Products, Services, and Brands Flashcards
What is a product? Starbucks
Starbucks is one of the planets best known brands, they sell premium coffee products, it sells the “Starbucks experience”.
What is a product?
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
Products include:
Tangible objects, services, events, persons, places, organizations, ideas.
What is a Service?
Given special attention as they are very important to the world economy. A form of product that consists of activities, benefits, or satisfaction offered sale that are essentially intangible.
Examples:
Banking, hotel stays, Arline travel, wireless communication, home repair
What is the key element in Market Offering
Products are a key element
Where does marketing mix begin?
Planning begins with building an offering that brings value to target customers
How are companies moving to a new level of creating value for their customers?
They are creating and managing “customer experiences” with their brands, they are differentiating themselves by going beyond just the product and service.
Example of Buffalo Wild Wings
Doesn’t just serve up wings and beer they give customer the ultimate “Wings.Beer.Sports.” fan experience. (social, dining, sports experience) now the NUMBER ONE seller of chicken wings and the largest pourer of draft beer
Three levels of products
Customer Value(core), Actual Product, Augmented Product (outer level)
Customer Value Circle
Addresses “what is the buyer really buying” and define the problem solving benefits, service or experiences that customers seek
Actual Product Circle
Turning benefits into a product. Develop product. = features, design, quality level, brand name and packaging.
Augmented Product Circle
built around the core benefits and actual product by offering additional customer services and benefits. = delivery and credit, warranty
Harley Davidson Appeals
Freedom, Independence, Power, Authenticity. “its all about the experience”
Product and Service Classifications
Fall into two broad classes based on the types of consumers who use them.
1. Consumer Products 2. Industrial Product
Consumer Products
Products and services bought by final customers for personal consumption. Convenience products, shopping, specialty, unsought.
Industrial Products
purchased for further processing or for use in conducting a business. Materials and parts, capital items, supplies and services
Marketers make product and service decisions at three levels:
Individual Product Decisions
Product Line Decisions
Product Mix Decisions
Individual product decisions
Made in the development and marketing of individual products and services, focus on efforts to create core customer value such as product attributes, branding, packaging, labeling and logos, product support service
What is one of the marketers major positioning tools?
Product Quality (service attributes)
Two ways companies can approach product quality offers
Total Quality Management (TQM), all are involved in constantly improving the quality of products
Return on Quality (ROQ), quality is an investment and holding quality efforts accountable for results
Product Quality has two dimensions:
Level and Consistency
-quality level that supports products positioning
-Consistency in delivering targeted level of performance
Most distinctive skill of professional marketers
BRANDING. build and manage brands. Brand is a name, term, sign, symbol, or design that identifies the maker or seller
Does branding help the seller or buyer?
BOTH!! Buyers know what they like and dislike and what they’re getting. Sellers segment their markets and help become known and advertise
Packaging
Packaging has become an important marketing tool. Before, products needed packaging for protection and now it is used to look pretty, and show off on social media and help with brand advertising. Good packaging = Good sales
Example of Poor Packaging causing loss of sales (environmental and safety play a part in packaging)
TIDE PODS…Kids accidentally eating them but they’re toxic. they had to find a lid to help protect from children.
Brands that don’t have their names on the logo
Apple, Audi,Twitter, Nike, Airbnb
Federal Trade Act of 1914
False misleading, deceptive labels constitute unfair competition. They have regulated labeling.
Fair and Labeling Act of 1966
Sets mandatory labeling requirements, encouraged voluntary industry packaging standards, and allowed federal agencies to set regulations in specific industries
Nutritional Labeling and Education Act of 1990
requires sellers to provide detailed nutritional information on food products
FDA regulations
regulates the use of health related terms such as low fat, light, high fiber, and organic
Product Support Services
The first step in designing support services is to survey customers periodically to assess the value of current services and obtain ideas for new ones.
The company can then take steps to fix the issues and add services that will delight customers and yield profits for the company.
Many companies are now using a mix of phone, email, online, social media, mobile and interactive voice and data technologies to provide support services that were not possible before.
Example of Product Support Services
Lowes
They gave employees phones that have access to custom apps, check inventory, specific customer history, how-to-videos, competitor prices…. ALL without leaving the customers side
Product Line Decisions
is a group of products that are closely related because they function in a similar manner, are sold to the same customer group, are marketed through the same types of outlets, or fall within given price ranges.
Product Line Length
this is the number of products in a product line.
A company can expand product line in two ways
Line filling which involves adding more items within the present range of the line and Product Line Stretching which can add prestige to their current product line.
Product Mix Decisions
An organization with several product lines has a product mix or product portfolio. Example: Colgate.
Toothbrushes, Toothpaste, Mouth Wash, Floss
Product Mix Decisions 4 dimensions
Width, Length, Depth, Consistency
