1-3 After studying this chapter you should be able to: Understand the differences between goods and services. Differentiate between consumer and business products, and discuss the different types of each. Recognize that marketers need to appreciate the perspective of the consumer.
1-4 Define and discuss the importance of product quality, product design, branding, packaging, and customer service. Explain how the different product components need to be integrated to meet the needs of customers. After studying this chapter you should be able to:
1-5 What Is a Product? Product: An idea, a physical entity (a good), a service, or any combination of the three that is an element of exchange to satisfy individual or business objectives.
1-6 Types of Products Goods: Physical products with form and substance Services: Non-physical products usually involving performance Consumer Products: Those used by consumers for their own use and satisfaction. Business Products: Those used in the running of a business or in the manufacture of products for resale.
1-8 Product Differentiation Product Differentiation: Exists when a firms offerings differ or are perceived to differ from those of competing firms on any attribute, including price. Product Differentiation: Exists when a firms offerings differ or are perceived to differ from those of competing firms on any attribute, including price.
1-10 Characteristics and Strategies for Services Service CharacteristicService Strategy IntangibleAssociate service with something tangible PerishableManage demand to utilize supply InseparableCapitalize advantages of person providing service VariableStandardize service delivery as much as possible
1-11 Consumer and Business Products Consumer Products: Products that are purchased by consumers for their own personal use. Business Products: Products purchased by a firm or organization for its own use.
1-14 Types of Business Products Capital Products Production Products Operational Products
1-15 Product Components Product Components Product Features Quality Design Branding Packaging Service Features Purchase services Usage services
1-16 Branding Brand: A name, term, sign, symbol, design, or combination that a uses to identify its products and differentiate them from those of competitors. Brand Name: The element of a brand that can be vocalized: IBM Tide Snickers Diet Coke
1-17 Branding Brand Mark: The element of a brand that cannot be vocalized: MGM Lion The Buick symbol The Nike Swoosh Trademark: A brand or part of a brand that is registered with the U.S. Patent and Trademark Office.
1-21 Keys to Choosing A Brand Name Is easy to pronounce, recognize, and remember. Is distinctive in some way. Can be translated into other languages.
1-22 Packaging Label: A printed description of the product on the package. Package: The container or wrapper for a product.
1-23 Functions of Packaging Protecting the product until consumed. Storing the product until consumed. Facilitating consumption of the product. Promoting the product. Facilitating disposal of the product. Protecting the product until consumed. Storing the product until consumed. Facilitating consumption of the product. Promoting the product. Facilitating disposal of the product.
1-24 Customer Service Customer Service: Describes the assistance provided to help a customer with the purchase or use of a product. Important Elements of Customer Service: Providing information about product alternatives. Training in product use. Credit and financing services.