Chapter 9 – Designing a Customer-Driven Strategy and Mix
Product – anything that can be offered to a market for attention, acquisition, use, or consumption that might
satisfy a want or need.
Service – any activity or benefit that one party can offer to another that is essentially intangible and doesn’t
result in the ownership of anything.
Market offerings often consist of a combination of goods and services.
Levels of Product and Service:
Core customer value – when designing products, marketers must define the core, problem-solving
benefits or services that consumers seek.
Actual product – marketers need to develop product and service features, a design, a quality level, a
brand name, and packaging.
Augmented product – around the core benefit and actual product by offering additional consumer
services and benefits.
Product and Service Classification
CONSUMER PRODUCTS – a product bought by final consumers for personal consumption.
Convenience product – a consumer product that customers usually buy frequently,
immediately, and with a minimum of comparison and buying effort.
o Frequent purchases bought with minimal buying effort and little
o Low price
o Widespread distribution
o Readily available (placed conveniently in stores)
Shopping product – a consumer product that the customer, in the process of selection and
purchase, usually compares on such bases as suitability, quality, price, and style.
o Less frequent purchases
o More comparison effort
o Higher than convenience good pricing
o Selective distribution
o Personal selling, advertising
Specialty products – a customer product with unique characteristics or brand identification
for which a significant group of buyers is willing to make a special purchase effort.
o Strong brand preference and loyalty, requires special purchase effort, little
brand comparisons, and low price sensitivity
o High price
o Exclusive distribution
o Carefully targeted promotions
Unsought product – a consumer product that the consumer either doesn’t know about or
knows about but doesn’t normally think of buying.
o Little product awareness and knowledge (or if aware, sometimes negative
o Aggressive advertising and personal selling
1 BUSINESS PRODUCTS – a product bought by individuals and organizations for further processing or
for use in conducting a business. Based on the product purpose.
Material and parts
o Raw materials (farm products and natural products)
o Manufactured materials and parts
o Installations (buildings and fixed equipment)
o Accessory equipment (portable factory equipment and tools, and office
Supplies and services
o Supplies and repair and maintenance items
o Maintenance and repair services and business advisory services
ORGANIZATIONS, PERSONS, PLACES, AND IDEAS
Organization marketing – consists of activities undertaken to create, maintain, or change
the attitudes and behavior of target consumers toward an organization.
o Corporate image marketing
Person marketing – consists of activities undertaken to create, maintain or change
attitudes or behavior toward particular people.
o Build the reputation
Place marketing – involves activities undertaken to create, maintain, or change attitudes
or behavior toward particular places.
Social marketing – the use of commercial marketing concepts and tools in programs
designed to influence individuals’ behavior to improve their well-being and that of society.
o Public health campaigns to reduce smoking, alcoholism, drug abuse, and
o Environmental campaigns to promote wilderness protecting, clean air, and
o Family planning, human rights, and racial equality.
PRODUCT AND SERVICE DECISIONS
INDIVIDUAL PRODUCT AND SERVICE DECISIONS
Product and service Branding Packaging Labelling Product support
1. Product And Service Attributes
Product Quality – the characteristics of a product or service that bear on its ability to satisfy stated
or implied customer needs. (“Freedom from defects” or “Quality is when our customers come back
and our products don’t”)
2 Total quality management (TQM) – is an approach in which all the company’s people
are involved in constantly improving the quality of products, services, and business
Performance quality – the ability of a product to perform its functions.
Conformance quality – freedom from defects and consistency in delivering a targeted
feel of performance.
Product Features – a competitive tool for differentiating the company’s product from competitors’
The company can create higher-level models by adding more features.
Features that customers value highly in relation to costs should be added.
Product Style and Design
Styles can be eye-catching or yawn-producing.
Good design contributes to a product’s usefulness as well as to its looks. Design begins
with a deep understanding of customer needs.
Product designers should think less about product attributes and technical specifications and more about how
customers will use and benefit from the product.
Brand – a name, term, sign. Symbol, design, or a combination of these that identifies the products or
services of one seller or group of sellers and differentiates them from those of competitors.
Brand names help consumers identify products that might benefit them.
Brands also say something about product quality and consistency.
The seller’s brand name and trademark provide legal protection for unique product
features that otherwise might be copied by competitors.
Building and managing brands are the marketer’s most important tasks.
Packaging – the activities of designing and producing the container or wrapper for a product.
Attract attention, describe the product, make the sale.
Innovative packaging can give a company an advantage over competitors and boost
Label – simple tags attached to products to complex graphics that are part of the package.
Identifies the product or brand.
Describes several things about the product – who made it, where it was made, when it
was made, its contents, how it is to be used, and how to use it safely.
Promotes the brand, supports its positioning, and connect with customers.
5. Product Support Service
Survey customers periodically to assess the value of current services and to obtain ideas
for new ones.
Fix problems and add new services that will both delight customers and yield profits to