Chapter 9 Marketing.docx

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17 Apr 2012

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Chapter 9 Products Services and Brands (page 276 302)
Learning Objectives:
1. Define Product and the major Classifications of products and services
2. Describe the decisions companies make regarding their individual products and services,
product lines, and product mixes
3. Discuss branding strategy the decisions companies make in building and managing
their brands
4. Identify the four characteristics that affect the marketing of a service and the additional
marketing considerations that services require
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
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 such as soap toothpaste, or salt
o Pure services consists primarily of a service (e.g. doctor exam, financial advice)
Levels of Product and Services
Product planners need to think about products and services on three levels: core
customer value, actual product, and an augmented product
o Core customer value: Address the question “What is the buyer really buying?”
(i.e. Blackberry smartphone sells more than a cellphone, it sells freedom and on-
the-go connectivity)
o Actual product: product planners turn the core benefit into actual product (i.e.
developing the name, parts, styling, features, and packaging)
o Augmented Product: offering additional consumer services and benefits around
the core benefit and actual product (i.e. warranty, delivery, installation)
When developing products, marketers first must identify the core customer value that
consumers seek from the product; they must then design the actual product and find
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ways to augment it to create this customer value and the most satisfying customer
Product and Service Classification
Products and services fall into two broad classes based on the types of consumers that use
them consumer products and industrial products
Consumer Products
Consumer product: a product bought by consumers for personal consumption (i.e.
convenience products, shopping products, specialty products, and unsought products)
o Convenience products a consumer product that customers usually buy
frequently, immediately, and with a minimum of comparison and buying effort,
usually low priced and placed in many locations (i.e. candy)
o 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, distributed in a few outlets (i.e. furniture)
o Specialty product a consumer product with unique characteristics or brand
identification for which a significant group of buyers is willing to make a special
purchase effort (i.e. Lamborghini)
o Unsought product a consumer product that the consumer either does not
know about or knows about but does not normally think of buying, due to their
nature, requires a lot of advertising, personal selling and other market efforts
(i.e. life insurance, blood donations)
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
o Branding helps buyers by identifying products that might benefit them and says
something about the product quality and consistency (i.e. if same brand is
bought frequently, expectations of the same features, benefits, and quality each
time they are bought)
o Branding helps sellers by becoming the basis on which a whole story can be built
about a product’s special qualities.
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