Presentation on theme: "8-1 PRODUCT 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."— Presentation transcript:
8-1 PRODUCT 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 or need. Includes: Physical Objects Services Events Persons Places Organizations Ideas Combinations of the above
8-2 What is a Service? 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: Banking Hotels Tax preparation Home repair services
8-3 Products, Services, and Experiences Pure Tangible Good Pure Service Soap Tangible Good With Accompanying Services Auto With Accompanying Repair Services Hybrid Offer Restaurant Service With Accompanying Minor Goods Airline Trip With Accompanying Snacks Doctors Exam
8-4 Levels of Product
8-5 Individual Product Decisions (Fig. 8-2)
8-6 Branding Advantages Buyers: Identification Quality and value Sellers Tells a story Provides legal protection Helps segments markets Brand Equity Higher brand loyalty Name awareness Perceived quality Strong brand associations Patents, trademarks, channel relationships
8-7 Brands and Brand Symbols Powerful brands such as these have brand equity: Coca-Cola brand - $69 billion IBM brand - $53 billion Offers defense against fierce price competition.
8-8 Packaging Designing and producing the container or wrapper for a product. Elements must support products position and marketing strategy.
8-9 Labeling Printed information appearing on or with the package. Identifies product or brand Describes several things about the product Promotes the product through attractive graphics
8-10 Product 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.
8-11 Stretching Lengthen beyond current range Product Line Length Number of Items in the Product Line Product Line Length Number of Items in the Product Line Both Directions Downward Upward Filling Lengthen within current range Product Line Decisions
8-12 Product Mix Decisions Procter & Gamble's Product Mix Baby CareBeauty CareFabric & Home Care Food & Beverage Crest Tartar Protection Crest Cavity Protection Crest Multicare Six Toothpastes in Line Health Care Width – number of different product lines Length – total number of items the company carries within product lines Depth – number of versions offered of each product in line