Product and Service Strategy

Product and Service Strategy

Chapter 9

Product-Service Continuum

Sugar Restaurant

University

Education

Pure Tangible

Good

Pure Service

What is a product?One definition of a product: A good, service, or idea consisting of

a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or other unit of value

Product Concept: Defines the essence, or core idea

underlying the product features and benefits that appeal to the target market.

A Product’s Three Parts Core Product – benefit, basic features, value,

service Actual Product/Primary characteristics –

features, quality, design, attributes, colour, packaging (depending on product)

Augmented Product – credit, payment plans, warranties, after the sales service, delivery, packaging, etc.

Discussion Question – Page 249, #3

Types of Consumer Products

Convenience: purchased frequently, immediately, and with a minimum of comparison and buying effort

Shopping: the consumer compares product alternatives on such bases as suitability, quality, price, and style

Specialty: a product with unique characteristics or brand identification, which the consumer is willing to make a special purchase effort

Unsought: a product the consumer does not know about, or normally consider buying

Product item

Product line

Product class

Product mix

Example: General Motors

Product line and mixes

Product Mix DecisionsProduct mix: the set of all product lines and items

that a particular seller offers for sale Width: the number of different product lines

carried Length: the total number of items carried

within the product lines. Depth: the number of versions offered of each

product in the line http://www.pg.com/product_card/prod_c

ard_laundry.jhtml

Branding Creating, maintaining,

protecting and enhancing products and services.

A brand is a name, term, sign, symbol, design or a combination of these that identifies the maker or seller of a product or service.

Types of Brands• Family Brands – i.e. Campbell’s, Marriott • Flanker brand• Co-branding

• Ingredient branding • Cooperative branding • Complementary branding

• Private/Generic brands

Brand Name Selection

• It should suggest product’s benefits and qualities.

• It should be easy to pronounce, recognize and remember.

• It should be distinctive.• It should be extendable.• It should translate easily into foreign

languages.• It should be capable of registration and

legal protection.• Should reinforce the product concept

Discussion Question – page 249, #4

Packaging Containment

functions Protection in

transit function Storage function Usage facilitation

function Promotion function Ecological function

The heart shape bowl communicates a

healthy diet

Packaging

Dutch Boy recently came up with a long overdue innovation—paint in plastic containers with twist-off caps.

Labelling Printed information appearing

on or with the package. Performs several functions:

Identifies product or brand. Describes several things about

the product. Promotes the product through

attractive graphics. Legal/regulatory issues

What is a service?One definition of a service: Activities, deeds, or other basic

intangibles offered for sale to consumers in exchange for money or something else of value.

Characteristics of Services

IntangibilityCannot be seen, tasted, felt or smelled before

purchasing

VariabilityService quality depends on who provides and

under what conditions

InseparabilityProduction and,

consumption, and from the provider

PerishabilityCannot be stored,

for resale or later use