Products (services)• What is a product?• Classifications & Levels• Characteristics• Product Decisions• Branding• Packaging• Labelling
What is a product?Anything that can be offered tomarket that might satisfy a wantor need. Includes:objects,services, persons, placesorganisations & ideas
ClassificationsConsumer & BusinessConsumer : bought by final consumers for personal consumption.Business: bought by business to streamline operations.
Characteristics of Products• Physical products • durable - many uses over extended period e.g. Mobile phone • non-durable - consumed rapidly or only designed for a few uses e.g. tissues• Pure services Distinguished from physical products on the basis of: • intangibility • inseparability • variability • Perishability e.g. Facials, massages
Levels of Products• Core product • the problem-solving service or core benefit that consumers are buying when they obtain the product to satisfy a specific need• Actual Product • parts, styling,features, brand name, packaging and other attributes that deliver core benefits• Augmented Product • includes any additional consumer services and benefits built around the core product e.g. Cars now also have CD/MP3 player, air-conditioning, seat warmers etc.
Consumer productsAre classified as :• Convenience goods - purchased frequently with a minimum of comparison and buying effort e.g. shampoo• Shopping goods – are compared on the basis of suitability, quality, price and style e.g. shoes• Specialty Goods - have unique characteristics and are specifically sought by the consumer e.g. Coffee machines• Unsought goods – may be unknown to buyer or not normally considered for buying e.g. Cosmetic procedures
Industrial Business to Business (B2B) products Are classified as:• Materials & Parts – that enter a product in manufacturing (are transformed)• Capital Items – (installations or accessories) indirectly contribute to production - enter finished product partly• Supplies & Services – do not enter production at all
Product DecisionsDecisions need to be made about a product’s:•quality•features•design
BrandingFour levels of meaning• attributes• benefits• values• personalitymore on branding later
PackagingThe activities of designing &producing the container orwrapper for the product. Haslinks to theplacement/distribution mix.
LabellingRange: simple tags to graphics that are part of packaging. They:-• identify• grade• describe• promote
New Product DevelopmentThe development of originalproducts or improvements throughorganisation’s own Research &Development efforts
Product Life Cycles (PLC)The course of a product’ssales & profits during itslifetime
5 Stages in a PLC•Product development•Introduction•Growth•Maturity•Decline
Services Classification• A service is any benefit or activity that one party can offer to another that is essentially intangible and does not result in ownership of anything (hairdressing, financial advice, air travel)
Brand• Attributes – a brand elicits certain product activities in the mind of the consumersE.g. what do you imagine when you hear the brand – Ferrari• Benefits – objective needs satisfiers• Values – The benefits of the brand indicates that these things are important to the customer• Personality – people personify brands and products• E.g. Bollywood
Branding (cont)• Brand Equity – brands create awareness, build preference & command loyalty• Branding Decisions – Brands usually command higher profit margins than unbranded• Brand Sponsors - organisations who sponsor the brand• Brand Repositioning – re-evaluation in relation to competitive & market changes• Brand Name Selection - see next slide
Brand Name Selection• Should suggest product’s qualities & benefits• Easy to use - pronounce, recognise & remember• Distinctive• Translatable• Capable of registration/legal protection
Brand Strategy• Brand Extensions – using a successful brand to launch new or modified products• Multibranding – establish different features and appeal to a range of consumers• New Brands - to enter new product category• Line Extensions – introduction of additional items in a given product category• Brand Repositioning – change of product image
Packaging• Design & production of the container or wrapper of a product to support the marketing objectives• Labelling – promote the product & meet legal requirements – price, weight, contents, washing instructions, nutritional requirements
Product Support Units• Support services through;• electronic media• web sites• mobile service representatives• 1800 phone numbers• agencies
Product Line Decisions• Product Line – group of products closely related because they function in a similar manner, are sold to the same customer groups, marketed through the same types of outlets or fall within a given price range• Product Line Decision – do we add or drop lines?• Product Line stretching decisions – extend product line downwards, upwards or to either side
Product Line Decisions (cont)• Product Line filling decision – increasing the product line by adding more items within the current range• Product Line modernisation decision – decision concerning look or feel of a product range• Product Line Featuring Decision – decision on what features to promoteYoutube: no more bad tasting “Mother” energy drinkhttp://www.youtube.com/watch?v=trFBxyC1T74
26Product Mix Decisions• Also called product assortment• The set of all product lines and items that a particular seller offers• Described in terms of breadth, length, depth and consistency More later
Activities• Activity: Find-a-word puzzle From the find-a-word you will be allocated a marketing related term. You need to research this term and provide a definition and example of how it is applied in industry and present it to your fellow students.
Conclusion• Product and Service are treated as the same thing but as two ends of a spectrum or continuum• Product has many properties that can all affect the overall marketing effort• It is normally the most basic or first marketing mix element to be managed by marketers (except in more mature markets)