1. PRODUCT AND SERVICES STRATEGY

2. WHAT IS A PRODUCT? Product and Service # Pure tangible goods
# Pure services
# Tangible goods with accompanying services
# Hybrid offer
# Service with accompanying minor goods
Experiences
* Experiences are memorable
* Experiences are personal and take places in the consumer’s mind

3. Core benefit or service
Levels of products
Installation
Augmented product
Packaging
Actual product
Brand name
Core benefit or service
Feature
Core product
After-
sale
service
Delivery
and
credit
Quality level
Design
Warranty

4. PRODUCT CLASSIFICATIONS
Based on the types of consumers –
Product
Consumer product
Industrial product

5. Consumer products
Consumer products are those bought by final consumers for final consumption.
Convenience product
Shopping product
Specialty product
Unsought product

6. Marketing considerations
1. Convenience product
Marketing considerations
Customer buying behavior
Frequent purchase, little planning, little comparison or shopping effort, low customer involvement
Price
Low price
Distribution
Widespread distribution, convenient location
Promotion
Mass promotion by the producer

7. Marketing considerations
2. Shopping product
Marketing considerations
Customer buying behavior
Less frequent purchase, much planning and shopping effort, comparisons of brands on different attributes
Price
Higher price
Distribution
Selective distribution in fewer outlets
Promotion
Advertising and personal selling by producers and resellers

8. Marketing considerations
3. Specialty product
Marketing considerations
Customer buying behavior
Strong brand preference and loyalty, special purchase effort, little comparisons of brands, low price sensitivity
Price
High price
Distribution
Exclusive distribution in only one or a few outlets per market area
Promotion
More carefully targeted promotion by both producers and resellers

9. Marketing considerations
4. Unsought product
Marketing considerations
Customer buying behavior
Little product awareness, knowledge (or, if aware, little or even negative interests)
Price
Varies
Distribution
Varies
Promotion
Aggressive advertising and personal selling by producers and resellers

10. Industrial products
Industrial products are those purchased for further processing or for use in conducting a business.
Materials and parts
Capital items
Supplies and services

11. Materials and parts Capital items
Raw materials (Farm products and Natural products)
Manufactured materials and parts (component materials and component parts)
Capital items
Installations (Building and equipments)
Accessory equipments (factory equipment and office equipment)

12. 3. Supplies and services Supplies –
Operating supplies (paper, pencils)
Repair and maintenance items (paint)
Business Services --
Maintenance and repair services (computer repair)
Business advisory services (legal, advertising, management consulting)

13. Other marketable entities
Organization marketing – To create, maintain or change the attitudes and behavior of target consumers toward an organization.
Person marketing -- To create, maintain or change the attitudes and behavior of target consumers toward particular person.
Place marketing -- To create, maintain or change the attitudes and behavior of target consumers toward particular places.
Idea marketing/Social marketing – To increase the acceptability of a social idea, cause or practice within targeted groups.

14. INDIVIDUAL PRODUCT DECISIONS
Product attributes
Branding
Packaging
Labeling
Product support services

15. Product Attributes Two dimensions Product quality – Product features
Quality level/Performance quality
Quality consistency/Conformance quality
Product features
Product style and design

16. Branding
A brand is a name, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.
Brand equity is the value of a brand, based on the extent to which it has –
High brand loyalty
Name awareness
Perceived quality
Strong brand associations
Other assets such as patents, trademarks and channel relationships

17. Major branding decisions
Brand name selection
Brand sponsor
Brand strategy
Selection
Protection
Manufacturer’s brand
Private brand
Licensing
Co-branding
Line extensions
Brand extensions
Multibrands
New brands

18. Desirable qualities for a brand name –
Brand name selection
Desirable qualities for a brand name –
It should suggest something about the product’s benefit and qualities.
It should be easy to pronounce, recognize and remember.
It should be distinctive.
It should translate easily into foreign languages.
It should be capable of registration and legal protection.

19. Brand sponsor Manufacturer’s brand (national brands)
Private brand (store brand/distributor brand)
Licensing (many companies license names or symbols created by other manufactures, names of celebrities and others)
Co-branding (using the established brand names of two different companies on the same products)

20. Product category Brand name Brand strategy Existing New Line extension
Brand extension
Existing
Brand name
Multibrands
New brands
New

21. Packaging
Packaging involves designing and producing the container or wrapper for a product.
The package may include –
Primary container: The tube of toothpaste.
Secondary package: The cardboard box containing the tube of toothpaste.
Shipping package: The box carrying six dozen tubes of toothpaste.

22. Product support services
Labeling
Labels may range from simple tags attached to products to complex graphics that are part of the package.
The functions –
Identify the product or brand
Describe several things about the product
Promote the product through attractive graphics
Product support services

23. PRODUCT MIX DECISIONS
A product mix/product assortment consists of all the product lines and items that a particular seller offers for sale.
Four important dimensions –
Width- The number of different product lines the company carries.
Length- The total number of items the companies carries within its product lines.
Depth- The number of versions offered to each product in the line.
Consistency- How closely related the various product lines are in end use, production, channels or some other way.

24. Example: P & G Product line length Product mix width Tide Lava Crest
Detergents
soap
Tooth-
paste
Diapers
Paper tissue
Tide
Lava
Crest
Pampers
Puffs
Cheer
Camay
Banners
gain
Safeguard
Charmin
bold
Oil of Olay

25. SERVICE MARKETING Services by Governments:
Hospitals, military services, police & fire departments, postal services, schools.
Services by Private nonprofit organizations:
Museums, charities, colleges, hospitals.
Services by business organizations:
Airlines, banks, hotels, real estate firms, advertising agencies.

26. Nature and characteristics of a service
Intangibility
Services cannot be seen, tasted, felt, heard or smelled before purchase
Inseparability
Services cannot be separated from their providers
Services
Perishability
Services cannot be stored for later sale or use
Variability
Quality of services depends on who provides them and when where and how