Product and Service Strategy Chapter 9

Product-Service Continuum Sugar Restaurant University Education Pure Tangible Good Pure Service

What is a product? One definition of a product: A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or other unit of value A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or other unit of value Product Concept: Defines the essence, or core idea underlying the product features and benefits that appeal to the target market. Defines the essence, or core idea underlying the product features and benefits that appeal to the target market.

A Product’s Three Parts Core Product – benefit, basic features, value, service Core Product – benefit, basic features, value, service Actual Product/Primary characteristics – features, quality, design, attributes, colour, packaging (depending on product) Actual Product/Primary characteristics – features, quality, design, attributes, colour, packaging (depending on product) Augmented Product – credit, payment plans, warranties, after the sales service, delivery, packaging, etc. Augmented Product – credit, payment plans, warranties, after the sales service, delivery, packaging, etc.

Discussion Question – Page 249, #3

Types of Consumer Products Convenience: purchased frequently, immediately, and with a minimum of comparison and buying effort Convenience: purchased frequently, immediately, and with a minimum of comparison and buying effort Shopping: the consumer compares product alternatives on such bases as suitability, quality, price, and style Shopping: the consumer compares product alternatives on such bases as suitability, quality, price, and style Specialty: a product with unique characteristics or brand identification, which the consumer is willing to make a special purchase effort Specialty: a product with unique characteristics or brand identification, which the consumer is willing to make a special purchase effort Unsought: a product the consumer does not know about, or normally consider buying Unsought: a product the consumer does not know about, or normally consider buying

Product item Product line Product class Product mix Example: General Motors Product line and mixes

Line Extension As Marriott’s product extension grew in popularity, it extended the product further.

Product Mix Decisions Product mix: the set of all product lines and items that a particular seller offers for sale Width: the number of different product lines carried Width: the number of different product lines carried Length: the total number of items carried within the product lines. dry.jhtml Length: the total number of items carried within the product lines. dry.jhtml dry.jhtml dry.jhtml Depth: the number of versions offered of each product in the line scade/products/index.shtml Depth: the number of versions offered of each product in the line scade/products/index.shtml scade/products/index.shtml scade/products/index.shtml

Branding Creating, maintaining, protecting and enhancing products and services. Creating, maintaining, protecting and enhancing products and services. A brand is a name, term, sign, symbol, design or a combination of these that identifies the maker or seller of a product or service. A brand is a name, term, sign, symbol, design or a combination of these that identifies the maker or seller of a product or service.

Types of Brands Family Brands – i.e. Campbell’s, Marriott Flanker brand Co-branding Ingredient branding Cooperative branding Complementary branding Private brands

What’s Happening Wireless-Reading-Device/dp/B000FI73MA Wireless-Reading-Device/dp/B000FI73MA Wireless-Reading-Device/dp/B000FI73MA Wireless-Reading-Device/dp/B000FI73MA

Brand Name Selection It should suggest product’s benefits and qualities. It should suggest product’s benefits and qualities. It should be easy to pronounce, recognize and remember. It should be easy to pronounce, recognize and remember. It should be distinctive. It should be distinctive. It should be extendable. It should be extendable. It should translate easily into foreign languages. It should translate easily into foreign languages. It should be capable of registration and legal protection. It should be capable of registration and legal protection. Should reinforce the product concept Should reinforce the product concept

Discussion Question – page 249, #4

Packaging Containment functions Containment functions Protection in transit function Protection in transit function Storage function Storage function Usage facilitation function Usage facilitation function Promotion function Promotion function Ecological function Ecological function The heart shape bowl communicates a healthy diet

Packaging Dutch Boy recently came up with a long overdue innovation—paint in plastic containers with twist-off caps.

Labelling Printed information appearing on or with the package. Printed information appearing on or with the package. Performs several functions: Performs several functions: Identifies product or brand. Identifies product or brand. Describes several things about the product. Describes several things about the product. Promotes the product through attractive graphics. Promotes the product through attractive graphics. Legal/regulatory issues Legal/regulatory issues

What is a service? One definition of a service: Activities, deeds, or other basic intangibles offered for sale to consumers in exchange for money or something else of value. Activities, deeds, or other basic intangibles offered for sale to consumers in exchange for money or something else of value.

Characteristics of Services Intangibility Cannot be seen, tasted, felt or smelled before purchasing Variability Service quality depends on who provides and under what conditions Inseparability Production and, consumption, and from the provider Perishability Cannot be stored, for resale or later use