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Chapter 7 - Products and Brands
Product - a good, service, or idea consisting of a bundle of tangible and intangible attributes
tangible attributes include physical characteristics like colour, sweetness etc.
intangible attributes include aspects that can't be touched
products divided into 3 categories:
(1) Non-durable goods - item that does not last and is consumed only once, or for a
limited number of times (food products, fuel)
(2) Durable goods - item that lasts over an extended number of uses (appliances, cars)
(3) Services - intangible activities, benefits, or satisfactions offered for sale (banking,
doctor's visit, taking vacation, going to movie)
Primary service
Supplementary service - often allow services to differentiate their offerings from
competitors while adding value for consumers. Key categories include
information, delivery, consultation, order taking, billing, and payment options
services comprise of 70% of Canada's gross domestic product
Service continuum - a range from tangible goods to intangible services
The 4 I's of Service:
Intangibility - services tend to be more performance oriented and cannot be tried before they are
purchased. Marketers demonstrate the benefits of the service through movie trailers, testimonials
etc. to prove satisfaction
Inconsistency - quality of a service often inconsistent because it depends on people who provide
the service. Quality can vary with each person's capabilities, experience, motivation, and even
Inseparability - in most cases, the consumer cannot (and does not) separate the deliverer of the
service from the service itself. E.g. the quality of an institution may be high, but if the student
has difficulty interacting with certain instructors, the student may not be satisfied with the
educational experience
Inventory - issues arise due to the fluctuating demand for services throughout the day and the
difficulty in assessing the manpower needed to service these needs.
Idle production capacity refers to when the supply of the service exceeds its demand. It
is expensive when service is made available at times when there is little demand
to deal with this, the service industry uses many part-time employees who are paid hourly
to work shifts. E.g. number of cashier will vary depending on time of day
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Product Elements:
Products have 3 different layers:
1. The Core Product - the fundamental benefit that a consumer derives from having the product
2. The Actual Product - the physical good or service that a consumer receives, including brand,
designing and features
3. The Augmented Product - the additional features and attributes that accompany a product,
such as warranty, service contract, delivery options, installation services, or website
a package and its label provide purchasers with detailed information and face-to-face
communication at the time when a purchase is being made
Product line - a group of products with the same product and brand name that are
directed at the same general target market and are marketed together (E.g. different
flavours of the same Gatorade product)
contains specific product items that can be identified by their variety or size
each size identified as a separate stock keeping unit (SKU). Each SKU has its
own identification number (UPC code), scanned for inventory and pricing
Product mix - the combination of product lines offered by a company
Product width - the number of different categories offered by the company
Product depth - the variety of product offerings within a product category,
product group, or product line
The Classification of Consumer and Business Products:
Consumer products - products purchased for their own personal use by the ultimate consumer
1. Convenience products - items purchased frequently that are inexpensive and
require minimum risk and shopping effort (bread, newspaper)
2. Shopping products - items that require comparison -shopping between different
brands and require an investment of shopping time (jeans, books, TVs)
3. Specialty products - items for special occasions that require a specific brand and
considerable time and effort to purchase (Rolex watch)
4. Unsought products - unknown items or those of no interest to the purchaser
(diapers for someone who doesn`t have a baby)
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