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Lecture 4: Faheem Azam

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What Is a Product?

Products are:

Anything that can be offered to a

market for attention, acquisition,use, or consumption and that

might satisfy a want or need.

Includes physical objects, services,

events, persons, places,

organizations, ideas, or some

combination thereof.

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What Is a Service?

Services are:

Any activity or benefit that one party

can offer to another that is

essentially intangible and does not

result in the ownership of anything.

E.g., banking, hotel, airline, retail,tax preparation, home repairs.

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Levels of Product

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Product and Service

Classification

Industrial products:Those purchased for further processing

or for use in conducting business

Distinction between consumer andindustrial products is based on thepurpose for which an item is bought.

Consumer products: Products and services bought by final

consumers for personal consumption Also included are other marketable

entities Classified by how consumers buy them

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Types of Consumer

Goods

Convenience goods:

Purchased frequently and

immediately with little comparison

shopping

Low priced

Widespread distribution with manyconvenient locations

E.g., candy, soda, newspapers

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Types of Consumer

Goods

Shopping products:

Bought less frequently, more planning and

effort, brand comparisons on basis ofprice, quality, style

Higher price

Selective distribution in fewer purchase

locations Advertising and personal selling is

undertaken by both producer and reseller

E.g. clothing, appliances

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Specialty products:

Strong brand preference and loyalty,

special purchasing effort High price

Exclusive distribution in only one or afew outlets per market area

Carefully targeted promotion by bothproducer and reseller

E.g.,Cars, Furnitures

Types of Consumer

Goods

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Unsought products:

Little product awareness or knowledge of

the brand, sometimes negative interest Pricing strategies vary

Distribution strategies vary

Require aggressive advertising and

personal selling by both producer andresellers

E.g., life insurance, cemetery plots, blooddonation

Types of Consumer

Goods

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Materials and parts:

Raw materials, manufactured

materials, and parts Capital items:

Products that aid in buyersproduction or operations

Supplies and services:

Operating supplies, maintenance,and repair items

Types of Industrial

Goods

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Organization: Profit (businesses) and nonprofit (schools and

churches) Person:

Politicians, entertainers, sports figures, doctors,and lawyers Place:

Create, maintain, or change attitudes orbehavior toward particular places (e.g., tourism)

Ideas (social marketing): Public health campaigns, environmental

campaigns, family planning, or human rights

Other Market Offerings

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Product attributes

Branding

Packaging

Labeling

Product support services

Individual Product

Decisions

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Product quality dimensions:

Performance quality

Conformance quality Product feature considerations:

Value to consumer

Cost to company

Product style and design:

How will it influence the userexperience?

Product and Service

Attributes

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Branding

Branding involves building andmanaging brands.

A brand: Is a name, term, sign, symbol, or

design, or a combination of these,that identifies the products orservices of one seller or group ofsellers and differentiates them fromthose of competitors.

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Branding

Advantages to buyers:

Helps identify products

Cue to product quality andconsistency

Advantages to sellers:

Basis for products quality story

Provides legal protection

Helps to segment markets

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Packaging

Packaging:

Involves designing and producing the

container or wrapper for a product Ideally, good packages should:

Help to market the brand

Protect the contents

Provide convenience and ease of use

Ensure product and user/child safety

Address environmental concerns

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Labeling

Labeling refers to 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

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Product Support

Services

Monitoring of support services is key:

Talk with customers to assess the value

and quality of current services and toobtain ideas for new services.

Fix problems and put together apackage of new services that delights

the customers and yields profits for thecompany.

New technologies can often enhancemany support service offerings.

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Product Line Decisions

Product line: A group of products that are closely related

because they function in a similar manner, aresold to the same customer groups, are marketedthrough the same types of outlets, or fall withingiven price ranges.

Product line length: The number of items in a product line

Adjust line length by:

Filling Stretching

Downward, upward, or in both directions

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Product Mix Decisions

Product mix:The set of all of the product lines and

items that a particular seller offers for

sale. Product mix dimensions include:

Length: the number of items in a line. Width: the number of different product

lines the company carries. Depth: the number of versions offered of

each product in the line. Consistency: how closely related

various lines are.

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