1. Introduction to Product Decisions

2. Preview Product and the major classifications of products and services
Decisions companies make about each product and service, product lines, and product mixes
Branding strategy–the decisions firms make in building and managing their brands
Four characteristics that affect the marketing of a service and the additional marketing considerations that services require

3. What is a Product?
Anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need
Includes physical objects, services, events, persons, places, organizations, ideas, or some combination thereof
Tangible goods and services are products

4. What is a Service?
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
Examples include banking, hotels, airlines, tax preparation, home repair service

5. Market Offerings
Continuum ranges from pure tangible goods (with no services) to pure services (with no good component) with many combinations in between
Pure good: Camay soap
Pure service: Legal representation
Combination: Restaurant meal
Creating and managing customer experiences differentiates offerings

6. Levels of a Product Core benefit Actual product Augmented product
What the consumer is really buying
Actual product
Includes the brand name, features, design, packaging, quality level
Augmented product
Additional services and benefits such as delivery and credit, instructions, installation, warranty, service

7. Consumer Products
Products and services bought by final consumers for personal consumption
Classified by how consumers buy them
Convenience
Shopping
Specialty
Unsought

8. Convenience Product Purchased frequently and immediately when needed
Low priced
Mass produced and advertised
Many purchase locations
Examples include candy, soda, sports newspapers and magazines

9. Shopping Product Bought less frequently Higher price
Fewer purchase locations
Comparison shopping advisable given range of consumer needs and wants
Examples include furniture, clothing, cars, appliances, sports and exercise equipment

10. Specialty Product Special purchase efforts High price
Unique characteristics
Brand identification
Few purchase locations
Example include Rolex watch, Ping golf clubs, Izod sport shirt, Nike Air Jordan, Titleist Pro v1

11. Unsought Product New innovations
PC when first introduced
Products consumers do not want to think about
Examples include life insurance and cemetery plots
Require much advertising and personal selling

12. Product Decisions Product attributes Branding Packaging Labeling
Product support services

13. Product Attributes Product quality Features Style and design
Performance quality—ability to perform functions
Conformance quality—freedom from defects and consistency
Features
Mix depends on value to consumer and cost to company
Style and design
Influences experience (e.g., ergonomics)

14. Branding
Brand is a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service
Ries and Trout (in Positioning: The Battle for Your Mind) argue that information overload means consumers can only remember first brand in a market position
e.g., Miller Lite first beer positioned as light

15. Branding (cont.) Advantages to buyers Advantages to sellers
Identifies product with known features and quality
Even commodities branded
e.g., Dole, Chiquita
Advantages to sellers
Basis for product’s quality story
Brand X golf balls—long distance and great feel
Provides legal protection for unique features
Helps segment markets
e.g., Toyota vs. Lexus

16. Packaging
Designing and producing the container or wrapper for a product
e.g., golf ball sleeve, tennis ball can
Developing a good package
Reinforce brand message (marketing)
Protect contents (consistency)
Ensure product safety (leakage, spoilage)
Address environmental concerns (disposal)

17. Labeling Printed information appearing on or with the package
Performs several functions
Identifies product or brand
Describes several things about the product
Promotes the product through attractive graphics

18. Product Support Services
Assess the value of current services and obtain ideas for new services
Assess the cost of providing the services
Put together a package of services that delights the customers and yields profits for the company

19. Product Line Decisions
Product line length
Number of items in a product line
Adjust line length by
Stretching
Downward
Upward
Both directions
Filling

20. Product Mix Decisions Product mix Product mix dimensions include
All product lines and items that a seller offers for sale
Product mix dimensions include
Length: number of items in a line
Width: number of different product lines the company carries
Depth: number of versions offered of each product in the line
Consistency: closeness of various lines

21. Brand Equity
Positive differential effect that knowing the brand name has on customer response to the product or service
Provides
More brand awareness and loyalty
Basis for strong, profitable customer relationships

22. Major Brand Strategy Decisions
Brands are assets that must be carefully developed and managed via
Brand positioning
Brand name selections
Brand sponsorship
Brand development

23. Brand Positioning Can position brands at any of three levels
Product attributes (lowest)
Product benefits
Beliefs and values (highest)

24. Desirable Qualities for a Brand Name
Should suggest product’s benefits and qualities
Should be easy to pronounce, recognize, and remember
Should be distinctive
Should be extendable
Should translate easily into foreign languages
Should be capable of registration and legal protection

25. Brand Sponsorship Manufacturer’s brands Private brands Licensed brands
Also called national brands
Private brands
Also called store or distributor brands
Licensed brands
Co-branding

26. Brand Development Line extension Brand extension
Introduction of additional items in a given product category under the same brand name (e.g., new flavors, forms, colors, ingredients, or package sizes).
Brand extension
Using a successful brand name to launch a new or modified product in a new category

27. Brand Development Multibranding New brands
Offers way to establish different features and appeal to different buying motives
New brands
Developed based on belief that the power of its existing brand is waning and a new brand name is needed
Also used for products in new product category

28. Nature and Characteristics of a Service
Intangibility
Services cannot be seen, tasted, felt, heard, or smelled before purchase
Inseparability
Services cannot be separated from their providers
Variability
Quality of services depends on who provides them and when, where, and how they are delivered
Perishability
Services cannot be stored for later sale or use

29. Major Service Marketing Tasks
Managing service differentiation
Develop a differentiated offer, delivery, and image
Managing service quality
Be customer obsessed, set high service quality standards, have good service recovery, empower front-line employees
Managing service productivity
Train current employees or hire new ones, increase quantity and sacrifice quality, harness technology

30. Recap—What was Covered?
Product and the major classifications of products and services
Decisions companies make about each product and service, product lines, and product mixes
Branding strategy–the decisions firms make in building and managing their brands
Four characteristics that affect the marketing of a service and the additional marketing considerations that services require