Chapter 4 product

Chapter 3

Product Planning and Development

Chapter Four

Products, Services, and Branding StrategiesBy

Rafique Ahmed

Definitions Product Anything offered to a market

for attention, acquisition, use, or consumption that might satisfy a need or want.

Products; includes goods, services, places, persons, and ideas

Some products are sold only to consumers, while others are sold to organizations

Whether a product is a consumer product or a business product depends on how it is used

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Seller’sservices

Seller’sservices

Productquality

Productquality Physical

characteristicsof goods

Physicalcharacteristics

of goods

PricePrice

BrandBrand

DesignDesign

PackagingPackagingProductwarranty

Productwarranty

Seller’sreputation

Seller’sreputation

ColourColour

The Total Product

Classification of productConsumer product

Product that are bought by the consumers for personal use. Consumer products include Convenience, Shopping, Specialty and Unsought Products

Business or Industrial Product

Product bought by individuals and organizations for further processing or for use in conducting a business.

Consumer products

Industrial products

Classification of Consumer Goods

Consumer goods are further classified as

Convenience GoodsShopping GoodsSpecialty GoodsUnsought Goods

Convenience Goods

Convenience goods are close goods the customer usually purchased frequently, immediately and with minimum effort

For Example.Soap, candy, newspaper and fast food, cosmetics

jeans etc

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Types of consumer productsConvenience products

Shopping GoodsConsumer product that the consumer, in the process of selection

and purchases, characteristically compares on such basis as suitability, quality, price and style.

Less frequent purchases

More shopping effort for comparisons.

Higher than convenience good pricing

Selective distribution in fewer outlets

Advertising and personal selling

For example. Furniture, clothing, cars, major appliances, hotel and airline services.

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Types of consumer productsShopping products

Specialty GoodsConsumer product with unique characteristics or brand

identification for which a significant group of buyers are willing to make a special purchasing effort.

High price

Exclusive distribution

Carefully targeted promotions

For example, specific brand types of cars, BMW, Armani.Designer clothes

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Types of consumer products

Unsought Goods

Unsought Products are products you haven't actively been looking for.

Unsought goods are those now unknown to the consumer or, if known, undesired.

For example: life insurance. Gravestone etcSmoke detectors

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Classifying Business Products

1.Raw materials: unprocessed, become part of other manufactured products

2.Manufactured parts and materials: processed products that become part of other products

3.Installations: plant & machinery, major buildings and equipment etc

4.Accessory equipment: used in operations, include computers, desks, tools

5.Operating supplies: low value goods, like pencils, stationery, convenience products for businesses

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Levels of products

1) The Core Products

The basic product which you wants to purchase for satisfaction of your needs and wants.

Actual ProductThe actual product may have as many as five

characteristics that combine to deliver the core product benefits.

The characteristics are: Quality Feature , Design Brand name , Packaging

3) Augmented product

Any additional consumer services and benefits built around the core and actual products.

For example:Warranty/ guaranteeAfter sales servicesInstallationdelivery

Service

A service is defined as any activity or benefit that one party can offer to another which is basically intangible and does not result in

the ownership of anything.

Examples of Service Industries Health Care

hospital, medical practice, dentistry, eye care

Professional Services Accounting, legal, architectural

Financial Services Banking , insurance

Hospitality restaurant, hotel

Travel airline, travel agency, theme park

Others

hair styling, plumbing, lawn maintenance, counseling services, health club, interior design

Service characteristics Intangibility

Inseperarability

Variability

Perishability

Lack of ownership

Intangibility

Cannot be seen,

Tasted,

Felt,

Heard

Services cannot be readily displayed

or Smell before they are bought.

Inseparability

Services produced and consumed at the same time.

Cannot be separated from providers, whether people or machines.

Customers are always involved

Variability Quality may vary greatly depending on who

provides the service, when and how.

Staff need to know how to do something well.

Staff must be well motivated to maintain high standards of service.

Perishability

Services cannot be stored for later sale or use.

Lack of ownership

No physical product is exchanged and

therefore nothing owned.

7 P’S of Service Marketing Mix…

ProductPrice

PromotionPlace

PeoplePhysical evidence

Process

PEOPLE

All human actors who play a part in service delivery and thus influence the buyer’s perceptions: namely, the firm’s personnel, the customer, and other customers in the service environment.

PEOPLE

People are important because: Providing a service, rather than selling a product.

Quality of personal relationships between company and clients becomes vital.

Technicians

Dealers

Other Employees

Process

The actual procedures, mechanisms, and flow of activities by which the service is delivered—the service delivery and operating systems.

Process of Taking a Mobile connection

Go to Etisalat Shop

Choose a product (Say Pre-paid connection)

Pay the appropriate fees

Take the Respective product (Like SIM Card in this case)

Avail the facilities

Give the feedback

Physical Evidence

The environment in which the service is delivered and where the firm and customer interact, and any tangible components that facilitate performance or communication of the service.

Physical Evidence….

Brand represents the consumer’s perceptions and feelings about a product and its performance. It is the company’s promise to deliver a specific set of features, benefits, services, and experiences consistently to the buyers

OR

Brand is the name, term, sign, or design—or a combination of these—that identifies the maker or seller of a product or service

Branding Strategy: Building Strong Brands

Brand Name Selection

Desirable qualities

1. Suggest benefits and qualities

2. Easy to pronounce, recognize, and remember

3. Distinctive

4. Extendable

5. Translatable for the global economy

6. Capable of registration and legal protection

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