Product and Service Strategy
Chapter 9
Product-Service Continuum
Sugar Restaurant
University
Education
Pure Tangible
Good
Pure Service
What is a product?One definition of a product: A good, service, or idea consisting of
a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or other unit of value
Product Concept: Defines the essence, or core idea
underlying the product features and benefits that appeal to the target market.
A Product’s Three Parts Core Product – benefit, basic features, value,
service Actual Product/Primary characteristics –
features, quality, design, attributes, colour, packaging (depending on product)
Augmented Product – credit, payment plans, warranties, after the sales service, delivery, packaging, etc.
Discussion Question – Page 249, #3
Types of Consumer Products
Convenience: purchased frequently, immediately, and with a minimum of comparison and buying effort
Shopping: the consumer compares product alternatives on such bases as suitability, quality, price, and style
Specialty: a product with unique characteristics or brand identification, which the consumer is willing to make a special purchase effort
Unsought: a product the consumer does not know about, or normally consider buying
Product item
Product line
Product class
Product mix
Example: General Motors
Product line and mixes
Product Mix DecisionsProduct mix: the set of all product lines and items
that a particular seller offers for sale Width: the number of different product lines
carried Length: the total number of items carried
within the product lines. Depth: the number of versions offered of each
product in the line http://www.pg.com/product_card/prod_c
ard_laundry.jhtml
Branding Creating, maintaining,
protecting and enhancing products and services.
A brand is a name, term, sign, symbol, design or a combination of these that identifies the maker or seller of a product or service.
Types of Brands• Family Brands – i.e. Campbell’s, Marriott • Flanker brand• Co-branding
• Ingredient branding • Cooperative branding • Complementary branding
• Private/Generic brands
Brand Name Selection
• It should suggest product’s benefits and qualities.
• It should be easy to pronounce, recognize and remember.
• It should be distinctive.• It should be extendable.• It should translate easily into foreign
languages.• It should be capable of registration and
legal protection.• Should reinforce the product concept
Discussion Question – page 249, #4
Packaging Containment
functions Protection in
transit function Storage function Usage facilitation
function Promotion function Ecological function
The heart shape bowl communicates a
healthy diet
Packaging
Dutch Boy recently came up with a long overdue innovation—paint in plastic containers with twist-off caps.
Labelling 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. Legal/regulatory issues
What is a service?One definition of a service: Activities, deeds, or other basic
intangibles offered for sale to consumers in exchange for money or something else of value.
Characteristics of Services
IntangibilityCannot be seen, tasted, felt or smelled before
purchasing
VariabilityService quality depends on who provides and
under what conditions
InseparabilityProduction and,
consumption, and from the provider
PerishabilityCannot be stored,
for resale or later use