1. Products, Services & Brands Chapter: 8 Lec: 7a

2. What is a product? Product Anything that could 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

3. Products, Services, and Experiences Product is the key element in the overall market offering -pure tangible goods e.g. soap, toothpaste, pen - pure services e.g. doctor’s exam - combination of goods and services e.g. restaurant (food + service)

4. Products, Services, and Experiences

5. Experiences -customer experience is important - becoming important with each passing day e.g. Disney, Kingfishers

6. Service

7. Levels of Product and Services Product planners need to think about products and services on three levels Each level adds more customer value 1- what is the buyer really buying? e.g. blackberry (connectivity on the go) 2- Turn the core benefit into an actual product - brand name, packaging, design, features etc. 3- Augmented product - additional consumer services and benefits

8. Levels of Product and Services

9. Brand name Quality level Core customer value Features Design Packaging Actual Product Augmented product After- Sale service Warranty Delivery and credit Product support

10. Product and Service Classifications Products and services fall into two broad categories Consumer Products Industrial Products Consumer Products A product bought by final consumer for personal consumption

11. Product and Service Classifications Convenience product A consumer product that customers usually buy frequently, immediately, and with minimum of comparison and buying effort e.g. soft drink, chewing gum 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. e.g. furniture, clothing

12. Product and Service Classifications Convenience product Shopping product

13. Product and Service Classifications 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 e.g. designer clothes, refrigerators Unsought product A consumer product that the consumer either does not know about or knows about but does not normally think of buying e.g. preplanned funeral services

14. Specialty product

15. Product and Service Classifications Industrial product A product bought by individuals and organizations for further processing or for use in conducting a business. e.g. raw materials

16. Product and Service Classifications Organizations, persons, Places, and Ideas - Organizations: non-profit, to raise funds profit, corporate image - person: celebrities e.g. Shahrukh, Imran khan - Place: e.g. Malaysia truly Asia - Ideas: e.g. what an idea sir jee e.g. social messages

17. Place Marketing

18. People Marketing

20. Product and Service Decisions Product Quality The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs - marketers major positioning tool - creating customer value and satisfaction TQM All the company’s people involved in constantly improving products quality

21. Individual product Decisions Product Attributes BrandingPackagingLabeling Product support services

22. Product and Service Decisions Product style and design style- appearance of the product design- product’s usefulness, as well as looks

23. Product and Service Decisions 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 differentiate them from those of competitors - same quality every time they’ll buy the product - legal protection

24. Brands

25. Product and Service Decisions Packaging The activities of designing and producing the container or wrapper for a product - primary function: hold the product - package becomes a promotional medium - easy to open - product safety

26. Packaging

27. Product and Service Decisions Labeling - simple tags to complex graphics - who made it, where was it made, contents, how to be used Product support services - services that augment actual product - sales, after-sale services