This document provides an overview of key concepts in marketing principles and product management. It discusses definitions of products and services, and differentiates between consumer and industrial products. It also covers topics like branding, packaging, product lines, and the product mix. Brand name selection, development, and the importance of brand equity are explained. Finally, it summarizes the unique characteristics of services marketing and tasks involved in managing service differentiation, quality, and productivity.
This document provides an overview of key concepts in marketing principles and product management. It discusses definitions of products and services, and differentiates between consumer and industrial products. It also covers topics like branding, packaging, product lines, and the product mix. Brand name selection, development, and the importance of brand equity are explained. Finally, it summarizes the unique characteristics of services marketing and tasks involved in managing service differentiation, quality, and productivity.
This document provides an overview of key concepts in marketing principles and product management. It discusses definitions of products and services, and differentiates between consumer and industrial products. It also covers topics like branding, packaging, product lines, and the product mix. Brand name selection, development, and the importance of brand equity are explained. Finally, it summarizes the unique characteristics of services marketing and tasks involved in managing service differentiation, quality, and productivity.
This document provides an overview of key concepts in marketing principles and product management. It discusses definitions of products and services, and differentiates between consumer and industrial products. It also covers topics like branding, packaging, product lines, and the product mix. Brand name selection, development, and the importance of brand equity are explained. Finally, it summarizes the unique characteristics of services marketing and tasks involved in managing service differentiation, quality, and productivity.
A product is anything that can be offered to a market for
attention, acquisition, use, or consumption that might satisfy a want or need.
Services are a 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.
At one extreme, the offer may consist of a pure tangible good, such as soap or toothpaste. At the other extreme are pure services, for which the offer consists primarily of a service.
To differentiate their offers, marketers are
creating and managing customer __________ with their brands or company.
Core customer value, which addresses the question What
is the buyer really buying?
consumer products vs industrial products
Industrial products are those purchased for further
processing or for use in conducting a business
Materials and parts include raw materials and
manufactured materials and parts. Capital items are industrial products that aid in the buyers production or operations, including installations and accessory equipment Supplies and services include operating supplies and maintenance and repair services
Broadly defined, products also include services, events,
persons, places, organizations, ideas, or mixes of these Organization marketing consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization Person marketing consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people Place marketing involves activities undertaken to create, maintain, or change attitudes or behavior toward particular places
Social marketing is the use of
commercial marketing concepts and tools in
programs designed to influence individuals behavior to improve their well-being and that of society
Product and Service Attributes
Product Quality major positioning tool TQM return on quality approach Performance vs Conformance quality Product Features a stripped-down model Product Style and Design
A 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 Branding helps buyers in many ways.: Brand names help consumers identify products that might benefit them. Brands say something about product quality and consistency. Branding gives the seller several advantages: The brand name becomes the basis on which a whole story can be built about a product. The brand name and trademark provide legal protection for unique product features. The brand name helps the seller to segment markets.
Packaging involves designing and producing the container or
wrapper for a product. Labels perform several functions: The label identifies the product or brand. The label describes several things about the product. The label promotes the brand. Labeling has been affected in recent times by: unit pricing (stating the price per unit of standard measure), open dating (stating the expected shelf life of the product), and nutritional labeling (stating the nutritional values in the product).
Product Support Services
The first step is to survey customers periodically to assess the value of
current services and to obtain ideas for new ones. Next, the company can take steps to fix problems and add new services that will both delight customers and yield profits to the company.
Product line length is the number of items in the product
line. Product line filling involves adding more items within the present range of the line. Product line stretching occurs when a company lengthens its product line beyond its current range. Companies located at the upper end of the market can stretch their lines downward. Companies located at the lower end of the market can stretch their product lines upward. Companies located in the middle range of the market can stretch their lines in both directions.
Product Mix Decisions
Product mix (or product portfolio) consists of all the product lines and items that a particular seller offers for sale. A companys product mix has four dimensions: width, length, depth, and consistency. Product mix width refers to the number of different product lines the company carries. Product mix length refers to the total number of items the company carries within its product lines. Product mix depth refers to the number of versions offered of each product in the line. Product mix consistency refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way.
The company can increase its business in four ways.
It can add new product lines, widening its product mix. It can lengthen its existing product lines. It can add more versions of each product, deepening its product mix. It can pursue more product line consistency.
BRANDING STRATEGY: BUILDING STRONG BRANDS
Brand Equity is the positive differential effect that knowing the brand name has on customer response to the product or service.
Young & Rubicams Brand Asset Evaluator measures brand strength
along four consumer perception dimensions: differentiation (what makes the brand stand out), relevance (how consumers feel it meets their needs), knowledge (how much consumers know about the brand), and esteem (how highly consumers regard and respect the brand).
High brand equity provides a company with many competitive
advantages: High level of consumer brand awareness and loyalty. More leverage in bargaining with resellers. More easily launch line and brand extensions. Defense against fierce price competition. Forms the basis for building strong and profitable customer relationships The fundamental asset underlying brand equity is customer equitythe value of the customer relationships that the brand creates
Brand Name Selection
Desirable qualities for a brand name include the following:
It should suggest something about the products benefits
and qualities. It should be easy to pronounce, recognize, and remember. The brand name should be distinctive. It should be extendable. The name should translate easily into foreign languages. It should be capable of registration and legal protection.
Brand Development Line Extensions occur when a company extends existing brand names to new forms, colors, sizes, ingredients, or flavors of an existing product category. Brand Extensions extend a current brand name to new or modified products in a new category. Multibranding introduces additional brands in the same category. New Brands.
The brand experience is customers coming
to know a brand through a wide range of contacts and touchpoints. Companies need to periodically audit their brands strengths and weaknesses.
Services Marketing Service intangibility means that services cannot be seen, tasted, felt, heard, or smelled before they are bought. Service inseparability means that services cannot be separated from their providers, whether the providers are people or machines. Because the customer is also present as the service is produced, providercustomer interaction is a special feature of services marketing. Service variability means that the quality of services depends on who provides them as well as when, where, and how they are provided. Service perishability means that services cannot be stored for later sale or use.
Types of Services Marketing
Three major marketing tasks
Managing Service Differentiation:
Service companies can differentiate their service delivery by
having more able and reliable customer-contact people, by developing a
superior physical environment in which the service
product is delivered, or by designing
process.
a superior delivery
Service companies can work on differentiating their images through
symbols and branding.
Three major marketing tasks
Managing Service Quality Service quality is harder to define and judge than product quality. Service quality will always vary, depending on the interactions between employees and customers. Good service recovery can turn angry customers into loyal ones.
Three major marketing tasks
Managing Service Productivity Service firms are under great pressure to increase service productivity. They can train current employees better or hire new ones who will work harder or more skillfully. They can increase the quantity of their service by giving up some quality. They can harness the power of technology.
