Lecture 5 Product as the first element of the Marketing mix
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The Product - Element of the Marketing Mix
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Lecture 5 Product as the first element of the Marketing mix
- 2. What is a Product? Anything that can be offered to a market, for attention, acquisition, use or consumption that might satisfy a want or a need!
- 3. What is a Product? Physical goods (objects) Services Persons Anything that can be offered to a market, for attention, acquisition, use or consumption that might satisfy a want or a need! BROADER SENSE Places Organizations, ideas…….
- 4. What is a Product? Anything that can be offered to a market, for attention, acquisition, use or consumption that might satisfy a want or a need!
- 5. Services are products too! Services = activities, benefits, satisfactions offered for sale that are intangible and do not result in the ownership of anything
- 6. Differences between products and services Services = activities, benefits, satisfactions offered for sale that are intangible and do not result in the ownership of anything PRODUCTS SERVICES Material, tangible, can be felt, touched, smelled… Intangible, cannot be touched, smelled, tasted….. Fixed quality Different quality Can be stored andusedlater! Cannot be storedand usedat once! Ownership after buying! No ownership after buying!
- 7. Goods- Services Continuum The marketing offer consists of combination of tangible productsand services. Extreme cases are the offer of a pure product / a pure service. There are numerous combinations between them. Pure product Pure service salt, soap, sugar, books, pens, fruits, vegetables, toothpaste... consultation, doctor’s exam, financial service Hybridoffer Restaurants, air-travel, cafes, Internet cafe
- 8. Goods- Services Continuum The marketing offer consists of combination of tangible productsand services.
- 9. Goods- Services Continuum The marketing offer consists of combination of tangible productsand services.
- 10. Experience Marketing New level of creatingvalue for consumers – their involvement in the offering! Ex. 1 Adidas and Derrick Rose
- 11. Experience Marketing New level of creatingvalue for consumers – their involvement in the offering! Ex. 2 American Girl, Inc.
- 12. Levels of products and services Complex bundle of benefits that satisfy consumer’s needs! Core benefit Actual product Augmented product Why people buy products? What is their purpose? Value? Essence? The product itself with its features, style, design, brand name, quality, packaging…. Additional services, like warranty, installation, delivery, after-sale services….
- 13. Levels of products and services Complex bundle of benefits that satisfy consumer’s needs! Transport from A to B Core benefit The car itself with its features, style, design, brand name, quality Actual product Augmented product Additional services, like warranty, delivery, after-sale services, parts….
- 14. Exercise: Levels of products and services Complete the Table Product/ service Core product Actual product Augmented product Mercedes Benz Transport, speed Warranty Holiday in Spain Hotel, facilities Air transport Transport from A to B Plane Rihanna concert Nestle chocolate ZOO
- 15. Exercise: Levels of products and services Complete the Table Product/ service Core product Actual product Augmented product Mercedes Benz Transport, speed The car itself! Warranty Holiday in Spain Relaxation, resting, experience…. Hotel, facilities Pet care,money-box Air transport Transport from A to B Plane Meals, newspaper, toys Rihanna concert Relaxation, socializing, excitement… The concert itself! Rihanna’s CD Nestle chocolate Taste, eating, enjoying The chocolate! Rewards ZOO Relaxation, a walk Animals A visit to a museum
- 16. Classification of products & services Consumer products Persons and households buy them for personal use Industrial products They are purchased for further processing or use in business The difference is in their USE! Washing machine for home Consumer product Washing machine for business Industrial product
- 17. Classification of products & services Consumer products Industrial products A) Convenience products B) Shopping products C) Specialty products D) Unsought products A) Materials and Parts B) Capital items C) Supplies and Services
- 18. I. Consumer products - Classification A) Convenience products
- 19. I. Consumer products - Classification A) Convenience products Buyers buy them frequently! Little planning! Minimum comparison! Low price! Widespread distribution!
- 20. I. Consumer products - Classification B) Shoppingproducts
- 21. I. Consumer products - Classification B) Shoppingproducts Buyers buy them less frequently! Much planning! Comparison products, prices, quality, style! Spending effort and time! Higher price! Fewer outlets!
- 22. I. Consumer products - Classification C) Specialty products
- 23. I. Consumer products - Classification C) Specialty products Strong brand preference! Little comparison! Spending time! High price! Exclusive distribution!
- 24. I. Consumer products - Classification D) Unsought products Little product awareness! Even negative interest! Little/no knowledge!
- 25. 2. Industrial products - Classification A) Materials and Parts - wheat, cotton, fruits, fish… - cement, wires, tires…… B) Capital items C) Supplies andServices - factories, buildings, offices… - computers, office equipment…… - paper, pencils, repair & maintenance, cleaning… - advertising, legal advice, management consulting ……
- 26. Organizations, persons, places and ideas as products! A) Organizations Activities to create, maintain, change the attitude and behavior of consumers toward an organization!
- 27. Organizations, persons, places and ideas as products! B) Persons Activities to create, maintain, change the attitude and behavior of consumers toward particular people! Oprah Winfrey TV show O Magazine Angel Network Book club Boutique online shop Movies
- 28. Organizations, persons, places and ideas as products! B) Persons Activities to create, maintain, change the attitude and behavior of consumers toward particular people!
- 29. Organizations, persons, places and ideas as products! C) Places Activities to create, maintain, change the attitude and behavior of consumers toward particular place!
- 30. Organizations, persons, places and ideas as products! C) Places Activities to create, maintain, change the attitude and behavior of consumers toward particular place!
- 31. Organizations, persons, places and ideas as products! C) Places Activities to create, maintain, change the attitude and behavior of consumers toward particular place!
- 32. Organizations, persons, places and ideas as products! D) Ideas Activities to create, maintain, change the attitude and behavior of consumers toward environment, alcoholism, smoking, drug abuse, clean air, personal safety, human rights, children’s rights!
- 33. Homework 1. Read and elaborate in detail on US President Donald Trump and his person marketing in the book and online. Explain why it is a person - marketing! 2. Find interesting places on the Internet that can be advertised for their uniqueness and can attract lots of tourists! 3. What is idea marketing? Explain with examples! 4. Give two examples for all types of consumer goods! 5. List the product levels of the product of your choice! (mobile phone, car, furniture, ....)