Marketing Management Products and Services Paul Dishman, Ph.D. Department of Business Management Marriott School of Management Brigham Young University Lecture 11
Marketing Management
Products and Services
Paul Dishman, Ph.D.Department of Business Management
Marriott School of Management
Brigham Young University
Lecture 11
Paul Dishman, Ph.D.
Marketing Management
What is a Product?
• A ProductProduct is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.
• Includes:– Physical Objects– Services– Events– Persons– Places– Organizations– Ideas– Combinations of the above
Paul Dishman, Ph.D.
Marketing Management
What is a Service?
• A ServiceService is a form of product that consist of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.
• Examples include:– Banking– Hotels– Tax Preparation– Home Repair Services
Paul Dishman, Ph.D.
Marketing Management
The Product-Service Continuum
Pure Tangible
Good
Soap
Tangible Good With
Accompanying Services
Auto With Accompanyi
ng Repair Services
Hybrid Offer
Restaurant
Service With
Accompanying Minor Goods
Airline Trip With
Accompanying Snacks
Pure Service
Doctor’s Exam
Paul Dishman, Ph.D.
Marketing Management
Unsought ProductsUnsought Products• New innovations Products consumers don’t want to think about these products Require much advertising &personal selling
Product ClassificationsConsumer Products
Specialty ProductsSpecialty Products• Special purchase efforts High price Unique characteristics Brand identification Few purchase locations
Shopping ProductsShopping Products• Buy less frequently Higher price Fewer purchase locations Comparison shop
Convenience ProductsConvenience Products• Buy frequently & immediately Low priced Many purchase locations
Paul Dishman, Ph.D.
Marketing Management
Product ClassificationsOther Marketable Entities
• Activities undertaken to create, maintain, or change the attitudes and behavior toward the following:– Organizations – Persons– Places– Ideas
Paul Dishman, Ph.D.
Marketing Management
Individual Product Decisions
Product Attributes
Branding
Packaging
Labeling
Product Support Services
Paul Dishman, Ph.D.
Marketing Management
Brand StrategyLine Extensions
Brand ExtensionsMultibrandsNew Brands
Brand StrategyLine Extensions
Brand ExtensionsMultibrandsNew Brands
Brand SponsorManufacturer’s Brand
Private BrandLicensed Brand
Co-branding
Brand SponsorManufacturer’s Brand
Private BrandLicensed Brand
Co-branding
Brand Name SelectionSelectionProtection
Brand Name SelectionSelectionProtection
Major Branding Decisions (Fig. 8.3)
Paul Dishman, Ph.D.
Marketing Management
Brand Strategy
• Line Extension– Existing brand names extended to
new forms, sizes, and flavors of an existing product category.
• Multibrands– New brand names introduced in
the same product category.
• Brand Extension– Existing brand names extended to
new or modified product categories.
• New Brands– New brand names in
new product categories.
Smokey Red BBQ
Paul Dishman, Ph.D.
Marketing Management
Packaging • Activity of designing and producing the container or wrapper for a product.
• Packaging used to just contain and protect the product.
• Packing now has promotional value and marketers should:– Establish a packaging concept,– Develop specific elements of
the package,– Tie together elements to
support the positioning and marketing strategy.
Paul Dishman, Ph.D.
Marketing Management
IntangibilityIntangibility
InseparabilityInseparability
VariabilityVariability
PerishabilityPerishability
Can’t be seen, tasted, felt, heard, or smelled before purchase.
Can’t be separated from service providers.
Quality depends on who provides them and when, where and how.
Can’t be stored for later sale or use.
Nature and Characteristic of a Service
Paul Dishman, Ph.D.
Marketing Management
Satisfied and Loyal
Customers
Satisfied and Loyal
Customers
Greater ServiceValue
Greater ServiceValue
Healthy Service Profits
and Growth
Healthy Service Profits
and Growth
Satisfied and
Productive ServiceEmployees
Satisfied and
Productive ServiceEmployees
Internal Service Quality
Internal Service Quality
The Service-Profit Chain
Paul Dishman, Ph.D.
Marketing Management
Marketing Strategies for Service Firms
• Managing Service Differentiation– Develop differentiated offer, delivery and image.
• Managing Service Quality– Empower front-line employees,– Become “Customer obsessed”,– Develop high service quality standards,– Watch service performance closely.
• Managing Service Productivity– Train current or new employees better,– Work on quality as well as quantity,– Utilize technology.
Paul Dishman, Ph.D.
Marketing Management
Review of Concept Connections
• Define product and the major classifications of products and services.
• Describe the roles of product and service branding, packaging, labeling, and product support services.
• Explain the decisions companies make when developing product lines and mixes.
• Identify the four characteristics that affect the marketing of a service.
• Discuss the additional marketing considerations for services.
Paul Dishman, Ph.D.
Marketing Management
Group Exercise
• Cadbury's wants to introduce a new chocolate bar targeted at 8 to 12 year old boys in America. Please come up with a brand name for the initial plain chocolate bar and then brand names for two additional line extensions. Creativity as well as applicability of the brand name count here. Prepare a professional looking colored overhead transparency with the brand name, logo, or wrapper design to show the class. Due next class period.