Introduction To Marketing:
Session 5
PRODUCTS AND
SERVICES
Reminder: Test is next week
1. Weeks 1 to 5 are the scope of the test
2. 2 short answers (400 words each) and one long answer (800
words)
3. Use PEEL but ensure your answers cover DEEADS –
Definition, Explanations, Examples, Critical
application/problem solving, diagrams, structure (PEEL)
4. At least 4 academic references – Harvard referencing
5. Plagiarism – especially as this is open book J
We are going to begin today’s
session with an introduction to
referencing, which is one of
your quizzes for this week!
Referencing can be the difference
between a low credit and a higher
grade!
1. Understand branding and its importance in ad difference to marketing
2. Define the terms product and services, distinguishing them from one another
3. Understand and apply the different product mix frameworks
4. Appreciate packaging and the different functions it has for consumers and brands
5. Articulate the product life-cycle and its relationship with the 4Ps
6. Classify what is meant by “services” and its difference from conventional products
7. Distinguish the different types of services
8. Appreciate the services marketing mix and its difference to the 4Ps
9. Understand the consumer perspectives and means of evaluating a service
CLO1: Branding
Brand
Brand Name
Brand Mark
A name, term, symbol,
design or combination
thereof that identifies a
seller’s products and
differentiates them from
competitors’ products
That part of a brand that
can be spoken, including
letters, words and
numbers
The elements of a brand
that cannot be spoken.
The University of Adelaide
Slide 5
The University of Adelaide
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CLO1: How do you build a brand?
Our marketing mix
activities support and
create each of these
levels
The University of Adelaide
Slide 7
8
Benefits of branding
• Strong brands have value, a concept known as brand
equity. It can be measured in relation to brand awareness
level, perceived quality and loyalty.
• Global brands are those for which at least 20 per cent of the
product is sold outside the home country.
3 Roles of branding
Repeat sales
The University of Adelaide
New-product sales
Product identification
Slide 9
Brand loyalty and personality
Brand loyalty
Brand personality
• A consistent preference for one
brand over all others
• Two elements for brand loyalty:
Ø relationship between the brand
as a person and the customer
Ø brand personality
• The type of person or personality
traits that the brand represents
• Brand personality provides the
brand relationship with depth,
feeling and liking.
Sincerity
Dove
The University of Adelaide
Excitement
Boost Juice
Competence
Volvo
Sophistication
BMW
Ruggedness
Landcruiser
Slide 10
Co-branding
Placing two or more brand names on a product
or its packaging
This ad promotes Nike + iPod
software that allows walkers
and runners to keep track of
the distance and pace of
workouts.
CLO2:
What is a product?
Everything, both favourable and
unfavourable, that a person receives
in an exchange
The University of Adelaide
Slide 12
CLO3.
TPC (Total product concept) Model
• Method for deconstructing the product offering
The University of Adelaide
Slide 13
TPC (total product concept) Model
Core
Product
(customer
value)
Actual
Product
Augmented Product
The University of Adelaide
Slide 14
CLO3: Classifying consumer
products
• Convenience products (staples, impulse,
emergency) – low involvement, frequent
purchase, little planning, habitual, non-durable
items, widespread distribution (e.g. bread, milk,
petrol etc)
• Shopping products (‘shopping around’ –
compare alternatives) – goods or services for
which consumers will spend time and effort to
gather information on price, product, quality,
brands etc… comparison of alternatives
The University of Adelaide
Slide 15
Classifying consumer products
• Specialty products (strong brand preference,
low price sensitivity) – high involvement,
exclusive distribution, high price, high
involvement and extended problem solving
• Unsought products (little awareness or
interest) - Goods or services, other than
convenience products, for which a consumer
has little awareness of interest until a need
arises (e.g. insurance, funeral plans etc)
The University of Adelaide
Slide 16
CLO4.
Packaging functions
The University of Adelaide
Containing and
protecting products
Promoting products
Facilitating storage,
use and convenience
Facilitating recycling
and reducing
environmental damage
Slide 17
Another take on packaging
(or lack of!)
https://www.businessinsider.com.au/how-lush-make-packaging-free-shampoo-barssaving-plastic-bottles-2018-3
The University of Adelaide
Slide 18
Creating customer value through
packaging (continued)
Benefit
Description
Communication
•
The information on the label conveyed to the consumer, such as: Directions on how
to use the product and what the product is made of. This is needed to satisfy legal
requirements of product disclosure.
