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Chapter 8 - slide 1
Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter Five
Product
Chapter 8 - slide 2
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Product, Services, and
Branding Strategy
• What Is a Product?
• Product and Services
Decisions
Topic Outline
Chapter 8 - slide 3
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Product is anything that can be offered in a
market for attention, acquisition, use, or
consumption that might satisfy a need or
want
Experiences represent what buying the
product or service will do for the customer
Products, Services, and Experiences
Chapter 8 - slide 4
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Levels of Product and Services
Core benefits represent
what the buyer is really
buying.
Actual product
represents the design,
brand name, and
packaging that delivers
the core benefit to the
customer.
Chapter 8 - slide 5
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Levels of Product and Services
Augmented product represents
additional services or benefits of the
actual product. You can often find
augmented product features on the
product’s Web sites including
games, features and support.
Chapter 8 - slide 6
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Consumer
products
Industrial
products
Product and Service Classifications
Chapter 8 - slide 7
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
• Consumer products are products and
services for personal consumption
• Classified by how consumers buy them
– Convenience products
– Shopping products
– Specialty products
– Unsought products
Product and Service Classifications
Chapter 8 - slide 8
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Convenience products are consumer products and
services that the customer usually buys
frequently, immediately, and with a minimum
comparison and buying effort
• Newspapers
• Candy
• Fast food
Product and Service Classifications
Chapter 8 - slide 9
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Shopping products are consumer products and
services that the customer compares carefully on
suitability, quality, price, and style
• Furniture
• Cars
• Appliances
Product and Service Classifications
Chapter 8 - slide 10
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Specialty products are 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
• Medical services
• Designer clothes
Product and Service Classifications
Chapter 8 - slide 11
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Unsought products are consumer products that the
consumer does not know about or knows about
but does not normally think of buying
• Life insurance
• Blood donations
Product and Service Classifications
Chapter 8 - slide 12
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Industrial products are products purchased for
further processing or for use in conducting a
business
• Classified by the purpose for which the product is
purchased
– Capital
– Materials and parts
– Supplies and services
Product and Service Classifications
Chapter 8 - slide 13
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Capital items are industrial products that aid in the
buyer’s production or operations
Materials and parts include raw materials and
manufactured materials and parts usually sold
directly to industrial users
Supplies and services include operating
supplies, repair and maintenance items, and
business services
Product and Service Classifications
Chapter 8 - slide 14
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Organization marketing consists of activities
undertaken to create, maintain, or change
attitudes and behavior of target consumers
toward an organization
Organizations, Persons, Places, and Ideas
Chapter 8 - slide 15
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Person marketing consists of
activities undertaken to
create, maintain, or
change attitudes and
behavior of target
consumers toward
particular people
Organizations, Persons, Places, and Ideas
Chapter 8 - slide 16
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product
Place marketing consists of activities undertaken to
create, maintain, or change attitudes and
behavior of target consumers toward particular
places
Social marketing is the use of commercial
marketing concepts and tools in programs
designed to influence individuals’ behavior to
improve their well-being and that of society
Organizations, Persons, Places, and
Ideas
Chapter 8 - slide 17
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Individual Product and Service Decisions
Chapter 8 - slide 18
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Product attributes are the benefits of the product
or service
• Quality
• Features
• Style and design
Individual Product and Service Decisions
Chapter 8 - slide 19
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Brand is the name, term, sign, or design—or a
combination of these—that identifies the maker
or seller of a product or service
Brand equity is the differential effect that the brand
name has on customer response to the product
and its marketing
Individual Product and Service
Decisions
Chapter 8 - slide 20
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Packaging involves designing and
producing the container or
wrapper for a product
Labels identify the product or
brand, describe attributes, and
provide promotion
Individual Product and Service
Decisions
Chapter 8 - slide 21
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Product support services augment actual products
Individual Product and Service
Decisions
Chapter 8 - slide 22
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Product line is 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 is the
number of items in the
product line
Product Line Decisions
Chapter 8 - slide 23
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
• Line stretching
is when a company lengthens its product line beyond its current range.
– Downward product line stretching is used by companies at the
upper end of the market to plug a market hole or respond to a
competitor’s attack.
– Upward product line stretching is by companies at the lower end
of the market to add prestige to their current products.
– Combination line stretching is used by companies in the middle
range of the market to achieve both goals of upward and
downward line stretching.
