Definition of product vs. service. The importance of branding and packaging ... The total group of products or product lines offered by a company ...
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Overview • Definition of product vs. service • The importance of branding and packaging • Consumer and industrial products • Product mix and product line • Product differentiation • The stages of the product life cycle
Marketing Mix: The “Four (5) P’s” P P ricing roduct P P lace romotion (Distribution) P ackaging
What’s a Product? • anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. • tangible or intangible • Good • Service • Event • Idea (social marketing; recycling; public service ads) • Place (tourism) • Person (politicians, entertainers, athletes, lawyers) • Organization (profit & non-profit)
What’s a Service? • any activity/benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. • watching a professional sport • seeing a movie • having clothes cleaned at a dry cleaner • getting advice from a lawyer • Renting a hotel room • depositing $ in a bank • traveling on an airplane • getting a haircut • having car repaired
Classifying Goods & Services Specialty Goods ShoppingGoods Expense Items ConvenienceGoods Capital Items Consumer Markets Industrial Markets based on WHO will use them; HOW will be used
Consumer Products Based on HOW/WHERE consumers buy them
Industrial Products • Consumed by businesses • Expense Items • Consumed within 1 year • Include raw materials, parts, supplies • At SMC? • Capital Items: • Permanent (expensive) • Buildings, fixed equipment • At SMC? Classified according to COST and USE
Strategic DecisionsWhat features are part of a product and differentiate it from another?
Packaging • Functional benefits • Convenience • Protection • Storage • Promotional/Communication benefits • Directions • Legal requirementsor product disclosure • Perceptual Benefits • Color • Connote status, economy, quality
Product Line & Product Mix • Product Mix • The total group of products or product lines offered by a company • Product Line • A group of closely related product items
Product Line & Product Mix Product line (depth) Product Mix (width)
Product Differentiation by Branding • Brand • Brand Name • Trademark
Trade Characters Mr. Clean (Procter & Gamble) Quaker Oats Kellogg’s Aflac Geico
Types of Brands • National brands/Manufacturer’s Brand • Producers are identified with their products • Licensed brands • The manufacturer sells the license for the brand name or symbol to be put on accessories. • Private brands • Retailers or wholesalersselling products under their own private (= non-manufacturer) label
Product Differentiation • Definition: “the creation of a product or product image that differs enough from existing products to attract customers” • Standardized/homogeneous products • Example—fast food: juicier hamburgers, crispier fries New! All Natural 99% Fat Free Improved! 125 calories
Product Life Cycle Music CDs iPod iPhone Analog cameras Hydrogen car
Summary • Products vs. Services • Classification • Strategic Decisions • Product Mix vs. Product Line • Branding • Packaging • The Product Life Cycle