Functional
•
Packaging often plays an important functional role, such as: Storage, protection,
convenience, and product quality.
The convenience dimension of packaging is becoming increasingly important e.g.
squeeze bottles, portions, microwave packaging.
Consumer protection has become an important function of packaging e.g. Tamperresistant containers—Safety seals or pop-tops and the expected shelf life of the
product.
•
•
Perceptual
•
•
•
The University of Adelaide
A package can create perceptions in consumers mind about a particular product e.g.
quality, cost, status, etc.
A package can convey a brand’s positioning, build brand equity and reinforce the
image in the consumers mind.
Many global brands create versions for their different customers in different regions.
Slide 19
CLO5
The Product Lifecycle
The University of Adelaide
The PLC is a concept
commonly used
throughout the
semester to understand
changes to the
marketing mix J
Slide 20
Implications for marketing
management
The PLC is a useful forecasting tool. As the product
moves from one stage to the next, relevant marketing
mix decisions need to be made.
• Imagine your product is entering the decline stage of the PLC.
How would this knowledge influence your promotion strategy?
• Imagine your product is entering the growth stage of the PLC.
How would this knowledge influence your product strategy?
The University of Adelaide
Slide 21
New Products
Is a iPhone X a “new” product?
Types of newness:
1. Compared with existing products (new features)
2. From the consumers perspective (effects on
consumption and degree of learning)
The University of Adelaide
Slide 22
New-product development process
(see pages 142-146)
The University of Adelaide
Slide 23
CLO6: What is a service?
A service is any performance or process that one party can offer to
another that is essentially intangible but still creates and provides
value to the recipient
In other words, something that may be bought and sold, but that
cannot be dropped on your foot!
University of Adelaide
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The service continuum
University of Adelaide
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CLO6: Characteristics of services
Services possess four key distinctions that distinguish them
from products (Edvardsson et al., 2005):
1. Intangibility: lacks tangible or physical qualities
2. Inseparability: simultaneous delivering and consumption
3. Heterogeneity: degree of difference or variance customer to
customer due to customisation but also natural occurences
4. Perishability: cannot be stored and used later
University of Adelaide
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CLO7: Types of services
People processing
Services directed at a customer’s physical self
eg. Uber, hair styling, medical services
Possession processing
Services directed at a customer’s physical
possessions
eg. Dry cleaning, veterinary services, removalists
Mental stimulus processing
Services directed at a customer’s mind
eg. Education, live entertainment (concerts, theatre)
Information processing
Services directed at a customer’s intangible assets
eg. Consulting, accountancy, legal services
University of Adelaide
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CLO7: The Flower of Service Model
University of Adelaide
• Core service will often
be the same for each
competitors
• Supplementary
services are typically
what differentiates
competitors and
services from one
another
• Enhancing: add value
• Facilitating: ease or
support the service
process
• Model for analysing
and improving
services
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CLO8: The services marketing mix
Basic marketing mix:
Product
Price
Place (distribution)
Promotion
Extended service marketing mix:
People: Any “person” which contributes to the formulation and delivery of the service à backstage and
front-stage
Processes: Necessary actions, procedures or steps required to undertake or manage the service à
economies of scale, standardisation and service recovery
Physical evidence: The servicescape “physical environment” and the tangibles included
University of Adelaide
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CLO9: Evaluating service quality
The SERVQUAL scale was developed to demonstrate the five
key qualities consumers value in service delivery.
University of Adelaide
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The Gap Model
University of Adelaide
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The Gap Model
Gap 1
The gap between what customers want and what
management thinks customers want
Gap 2
The gap between what management thinks customers
want and the quality specifications that management
develops to provide the service
Gap 3
The gap between the service-quality specifications and the
service that is actually provided
Gap 4
The gap between what the company provides and what the
customer is told it provides – this is clearly a
communications gap
Gap 5
The gap between the service that customers receive and
the service they expect – this can be either positive or
negative
University of Adelaide
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