Week 5 Flashcards
Product
A productas anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or a need Products are more than just tangible objects
Products also include
– Services – Events – Personal – Places – Organisations – Ideas
Services
A service is an activity, benefit or satisfaction offered for sale that is essentially intangibleand does not result in the ownership of anything.
Market offerings
Products are key elements in the overall market offering.
Market offerings often include bothtangible goods and services.
Pure tangible goods
•Little or no service accompany the product
Example: soap, toothpaste etc
Pure services
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All service –no or little product accompany the service
Example: doctors consultation
Creating & Manage Experiences
- A new level of in creating value for customers
* Tapping into what the offer will “do”for the customer
Three levels of products
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At the most basic level, the company asks,
“what is the customer really buying?”
Example: people who are buying be HTC one smart phone are buying more than a wireless communication device. They are buying freedom and on the go, activity. Each additional product level helps to build this core value
Broad product classification
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Types of Consumer Products
Consumer products are products and services bought by final consumers for personal consumption.
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Marketers usually classify these products and services further based on how consumers go about buying them:
Types of Consumer Products
Consumer products are products and services bought by final consumers for personal consumption.
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Marketers usually classify these products and
– Convenience goods – Shopping goods – Specialty goods – Unsought goods
Broad Product Classification
Types of consumer products
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Other types of products
Marketers have broadened the concept of a product to include other market offerings:
• Organisations • Persons • Places • Events and experiences • Ideas
Organisations
Organisations often carry out activities to ‘sell’ the organisation itself.
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Organisation marketing consists of activities undertaken to create, maintain or change the attitudes and behaviour of target consumers towards an organisation.
Person marketing
Person marketing consists of activities undertaken to create, maintain or change attitudes or behaviour towards particular people
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Businesses, charities and other organisations usewell-known personalities to help sell their products or causes
Place marketing
Place marketing involves activities undertaken to create, maintain or change attitudes or behaviour towards particular places.
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Cities, states, regions and even entire nations compete to attract tourists, new residents, conventions, company offices and factories.
Ideas MarketingIdeas Marketing
Ideas can also be marketed. In one sense, all marketing is the marketing of an idea.
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A more narrow focus to ideas marketing is social marketing
Social marketing
The use of commercial marketing concepts and tools to ‘influence behaviours that benefit individuals and communities for the greater social good’
Product Decisions
Individual product decisions
Product mix decisions
Product line decisions
Individual Product Decisions
The focus of all these decisions is to create core customer value:
Product attributes
Branding
Packaging
Labelling
Product support services
Product & Service Attributes
Quality
Features
Style & Design
Product Quality
The characteristics of a product or service that has the ability to satisfy stated or implied customer needs.
One of the main positioning tools
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Quality has a direct impact on product performance
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It is closely linked to customer value and satisfaction.
Product Features
Features are one of the competitive tools used for differentiating the company’s product from competitor products. Companies will survey buyers to identify new features and decide which ones to add to its product.
Product Style & Design
Style describes the appearance of a product
Design contributes to a product’s usefulness as well as its look
TQM)
Total quality management (TQM) –constantly improving the quality of products, services and business process
Style
Style describes the appearance of a product. It can be:
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‘eye-catching’ or ‘yawn-producing’.
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grab attention and produce pleasing aesthetics
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BUT, style does not necessarily make the product perform better.
Design
Design is more than skin deep –it goes to the very heart of a product.
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Good design contributes to a product’s usefulness as well as to its looks.
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Design is a larger concept than style
Branding
A name, term, sign, symbol, design, or a combination that identifies the product or service and differentiates it from competitors
Brand
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is viewed as an important part of the product
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can add value to a product
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customers attach meanings to brands, and develop brand relationships
Packaging
Packaging involves designing and producing the container or wrapper for a product Importance of packaging: • Attracting attention • Describing the product • Helping make the sale • Part of a brand’s identity
Poorly designed packaging
Can cause frustration for customers and lost sales for companies
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“Wrap-rage” is the frustration we all feel when were trying to free a product from nearly impenetrable packaging
Well designed packaging
Functional and provides value.
Labelling
Labels range from simple tags attached to products to complex graphics that are part of the package.
Importance of labels
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Identifies the product or brand
• Describe several things about the product – who made it – where it was made – when it was made – its contents – how it is to be used – how to recycle safely
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Help to promote the brand, support its positioning and connect with customers
Labelling concerns:
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Fail to describe important ingredients
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Fail to include needed safety warnings.
As a result, several federal and state laws regulate labelling.
Product support services
A company’s offer usually includes some support services, which can be a minor or a major part of the total offering.
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Support services are an important part of the customer’s overall brand experience.
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It can augment the actual product
Product line
A product line is a group of products that are closely related because they • function in a similar manner • are sold to the same customer groups • are marketed through the same types of outlets, or • fall within a given price range.
Product line decisions include:
Lengthening the line
Expanding the line
Lengthening the line
Key product line decision is length(the number of products in the product line)
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If the line is too short, then you can add items
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If the line is too long, you can remove items
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Marketers analyse their product lines periodically to assess each item’s contribution to the organisation’s performance
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Length is influenced by the company objectivesand resources
Expanding the line
Product line filling:
Product line stretching:
Product line filling:
Product line filling is adding more items within the current line. • It can assist in: – achieving extra profit – Satisfies intermediaries – Using excess capacity – Improving competitive position • blocking competitors or • being seen to be the leading full-line company
Product line stretching:
Product line stretching is where a company can stretch its line downward, upward or both ways.
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Product Mix
A product mix (or product portfolio) consists of all the product lines and items that a particular seller offers for sale.
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An organisation with several product lines has a product mix.
Four (4) product mix dimensions
Depth
Consistency
Width
Length
