4. 12-4
• The CORE product is NOT the tangible,
physical product. You can't touch it. That's
because the core product is the BENEFIT
of the product that makes it valuable to you.
• The ACTUAL product is the tangible,
physical product. You can get some use
out of it.
• EXPECTED product
• The AUGMENTED product usually consists
of lots of added value, for which you may or
may not pay a premium.
8. What is a Product?
• Convenience
• Shopping
• Specialty
• Unsought
• Frequent purchases
bought with minimal
buying effort and
little comparison
shopping
• Low price
• Widespread
distribution
• Mass promotion by
producer
•Types of Consumer
Products
•Goal 1: Understand products and their classifications
9. 9
CONVENIENCE GOODS:
• STAPLE GOODS: Routine purchase:
Tooth paste, Rice etc.
• IMPULSE GOODS: Purchased without
any planning- Chocolates
• EMERGENCY GOODS: Caters to urgent
needs- Rain coats, umbrella
10. •8 - 10
What is a Product?
• Convenience
• Shopping
• Specialty
• Unsought
• Less frequent
purchases
• More shopping effort
for comparisons.
• Higher than
convenience good
pricing
• Selective distribution in
fewer outlets, but
provide sales support.
• Advertising and
personal selling
•Types of Consumer
Products
•Goal 1: Understand products and their classifications
11. 11
SHOPPING GOODS
• During the process of selection and purchase,
the customer checks on the suitability ,
quality, price , style.
• Homogenous Shopping goods: The customer
sees these products as basically same and
wants lowest prices- TVs, washing machines
etc.
• Heterogeneous products: when customers
sees as different and want to inspect quality,
suitability- Furniture, suits.
12. •8 - 12
What is a Product?
• Convenience
• Shopping
• Specialty
• Unsought
• Strong brand
preference and
loyalty, requires
special purchase
effort, little brand
comparisons, and low
price sensitivity
• High price
• Exclusive distribution
• Carefully targeted
promotions
•Types of Consumer
Products
•Goal 1: Understand products and their classifications
•Luxury
goods, Rolex
watch
13. •8 - 13
What is a Product?
• Convenience
• Shopping
• Specialty
• Unsought
• Little product
awareness and
knowledge (or if
aware, sometimes
negative interest)
• Pricing varies
• Distribution varies
• Aggressive advertising
and personal selling by
producers and
resellers
•Types of Consumer
Products
•Goal 1: Understand products and their classifications
14. •8 - 14
Product and Service
Decisions
• Individual
Product
• Product Line
• Product Mix
• Product attributes
Quality, features,
style and design
• Branding
• Packaging
• Labeling
• Product support
services
•Key Decisions
•Goal 2: Learn decisions companies make regarding products
15. •8 - 15
Product and Service
Decisions
• Product line
A group of products
that are closely
related because
they may:
• function in a similar
manner
• be sold to the same
customer groups,
• be marketed through
the same types of
outlets
• fall within given price
ranges
•Key Decisions
• Individual
Product
• Product Line
• Product Mix
•Goal 2: Learn decisions companies make regarding products
16. 12-16
H U L
Product
line - 1
Product
line - 2
Product line -
3
Product
line - 4
Bathing
soaps
Fabric
Wash
Beverages
Dove Surf Bru
Liril Rin Brooke Bond
Pears Wheel Lipton
Lifebuoy Sunlight Taj Mahal
Hamam Ruby Dust
17. •8 - 17
Product and Service
Decisions
• Individual
Product
• Product Line
• Product Mix
• Product line length
Line stretching:
adding products
that are higher or
lower priced than
the existing line
Line filling: adding
more items within
the present price
range
•Key Decisions
•Goal 2: Learn decisions companies make regarding products
18. •8 - 18
Product and Service
Decisions
• Individual
Product
• Product Line
• Product Mix
• Product mix
Also known as
product assortment
Consists of all the
product lines and
items that a
particular seller
offers for sale
•Key Decisions
•Goal 2: Learn decisions companies make regarding products
19. •8 - 19
Product and Service
Decisions
• Individual
Product
• Product Line
• Product Mix
• Product mix width:
Number of different
product lines carried
by company
• Product mix depth:
Number of different
versions of each
product in the line
• Product mix
consistency
•Key Decisions
•Goal 2: Learn decisions companies make regarding products
20. Organizations, persons, places,
and ideas
• Organizational marketing makes use of corporate
image advertising
• Person marketing applies to political candidates,
entertainment sports figures, and professionals
• Place marketing relates to tourism
• Social marketing promotes ideas- IDEA
marketing
21. Brand
A name, term, symbol,
design, or combination
thereof that identifies a
seller’s products and
differentiates them from
competitors’ products.
