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MGMA01H3 (184)
Chapter 9

Week 6 - Chapter 9

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University of Toronto Scarborough
Management (MGM)
Alison Jing Xu

1 P a g e M G T B 0 4 W e e k 6 Chapter 9 Products, Services, and Brands: Building Customer Value - Lululemon tries to create strong customer relationships and experiences by building and managing products and brands that connect with customers What Is A Product? - A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need (can be tangible or intangible service) - Services are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything Products, Services, and Experiences - A market offering is a product that brings value to target customers and becomes the basis upon which the company builds profitable customer relationships - Often includes both tangible goods and services but at the extremes: o Pure tangible good consists of only a tangible good (e.g. soap, salt) o Pure services the offer consists primarily of a service (e.g. doctor exam) - To differentiate their offers beyond simply making products and delivering services, companies market experiences where they realize that customers are really buying much more than just products and services (e.g. Disney advertises using dreams and memories) Levels of Product and Services - Product planners need to think about products and services on three levels where each level adds more customer value: o Core customer value 489-,8L.O0;0O,708808:K,9L89K0-:0770,OO-:L3J The problem-solving benefits or services that consumers seek J O,.N0778,70349M:89.0OO5K4308people are buying freedom o Actual product Turn core benefit into actual product Develop product and service features, a design, a quality level, a brand name, and packaging o Augmented product Offering additional consumer services and benefits around the core benefit and actual product E.g. warranty on parts, instructions on how to use the device - Marketers first need to identify the core customer value that consumers seek from the product, they then design the actual product and find ways to augment it to create customer value and the most satisfying customer experience 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 o Consumer products are products and services bought by final consumers for personal consumption o Marketers classify these products based on how consumer go about buying them Convenience products www.notesolution.com
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