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