PRODUCT Product – is anything that can be offered to a market for attention,acquisition, use or consumption that might satisfy a want or need. Service – is a form of product that consists of activity, benefit or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything.
MARKET OFFERINGProducts are key element in the overall market offering. This offering becomes the basis on which the company buildsprofitable customer relationships.Pure tangible goods – are market offering with no services accompany the product. Pure service- market offering consists of primarily of a service.
LEVELS OF PRODUCT AND SEVICESCore Customer Value- most basic level, which addresses the questionWhat is the buyer really buying? * Marketers must first define the core, problem-solving benefits orconsumers seek.Actual Product- develop product and service features, design, quality level,brand name and packaging.Augmented Product- offering additional consumer services and benefits.
PRODUCT AND SERVICE CLASSIFICATIONSCONSUMER PRODUCTS Consumer product- product bought by final consumers for personalconsumption.Convenience product- product that customers usually buy frequently,immediately and with minimal comparison and buying effort.Shopping product- less frequently purchased productsand services that customers compare on such attributesas suitability,quality, price and style.
PRODUCT AND SERVICE CLASSIFICATIONSUnsought product- product that the consumer either does not knowabout or knows about but does not normally consider buying.INDUSTRIAL PRODUCTIndustrial product- product bought by individuals and organizations for furtherprocessing or for use in conducting a business.
PRODUCT AND SERVICE CLASSIFICATIONSThree Groups of Industrial Product1.Material and Parts- include raw materials and manufactured materials and parts.2.Capital Items-products that aid in the buyer’s production or operations,including installations and equipment.3.Suppliers and Services- include operatingsupplies and repair and maintenance items
ORGANIZATIONS,PERSONS,PLACES AND IDEASORGANIZATION MARKETING – consists of activities undertaken to create,maintain or change the attitudes and behavior of target consumers toward anorganization.PERSON MARKETING- activities undertaken to create, maintain or changethe attitudes and behavior toward particular person.PLACE MARKETING- activities undertaken to create,maintain or change theattitudes and behavior toward particular lace.
INDIVIDUAL PRODUCT AND SERVICE DECISIONProduct attributes Product quality-the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs Two dimensions of product quantity: 1. Quality level (performance quality)-a product to perform its functions. 2. Conformance quality- freedom from defects and consistency
Product features Features are a competitive tool for differentiating the company’s product from competitors’ product.
Product Style and DesignStyle- appearance of the productDesign- good design contributes to a products usefulness as well as to its looks
BrandingBranding- A name, term, sign , symbol, design or a combination of these, that identifies the product or services of one seller or group of seller and differentiates them from those of competitors.
Packaging• Involves designing and producing the container or wrapper for a product.`
Labeling• Labels ranges from simple tags attached to products to complex graphics that are part of the packaging• Identifies the product or brand• Describe several things about the product• Promotes the products
Product Support Services• A company’s offer usually includes some support services, which can be a part or a major part of the total offering.
Product Line Decisions• Product line- a group of product that are closed related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges. Major product line decision involves: Product line length- the number of items in the product line.
• Company can expand its product line in two ways: product line filling- involves adding more items within the present range of the line. product line stretching- occurs when a company lengthens its product line beyond its current range.
Product Mix Decision• Product mix- consist of all the product lines and items that a particular seller offer for sale.Four important dimensions:• Width• Length• Depth• Consistency
The Nature and Characteristics of a Service• 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 – The quality of services may vary greatly depending on who provides them and when, where, and how.
• Service Perishability – Services cannot be stored for later sale or use.
Requirements of Service Marketing• Internal Marketing – Orienting and motivating costumer- contact employees and supporting service people to work as a team to provide costumer satisfaction.
• Interactive Marketing – Training service employees in the fine art of interacting with customers to satisfy their needs.
Three Major Marketing Task• Managing Service Differentiation• Managing Service Quality• Managing Service Productivity
Brand Equity the differential effect that knowing the brand name has no response to the product and its marketing. its the measure of the brands ability to capture consumer preference and loyalty.
Positive and Negative Brand Equity•Positive when consumers react more favorably to it than to a genericor unbranded version of the same product•Negative if consumers react less favorably than toan unbranded version.
Four Consumer Perception Dimensions• Differentiation -what makes the brand stand out.• Relevance -how consumers feel it meets their needs.• Knowledge -how much consumers knows about the brand.• Esteem -how highly consumers regard and respect the brand.
Brand Valuation -is the process of estimating the total financial value of brand.Customer Equity -the fundamental asset underlying brand equity
Major Brand Strategy DecisionsBRAND POSITIONING - an activity of creating a brand offer in such a manner that it occupies a distinctive place and value in the target customer’s mind.BRAND NAME SELECTION -a good name can add greatly to a products success. - finding te best brand name is a difficult task.
Qualities For A Brand Name1.It should suggest something about the products benefits and qualities.2.It should be easy to pronounce,recognize and remember.3.The brand name should be distinctive.4.It should be extendable5.The name should translate easily into foreign languages.6.It should be capable of registration and legal protection.
BRAND SPONSORSHIP(Brand Sponsor) the manufacturer, wholesaler or retailer who owns the brand.Sponsorship Options for Manufacturer1.National Brand/ Manufacturers brand -have long dominated in retail scene. - are those product/service names that are promoted nationally, or even globally.
2.Private brand -also called a store brand or distributor brand. -a brand created and owned by a reseller of a product or service.3.Licensed brand -Licensing means renting or leasing of an intangible asset. -most manufacturer take years and spend millions to create their own brand names.
4.Co-branding -the practice of using the established brand names of two different companies on the same product. -it also allows a company to expand its existing brand into category it might otherwise have difficulty entering alone.
BRAND DEVELOPMENT A plan to improve the performance of a particular product or service. For example, as part of brand development a firm may initiate a new advertising campaign that includes free samples.
Choices when it comes to developing brands1.Line Extensions-extending an existing brand name to new forms,colors,sizes,ingredients,or flavors of an existing product category.2.Brand Extensions- extending an existing brand name to new product categories.
3.Multibrands-Marketing of two or more similar and competing products by the same firm under different and unrelated brands.- it offers a way to establish a different features that appeal to different customer segments,lock up more reseller shelf space,and capture a larger market share.
4.New brands-The development of a new brand and often a new offering for a product class that has not been previously served by the organizations.
Managing Brands companies must manage their brands carefully. the brands positioning must be continuously communicated to consumers. major brand marketers often spend huge amounts on advertising to create brand awareness and build preference and loyalty.
advertising can help customers come to know a brand through a wide range of contacts and interactions. the company must put as much care into managing this points as it does into producing it ads. company must periodically audit their brands strengths and weaknesses.