Marketing 333 Chapter 8 Elements of Product Planning for Goods and Services.

Marketing 333

Chapter 8

Elements of Product Planning for Goods and Services

What is a Product?

A bundle of benefits What the buyer gets…

not what the seller sells Tangible items, services,

ideas

The Total Product

A wide range of tangible and intangible benefits that a buyer might gain from a product after purchasing it

A product might have:– Primary characteristics– Auxiliary characteristics

CoreCoreproductproduct

PrimaryPrimary

CharacteristicsCharacteristics

AugmentedAugmentedproductproduct

Product Strategy

Planning and development of a mix of the primary and auxiliary dimensions of a product’s attributes.

Classifying Consumer ProductsClassifying Consumer Products

Three Types of Consumer Products:Three Types of Consumer Products:

ServicesServicesNondurable Nondurable

goodsgoods

Durable Durable goodsgoods

Goods-Services ContinuumGoods-Services Continuum

GoodGood ServiceServiceGood/serviceGood/service

Restaurant’sRestaurant’sofferingoffering

EmploymentEmploymentagency serviceagency service

ShovelShovel

Classifying Products by Consumer BehaviorClassifying Products by Consumer Behavior

ConvenienceConvenienceproductsproducts

ShoppingShoppingproductsproducts

SpecialtySpecialtyproductsproducts

Convenience Products

Inexpensive Purchased regularly Easily accessible

Shopping Products

Make comparisons Shop around Not purchased

frequently

Specialty Products

Usually expensive Special effort to

purchase

Classifying Organizational ProductsClassifying Organizational Products

Three types:Three types:

CapitalCapitalProductsProducts

ProductionProductionProductsProducts

OperatingOperatingProductsProducts

Capital Products

Installations Accessory equipment Examples: buildings,

forklifts, copying machines

Production Products

Raw materials Manufactured

materials Component parts Process materials

Operating Products

Routinely Purchased Used in daily

operations

Services

Instrumental Services Consummatory Services

Characteristics of Services

IntangibilityPerishability

Inseparability

Heterogeneity

Product Line and Mix

Product line: group of products that are fairly closely related

Product Mix: All the product offerings of an organization, no matter how unrelated

Dimensions of the Product Mix

Breadth or width Depth or length

Branding

Brand name Brand mark Logo Trademark Service Mark

Brand Name and Brand Marks

Brand name: verbal part of the brand Brand mark: unique symbol that is part of

the brand Logo: brand name or company name

written in a distinctive way

Trademarks and Service Marks

Trademark: legally protected brand name or brand mark for goods

Service mark: symbol that identifies services

What makes a good brand name?

A good brand name:– Is easy to pronounce– Has mnemonic quality– Suggests a positive image– Reinforces product concept

Communicates product benefits

– Says something about the user– Avoids linguistic traps

Manufacturer and Distributor Brands

Manufacturer brand: owned by the maker of the product

World (global) brand: distributed and recognized around the world

Distributor brand: owned by a retailer or wholesaler

Generic Brands

Carries neither a manufacturer nor a distributor brand– Plain packaging– Stark lettering

Family Brands

The same brand name is used in different categories of products– E.g. Healthy Choice

Individual Brand

Example: Mar’s candies Example:P & G’s laundry

detergents

Co-Branding

Use of two brands on a single product

Pizza Hut Tostitos

Pizza Hut Pizza flavored

Tostitos

Brand Equity

Value associated with a brand– Crayola– Harley-Davidson– Disney

Functions of Packaging

Contain product Protects product Facilitates storage and use of product Promotes product Recycling issues

Labeling

Label: Paper or plastic sticker attached to a container to carry product information

UPC (universal product code): permits computerization of checkout and compilation of sales and inventory information