Presentation on theme: "What is a Product? A PRODUCT is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want."— Presentation transcript:
1What is a Product? A PRODUCT is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. Includes:Physical ObjectsServicesEventsPersonsPlacesOrganizationsIdeasCombinations of the above
2What is a Service?A SERVICE is a form of product that consist of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.Examples include:BankingHotelsTax preparationHome repair services
3Products, Services, and Experiences Service With Accompanying Minor GoodsTangible Good With Accompanying ServicesPure Tangible GoodHybrid OfferPure ServiceAuto With Accompanying Repair ServicesAirline Trip With Accompanying SnacksSoapRestaurantDoctor’s ExamThe Product-Service Continuum
7Brands and Brand Symbols Powerful brands such as these have brand equity:Coca-Cola brand - $69 billionIBM brand - $53 billionOffers defense against fierce price competition.
8PackagingDesigning and producing the container or wrapper for a product.Elements must support product’s position and marketing strategy.
9Labeling Printed information appearing on or with the package. Identifies product or brandDescribes several things about the productPromotes the product through attractive graphics
10Product Support Services Companies use product support services as a major tool in gaining competitive advantage.How?Step 1. Survey customers.Step 2. Assess costs.Step 3. Develop a package of services to delight customers and yield profits.
11Product Line Decisions Product Line LengthNumber of Items in the Product LineStretchingLengthen beyond current rangeFillingLengthen within current rangeBoth DirectionsDownwardUpward
12Procter & Gamble's Product Mix Product Mix DecisionsProcter & Gamble's Product MixBaby CareBeauty CareFabric & HomeFood &Health CareCareBeverageWidth – number of different product linesLength – total number of items the company carries within product linesDepth – number of versions offered of each product in lineSix Toothpastesin LineCrest MulticareCrest CavityProtectionCrest TartarProtection