Chapter 9 Marketing

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Western University
Management and Organizational Studies
Management and Organizational Studies 2320A/B
Angela White

Chapter 9- Products, Services and Brands 1) What is a product 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 does not result in the ownership of anything Experiences: represent what buying the product or service will do for the customer Levels of Product and Service -Core Customer Value  What is the buyer really buying?”  Define the core, problem solving benefits or services the consumer seeks  Revlon “Factory makes cosmetics, in stores we sell hope” Actual Product:  Features, Design, a quality level, a brand name and packaging Augmented Product:  After sale service, Warranty, Installation, Delivery and Credit Product and Service Classifications - Products and services fall into two broad classes based on the types of consumers that use them- Consumer products and industrial products - Consumer Products: A product bought by a final consumer for personal consumption - Types of Consumer Products Marketing Convenience Shopping Specialty Unsought Considerations Customer Frequent Less Frequent Strong brand Little product Buying purchase, little purchase, much preference and awareness or Behavior planning planning and loyalty, special knowledge (if comparison or shopping effort, purchase effort, aware, little or shopping effort, comparison of little negative low customer brands on price, comparison of interest) involvement quality and style brands, low price sensitivity Price Low Price Higher Price High Price Varies Distribution Widespread Selective Exclusive Varies Distribution, distribution in distribution in convenient fewer outlets only one or a locations few outlets per market Promotion Mass promotion Advertising and More carefully Aggressive by the producer personal selling targeted advertising and by both promotion by personal selling producer and both producer by producer and reseller and resellers reseller Examples Toothpaste and Televisions and Rolex and Life insurance, laundry clothing Ferrari Blood donations detergent Business Products: A product purchased by individuals and organizations for further processing or for use in conducting business. -Three Groups – Materials and parts include raw materials and manufactured materials and parts usually sold directly to industrial users o Farm and natural products (Fruits and Fish) – Capital items are industrial products that aid in the buyers production or operations o Buildings, fixed equipment, accessory equipment – Supplies and services include operating supplies, repair and maintenance items, and Business services o Paper, window cleaning, legal services Organization marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward an organization -Alberta library Person marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people - Rachel Ray Place marketing consists of activities undertaken to create, maintain, or change attitudes and behaviour of target consumers toward particular places -China Tourism Social marketing (IEDA) is the use of commercial marketing concepts and tools in programs designed to influence individual’s behaviour to improve their well‐being and that of society - Public Health campaigns to reduce smoking 2) Product and Service Decisions Individual product and Service decisions Developing a product or service involves defining the benefits it will offer. These are communicated and delivered through attributes such as Quality, Features, Style and Design Product Quality: The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs. -Freedom from defects - 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 processes. -Product Quality has two dimensions - Quality Level- supporting the products positioning - Performance Level- Ability to perform its functions. -Conformance Quality: Freedom from defects and consistency in delivering a targeted level of performance. -Chevy can offer greater than Rolls Royce. Product features are a competitive tool for differentiating a product from competitor’s products -Product features are assessed based on the value to the customer versus the cost to the company Style describes the appearance of the product Design contributes to products usefulness as well as to its looks Brand is the name, term, sign, or design—or a combination of these—that identifies the maker or seller
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