8-1 PRODUCT What is a Product? A PRODUCT is anything that can be offered to a market for attention,...
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8-1 What is a Product? A PRODUCT 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 Services Events Persons Places Organizations Ideas Combinations of the above
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Transcript of 8-1 PRODUCT What is a Product? A PRODUCT is anything that can be offered to a market for attention,...
8-1
What is a Product?A PRODUCTPRODUCT 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 ObjectsServicesEventsPersons
PlacesOrganizationsIdeasCombinations of the above
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What is a Service?
A SERVICESERVICE 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.
Examples include:BankingHotelsTax preparationHome repair services
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Products, Services, and Experiences
Pure Tangible
Good
Pure Service
Soap
Tangible Good With
Accompanying Services
Auto With Accompanyi
ng Repair Services
Hybrid Offer
Restaurant
Service With
Accompanying Minor Goods
Airline Trip With
Accompanying Snacks
Doctor’s Exam
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Levels of Product
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Individual Product Decisions (Fig. 8-2)
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BrandingAdvantages
Buyers:• Identification• Quality and value
Sellers• Tells a story• Provides legal
protection• Helps segments
markets
Brand Equity
Higher brand loyalty
Name awareness
Perceived quality
Strong brand associations
Patents, trademarks, channel relationships
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Brands and Brand Symbols Powerful brands such as these have brand equity:
Coca-Cola brand - $69 billionIBM brand - $53 billion
Offers defense against fierce price competition.
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PackagingDesigning and producing the container or wrapper for a product.
Elements must support product’s position and marketing strategy.
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LabelingPrinted information appearing on or with the package.
Identifies product or brandDescribes several things about the productPromotes the product through attractive graphics
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Product Support ServicesCompanies use product support services as a major tool in gaining competitive advantage.
How?
Step 1. Survey customers.
Step 2. Assess costs.Step 3. Develop a package of services to delight customers and yield profits.
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Stretching
Lengthen beyond current range
Product Line LengthProduct Line LengthNumber of Items in the Product Line
Product Line LengthProduct Line LengthNumber of Items in the Product Line
Both Directions
Downward
Upward
Filling
Lengthen within current range
Product Line Decisions
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Product Mix DecisionsProcter & Gamble's Product Mix
Baby Care Beauty Care Fabric & HomeCare
Food &Beverage
Crest TartarProtection
Crest CavityProtection
Crest Multicare
Six Toothpastes in Line
Health Care
Width – number of different product lines
Length – total number of items the company carries within product lines
Depth – number of versions offered of each product in line
