MKTG 3101 Notes Essay

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MKTG3010 – Notes for Test 2
Blue= skipped slides
** = focus on for test

CH 8: Products, Services and Brands

What is a product?
-product= anything that can be offered to a marketer for attention, acquisition, use or consumption that might satisfy a want or need -**can be tangible goods (ex- soap, toothpaste, coffee, cars)
-**can be intangible services = form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything (ex- banking, hotels, retail, wireless comm, doctor’s services)

**Layers of a Product – made up of core  actual  augmented
-Core Product: all the benefits the product will provide for consumers or business customers (ex- a lawn that neighbors envy – people are not envious of mower)
-company must ask, “what is the customer really buying?” (ex- buying an iPad is buying more than a tablet, you buy connectivity, entertainment, etc.)
-Actual Product: the physical good or the delivered service that supplies the desired benefit; also includes the unique features of the product, such as its appearance or styling, the package, and the brand name (ex- Honda lawnmower)
-Augmented Product: the actual product plus other supporting features such as warranty, credit, delivery, installation, and repair service after the sale (ex- Honda lawnmower warrantee and support website) -this is the continuity beyond the sale (addresses post-purchase behavior)
-additional consumer services, benefits, etc. – meant to augment customer value and make it a better brand experience

3 Basic Decision Levels for Products (see each decision explained in depth below)
1) Product Decisions – quality, features, style, and design
a. BMWs are high quality cars with featured interior design
2) Product line decisions – closely related group of products (product line length, line filing and stretching)
a. BMW has three series, six series, etc.
3) Product mix decisions – all the lines that a seller offers (length and depth)
a. BMW company has BMW and Mini Cooper – different target markets

DECISION 1: Product Decisions
Product and Service Decisions (described in depth below)
-product attributes
-branding
-packaging (important! Think of Tiffany’s, Apple, etc.)
-labeling (ex- food labels are now required)
-support services
Quality (2 dimensions)
-quality level = ability to perform its functions (and support positioning!) -ex) if we say it can go 0-60 in 5 seconds, can it? Does it perform as it says?
-quality consistency = freedom from defects
-ex) this time it did, last time it didn’t. How often does it happen this way? How stable is the claim? What level of consistency are you?
-TQM = total quality management
-making sure quality is core principal in all aspects of company (from front line of company, to sales, to manufacturing, etc)

Branding
-brand = name, term, sign, symbol or design (or combo of these), that identifies the maker or seller of a product/service (ex- Pepsi, Coca Cola, Nike)
-brand names:
-help consumers identify products that might benefit them
-say something about the product quality and consistency
-become the basis on which a whole story can be built about a product
-provide legal protection for unique product features (patents)
-help the seller to segment markets

Packaging
-package = the covering/container for product (products the product) -makes it easy for consumers to handle and store product -plays important role in communicating brand personality

Labeling
-labels = identify product/brand, describe attributes, provide promotion -ex) “our new ketchup packaging has fridge door fit!”

Support Services – extend product
-co’s must continually assess value of current services to obtain ideas for new ones.
-They also need to develop a package of services to satisfy customers and provide profit to the company.
-ex) warrantee on car, phone number for…