Scribd
Upload
1 views

Chapter8(first 15 slides)

Uploaded by

Abdullah khan
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
1 views

Chapter8(first 15 slides)

Uploaded by

Abdullah khan
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 5

Chapter 8: Products, Services, and Brands - Building Customer Value

1. What is a Product?
 Definition: A product is anything that can be offered to customers to satisfy
their wants or needs. It could be something physical (like a car) or non-
physical (like a service or idea).
 Examples:
o Tangible products: Cars, clothing, mobile phones.
o Intangible offerings: Services (like banking), events, places (like
tourist destinations), ideas, and organizations.

2. Services
 Definition: Services are activities or benefits offered to customers. They are
intangible, meaning they cannot be touched or stored, and they do not
result in ownership.
 Examples:
o Banking services, hotel stays, airline travel, home-repair services, and
wireless communication.
 Key Characteristics: Unlike products, services cannot be owned, touched,
or stored, and they depend on the person or system delivering them.

3. Levels of Products and Services


 Core Customer Value:
o This is the basic benefit or solution that a product provides to the
customer.
o Example: If you buy a car, the core value is transportation and the
ability to travel.
o How it adds value: It fulfills the primary need of the customer.
 Actual Product:
o This is the physical product or service that delivers the core benefit. It
includes features, design, quality, and the brand name.
o Example: A car’s brand (e.g., Toyota), its design, safety features, and
fuel efficiency.
o How it adds value: These aspects make the product functional and
distinguish it from competitors.
 Augmented Product:
o These are the extra services or benefits offered with the product to
enhance the customer’s experience.
o Example: Car warranties, free servicing, roadside assistance, and
loyalty programs.
o How it adds value: It builds customer loyalty and provides additional
satisfaction beyond the core and actual product.

4. Classification of Products and Services


1. Consumer Products:
 Products bought by individual customers for personal use.
 Types of Consumer Products:
o Convenience Products:
 Products that are purchased frequently, with minimal effort
and thought.
 Examples: Soap, candy, fast food, laundry detergent.
o Shopping Products:
 Products that are purchased less often, with more thought and
comparison of price, quality, and style.
 Examples: Furniture, clothing, and home appliances.
o Specialty Products:
 Products with unique features or brand identity. Customers
are willing to make extra effort to buy them.
 Examples: Luxury cars, designer clothes, high-end photography
equipment.
o Unsought Products:
 Products that customers do not usually think about or actively
look for until needed.
 Examples: Life insurance, blood donations, or funeral services.
2. Industrial Products:
 Products purchased for business use or for further processing.
 Examples: Machinery, raw fabric, tools, and office equipment.
 Key Difference: The purpose of the purchase determines whether a
product is consumer or industrial. For example, milk purchased for home
use is a consumer product, but milk bought by a bakery for making cakes is
an industrial product.

5. Marketing of Organizations, Persons, Places, and Ideas


 Organization Marketing:
o Activities aimed at shaping attitudes or behavior toward an
organization.
o Example: A company running campaigns to improve its corporate
image.
 Person Marketing:
o Efforts to promote individuals to improve their public image or
reputation.
o Example: A celebrity endorsing a product or a politician running a
campaign to gain support.
 Place Marketing:
o Activities aimed at promoting a particular place to attract tourists,
investors, or residents.
o Example: Cities like Dubai or Paris promoting themselves as global
tourist destinations.
 Idea Marketing:
o Efforts to promote ideas, especially social concepts, to encourage
positive change.
o Example: Campaigns promoting environmental conservation or
healthy lifestyles.

6. Products and Services Decisions


1. Individual Product Decisions:
 Marketers focus on:
o Product Attributes: Features, quality, and design.
o Branding: The identity of a product through its name, symbol, or
design.
o Packaging: Protecting the product and attracting customers.
o Labeling and Logos: Providing information and enhancing the
product’s image.
o Support Services: Customer service and after-sales support.
2. Product Line Decisions:
 A product line is a group of related products sold by a company.
 Key Considerations:
o Product Line Length: The number of items in the line.
 Example: Nestlé introducing new flavors in its juice range.
o Line Stretching: Expanding the product line upward (premium
products), downward (affordable products), or both.
 Example: A high-end brand introducing budget-friendly
options.
3. Product Mix Decisions:
 A product mix refers to all the product lines and items a company offers.
 Key Dimensions:
o Width: Number of different product lines.
o Length: Total number of items in all lines.
o Depth: Number of versions of each product.
o Consistency: How closely related the product lines are.

You might also like