Product (Chapter 9, 10)
Products and Service Classifications
- A product or service bought by final consumers for personal consumption.
1. Convenience product – A consumer product or service that customers usually buy
frequently, immediately, and with minimal comparison and buying effort. (candy, fast
2. Shopping product – A consumer product or service that the customer, in the process of
selecting and purchasing, usually compares on such attributes as suitability, quality,
price and style. (furniture, clothing, used cars)
3. Specialty product – A consumer product or service with unique characteristics or brand
identification for which a significant group of buyers is willing to make a special
purchase effort. (designer clothes, photographic equipment)
4. Unsought product – A consumer product that the consumer either does not know about
or knows about but does not normally consider buying. (life insurance, donations)
- A product bought by individuals and organizations for further processing or for use in
conducting a business.
1. Material and parts – raw materials, farm products. Mostly manufactured materials and
parts are sold directly to industrial users. Price and service are the major marketing
factors; branding and advertising tend to be less important.
2. Capital items – installations and accessory equipment. Buildings, fixed equipment.
3. Supplies and services – paper, pencils, paint. Supplies are the convenience products
of the industrial field.
Organizations, Persons, Places, and Ideas:
1. Organization marketing – consists of activities undertaken to create, maintain, or change
the attitudes and behavior of target consumers toward an organization.
2. Person marketing – consists of activities undertaken to create, maintain, or change
attitudes or behavior toward particular people. (doctors, lawyers)
3. Place marketing – involves activities undertaken to create, maintain, or change attitudes
or behavior toward particular places. (I love NY)
4. 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.
Product and service decisions
Product and Service Attributes: 1. Product Quality
- Companies define quality in terms of creating customer value and satisfaction.
- Companies chooses a quality level that matches target market needs and the quality levels
of competing products.
2. Product features
- Features are competitive tools for differentiating the company’s product from competitors’
3. Product style and design
- Design begins with observing customers and developing a deep understanding of their
- Product designers should think less about product attributes and technical specifications
and more about how customers will use and benefit from the product.
- Customers attach meanings to brands and develop brand relationships. Brands have
meaning well beyond a product’s physical attributes.
- Traditionally, the primary function of the package was to hold and protect the product.
- Increased competition and clutter on retail store shelves means that packages must now
perform many sales tasks – from attracting attention, to describing the product, to making
- In making packaging decisions, the company also must heed growing environmental
- A label has to identify the product of brand, describe several things about the product, and
must help promote the brand.
Product support services:
- First, survey customers periodically to assess the value of current services and obtain ideas
for new ones.
- Then, it can take steps to fix problems and add new services that will both benefit.
Product line decisions
Product line – a group of products that are closely related
- Line is too short if the manager can increase profits by adding items; too long if the manager
can increase profits by dropping items.
- Length is influenced by company objectives and resources. - Product line filling: adding more items within the present range of the line. Overdone, if it
results in cannibalization and consumer confusion. New items must be noticeably different
from existing ones.
- Product line stretching: occurs when company lengthens its product line beyond its current
Product mix decisions
Product mix – the set of all product lines and items that a particular seller offers for sale.
- Product mix width: number of different product lines the company carries.
- Product mix length: total number of items a company carries within its product lines.
- Product mix depth: number of versions offered for each product in the line.
- Consistency of the product mix: how closely related the various product lines are in end use,
production requirements, distribution channels, or some other way.
- From time to time, a company may also have to streamline its product mix to pare out
marginally performing lines and models and to regain its focus.
The nature and characteristics of a service
1. Service Integrity
- Service cannot be seen, tasted, felt, heard, or smelled before they are bought.
- i.e people undergoing cosmetic surgery cannot see the result before the purchase.
- Buyers look for “signals” of service quality. They draw conclusions about quality from the
place, people, price, equipment, and communications that they can see.
2. Service inseparability
- Services are produced and consumed at the same time and cannot be separated from their
providers. If a service employee provides the service, then the employee become a part of
- Provider-customer interaction is a special feature of service marketing. Both the provider
and the customer affect the service outcome.
3. Service variability
- The quality of services may vary greatly