1. Chapter 8 Elements of Product Planning for Goods and Services
Marketing 333
Chapter 8
Elements of Product Planning for Goods and Services

2. What is a Product? A bundle of benefits
What the buyer gets…not what the seller sells
Tangible items, services, ideas

3. The Total Product
A wide range of tangible and intangible benefits that a buyer might gain from a product after purchasing it
A product might have:
Primary characteristics
Auxiliary characteristics

4. Augmented
product
Primary
Core
product
Characteristics

5. Product Strategy
Planning and development of a mix of the primary and auxiliary dimensions of a product’s attributes.

6. Classifying Consumer Products
Three Types of Consumer Products:
Durable
goods
Nondurable
goods
Services

7. Goods-Services Continuum
Shovel
Restaurant’s
offering
Employment
agency service
Good
Good/service
Service

8. Classifying Products by Consumer Behavior
Convenience
products
Specialty
products
Shopping
products

9. Convenience Products
Inexpensive
Purchased regularly
Easily accessible

10. Shopping Products Make comparisons Shop around
Not purchased frequently

11. Specialty Products
Usually expensive
Special effort to purchase

12. Classifying Organizational Products
Three types:
Operating
Products
Production
Products
Capital
Products

13. Capital Products Installations Accessory equipment
Examples: buildings, forklifts, copying machines

14. Production Products Raw materials Manufactured materials
Component parts
Process materials

15. Operating Products
Routinely Purchased
Used in daily operations

16. Services
Instrumental Services
Consummatory Services

17. Characteristics of Services
Perishability
Intangibility
Inseparability
Heterogeneity

18. Product Line and Mix
Product line: group of products that are fairly closely related
Product Mix: All the product offerings of an organization, no matter how unrelated

19. Dimensions of the Product Mix
Breadth or width
Depth or length

20. Branding
Brand name
Brand mark
Logo
Trademark
Service Mark

21. Brand Name and Brand Marks
Brand name: verbal part of the brand
Brand mark: unique symbol that is part of the brand
Logo: brand name or company name written in a distinctive way

22. Trademarks and Service Marks
Trademark: legally protected brand name or brand mark for goods
Service mark: symbol that identifies services

23. What makes a good brand name?
Is easy to pronounce
Has mnemonic quality
Suggests a positive image
Reinforces product concept
Communicates product benefits
Says something about the user
Avoids linguistic traps

24. Manufacturer and Distributor Brands
Manufacturer brand: owned by the maker of the product
World (global) brand: distributed and recognized around the world
Distributor brand: owned by a retailer or wholesaler

25. Generic Brands Carries neither a manufacturer nor a distributor brand
Plain packaging
Stark lettering

26. Family Brands
The same brand name is used in different categories of products
E.g. Healthy Choice

27. Individual Brand Example: Mar’s candies
Example:P & G’s laundry detergents

28. Co-Branding Use of two brands on a single product Pizza Hut Tostitos
Pizza flavored
Tostitos

29. Brand Equity Value associated with a brand Crayola Harley-Davidson
Disney

30. Functions of Packaging
Contain product
Protects product
Facilitates storage and use of product
Promotes product
Recycling issues

31. Labeling
Label: Paper or plastic sticker attached to a container to carry product information
UPC (universal product code): permits computerization of checkout and compilation of sales and inventory information