Objectives Definition
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1 Pod Product, Servces, and ng Strateges Chapter 9 Objectves Be able to defne product and dk know the major classfcatons of products and servces. Understand the decsons companes make regardng ther ndvdual products and servces, product lnes, and product mxes. Understand d how frms buld and manage ther brands. 9-1 Objectves Know the four characterstcs of servces and the addtonal marketng consderatons that servces requre. Revew addtonal product ssues related to socal responsblty and nternatonal t marketng. Product Defnton Anythng offered to a market for attenton, acquston, consumpton or use that mght satsfy a need or want
2 Defnton What s a Product? Servce Any actvty or beneft that one party can offer to another that s essentally ntangble and does not result n the ownershp of anythng. Products, Servces, & Experences Market offerngs, pure tangble goods, pure servces, experences Experences nclude zoos and aquarums Fgure 9-1: Three Levels of Product What s a Product? Product and servce classfcatons fall nto two broad classes based on the types of buyers who use them: Consumer products Industral products
3 What s a Product? What s a Product? Types of Consumer Products Convenence Shoppng Specalty Unsought Frequent purchases bought wth mnmal buyng effort and lttle comparson shoppng Low prce Wdespread d dstrbuton Mass promoton by yp producer Types of Consumer Products Convenence Shoppng Specalty Unsought Less frequent purchases requrng more shoppng effort and prce, qualty, and style comparsons. Hgher prced than convenence goods Selectve dstrbuton b t n fewer outlets Advertsng and personal sellng by producer and reseller What s a Product? What s a Product? Types of Consumer Products Convenence Shoppng Specalty Unsought Strong brand preference and loyalty, requres specal purchase effort, lttle brand comparsons, and low prce senstvty Hgh prce Exclusve dstrbuton Carefully targeted promoton by producers and resellers Types of Consumer Products Convenence Shoppng Specalty Unsought Lttle product awareness and knowledge (or f aware, sometmes negatve nterest) Prcng vares Dstrbuton vares Aggressve advertsng and personal sellng by producers and resellers
4 What s a Product? Product and Servce Classfcatons Industral products are those purchased for use n conductng a busness or those purchased as ngredents or components to be used n manufacturng. Materals and parts Captal tems Supples and servces 9-15 What s a Product? Product and Servce Classfcatons Products also nclude organzatons, persons, places, and deas Organzatonal marketng makes use of corporate mage advertsng Person marketng apples to poltcal canddates, entertanment sports fgures, and professonals Place marketng relates to toursm Socal marketng campagns promote deas 9-17 Product & Servce Decsons Product attrbutes Product attrbutes Indvdual Product Product Lne Product Mx Qualty, features, style and desgn ng Packagng g Labelng Product support servces Fgure 9-2: Indvdual Product and Servce Decsons s
5 Product & Servce Decsons Product & Servce Decsons Innovatve product desgn can help revtalze a company, such as wth the Apple Mac. : A name, term, sgn, symbol, desgn, or a combnaton of these, that dentfes the maker or sellers of a product or servce Product & Servce Decsons Product & Servce Decsons Packagng nvolves desgnng a contaner or wrapper for a product Many aspects of a food product s label are dctated by law
6 Product & Servce Decsons Product & Servce Decsons Support servces va the web nclude FAQ fles, emal queres, lve chat wth customer servce personnel, and software updates Indvdual Product Product Lne Product Mx Product lne length Lne stretchng: addng products that are hgher or lower prced than the exstng lne Lne fllng: addng more tems wthn the present prce range Flowers Product & Servce Decsons ng Strategy Indvdual Product Product Lne Product Mx Product lne wdth: Number of dfferent product lnes carred by company Product lne depth: Number of dfferent versons of each product n the lne Product lne consstency s are powerful assets that must be carefully developed and managed. Both Tger Woods and Nke can be consdered d brands
7 ng Strategy s wth strong equty have many compettve advantages: Hgh consumer awareness Strong brand loyalty lt Helps when ntroducng new products Less susceptble to prce competton Fgure 9-3: Major Strategy Decsons s Strategy Strategy Three levels of postonng: Three levels of Postonng Name Selecton Sponsorshp Product attrbutes Least effectve Benefts Belefs and values Taps nto emotons Postonng Name Selecton Sponsorshp Good Names: Suggest somethng about the product or ts benefts Are easy to say, recognze and remember Are dstnctve Are extendable Translate well nto other languages Can be regstered and legally protected
8 Strategy Strategy Postonng Name Selecton Sponsorshp Manufacturer brands Postonng Name Selecton Sponsorshp Prvate (store) brands Costly to establsh and promote Hgher proft margns Strategy Strategy Postonng Name Selecton Sponsorshp Lcensed brands Name and character lcensng has grown Postonng Name Selecton Sponsorshp Co-brandng Advantages Broader consumer appeal Greater brand equty Effcent means of expanson nto new product categores Lmtatons Complex legal contracts Requres careful coordnaton of IMC Requres that partners trust one another q p
9 Strategy Postonng Name Selecton Sponsorshp Lne extensons Mnor changes to exstng products extensons Successful brand names help ntroduce new products Multbrands Multple product entres n a product category New brands New product category Fgure 9-4: Strateges es Strategy Lne Extensons May Feature Dfferent Thngs Flavors Colors Forms Package Szes Ingredents Servces Marketng Servces Account for 74% of U.S. gross domestc product. Servce ndustres nclude busness organzatons, government, and prvate not-for-proft organzatons
10 Fgure 9-5: Four Servces Characterstcs ac cs Fgure 9-6: Three Types of Marketng n Servces Industres Servces Marketng Servce Frm Marketng Strateges The Servce-Proft Chan Internal Marketng: servce frms tran and effectvely motvate ther employees to work as a team to satsfy the customer Interactve Marketng: recognzes that servce qualty depends heavly on the qualty of buyer-seller nteracton Servces Marketng Servce Frm Marketng Strateges Managng Servce Dfferentaton Brtsh Arways dfferentates ts servce by offerng frst-class world travelers prvate dem-cabns
11 Servces Marketng Servce Frm Marketng Strateges Managng Servce Qualty One method of dfferentaton Customer retenton s often the best measure Top servce frms are customer obsessed Servce recovery and employment empowerment are key Managng Servce Productvty t Many methods of enhancng productvty Key s to avod reducng qualty Addtonal Product Consderatons Product Decsons and Socal Responsblty Acqustons and mergers Legal complance Product lablty ssues Warrantes Addtonal Product Consderatons Internatonal Product and Servces Marketng Specal challenges: Whch products should be marketed nternatonally? t Should the products be standardzed or adapted for world markets? How should packagng be adapted? How can other barrers be overcome? 9-50
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