Ben Potter, Andy Benesh, Austin Richardson, Jason Klein, Krishna Venkata

Products can be goods, services, or ideas, such as intellectual property. Products can be tangible or intangible. Products can also be classified by use, by brand, or by other classifications as well.

Merchandise

Finished Goods

Project Deliverables

Goods Services Ideas

Tangible ProductIntangible Product

Insulated wire as a product

 Core – What the customer needs/wants  Actual – What the customer gets  Augmented – services or secondary products for the actual product

 Core – the desired benefit  Actual – quality, color, style, branding  Augmented – warranty, install, deliver, finance, service

 In the class we discussed the three product levels, Philip Kotler defined 5 Core (basic function) Generic (properties) Expected (performance) Augmented (differentiators) Potential (future improvements) 83, marketing guru

 Many depictions of development with varying emphasis and detail  Example from a company

 Services are: ◦ Intangible ◦ Perishable ◦ Produced and consumed simultaneously ◦ Experienced, not possessed

 Service businesses are more numerous than good businesses  Most companies are both a good and service  Service is important, even for businesses who sell products

 Where service takes place ◦ Important for goods businesses too  Websites

 Where service takes place ◦ Important for goods businesses too  Storefronts

 Gaining importance in global business environment ◦ Search – more information about companies and products available ◦ Experience – access to more good and service companies ◦ Credence – more options make credibility more important

 Disney’s QSCV ◦ Quality, Service, Cleanliness, Value  Clayson’s keys to service ◦ Quality ◦ Reliability ◦ Responsiveness ◦ Assurance ◦ Employees ◦ Management

 Why the Four P’s of Marketing are Dead ◦ Linkedin, 12/10/2014  Don Tapscott ◦ CEO of Tapscott Group ◦ Author of fifteen books

 Business is changing ◦ Technology is interactive ◦ ‘Digital natives’ better diagnose product value ◦ Increased availability of information creates transparency

 Companies must: ◦ Engage customers, not just listen to them ◦ Realize ‘brand’ is a relationship

 Four P’s are now ABCDE ◦ Place > Any place ◦ Brand is a relationship ◦ Promotion > Collaboration ◦ Price > Discovery of price ◦ Product > Experience

 Awareness  Loyalty  Connection  Price  Product

 “Top of mind” awareness  Aided awareness ◦ consumer is aided with a list of company names and he recognizes the company  Strategic awareness ◦ When asked about a product category, the consumers are asked to list brands they know without any cues

 Brief  Positive Image  Visual Appeal  Consistent  Unique ◦ Marion Michael Morrison

 Xerox (good or bad?)  Panasonic ◦ “Touch Woody – the Internet Pecker”  Ford/Firestone – 2000 Ford Explorer

 Definition: is a marketing technique intended to present products in the best possible light to different target audiences  “WHO is our TARGET MARKET?”

 Products must be differentiated from other like products  “WHY should anyone buy your product over your competitors?”

 Product differentiation based on QUALITY  “Nothing runs like a Deere”  Product differentiation based on SERVICE  “Where there’s a helpful smile in every aisle”

Requirements: 1. Reliability  Quality Control 2. Conformance  Defects should NOT occur

Performance  “the action or process of carrying out or accomplishing an action, task, or function” - Example: Audi cars Durability  “the ability to withstand wear, pressure, or damage” - Example: Cal Ripken Jr. – Baltimore Orioles Shortstop (1981 – 2001) - 17-year streak of 2,632 consecutive games played broke Lou Gehrig’s record

Features  “a distinctive attribute or aspect of something” - Examples: Dual air bags or remote- start for a car Serviceability  “the capacity for being useful for some purpose”

Appearance  “the way that someone or something looks” Example: Patrick Dempsey vs. Jabba the Hutt Reputation  “the beliefs or opinions that are generally held about someone or something”

 Service Reliability: 1. Accessibility - Service is available when desired (when the customer wants to use it). 2. Continuity - Customer has uninterrupted service over desired duration. 3. Performance - Meets the customers' expectations.  Service Assurance  “ensures that services offered meet a pre-defined service quality level for an optimal customer experience”

Drivers Require: - Performance & Responsiveness Enhancers Require: - Extended Services & Customer Empathy Aesthetics Require: - Appearance & Reputation

 Differentiation can also be based on PRICE: - Low-Price Position - Lower Transaction Costs Position

 Silver Bridge Collapse - December 15, 1967, Point Pleasant, WV

 Investigation of the wreckage pointed to the cause of the collapse being the failure of a single eyebar in a suspension chain, due to a small defect 0.1 inch (2.5 mm) deep  Analysis showed that the bridge was carrying much heavier loads than it had originally been designed for and had been poorly maintained