• Line filling: occurs when companies add more items within the
present range of the line.
Product Line Decisions
Chapter 8 - slide 24
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Assignment
• Discuss Levels of Product and Services
• Discuss Individual Product and Service
Decisions
• Discuss Product Line Decisions

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ch 5 - product modified-1.pptia very good

  • 1. Chapter 8 - slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Five Product
  • 2. Chapter 8 - slide 2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Product, Services, and Branding Strategy • What Is a Product? • Product and Services Decisions Topic Outline
  • 3. Chapter 8 - slide 3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall What Is a Product? Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want Experiences represent what buying the product or service will do for the customer Products, Services, and Experiences
  • 4. Chapter 8 - slide 4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall What Is a Product? Levels of Product and Services Core benefits represent what the buyer is really buying. Actual product represents the design, brand name, and packaging that delivers the core benefit to the customer.
  • 5. Chapter 8 - slide 5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall What Is a Product? Levels of Product and Services Augmented product represents additional services or benefits of the actual product. You can often find augmented product features on the product’s Web sites including games, features and support.
  • 6. Chapter 8 - slide 6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall What Is a Product? Consumer products Industrial products Product and Service Classifications
  • 7. Chapter 8 - slide 7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall What Is a Product? • Consumer products are products and services for personal consumption • Classified by how consumers buy them – Convenience products – Shopping products – Specialty products – Unsought products Product and Service Classifications
  • 8. Chapter 8 - slide 8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall What Is a Product? Convenience products are consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort • Newspapers • Candy • Fast food Product and Service Classifications
  • 9. Chapter 8 - slide 9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall What Is a Product? Shopping products are consumer products and services that the customer compares carefully on suitability, quality, price, and style • Furniture • Cars • Appliances Product and Service Classifications
  • 10. Chapter 8 - slide 10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall What Is a Product? Specialty products are 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 • Medical services • Designer clothes Product and Service Classifications
  • 11. Chapter 8 - slide 11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall What Is a Product? Unsought products are consumer products that the consumer does not know about or knows about but does not normally think of buying • Life insurance • Blood donations Product and Service Classifications
  • 12. Chapter 8 - slide 12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall What Is a Product? Industrial products are products purchased for further processing or for use in conducting a business • Classified by the purpose for which the product is purchased – Capital – Materials and parts – Supplies and services Product and Service Classifications
  • 13. Chapter 8 - slide 13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall What Is a Product? Capital items are industrial products that aid in the buyer’s production or operations Materials and parts include raw materials and manufactured materials and parts usually sold directly to industrial users Supplies and services include operating supplies, repair and maintenance items, and business services Product and Service Classifications
  • 14. Chapter 8 - slide 14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall What Is a Product? Organization marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward an organization Organizations, Persons, Places, and Ideas
  • 15. Chapter 8 - slide 15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall What Is a Product? Person marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people Organizations, Persons, Places, and Ideas
  • 16. Chapter 8 - slide 16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall What Is a Product Place marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places Social marketing is the use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society Organizations, Persons, Places, and Ideas
  • 17. Chapter 8 - slide 17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Product and Service Decisions Individual Product and Service Decisions
  • 18. Chapter 8 - slide 18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Product and Service Decisions Product attributes are the benefits of the product or service • Quality • Features • Style and design Individual Product and Service Decisions
  • 19. Chapter 8 - slide 19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Product and Service Decisions Brand is the name, term, sign, or design—or a combination of these—that identifies the maker or seller of a product or service Brand equity is the differential effect that the brand name has on customer response to the product and its marketing Individual Product and Service Decisions
  • 20. Chapter 8 - slide 20 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Product and Service Decisions Packaging involves designing and producing the container or wrapper for a product Labels identify the product or brand, describe attributes, and provide promotion Individual Product and Service Decisions
  • 21. Chapter 8 - slide 21 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Product and Service Decisions Product support services augment actual products Individual Product and Service Decisions
  • 22. Chapter 8 - slide 22 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Product and Service Decisions Product line is 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 is the number of items in the product line Product Line Decisions
  • 23. Chapter 8 - slide 23 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Product and Service Decisions • Line stretching is when a company lengthens its product line beyond its current range. – Downward product line stretching is used by companies at the upper end of the market to plug a market hole or respond to a competitor’s attack. – Upward product line stretching is by companies at the lower end of the market to add prestige to their current products. – Combination line stretching is used by companies in the middle range of the market to achieve both goals of upward and downward line stretching. • Line filling: occurs when companies add more items within the present range of the line. Product Line Decisions
  • 24. Chapter 8 - slide 24 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Assignment • Discuss Levels of Product and Services • Discuss Individual Product and Service Decisions • Discuss Product Line Decisions

Editor's Notes

  1. Note to Instructor This Web link is a great example of a store that creates experiences is Jordan’s Furniture in the Boston. These furniture stores include an Imax theater, an amusement park quality motion ride, a trapeze school, and Mardi Gras parades. You can visit their stores through their Web sites.
