chapter nine goods & services: the basics. objectives bdefine product blearn to classify...

Chapter NineChapter Nine

Goods & Services: The BasicsGoods & Services: The Basics

ObjectivesObjectives

Define productLearn to classify productsUnderstand differences between product lines & product mixes

Review brand-related terminology

What is a Product?What is a Product?

Primary characteristicsThe total product

Auxiliary dimensions

AugmentedAugmentedproductproduct AUXILIARYAUXILIARY

CHARACTERISTICSCHARACTERISTICS

Core & Augmented Core & Augmented ProductProduct

PrimaryPrimaryCharacteristicsCharacteristics

CoreCoreproductproduct

Product Strategy & Product Strategy & Product ConceptProduct Concept

Selection and blending of a product’s primary and auxiliary dimensions into a unified mix emphasizing a particular

set of consumer benefits

Selection and blending of a product’s primary and auxiliary dimensions into a unified mix emphasizing a particular

set of consumer benefits

ConsumerConsumerBenefitsBenefits

ConsumerConsumerBenefitsBenefits

Product DifferentiationProduct Differentiation

Product elements (tangible or intangible) separating your product from others

Colored paperclips that don’t rust

Classifying Consumer Classifying Consumer ProductsProducts

ServicesServices

Nondurable Nondurable goodsgoods

Durable Durable goodsgoods

Classifying Consumer Classifying Consumer ProductsProducts

ConvenienceProducts Shopping

Products

SpecialtyProducts

Effort expended

Goods-Services Goods-Services ContinuumContinuum

Good/serviceGood/service

Restaurant’sRestaurant’sofferingoffering

GoodGood

TrowelTrowel

ServiceService

EmploymentEmploymentagency serviceagency service

Resume

Classifying Classifying Organizational ProductsOrganizational Products

Capital products

InstallationAccessory equipment

Production

products

Raw & process materialManufactured/component parts

Operating

products

SuppliesServicesSoftwareInformation

Product Lines & Product Product Lines & Product MixesMixes

Product item

Product line

Product class

The Product PortfolioThe Product Portfolio

STARSTARPROBLEMPROBLEMCHILDCHILD

??

CASH COWCASH COWDOGDOG

HighHigh

LowLow

Mar

ket

gro

wth

rat

eM

arke

t g

row

th r

ate

HighHighLowLow

Market shareMarket share

BrandingBranding

Brand/Logo Brand Names

Brand Marks

Trademarks & Service Trademarks & Service MarksMarks

Trademarks: legally protected brand names or brand marksRegistered domestically

and internationally

®

®

®

® “Fly the Friendly Skies of United”

Service marks

Generic NamesGeneric Names

Used to describe a product class

•Nylon

•Kerosene

•Escalator

•Formica

•Cellophane

These were all originally brand

names.

Good Brand Names:Good Brand Names:

•Outward Bound•Palm computers•L’Eggs•Moist & Easy•Citgo•Toast Em Pop-Ups•Amazon

Easy to remember and pronouncemnemonic quality

Invokes positive associationSuggests a positive imageReinforces product conceptCommunicates product

benefitsSays something about the

userAvoids linguistic traps

Easy to remember and pronouncemnemonic quality

Invokes positive associationSuggests a positive imageReinforces product conceptCommunicates product

benefitsSays something about the

userAvoids linguistic traps

Generic BrandsGeneric Brands

Carries neither a manufacturer nor a distributor brand

Plain packagingStark lettering

Carries neither a manufacturer nor a distributor brand

Plain packagingStark lettering

MILKMILK

PackagingPackaging

An auxiliary product dimension including:

LabelsInsertsInstructionsGraphic designShipping cartonsSizes and types of containers

An auxiliary product dimension including:

LabelsInsertsInstructionsGraphic designShipping cartonsSizes and types of containers

Package: Extension of Package: Extension of ProductProduct

AttentionIdentifiable imageProtectionPromotionEcological functionInformation & insertsEncourage multiple

unit purchases

ReviewReview

Define productLearn to classify productsUnderstand differences between product lines & product mixes

Review brand-related terminology