Chapter 7: Products, Services, and Brands: Building Customer Value Flashcards
Marketing mix:
the tactical tools that marketers use to implement their strategies, engage customers, and deliver superior customer value.
Product
anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
include more than just tangible objects, such as cars, clothing, or mobile phones. Broadly defined, products also include services, events, persons, places, organizations, and ideas or a mixture of these.
Services
are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything
Examples: banking, hotel, airline travel, retail, wireless communication, and home-repair services.
pure tangible good
such as soap, toothpaste, or salt; no services accompany the product
pure services
the market offer consists primarily of a service. Examples include a doctor’s exam and financial services.
Product planners need to think about products and services on three levels
The most basic level is the core customer value
Second is the actual product
Third is the augmented product
core customer value
Which addresses the question: What is the buyer really buying?
When designing products, marketers must first define the core, problem-solving benefits, services, or experiences that consumers seek
actual product
They need to develop product and service features, a design, a quality level, a brand name, and packaging
augmented product
product planners must build an augmented product around the core benefit and actual product by offering additional consumer services and benefits
Products and services fall into two broad classes based on the types of consumers who use them:
consumer products and industrial products
Broadly defined, products also include other marketable entities such as experiences, organizations, persons, places, and ideas.
Consumer products
Are products and services bought by final consumers for personal consumption
Consumer products include
convenience products, shopping products, specialty products, and unsought products.
Convenience products
are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort
Examples include laundry detergent, candy, magazines, and fast food
Shopping products
are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.
Examples include furniture, clothing, major appliances, and hotel services.
Specialty products
are consumer products and services with unique characteristics or brand identifications for which a significant group of buyers is willing to make a special purchase effort
Examples include specific brands of cars, high-priced photography equipment, designer clothes, gourmet foods, and the services of medical or legal specialists
Unsought products
are consumer products that a consumer either does not know about or knows about but does not normally consider buying.
Most major new innovations are unsought until consumers become aware of them through marketing
Industrial products
are those products purchased for further processing or for use in conducting a business
the distinction between a consumer product and an industrial product
is based on the purpose for which the product is purchased.
If a consumer buys a lawn mower for use around home, the lawn mower is a consumer product. If the same consumer buys the same lawn mower for use in a landscaping business, the lawn mower is an industrial product.
The three groups of industrial products and services are
1) materials and parts
2) Capital items
3) Supplies and services
Materials and parts
include raw materials as well as manufactured materials and parts.
Raw materials
consist of farm products (wheat, cotton, livestock, fruits, vegetables)
natural products
(fish, lumber, crude petroleum, iron ore)
Manufactured materials and parts
consist of component materials (iron, yarn, cement, wires)
component parts
(small motors, tires, castings)
Capital items
are industrial products that aid in the buyer’s production or operations, including installations and accessory equipment
Installations
consist of major purchases such as buildings (factories, offices) and fixed equipment (generators, drill presses, large computer systems, elevators).
Accessory equipment
includes portable factory equipment and tools (hand tools, lift trucks) and office equipment (computers, fax machines, desks).
Have shorter lives
supplies
include operating supplies (lubricants, coal, paper, pencils) and repair and maintenance items (paint, nails, brooms).
Supplies are the convenience products of the industrial field because they are usually purchased with a minimum of effort or comparison.
In addition to tangible products and services, marketers have broadened the concept of a product to include other market offerings:
organizations, persons, places, and ideas.
Organizations
often carry out activities to “sell” the organization itself.
Organization marketing
consists of activities undertaken to create, maintain, or change the attitudes and behaviour of target consumers toward an organization.
Both profit and not-for-profit organizations practise organization marketing.
Person marketing
consists of activities undertaken to create, maintain, or change attitudes or behaviour toward particular people
Place marketing
involves activities undertaken to create, maintain, or change attitudes or behaviour toward particular places
Social marketing
using traditional business marketing concepts and tools to encourage behaviours that will create individual and societal well-being.
Marketers make product and service decisions at three levels:
individual product decisions, product line decisions, and product mix decisions
