Marketing Chapter 7: products, services and brands – Flashcards
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product
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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, places, organizations and ideas
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service
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an activity, benefit or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything
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pure tangible good
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soap, toothpaste, salt, etc
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3 levels product planners need to think about products and services on
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1. core customer value: what is the buyer really buying, problem solving benefit 2. actual product- features, design, package, quality, brand name 3. augmented product- must build an augmented product around the core benefit and actual product by offering additional consumer services and benefits (warranty, credit, delivery, etc.)
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2 types of products and services
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1. consumer products 2. industrial products
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consumer product
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product bought by final consumers for personal consumption, includes: convenience, shopping, specialty, unsought
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convenience product
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a consumer product that customers usually buy frequently, immediately and with minimal comparison and buying effort, mass promotion by producer (toothpaste, salt)
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shopping product
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a consumer product that the customer in the process of selecting and purchasing, usually compares on such attributes such as suitability, quality, price and style (clothing, furniture, etc)
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specialty product
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a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort
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unsought product
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a consumer product that the consumer either does not know about or knows about but does not normally consider buying
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industrial product
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product bought by individuals and organizations for further processing or for use in conduction a business
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3 groups of industrial products and services
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materials and parts, capital items, supplies and services
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organization marketing
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consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization
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corporate image marketing
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business firms sponsor public relations campaigns, market themselves and polish their images
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person marketing
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consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people
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place marketing
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involves activities undertaken to create, maintain, or change attitudes or behavior toward particular places
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social marketing
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the use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well being and that of society
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marketers make product and service decisions at three levels:
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individual product decisions, product line decisions, product mix decisions
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individual product and service decisions
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1. product attributes 2. branding 3. packaging 4. labeling 5. product support services
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product attributes
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developing a product or service involves defining the benefits it will offer, communicated and delivered by product attributes such as quality, features and style and design
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product quality
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characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs, one of marketers major positioning tools
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total quality management (TQM)
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approach in which all of the company's people are involved in constantly improving the quality of products, services and business processes
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return on quality approach
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viewing quality as an investment and holding quality efforts accountable for bottom line results
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2 dimensions of product quality
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level and consistency
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another way to add customer value:
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distinctive product style and design
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style
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simply describes the appearance of a product
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design
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more than skin deep, good design contributes to a products usefulness as well as to its looks
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brand
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a name, term, sign, symbol or 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
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packaging
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activities of designing and producing the container or wrapper for a product
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labeling
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identifies, describe, promote the brand
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federal trade commission act of 1914
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held that false, misleading or deceptive labels or packages constitute unfair competition
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fair packaging and labeling act of 1966
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set mandatory labeling requirements, encouraged voluntary industry packaging standards and allowed federal agencies to set packaging regulations in specific industries
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the nutritional labeling and education act of 1990
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requires sellers to provide detailed nutritional info on food products
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product line
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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
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product line filling
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involves adding more items within the present range of the line: reaching for extra profits, satisfying dealers, using excess capacity, being the leading full-line company
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product line stretching
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company lengthens its product line beyond its current range, can stretch its line downward, upward or both ways
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product mix (product portfolio)
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the set of all product lines and items that a particular seller offers for sale, 4 important dimensions: width, length, depth, consistency
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width
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number of different product lines the company carries
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length
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total number of items a company carries within its product lines
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depth
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number of versions offered for each product in the line
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consistency
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how closely related the various product lines are in end use, production requirements, distribution channels or some other aspect
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4 special service characteristics when designing marketing programs:
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intangibility, variability, inseparability, perishability
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service intangibility
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services cannot be seen, tasted, felt, heard or smelled before they are bought
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variability
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quality of services depends on who provides them and when, where and how
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inseparability
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services cannot be separated from their providers
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perishability
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services cannot be stored for later sale or use
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service profit chain
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chain that links service firm profits with employee and customer satisfaction
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5 links of service profit chain
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1.internal service quality 2. satisfied and productive service employees 3. greater service value 4. satisfied and loyal customers 5. healthy service profits and growth
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internal service quality
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superior employee selection and training, a quality work environment, strong support for those dealing with customers
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satisfied and productive service employees
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more satisfied, loyal, hardworking employees
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greater service value
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more effective and efficient customer value creation and service delivery
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satisfied and loyal customers
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satisfied customers who remain loyal, make repeat purchases and refer other customers
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healthy service profits and growth
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superior service firm performance
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internal marketing
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orienting and motivating customer contact employees and supporting service employees to work as a team to provide customer satisfaction
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interactive marketing
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training service employees in the fine art of interacting with customers to satisfy their needs
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3 major marketing tasks of service companies
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service differentiation, service quality, service productivity
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brand equity
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the differential effect that knowing the brand name has on customer response to the product or its marketing, measure of the brand's ability to capture consumer preference and loyalty
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young and rubicam's brand asset valuator
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4 consumer perception dimensions: differentiation, relevance, knowledge, esteem
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brand valuation
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process of estimating the total financial value of a brand
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major brand strategy decisions involve:
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brand positioning, brand name selection, brand sponsorship, brand development
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brand positioning
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attributes, benefits, beliefs and values
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brand name selection
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1. should suggest something about the product's benefits and qualities 2. should be easy to pronounce, recognize and remember 3. should be distinctive 4. should be extendable 5. should translate easily into foreign languages 6. should be capable of registration and legal protection
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4 options for brand sponsorship
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national brand, private brand, license brand, co brands
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store brand (private brand)
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created and owned by a reseller of a product or service
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co branding
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practice of using the established brand names of two different companies on the same product
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line extension
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extending an existing brand name to new forms, colors, sizes, ingredients or flavors of an existing product category
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4 options for brand development
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line extensions, brand extensions, multi brands, new brand
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brand extension
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extending an existing brand name to new product categories
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multibranding
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offers a way to establish different features that appeal to different customer segments, lock up more reseller shelf space and capture a larger market share
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good
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tangible product, something we can see, touch, smell, hear, taste or possess
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intangible producs
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services, ideas, people, places
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value proposition
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benefits the consumer will receive when buying the product
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business to business products
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equipment maintenance, repair and operating raw materials processed materials component parts
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nature and characteristics of service
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- intangibility -perishability -variability - inseparability
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expanded marketing mix for services
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traditional 4 Ps plus: People Physical Evidence- employee dress, equipment, facility design Process- flow of activities, number of steps, level of customer involvement
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methods of measuring service quality
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reliability assurance tangibles empathy responsiveness gap analysis critical incident technique
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gap analysis
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measures the difference between actual and expected service quality
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critical incident technique
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uses customers complaints to identify problems that lead to dissatisfaction
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brand
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name, term, symbol, or any other unique element that identifies one firm's product and sets it apart from the competition
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branding options
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individual brands (house of brands)- each product has own brand name corporate umbrella- all under corporate name sub-brand- corporate and individual name
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licensing
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one firm sells the right to another to use a legally protected brand name for a specific purpose and for a specific period of time
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co-branding
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two brands combine to create a new product, providing greater recognition or other strengths than either could achieve alone: ex: dunkin and baskin robbins
