200083 Lecture Notes - Lecture 7: Toothpaste, Brand Equity, Rolex
CHAPTER 7 Brand, products and services (NDP): offering customer
value
7.1-Define product and main classifications of products/services
7.2-Describe the decisions companies make regarding their individual products and
services, product lines and product mixes
7.3-Identify the four characteristics that affect the marketing of a service and additional
marketing considerations that services require
7.4-Describe brand strategy that companies use to build and manage their brands
7.1-Products are anything that can be offered to the market for attention, acquisition,use or
consumption that might satisfy a want or need
Services-form of product that consists of activities, benefits, satisfaction offered for sale that is
intangible and doesn’t result in ownership of anything
Products, services, experiences
Pure tangible good-soap, toothpaste, salt
Pure services-primary a service-doctors consultation, financial services
Experiences-create value for customers-for companies marketing
e.g)Disney-long manufactured dreams and memories through movies and theme parks
businesses recasting traditional goods-e.g) Bunnings-more than picking up paint or garden
equipment. Homemakers roam through shopping carts-big enough to carry an armchair and
sipping a coffee purchased from the in store-kids at in store playground
Classification:3 types of product
Core mobile communication tour-satisfy need of communication
-ACTUAL NEED
Actual:look at style,design,features, brand name, packaging of smartphone-hd
camera,size-lightweight,battery life
New phones-meet our needs/wants
Augmented:offers additional customer services/benefits delivery and credit, product support,
after sale service, warranty
Type of products:
Consumer: convenience-buy frequently, immediately, minimal comparison
Low priced, readily available
e.g)detergent, magazines, fast food
Shopping-less frequently purchased, compare carefully on suitability, quality, price, style
Effort in decision making-
Distributed in fewer outlets
e.g)furniture, clothing, used cars, appliances, airline services
Specialty-desired features, unique characteristics, where group is willing to make a special
purchase effort
E.G) designer clothes, high branded cars,rolex
Unsought: product haven’t think about/know about -e.g )life insurance now, pre planned
financial services, blood donations to red cross
Industrial: those purchased for further processing
3 groups:
1)Materials/parts-raw materials (farm products-vegetables, wheat, cotton) + natural products
(fish, timber)
-manufactured materials- component materials (iron, cement, wire), component parts (motors,
tyres)
2)capital items-industrial products aid in buyers production/operations .
a)installations-major purchases such as buildings +fixed equipment (generators, elevators)
b)accessory equipment-portable factory equipment (hand tools) + office equipment (computers,
fans, machines)
accessory equipment have shorter life than installations and aid production process.
3)supplies/services-supplies: operating supplies (lubriants,coals,paper,pencils)
repair/maintenance items (paint,nails,brooms).
Convenience products-minimal effort/comparison
e.g)business services include maintainence/repair: window cleaning, computer repair,
+business advisory services )legal,advertising)
Organisations, persons, places, events, ideas:
Organisation: org marketing-activities to create, maintain, change attitudes of target consumers
toward an organisation
Firms sponsor corporate image advertising campaigns to market themselves
Person: Person marketing-activities designed to undertake, maintain attitudes towards particular
people
People such as politicans, entertainers use person marketing to help build reputations
Businesses, charities used well known personalities to help sell their products
e.g) coles launched pricing strategy with 70’s rock band status quo- “down, down, prices are
down”
-worked with cathy freeman to launch its sports for school program
Places: activities designed to create, maintain, change attitudes towards certain places
Tourism NZ advertises NZ as 100% pure NZ.
Australia-people remember paul Hogan-put a shrimp on barbie
7.2-Product and services decisions-PBPLP
1)Product and service attributes-benefits products offer
a)Product quality-is characteristics of product which exceed customer needs.
TQM
Two dimensions level and consistency
Level-support products positioning
Performance quality-product performs it functions
Consistency-conformance quality-freedom from defects and consistency in delivering a targeted
level of performance
b)Features -competitive tool for differentiation
c)design .style
Style-appearance-eye catching
Good design-product usefulness- think less about features, technical specifications- more about
how consumer will use product
2)Branding-
Brand-brand name,logo,symbol,sign,combo of all and include design
-important part of product-product offerings can be differentiated
consumers:brand- represent features,how reliable product
tell about quality, consistency
company: brand important-charge premium prices, better leverage extend product
categories,come up with slight extension-e.g diff flavours
seller brand name-legal protection for its product features
3)Packaging-producing. designing wrapper for product
immediate recognition of product
-poor design packaging: heaches, lost sales
Document Summary
Chapter 7 brand, products and services (ndp): offering customer value. 7. 2-describe the decisions companies make regarding their individual products and services, product lines and product mixes. 7. 3-identify the four characteristics that affect the marketing of a service and additional marketing considerations that services require. 7. 4-describe brand strategy that companies use to build and manage their brands. 7. 1-products are anything that can be offered to the market for attention, acquisition,use or consumption that might satisfy a want or need. Services-form of product that consists of activities, benefits, satisfaction offered for sale that is intangible and doesn"t result in ownership of anything. Experiences-create value for customers-for companies marketing e. g)disney-long manufactured dreams and memories through movies and theme parks businesses recasting traditional goods-e. g) bunnings-more than picking up paint or garden equipment. Homemakers roam through shopping carts-big enough to carry an armchair and sipping a coffee purchased from the in store-kids at in store playground.
