Marketing (Chapter 8) Products/Services/Brands

Product
A complex bundle of tangible and/or intangible attributes including functional, social, and psychological utilities and benefits that satisfies a consumer’s want or need

3 layers:
1st: Core product/function
2nd: Actual/tangible product
+ Brand name
+ Design/style
+ Packaging
3rd: Augmented product
+ Delivery
+ Installation
+ Warranty
+ After sales service

Consumer product
Consumer Product Classification;
A product bought by final consumers for personal consumption
Convenience product
Consumer Product Classification;
A consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort
+Fast food
+ Cereal
+ Laundry detergent
Shopping product
Consumer Product Classification;
A consumer product that the customers, in the process or selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style
+ Tv
+ Microwave
+ Camera
Speciality product
Consumer Product Classification;
A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort
+ Designer watch
+ Sports car
+ Hi-fi stereo system
Unsought product
Consumer Product Classification;
A consumer product that the consumer does not know about or knows about but does not normally consider buying
+ DMV
+ Cemetery
+ Insurance
Industrial product
Product bought by individuals and organizations for further processing or for use in conducting a business
+ Capital items
+Supplies/services
+Materials and parts
Social Marketing
The use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society.
Product quality
The ability of a product to perform its functions—it includes the product’s overall durability, reliability, precision, ease of operation and repair, and other valued attributes
+ Level: High, medium, or low quality
+ Consistency: Significant influences consumer satisfaction and dissatisfaction and loyalty
Product Mix
The set of all product lines and items that a particular seller offers for sale
Product line
Product Mix;
A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges
Width
Product Mix;
The number of different product lines
Length
Product Mix;
The number of (product) items within each product line
Depth
Product Mix;
The number of variants in each product line; Variations can include size, flavor and any other distinguishing characteristic
Consistency
Product Mix;
The degree of closeness among the product line;in terms of use, production and distribution
Product line filling
To expand product line; Involves adding more items within the present range of the line
Product line stretching
To expand product line; Occurs when a company lengths its product line beyond its current range
Brand
A name, term, sign, symbol, or design, or a combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors
+ Benefits consumers
– Shopping efficiency
– Dependable guide to product quality
+ Benefits marketers
– Legal protection
– Building corporate image
– Develop loyal customers
– Serve as a competitive advantage
– Basis for all marketing programs
Brand equity
The positive differential effect that knowing the brand name has on customer response to the product or service

Brand awareness => Brand preference => Brand loyalty

+ A measure of the brand’s power to capture consumer preference, purchase, and loyalty

+ Differentiation: What makes a brand stand out
+ Relevance: How customers feel it meets their needs
+ Knowledge: How much consumers know about the brand
+ Esteem: How highly customers regard and respect the brand

Manufacture brand (National)
Owned and initiated by national manufacturers or by companies that provide services.
Store brand (Private)
A brand created and owned by a reseller of a product or service
Co-branding
The practice of using the established brand names of two different companies on the same product
Line extension
Extending on existing brand name to new colors, forms, sizes, ingredients, or flavors of an existing product category
Brand extension
Extending on existing brand name to a new product category; Using a successful brand name to launch a new or modified product in a new category
Service
An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything
Intangible service
Services cannot be seen, tasted, felt, heard, or smelled before purchase.
Variable service
Quality of services depends on who provides them and when, where, and how they’re provided.
Inseparable service
Services cannot be separated from their providers as they’re consumed at the same time.
Perishable service
Services that cannot be inventoried, returned, or resold.
Service profit chain
The chain that links service firm profits with employee and customer satisfaction;
+ Internal service quality
+ Satisfied and productive service employees
+ Greater service value
+ Satisfied and loyal customers
+ Healthy service profits and growth
Internal marketing
Orienting and motivating customer contact employees and supporting service people to work as a team to provide customer satisfaction. (company & employees)
External marketing
Implementation of marketing practices directed outside the business to create value and to form productive customer relationships. (company & customers)
Interactive marketing
Training service employees in the fine art of interacting with customers to satisfy their needs. (employees & customers)