Unsought products

Convenient Products

Consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort. (ex.: coffee, candy, fast food)

Shopping Products

Less frequently purchased consumer products and services that the customer compares carefully on suitability, quality, price, and style. (Furniture, Cars, Applicances)

Specialty Products

Consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. (Vacation trips, Designer clothes, High-end electronics)

Unsought Products

Consumer products that the consumer does not know about or knows about but does not normally think of buying. (Life Insurance, Medication, Blood Donations)

Industrial Prodcuts

Those products purchased for further processing or for use in conducting a business. (Materials & parts, Capital items, Supplies & services)

Materials & Parts

Include raw materials and manufactured materials and parts.

Capital Items

Industrial products that aid in the production or operations.

Supplies & Services

Include operating supplies, repair and maintenance items, and business services.

Materials & Parts Examples

Farm Products, Natural Products, Component Materials, & Component Parts.

Capital Items Examples

Installations & Equipment.

Supplies & Business Services

Maintenance & Repair, Advisory Services.

Organization Marketing

Consists of activities undertaken to create, maintain, or change the attitudes and behaviors of target consumers toward an organization.

Person Marketing

Consists of activities undertaken to create, maintain, or change the attitudes or behavior of target consumers toward particular people.

Place Marketing

Consists of activities undertaken to create, maintain, or change attitudes and behavior toward particular places.

Social Marketing

Uses commercial marketing concepts to influence individuals’ behavior to improve their well-being and that of society.

Individual Product Decisions

Product Attributes, Branding, Packaging, Labeling and Logos, Product Support Services.

Product Attributes

The benefits of the product or service.

• Quality

• Features

• Style and design

Product Quality

Refers to the characteristics of a product or

service that appear on its ability to satisfy customer

needs.

Quality Level

The level of quality that supports the product’s positioning.

Conformance Quality

The product’s freedom from defects and consistency in delivering a targeted level of performance.

Product Features

competitive tools for differentiating a

product from competitors’ products. Assessed based on the value to the customer versus its cost to the company.

Style

Describes the appearance of the product.

Design

Contributes to a product’s usefulness as well as to its looks.

Packaging

Involves designing and producing the container or wrapper for a product.

Labels

Identify the product or brand, describe attributes, and provide promotion.

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 Line Length

The number of items in the product line.

Product Line Filling

When a company adds more items within the present range of the line.

Product Line Stretching

When a company lengthens its product line beyond its current range.

Product Mix

Consists of all the product lines and items that a

particular seller offers for sale.

Product Mix Width

The number of different product lines the company carries.

Product Mix Length

The total number of items the company carries within its product lines.

Product Mix Depth

The number of versions offered of each product in the line.

Consistency

How closely the various product lines are in end use, production requirements, or distribution channels.

Types of Service Industries

• Government

• Private not-for-profit organizations

• Business organizations

Four Service Characteristics

Intangibility, Inseparability, Variability, Perishability.

Marketing Strategies for Service Firms

In addition to traditional marketing strategies, service firms often require additional strategies.

• Service-profit chain

• Internal marketing

• Interactive marketing

Service-Profit Chain

Links service firm profits with

employee and customer satisfaction.

• Internal service quality

• Satisfied and productive service employees

• Greater service value

• Satisfied and loyal customers

• Healthy service profits and growth

Internal Marketing

Means that the service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction.

Interactive Marketing

Means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter.

Service Differenciation

Creates a competitive advantage from the offer, delivery, and image of the service.

Service Quality

Provides a competitive advantage by delivering consistently higher quality than its competitors.

Service Productivity

Refers to the cost side of marketing strategies for service firms (employees hiring and training, and service quantity and quality).

Brand

The name, term, sign, or design or a combination of these, that identifies the maker or seller of a product or service.

Brand Equity

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

Brand Value

The total financial value of a brand.

Major Brand Strategy Decisions

Brand Positioning, Brand Name Selection, Brand Sponsorship, Brand Development.

Brand Positioning

Marketers can position brands at any of three levels.

Attributes

Benefits

Beliefs and values

Brand Name Selection

• Suggests benefits and qualities

• Easy to pronounce, recognize, and remember

• Distinctive

• Extendable

• Translatable for the global economy

• Capable of registration and legal protection

Manufacturer’s Brand

A brand owned by a manufacturer (ex: Ford, Nestle).

Private Brand

A brand owned by a reseller (ex: Tamimi, Panda).

Licensed Brand

Allowing another company to use your name (ex: Coca Cola, Disney).

Co-Brand

Two brands collaborate together
( ex: GoPro & Red Bull, Intel & HP).