Post on 20-Aug-2015
transcript
What is
PRODUCT?
Products, Services, and Experiences
• A product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want.
• E.g. car, chips,…
Products, Services, and Experiences
• Service is a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in ownership.
• E.g., Doctor’s exam, personal training.
Products, Services, and Experiences
• Experiences represent what buying the product or service will do for the customer.
• E.g., Disney, Lego, Toys “R” Us
© Bradley Johnson
Level of Products and Services
• Core benefits represent what the buyer is really
buying. It consists of the core, problem-solving
benefits that customer seeks.
• Actual product represents five characteristics: a
quality level, product and service features, styling
(design), a brand name and packing that delivers the
core benefit to the customer.
• Augmented product represents additional customer
services and/or benefits of the actual product.
Level of Products and Services
• Customers tend to see products as complex
bundles of benefits that satisfy their needs.
• When developing a products, marketers must
first identify the core consumer needs that the
product will satisfy. They must then design the
actual product and finally ways to augment it
in order to create the bundle of benefits.
• Today most competition takes place at
augmentation level.
• Augmented benefits soon become expected
benefits.
Level of Products and Services
Durability
Tangibility
Use
Products and Services classification
Consumer Products
Industrial Products
Consumer products
• Consumer products are products and services bought by final consumers for personal consumption.
• Classified by how consumers buy them (Consumer Shopping Habits)– Convenience products– Shopping products– Specialty products– Unsought products
Consumer products
• Convenience products are consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort.
• E.g. newspaper, candy, fast-food.
Low Priced
Place them in many
locations
Consumer products
• Shopping products are consumer products and services that the customer compares carefully on suitability, quality, price, and style.
• E.g. cars, furniture, appliances.Through fewer outlets
Provide deeper support
Consumer products
• Specialty products are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
• E.g. Branded fashion wear, Designer watches
Buyer norm
ally do not compare specialty
goods
Consumer products
• Unsought products are consumer products that the consumer does not know about or knows about but does not normally think of buying.
• E.g. life insurance, blood donation.
Require a lot of advertising,
personal selling and other
marketing effort
Industrial products
Industrial products are products purchased for further processing or for use in conducting a business.
Industrial products
Materials and parts
Capital itemsSupplies/
business services
Industrial products
• Materials and parts include raw materials and manufactured materials and parts usually sold directly to industrial users.
• E.g. iron, wheat, lumber.
Industrial products
• Capital items are industrial products that aid in the buyer’s production or operations.
• E.g. building, computers, elevator
Industrial products
• Supplies and Services include operating supplies, and repair and maintenance items, as well as maintenance and repair services and business advisory services.
• E.g. copy papers, training service, stationary
Person, place, organization, idea
• Person marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people.
• E.g. mike Tyson, tiger wood, Lionel messy,
Person, place, organization, idea
• Place marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places.
• E.g. Walt Disney world, Sherwood forest,
• Idea marketing In one sense, all marketing is the marketing of an idea…
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