Marketing
Chapter 8 – products, services and brands : building
customer value
What is a product?
Levels of product and services
- Core customer value, what is the buyer really buying?
- Actual product, need to develop features, design, quality
level, brand name and packaging
- Augmented product, core benefit and actual product by
offering additional consumer services and benefits
Products and service classifications
Two categories
1. Consumer products
Marketing Convenience Shopping Speciality unsought
considerations
Customer Frequent purchase, little Less frequent Strong brand Little product
buying comparison, little purchase, much preference awareness
behaviour planning, low customer planning, and loyalty
involvement comparison on price
and quality
Price Low Higher High Varies
Distribution Widespread Selective Exclusive Varies
Promotion Mass promotion Advertising and Targeted Aggressive
personal selling promotion advertising
Examples Toothpaste, magazine Television, clothing Luxury goods Life insurance
2. Industrial products
- Materials and parts, include raw materials and manufactured materials and parts
- Capital items, industrial products that aid in a buyer’s production or operations including
installations and accessory equipment
- Supplies and services, include operating supplies and repair and maintenance items. Also
maintenance and repair services and business advisory services.
ORGANISATIONS, PERSONS, PLACES AND IDEAS
- Organisation marketing, consists of activities undertaken to create, maintain or change the
attitudes and behaviour of target consumers toward an organisation
- Corporate image advertising, campaigns to market themselves and polish their image
- Person marketing, consists of activities undertaken to create, maintain or change attitudes or
behaviour toward particular people
- Place marketing, involves activities undertaken to create, maintain or change attitudes or
behaviour toward particular places
Product and service decisions
Make decisions at three levels:
1. Individual product decisions
- Product attributes
Product quality
Total quality management (TQM), approach in which all of the company’s people are
involved in constantly improving the quality of products, services and business
processes.
1. Quality level (performance), the ability of a product to perform its functions
2. Quality consistency (conformance), freedom from defects and consistency in
delivering a targeted level of performance
Product features,
Product style and design
Style, describes appearance of a product
Design, more than skin deep, it goes to the very heart of the product
, - Branding
- Packaging
- Labelling
Identifies
Promotes
Describes
Unit pricing, starting per price per units of standard measure
Open dating, stating the expected shelf life of a product
Nutritional labelling, stating the nutritional values in a product
- Product support services
2. Product line decisions
Product line length, the number of items in a product line.
Expand product line in two ways:
1. Line filling, involves adding more items within the present range of the line
Reaching extra profits Being the leading full-line company
Satisfying dealers Plugging holes to keep out competitors
Using excess capacity
