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Wh
d t?
Whatt iis a P
Product?
A PRODUCT is anything that can be offered to a
market for attention, acquisition, use, or consumption
and that might satisfy a want or need.
Includes:
Physical Objects
S i
Services
Events
Persons
Places
Organisations
Ideas
Combinations of the above
3
Wh
i ?
Whatt iis a S
Service?
A SERVICE is a form of product that consist
of activities, benefits, or satisfactions offered
for sale that are essentially intangible and do
not result in the ownership of anything.
E
Examples
l iinclude:
l d
Banking
Hotels
Tax preparation
Home repair services
4
G d S
Goods,
Services,
i
and
dE
Experiences
i
Tangible Good
Pure
With
Tangible
g
Accompanying
Good
Services
Soap
Hybrid
Offer
Service
S
i
With
Accompanying
p y g
Minor Goods
Pure
Service
Auto With
Airline Trip
Accompanying Restaurant
With
Doctors
Repair
Accompanying Exam
Services
Snacks
Nature
atu e a
and
dC
Characteristic
a acte st c o
of a
Service
L
Levels
l off P
Product
d t
P d
Cl
ifi i
C
Product
Classifications:
Consumer
Convenience Products
Buy frequently & immediately
Shopping Products
Buy less frequently
Low
L
priced
i d
Mass advertising
Many purchase locations
i.e Candy, newspapers
Higher
Hi h price
i
Fewer purchase locations
Comparison shop
g, cars,, appliances
pp
i.e Clothing,
Specialty Products
Unsought Products
New innovations
High price
Unique characteristics
Brand identification
Few purchase locations
i.e Lamborghini, Rolex
What
these
at do you think
t
t ese
products are?
A pair of shoes
Toilet paper
KFC Chicken Burger
Mobile phone
Iced black coffee
Sofa
S k detector
Smoke
d
Gucci sunglasses
R fi
Refrigerator
t
10
C it l Items
Capital
It
Operating supplies,
supplies repair/
maintenance items
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Product
oduct Classifications:
C ass cat o s
Other Marketable Entities
Activities undertaken to create, maintain, or change the attitudes
g
and behaviour toward the following:
Organisations - Profit (businesses) and non profit (schools and
churches).
Persons Politicians, entertainers, sports figures, doctors, and
lawyers.
Places - Business sites, new residents, and tourism.
Ideas (social ideas marketing) Public health campaigns
campaigns,
environmental campaigns, and others such as family planning, or
human rights.
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I di id l Product
Individual
P d t Decisions
D i i
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P d t Attributes
Product
Att ib t
Developing a Product or Service Involves Defining
the Benefits that it Will Offer Such as:
Product Quality
Product Features
Product Style
& Design
Branding
What is a g
good brand?
15
B di
Branding
16
B di
Branding
Advantages to
Branding
g
Buyers:
Identification
Quality
Q lit and
d value
l
Sellers
Tells a story
y
Provides legal protection
Helps segments
markets
Brand Equity
Higher
g
brand loyalty
y y
Name awareness
Perceived quality
Strong brand
associations
Patents,
Patents trademarks,
trademarks
channel relationships
17
B
Brands
d and
d Brand
B
d Symbols
S b l
Powerful brands such
as these have brand
equity:
Eg. Coca-Cola brand $69 billion
Offers defense
against
i t fi
fierce price
i
competition.