  2. Note to Instructor Core benefits represent what the buyer is really buying. Actual product represents the design, brand name, and packaging that delivers the core benefit to the customer. Augmented product represents additional services or benefits of the actual product. It is a good idea for the students to bring in some products so the class can discuss the levels of product and services. Products including Gatorade, toothpaste, facial moisturizer or cosmetics work well in this discussion. You can often find augmented product features on the product’s Web sites including games, features and support.
  3. Note to Instructor Core benefits represent what the buyer is really buying. Actual product represents the design, brand name, and packaging that delivers the core benefit to the customer. Augmented product represents additional services or benefits of the actual product. It is a good idea for the students to bring in some products so the class can discuss the levels of product and services. Products including Gatorade, toothpaste, facial moisturizer or cosmetics work well in this discussion. You can often find augmented product features on the product’s Web sites including games, features and support.
  4. Note to Instructor Discussion Question What is a product that could be convenience, shopping, and specialty? This is a bit of a puzzle. They might realize that a camera could fall into several categories depending on the buyer and the situation. Certainly, if you are on vacation and you forgot your camera, you would pick one up at a convenience store, pharmacy, or maybe the hotel store. If you were a professional photographer, a camera purchase could easily be specialty if you were buying a $5,000 camera. Other examples might include mats for the floor of a automobile, tires, or a fan.
  5. Note to Instructor This Web link brings you to CBIZ—a consulting firm for businesses. It is interesting to look at their drop-down menus for an overview of the services they offer.
  6. Note to Instructor The text highlights Rachael Ray who has become a one-woman marketing phenomenon. In less than a decade, she’s zipped from nobody to pop-culture icon. Beginning with her 30-Minute Meals cookbooks, followed later by a Food Network TV show. Bearing her name are more than a dozen best-selling cookbooks (the latest is Yum-o! The Family Cookbook), a monthly lifestyle magazine, three Food Network shows, a syndicated daytime talk show, and assorted licensing deals that have stamped her name on kitchen essentials from knives to her own “E.V.O.O.” (extra virgin olive oil for those not familiar with Rayisms). There are even Ray-branded music CDs and ring tones. Her brands “begin with food and move briskly on to the emotional, social, and cultural benefits that food gives us.” Ray’s persona—and hence her brand—is a “celebration of why food matters.”
  7. Note to Instructor Las Vegas has worked hard to bring themselves into the forefront as a major destination for business and leisure. This YouTube ad is from their famous “What happens in Vegas, stays in Vegas” campaign.
  8. Note to Instructor Discussion Questions What brands do you tend to purchase consistently? Why? This discussion should lead to the consumer benefits of brands including quality and consistency. It is interesting to now ask students what the benefits might be for the seller of having a strong brand. This will include segmentation, positioning, and the ability to communicate product features
  9. Note to Instructor Warning: This is a very GRAPHIC link to the Government of Brazil’s notice of labeling for cigarettes. Although the release is in Spanish, the images for the labeling is given on the right hand side.
  10. Note to Instructor Companies must continually: Assess the value of current services to obtain ideas for new ones. Assess the costs of providing these services. Develop a package of services to satisfy customers and provide profit to the company.
  11. Note to Instructor Product line stretching is when a company lengthens its product line beyond its current range. Downward product line stretching is used by companies at the upper end of the market to plug a market hole or respond to a competitor’s attack. Upward product line stretching is by companies at the lower end of the market to add prestige to their current products. Combination line stretching is used by companies in the middle range of the market to achieve both goals of upward and downward line stretching. Product line filling occurs when companies add more items within the present range of the line.