22. Branding
•Brand
•Name
•Brand
•Mark
•Brand
•Equity
•Master
•Brand
•That part of a brand that can be spoken,
including letters, words, and numbers.
•The elements of a brand that
•cannot be spoken.
•The value of company and brand names.
•A brand so dominant that it comes to
•mind immediately when a product category,
use, attribute, or benefit is mentioned.
24. •8 - 24
Branding Strategy
• Brands with strong equity have
many competitive advantages:
High consumer awareness
Strong brand loyalty
Helps when introducing new
products
Less susceptible to price competition
Goal 3: Understand branding strategy
25. 25
Family Branding/Umbrella
branding
• Under this branding approach new products
are placed under the umbrella of an existing
brand.
• The principle advantage of this approach is
that it enables the organization to rapidly
build market awareness and acceptance
since the brand is already established and
known to the market.
26. 26
• Individual Product Branding – Under this
branding approach new products are assigned
new names with no obvious connection to
existing brands offered by the company.
• Under individual product branding the
marketing organization must work hard to
establish the brand in the market since it cannot
ride piggyback on previously introduced brands.
27. 27
• Under an individual branding approach,
each brand builds its own separate equity
which allows the company, if they choose,
to sell off individual brands without
impacting other brands owned by the
company.
• The most famous marketing organization to
follow this strategy is Procter and Gamble,
which has historically introduced new
brands without any link to other brands or
even to the company name.
28. 28
What is the disadvantage of a Umbrella branding strategy
• The potential disadvantage is that the
market has already established certain
perceptions of the brand. For instance, a
company that sells low-end, lower priced
products may have a brand that is viewed as
an economy brand.
• A firm that wishes to exit a business will
not be able to get good value from another
business that wants to buy it.
• No-Name or Generic Branding
29. Sub brands
• The corporate brand or umbrella brand
comes on top below which the sub brand
comes.
• Sometimes the reverse can also happen.
29
30. •8 - 30
Brand Strategy
• Brand Positioning
• Brand Name
Selection
• Brand Sponsorship
• Brand Development
• Line extensions
Minor changes to existing
products-new flavours,
colour, size.
• Brand extensions
Successful brand names
help introduce new
products-
• Multibrands
Multiple product entries
in a product category
• New brands
New product category
Key Decisions
Goal 3: Understand branding strategy
31. 12-31
Packaging: The 5th P
All the activities of designing and producing
the container for a product.
32. 12-32
Packaging has been influenced by…
Self-service
Consumer affluence
Company/brand image
Innovation opportunity
34. Learning Objective 3
Identify the four characteristics that affect the marketing of
services and the additional marketing considerations that
services require.
35. Value Added by Tangible vs Intangible
Elements in Goods and Services
•Fast food restaurant
•Plumbing repair
•Office cleaning
•Health club
•Airline flight
•Retail banking
•Insurance
•Weather forecast
•Salt
•Soft drinks
•CD Player
•Golf clubs
•New car
•Tailored clothing
•Furniture rental
•Lo •Hi
•Hi
•Intangible Elements
37. Differences Between
Goods and Services
•Intangibility-
2
•Simultaneous
•Production
•and
•Consumption-
•4
•Heterogeneity-
•3
•Perishability-
• 1
38. Implications of Intangibility
Services cannot be inventoried
Services cannot be patented
Services cannot be readily displayed or communicated
Pricing is difficult
No physical features of services
39. Implications of Heterogeneity
Service delivery and customer satisfaction depend on
employee actions
Service quality depends on many uncontrollable factors
There is no sure knowledge that the service delivered
matches what was planned and promoted
Services varies from employees to employees and to
different customers
40. Implications of Simultaneous Production and
Consumption
Customers participate in and affect the transaction
Customers affect each other
Employees affect the service outcome
Decentralization may be essential
Mass production is difficult
41. Implications of Perishability
It is difficult to synchronize supply and demand with
services
Services cannot be returned or resold
42. Table 1.3
Services are Different
Goods Services Resulting Implications
Tangible Intangible Services cannot be inventoried.
Services cannot be patented.
Services cannot be readily displayed or communicated.
Pricing is difficult.
Standardized Heterogeneous Service delivery and customer satisfaction depend on
employee actions.
Service quality depends on many uncontrollable factors.
There is no sure knowledge that the service delivered
matches what was planned and promoted.
Production
separate from
consumption
Simultaneous
production and
consumption
Customers participate in and affect the transaction.
Customers affect each other.
Employees affect the service outcome.
Decentralization may be essential.
Mass production is difficult.
Nonperishable Perishable It is difficult to synchronize supply and demand with
services.
Services cannot be returned or resold.
•Source: Adapted from Valarie A. Zeithaml, A. Parasuraman, and Leonard L. Berry, “Problems and Strategies in Services Marketing,”
•Journal of Marketing 49 (Spring 1985): 33-46.
