Product - Session 2

7/27/2019 Product - Session 2

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Integrated marketing program

P1 : Product and Branding

2


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ROAD MAP: Previewing the Concepts

What is a product? Levels of product and services

Product classification Product decisions

Branding

PackagingLabeling

Product support services


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What is a Product?

Anything that can be offered to amarket for attention, acquisition, use,

or consumption and that might satisfy awant or need. Includes: physical objects, services, events,

persons, places, organizations, ideas, orsome combination thereof.


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Physical productCar

ServiceEducation

PersonActress

EventWedding

PlaceKandalama Hotel


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What is a Service?

A form of product that consists ofactivities, benefits, or satisfactions offered

for sale that are essentially intangible anddo not result in the ownership of anything.

Examples: banking, hotel, airline, retail, tax

preparation, home repairs.


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The Product-Service Continuum

Sugar RestaurantCollege

Education

Pure Tangible Good Pure Service

All the valueresult inphysical

productownership

All the valuesare intangible

do not have the

ownership ofanything

Some of the values result inphysical product while some result

in intangible experience


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Activity 1: Identify the service and physical

product combinations of the following

products.

Restaurant Medicine

Tailor-made clothes New car


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Krispy Kreme

A Krispy Kreme isnt just a doughnut. Its a truly sweet experience.


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Levels of a Product


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Example : hotel industry

Core benefit: It is the fundamental level.

It is the benefit the customer is really buying.E.g a hotel guest is buying rest and sleep

Basic product: The marketer has to turn the

core benefit in to the basic product.E.g the hotel room includes a bed,bathroom, desk, dresser etc

Expected product: A set of attributesand conditions buyers normally expect

when they purchase this product.E.g guest expect clean bead, fresh

towels, working lamps.


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Augmented product: The product that exceeds customerexpectations. Differentiation arises on the basis of productaugmentation. E.g fresh flowers, and TV facilities, swimming pool etc..

. Product augmentation adds costs.Those augmented after sometimes becomes customer expectations.Today hotel guests expect satellite TVs.

Potential product: It encompasses all the possible augmentations and

transformations the product or offering might undergo in the future.Company search new ways to satisfy customers prefer.


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Activity 2 : Develop different levels of

products of the followings.

Supermarket

BIT degree New Car


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Product classification

Products

Consumer Pro.

Final consumption

Convenience Shopping Specialty Unsought

Industrial products

To manufactureproducts for final

consumption.

Materialsandparts

Capital

items


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Consumer Products

Products andservices bought by

final consumers forpersonalconsumption.


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Convenience Products

Purchased frequently and immediately, littleor no planning/comparison / shopping effort

Low priced

Wide spread distribution/ convenient location Mass advertising Many purchase locations

Examples: candy, soda, newspapers


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Shopping Products

Bought less frequently muchplanning/comparison / shopping effort

Higher price Selective distribution in fewer outlets

Advertizing and personal selling Fewer purchase locations

Examples: furniture, clothing, cars,

appliances


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Specialty Products

Special purchase efforts, strong brand preference,loyalty, low price sensitivity High price Exclusive distribution in one or few outlets

Unique characteristics Brand identification Few purchase locations

Examples: Lamborghini, Rolex Watch


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Unsought Products

Little product awareness, negativeinterest, New innovations Products consumers do not want to

think about Aggressive advertising and personalselling

Examples: life insurance, cemeteryplots, blood donation


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Industrial Products

Those purchased forfurther processing orfor use in conductingbusiness.


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Supplies and ServicesOperating supplies, repair,and maintenance items

Materials and PartsRaw materials, manufactured

materials, and parts

Capital ItemsProducts that aid in

buyers production or operations

Industrial Products


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Other Market Offerings

Organizations: Profit (businesses) and nonprofit(schools and churches).

Persons: Politicians, entertainers, sports figures,doctors, and lawyers.

Places: create, maintain, or change attitudes orbehavior toward particular places (e.g., tourism).

Ideas (social marketing): Public health campaigns,

environmental campaigns, family planning, or humanrights.


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Product Decisions

Quality Design

Package Labeling Branding


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Product quality

Freedom from defects Two dimensions :performance quality level :high, low, medium

conformance quality :freedom from defectsand continuously deliver on the same qualitylevel

BMW


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Product design and style

Style is just appearance to attract people. But the design is a deep concept. It looks at

the people requirements and design to makethe use convenience for them.


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Product Design

The innovativeDiscover 2GO card isa gotta-have-it

accessory for peoplewho want to dash offto the gym, the mall,or a restaurant with

nothing more thantheir keys and acredit card.


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Branding

Creating, maintaining, protecting, andenhancing products and services.

A brand is a name, term, sign, symbol, ordesign, or a combination of these, thatidentifies the maker or seller of a product or

service.


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Branding

Advantages to buyers: Product identification

Indicator of Product quality Advantages to sellers:

Basis for products quality story

Provides legal protection Helps to segment markets


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Packaging

Designing and producing the container orwrapper for a product. Developing a good package:

Packaging concept Customer identification

Product safety

Environmental concerns


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Innovative Packaging

Dutch Boyrecently came up

with a longoverdueinnovationpaint

in plasticcontainers withtwist-off caps.


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Labeling

Printed information appearing on orwith the package.

Performs several functions: Identifiesproduct or brand

Describes several things about theproduct

Promotes the product through attractivegraphics


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Innovative Labeling

Innovativelabeling canhelp to

promote aproduct.


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Nature and Characteristics of

a Service


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How can an airline deal with theintangibility, inseparability, variability,and perishability of its service

offering?

Discussion Question

Documents

Product - Session 2