Marketing chpt 7

7 - 1

7 - 2

What Is a Product?What Is a Product?

• Tangible objects, services, events, persons, organizations, places, ideas, or a mixture of these

7 - 3

What Is a Product?What Is a Product?

• Services are a form of product • Activities, benefits, or satisfactions

offered for sale • Essentially intangible • Do not result in the ownership of

anything

7 - 4

Products, Services and Experiences

• Market offerings often include both tangible goods and services• Pure tangible good• Pure service

7 - 5

Many companies offer marketing experiences

7 - 6

Market Experiences

7 - 7

Many companies now marketing experiences

7 - 8

7 - 9

7 - 10

7 - 11

Levels of Products and Services

• Core customer value• What the consumer is really buying

• Actual product• Brand name, service features, design, packaging, and

quality level

• Augmented product• Additional services and benefits such as delivery and

credit, instructions, installation, warranty, and service

7 - 12

Consumer Products

• A product bought by final consumers for personal consumption

• Classified by how consumers buy them

7 - 13

Convenience Products

• Consumer products that customers usually buy frequently, immediately, and with minimal comparison and buying effort• Low priced• Placed in many locations to make them readily

available• E.g. Laundry detergent, candy, magazines, and

fast food

7 - 14

Convenience Products

7 - 15

Shopping products

• Consumer products that the customer, in the process of selecting and purchasing, usually compare on such attributes as suitability, quality, price, and style• Less frequently purchased• Distributed through fewer outlets• Greater sales support

7 - 16

Shopping Products

7 - 17

Specialty products

• Consumer products with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort • Different brands are not usually compared• E.g. Specific brands of cars, high-priced

photographic equipment, designer clothes, and the services of medical or legal specialists

7 - 18

Specialty products

7 - 19

Specialty Products

7 - 20

Unsought Products

• Consumer products that the consumer either does not know about or knows about but does not normally consider buying• Require a lot of advertising, personal selling, and

other marketing efforts• New innovations are generally unsought till

advertised• Known but unsought products and services are

life insurance, preplanned funeral services

7 - 21

7 - 22

Industrial Products

• Products bought by individuals and organizations for further processing or for use in conducting a business

7 - 23

Individual Product Decisions

7 - 24

Product and Service Attributes

• Product quality: The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs

• Product features• Differentiate the company’s product from competitors’

products

• Product style and design

7 - 25

Branding

• A name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors

• Customers attach meanings to brands and develop brand relationships

7 - 26

Packaging and Labeling

• Packaging: Designing and producing the container or wrapper for a product• Protects the product• Attracts customers and closes the sale

• Labels• Identify the product• Describe the product• Promote the brand

7 - 27

Product Support Services

• An important part of the customer’s overall brand experience

• Firms must survey customers to assess the value of current services and obtain ideas for new ones

Nordstrom thrives on stories about its after-sale service. It wants to “Take care of customers, no matter what it takes,” before, during, and after the sale

7 - 28

7 - 29

Kellogg’s Product Lines

7 - 30

Product LineReady To Eat Cereals

7 - 31

Product LineReady To Cookies & Crackers

7 - 32

Product Line Decisions

7 - 33

7 - 34

7 - 35

Product Mix Decisions

7 - 36

Four Service Characteristics

7 - 37

PerishabilityInseparabilityIntangibilityVariability

7 - 38

Three Types of Service Marketing

7 - 39

Services Marketing

7 - 40

Marketing at Work

• Web retailer Zappos prioritizes excellent customer service

• Zappos knows that happy customers begin with happy, dedicated, and energetic employees

Enthusiastic employees make outstanding brand ambassadors for Zappos

7 - 41

Brand PositioningBrand Positioning

• Marketers can position brands clearly in customers’ minds at any of three levels• Product attributes• Product benefits• Beliefs and values

7 - 42

Brand Positioning

7 - 43

Brand Positioning

7 - 44

Brand Positioning

7 - 45

Brand Positioning

7 - 46

Brand Positioning

7 - 47

Brand Positioning

7 - 48