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2. CHAPTER 8: LEARNING
OBJECTIVES
• Define Product
• Understand the levels of product and
services
• Understand the decisions companies make
regarding their individual products and
services, product lines, and product mixes
• Explain how companies build and manage
their brands
• Enumerate the four characteristics of
service marketing
3. WHAT IS A PRODUCT?
Product is anything that can be offered to a
market for attention, acquisition, use, or
consumption that might satisfy a want or
need.
—Also include services, events, persons,
place, organizations, ideas, or a mixture of
these—
5. SERVICES
SERVICES are a form of product that
consists of activities, benefits, or
satisfactions offered for sale that are
essentially intangible and do not
result in the ownership of anything.
EXAMPLE
S
Doctor’s HAIR CUT
Examination
7. Levels of Product
CORE ACTUAL AUGMENTED
CUSTOMER PRODECT PRODUCT
VALUE
To develop
What is Offering
product and
additional
the buyer service features,
consumer
really design, a quality
services and
level, a brand
buying? name, and
benefits.
packaging.
8. AUGMENTED:
ACTUAL: DELIVERY
INSTALLATI
ON
BRAND PACKAGING
CORE:
BASIC
CREDIT/ NEED, FEATURES
WARRANTY
PAYMENT QUALITY BENEFIT
TERMS LEVEL
DESIGN
AFTER SALES SERVICES
9. NOKIA N8:
THE CORE
PRODUCT:
COMMUNICATION
MESSAGING
10. THE ACTUAL PRODUCT
PACKAGING-Anodised
Aluminium case, available
in 6 different colours.
Size: 113.5 x 59 x 12.9 mm
Weight (with battery): 135 g
Volume: 86 cc
FEATURES-Works on
Symbian ^3, Has a 12 MP
camera, Radio and Music
player and Gaming.
QUALITY LEVEL: Phone
camera is of exceptional
quality with HD recording.
BRAND: Nokia, which
happens to be one of the
most trusted cell phone
brands in India.
11. AUGMENTED PRODUCT
DELIVERY: Then
product can be
purchased from any
Electronic goods
showroom. It can be
also ordered online.
INSTALLATION: Not
required.
WARRANTY: The
product has a warranty
period of 1 year.
AFTER SALE
SERVICES: Can be
acquired from any
Nokia service centre.
CREDIT/PAYMENT
13. Product and services classes
Consumer products Industrial Products
Are products and A product brought by
services bought by individuals and
final consumers for organizations for
personal further processing for
consumption. use in conducting a
business.
15. Marketing Convenience Shopping Specialty Unsought
Consideratio
ns
Customer Frequent purchase, little Less frequent Strong brand Little product
buying behavior planning, little purchase, much preference and loyalty, awareness
comparison or shopping planning and special purchase
effort, low customer shopping effort, effort, little comparison
involvement comparison of of brands, low price
brands on price, sensitivity
quality, style
Price Low price Higher Price High Price Varies
Distribution Widespread distribution, Selective Exclusive distribution Varies
convenient locations distribution in in only one or few
fewer outlets outlets per market
area
Promotion Mass promotion by the Advertising and More carefully Aggressive advertising
producer personal selling targeted promotion by and personal selling
by both the both the producer and by the producer and
producer and reseller reseller
resellers
Examples Toothpaste, magazines Clothing and Luxury goods such Life insurance and red
and detergent appliances Rolex or fine crystals cross blood donations
16. Industrial Product types
Materials and parts - Raw materials and
manufactured materials and parts.
Capital Items – Industrial products that
aid in the buyer’s production or operation.
Supplies and services – Operating
supplies and repair and maintenance
items.
18. Organization marketing Person marketing -
- consist of activities consist of activities
undertaken to create, undertaken to create,
maintain, or change the maintain, or change the
attitudes and behavior attitudes or behavior
of target consumers toward particular
towards an people.
organization.
19. Place marketing - Ideas – is a concept or
Involves activities mental impression,
undertaken to create, ideas can also be
maintain, or change the marketed. All marketing
attitudes or behavior is the marketing of an
toward particular idea.
people.
20. Social Marketing
Theuse of commercial marketing
concepts and tools in programs
designed to influence individuals’
behavior to improve their well
being and that of society.
21. Product and Service Decisions
Product
Product
Branding Packaging Labeling Support and
Attributes
Services
22. Product and Service Attributes
Developing a product or service involves defining
the benefits that it will offer.
- Product Quality
- Product Features
- Product Style and Design
- Total Quality Management
- - is an approach in which all of the company’s
people are involved in constantly improving the
quality of the products, services, and business.
23. Branding
A name, term, sign, symbol, design, or a
combination of these, that identifies the
products or services of one seller or group
of sellers and differentiates them from
those of competitors
24. Packaging
The activities of designing and producing
the container or wrapper for the product.
25. Labeling
The label identify the product or brand.
26. Product Support and Services
Product Line Decisions
- 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
range.
Product Mix Decisions
- The set of al product lines and items
that particular seller offers for sale
27. • Services Marketing
– is a sub field of marketing, which can be split
into the two main areas of goods marketing
(which includes the marketing of fast moving
consumer goods (FMCG) and durables) and
services marketing. Services marketing typically
refers to both business to consumer (B2C) and
business to business (B2B) services.
28. Nature & Characteristics of a Service
– Company must consider four special characteristics when
designing marketing programs intangibility, inseparability,
variability, and perishability.
SERVICES
Intangibility – Services cannot be seen, tasted, felt, heard or
smelled before purchase.
Inseparability – Services cannot be separated from their
providers.
29. Variability – Quality of services depends on who provides
them, when, where, & how.
Perishability – Services cannot be stored for later sale or use.
Service-Profit Chain
– Chain that links services firm profits with employee &
costumer satisfaction.
This chain consist of five links:
Internal service quality – Superior employee section &
training, a quality work environment, & strong support for
those dealing with costumer.
30. Satisfied & productive service employees – More satisfied,
loyal & hardworking employees.
Greater service value – More effective & efficient costumer
value.
Satisfied & loyal costumers – Satisfied costumers who
remain loyal, repeat purchase, and refer other costumers.
Healthy service profits & growth – superior service firm
performance.
31.
32. Building Strong Brands
1. Brand Positioning
2.Brand Name Selection
3. Brand Sponsorship
4. Brand Development
33. Brand Positioning
What are the ATTRIBUTES of the
product
What are the BENEFITS of the product
How about VALUES and BELIEFS
34. Brand Name Selection
It should suggest something about the
product’s benefits and qualities
Easy to pronounce, recognize and
remember
Brand name should be distinctive
Extendable