What is a Product?
-anything that can be offered to a market for attention, acquisition, use or consumption that might
satisfy a want or need
-also include services, events, persons, places, ideas, organizations, etc
-give special attention to services: form of product that consists of activities, benefits, or satisfaction
offered for sale that is essentially intangible and does not result in the ownership of anything.
Products, Services, and Experiences: key in market offering
-include both tangible and non-tangible goods. On extremes: pure tangible good (i.e. soap, toothpaste)
and pure services (i.e. check-ups, airplane rides).
-now companies are focusing on the experiences rather than the product offeringpeople buy what the
product offers do for them
Organizations, Persons, Places and Ideas:
-organization marketing: consists of activities undertaken to create maintain, or change the attitudes
and behaviour of target consumers toward an organization
-businesses sponsor public relations or corporate image advertising campaigns to market and polish
-people marketing: thought of as product, consists of activities to create, maintain, or change attitudes
or behaviours toward particular people
-Place marketing: activities undertaken toward particular places.
-Ideas: all marketing is marketing for an idea.
Levels of Products and Services: consists of 4 levels, each adding more customer level
-core customer value: what is the buyer really buying?
-actual product: develop the product and service features, design, a quality level, a brand name and
-augmented product: built around the core benefit and actual product by offering additional consumer
services and benefits
Product and Service Classification: products and services fall w/i 2 classes based on customer types:
1. Consumer Product: products and services bought by final consumers for personal consumption.
-usually classify further based on how they’re bought: convenience products, shopping products,
specialty products and unsought products.
Marketing Convenience Shopping (TV, Specialty (Rolex, Unsought (life
Considerations (toothpaste) furniture) fine crystal) insurance)
Customer buying -frequent purchase -less frequent -strong brand -little awareness
behaviour -little planning purchase preference -if aware: little or -little -much -special negative interest
comparison/shopping planning/shopping purchase effort
effort effort -little
-low customer -compare price, comparison
involvement quality and style -low price
Price Low price Higher price High price Varies
Distribution Widespread, Selective, few Exclusive, one or Varies
convenient outlets a few per area
Promotion Mass promotion by Advertising and Carefully Aggressive
producer personal selling by targeted advertising and
producer and promotion by personal selling by
resellers producers and producers/resellers
2. Industrial Products: purchased for further processing or for use in conducting a business
-distinction between customer based and industrial is based on the purpose for which the product is
-3 groups of industrial products:
I. Materials and Parts: include raw materials (farm products, natural products) and manufactured
materials and parts (component materials, component parts)
-most are sold directly to industrial users, price and service are the major marketing factors
II. Capital items: industrial products that aid in the buyer’s production or operations including
installations and accessory equipment.
III. Supplies and Services: include operating supplies and repair and maintenance items.
-convenience products of the industrial field purchased with minimum of effort or comparison
Product and Service Decisions
-first level of decision making is on individual product decisions
-next is about product lines or groups of products
Individual Product and Service Decisions:
1. Product and Service Attributes: developing a product/service involves defining the benefits that
it will offer.
-benefits are delivered by:
a. Product Quality: characteristics of a product or a service that bear on its ability to satisfy
sated or implied customer needsmajor positioning tools
-direct impact on performancesatisfaction -define in terms of creating customer value and satisfaction
-total quality management (TQM): all company’s people are involved in improving the
-quality has 2 dimensions: level and consistency
-quality level: support the product’s positioning; =performance quality: ability to
-quality consistency=conformance quality: freedom from defects and consistency in
delivering a targeted level o performance
b. Product Features: higher level models are created by adding more