Principles of Marketing - Chapter 8 (Part 1)

Product, Services and Branding Strategy

Chapter # 8Part 1

What is a Product?

Products, Services, and Experiences

Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want.

What is a Product?

Products, Services, and Experiences

Service is a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in ownership of anything

• Banking, Hospitals

• Doctor’s, Legal advice

What is a Product?Products, Services, and Experiences

Experiences represent what buying the product or service will do for the customer

- To differentiate their offers, beyond simply making products and delivering services, companies are producing, marketing and delivering memorable customer experiences

• Fantasy Kingdom - Theme Parks• Pizza Hut• Star Cineplex – Movie Theatre

What is a Product?Levels of Product

Delivery& Credit

Installation Warranty

After Sales

Service

Augmented Product

Actual Product

Features

Design

Brand Name

Quality Level

Packaging

Core Benefit


Core Benefit – The fundamental level is the core benefit; the service or benefit the customer is really buying. Example: A hotel guest is buying “rest and sleep”

The purchaser of a drill is buying “holes”

Marketers must see themselves as benefit providers.


Actual Product – the marketer must turn the core benefit into an actual product. Example: Thus a hotel room includes a bed, bathroom, towels, desk, dresser and closet.

Customers will look for the Packaging, Brand Name, Quality, Features and Design for any product.


Augmented Product – a set of attributes and conditions that buyers normally expect when they buy the productExample: Hotel guests expect fast room service, better laundry service, clean bed, fresh towels, etc

Customers will look for the Installation, Delivery and Credit, After sales service, Warranty, etc.

What is a Product?

Levels of Product

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

What is a Product?

Product and Service Classifications

• Consumer Products

• Industrial Products

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

Consumer Products Consumer Products ClassificationClassification

What is a Product?Product and Service Classifications

Convenience Products are consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort.

Newspapers Soap Candy Fast foods

These type of products are of low price and that’s why consumers provide less effort at the time of buying this category of goods.

Marketers must make these products available, so that consumers can buy with minimum buying effort.


Shopping Products – goods that consumer in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price and style. Consumers do not buy regularly and they spend time to choose in buying. The products may be of high priced than the convenience goods. Consumers collect information to make comparison while buying this category of products.

Example: Furniture, Clothing, Computers, Electrical Appliances, Hotel, Airline Services, etc.

Sony sell their products through their authorized show rooms and sometimes demonstrate the product so that consumers can make the comparison with other substitute products.


Speciality Products – have unique characteristics or brand identification for which a sufficient number of buyers are willing to make a special purchasing effort.

Example: Medical Services, Designer Clothes, Property, Land, Specific Brands and type of Cars, etc.

Marketers sell their products through selective outlets or distributors. This is the case of brand loyalty in fact where not the price rather than quality and satisfaction is the prime factor of buying the product.


Unsought Products – those that the consumers does not know about or does not normally think of buying. Consumers does not usually buy this type of products until and unless it is required.

Example: Life Insurance, Encyclopedias, Smoke Detectors, Blood Donations, etc.


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

• Materials and parts• Capital• Raw materials

What is a Product?


Materials and Parts include raw materials and manufactured materials and parts usually sold directly to industrial users

• Farm Products: Wheat, Cotton, Livestock • Natural Products: Fish, Petroleum, Iron• Raw Materials: Iron, Steel, Cement for developers• Component Parts: Small motors, Tires for cars etc

What is a Product?


Capital Items are industrial products that aid in the buyer’s production or operations including installations and accessory equipment. Long lasting goods that facilitate developing or managing the finished products.

• Buildings (factories, office)

• Fixed Equipment (elevators, generators)

• Accessory Equipment (computers, hand tools)

What is a Product?


Supplies and Business Services are short lasting goods and services that facilitate developing or managing the finished product.

• Stapler, pen, paper for office use, photocopier, telephone or fax machine.

• Supplies include operating supplies (paper, pencils, lubricants, etc.) and repair and maintenance items (paint, nails, etc.)

What is a Product?

Organizations, Persons, Places, and Ideas

Organization Marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward an organization.

• Public Relations activities (Dutch-Bangla Bank)

• Corporate advertising campaign (British American Tobacco – creating advertisement campaign against cigarette smoking for the under 18 years old people.)

What is a Product?


Person Marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people.

• Famous player (brand ambassador) - Boost - Sachin Tendulkar

• Miss world (brand ambassador) – Lux – Aishwaria Rai

What is a Product?Organizations, Persons, Places, and Ideas

Place Marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places

• Tourism (Malaysia, Nepal)

• Cox’s Bazar, Saint Martin & Sundarban in Bangladesh

What is a Product?


Ideas (Social Ideas 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

• Public health campaign • Tourism campaign

Product and Service Decisions

Individual Product and Service Decisions

Product Attributes

Branding

Labeling

Packaging

Product Support Services



Product Attributes refers to the benefits in a product or services that will be offered to the customers.

- Attributes such as product, • Quality • Features • Style and design



Brand is the name, term, sign, or design, or a combination of these, that identifies the maker or seller of a product or service from those of its competitors



Packaging involves designing and producing the container or wrapper for a product

Label identifies the product or brand. It describes-who made it, where it was made, when it was made, its contents, how it is to be used, and how to use it safely. It also promote the product through attractive graphics.



Product support services augment actual products

- 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

END OF CHAPTER 8 - Part 1

Principles of Marketing - Chapter 8 (Part 1)

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