18
M j B
Major
Branding
di D
Decisions
i i
19
B
Benefits
fit off Branding
B di
Branding
distinguishes
products from
competition
Product
Identification
New Product
Sales
Repeat Sales
20
A Effective
An
Eff ti Brand
B d Name
N
Is easy to pronounce
Is easy to recognize and remember
Is short, distinctive, and unique
Describes the product
product, use
use, and
benefits
Has a positive connotation
Reinforces the product image
g yp
protectable
Is legally
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M t Brands
Master
B d
Photocopy
Zerox
Mobile phone
Nokia
Internet Search
Computer
Car
Airline
Google
Dell
BMW
Air Asia
Television
Sony
Fast food
McDonald
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B di St
Branding
Strategies
t i
Brand
Manufacturers
B
Brand
d
Individual
Brand
Family
Brand
Combination
No Brand
Private Brand
Individual Family
Brand
Brand
Combination
23
B di St
Branding
Strategies
t i
24
Brand
d Name
e
Existing
New
New
Line Extension
Vinamilk Yogurt
Yog t Flavours
Fla o s
Brand Extension
B bi Electronics
Barbie
El t i
Multibrands
M
ltib d
Toyota and Lexus
New Brands
25
B
d St
t
Brand
Strategy
Li E
Line
Extension
t
i
Existing brand names extended to new forms, sizes,
and flavours of an existing
gp
product category.
g y
Brand Extension
Existing brand names extended to new or modified
product
d t categories.
t
i
Multibrands
New brand names introduced in the same product
category.
New Brands
New brand names in new product categories.
26
Coke
Classic Coke
Vanilla Coke
Cherry Coke
Diet Coke
Diet Coke with Lime
Diet Coke Decaffeinated
Coke Zero
List some of the issues these line extensions raise for the
manufacturers, retailers, and consumers.
27
P
k i
Packaging
Designing and producing the
container or wrapper for a
product.
product
Steps in developing a good
package:
Packaging concept,
Develop specific elements of the
package,
Elements must support products
position
iti and
d marketing
k ti strategy.
t t
28
29
30
L
b li
Labeling
Printed information
appearing on or with the
package.
Performs several functions:
Identifies product or brand
Describes several things
about the product
Promotes the product
through attractive graphics
31
P d t Support
Product
S
t Services
S i
Companies use product support services as a major
tool in gaining competitive advantage.
How?
Step 1. Survey customers to assess the value of
current services and
d to obtain
b
ideas
d
for
f new
services.
St 2
Step
2. Assess costs of providing desired services.
services
Step 3. Develop a package of services to delight
customers and yield profits to the company
company.
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Managing
g g Service Quality
y
Empower front-line employees,
Become Customer obsessed,
Set high service quality
standards,
Watch service performance
closely.
Managing Service
Productivity
Train current or new
employees better,
Work on q
quality
y as well
as quantity,
Utilize technology
Well-designed Web site
33
Growth
stage
Maturity
stage
Decline
stage
Product
category
sales
Product
category
profits
Time
34
Introductory stage
Full-scale launch of new products
Growth stage
Second stage
Increasing rate of sales
Entrance of competitors
Initial healthy profits
Promotion
P
ti
emphasises
h i
b
brand
d ads
d
Goal is wider distribution
Prices normally fall
Development costs are recovered
36
Maturityy stage
g
Decline stage
A long run drop in sales
Long
Long-run
run drop in sales
Large inventories of unsold
items
Elimination of all nonessential
marketing
k
expenses
38
Diffusion
40
Categories of adopters
Categories of adopters in the
diffusion process:
Innovators
E l adopters
Early
d t
Early majority
Late majority
gg
Laggards
41
Percentage of ado
opters
Categories of adopters
Innovators
2 5%
2.5%
Early
adopters
13 5%
13.5%
Early
majority
34%
Time
Late
majority
34%
Laggards
16%
42
Diffusion p
process and p
product
life cycle curve
Salles
Introduction
Growth
Maturity
Decline
Product
life cycle
curve
Early majority
Late majority
Early
y adopters
p
Innovators
Laggards
Diffusion
curve
43
R t St
Rest
Stop: Reviewing
R i i th
the C
Concepts
t
Define product and the major classifications of products
and services.
Describe the roles of product and service branding,
packaging, labelling, and product support services.
Explain the decisions companies make when developing
product lines and mixes.
Identify the four characteristics that affect the marketing of
a service
service.
Discuss the additional marketing considerations for
services.
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