Week 4: Product Positioning and Strategy

Week 4: Product Positioning and Strategy -

Discussion

Marketing of Services (graded)

How is the marketing of services different than the marketing of a product? What are the challenges of marketing a service? How is marketing shoes different from marketing shoe repair?

Responses

Response Author Date/Time

Marketing of Services

Professor Forbes 9/23/2012 6:39:38 AM

Hey Folks-

Let's step back and look at marketing services versus products- what are some of the distinctive characteristics of services specific to marketing?

RE:


Christine Moore 9/27/2012 12:00:23 AM

Marketing a product definitely will have some differences versus marketing a service. In marketing a product, you are marketing an item with tangible value. For example, a company might be involved in marketing a brand of sports gear. In this case, they are marketing the physical items, shoes, balls, equipment, etc. In this case, the buyer will have a physical item they are comparing and making buying decisions about. This is much different from marketing a service where the person or company is marketing a nontangible item, yet a service that is offered. An example would be a sports performance training system. In this case, a person or company is marketing their skills as a trainer and coach as opposed to the marketing the gear itself.

RE:

Marketing

Yonny Leon 9/26/2012 4:16:44 PM

of Services

The services have unique characteristics which make them different from that of goods. The most common characteristics of services are: Intangibility.

Inseparability. Perish ability. Variability Intangibility Services are activities performed by the provider, unlike physical products they cannot be seen, tasted, felt, heard or smelt before they are consumed.

RE:


Julio Rhymer 9/24/2012 8:59:23 PM

Marketing for services requires a holistic approach. It examines the pricing the distribution and promotion of services to customers. Secondly it requires training and motivating employees to serve customers well. The key to promoting a service is to perform the service well and that will earn you marketing from customers spreading the word.

RE:


Latonya Hughes 9/24/2012 9:19:54 PM

I must agree with my classmates in that a product is tangible and a service is not. Service is probably more challenging because the consumer can't actually see it. They have to try it without actually seeing it. However, word of mouth is the best way to market a service or provide it for free for the 1st week or so. With a service a consumer either has to need it or have the funds or desires to pay for it because they want it. With a service it only lasts a short period of time as oppose to a pair of shoes can last forever or years. I believe services get most of its business through referrals or only if someone is looking for that type of services as oppose to just trying a product in which they just saw on a shelf. When marketing a service you have to base it on experiences or people's emotions of how they "feel". I feel that a service is more behavior driven than a product.

RE:

Marketing

Professor Forbes of

Services

9/30/2012 6:40:17 AM

All....Great work on these unique issues relative to marketing services: Intangible, Inseparable, Variable, Perishable... Know these and the marketing implications-

RE:


Jason Ho 9/24/2012 10:15:19 PM

When a customer signs up for a service, especially if that service involves something expensive or precious to them, they put a great deal of trust in the company providing the service. In order to effectively market a service company, it is important to understand the differences involved in marketing a service versus marketing a product. A product is an actual object that you can demonstrate the features and capabilities of, and actually see it in action. A service is a period of time in which the consumer will undergo an experience that can never be repeated in the exact same manner. When a consumer purchases a service they rely heavily on the reputation of the company providing the service because a service is a variable experience that cannot be returned.

RE:

Marketing of

Services

Rose Neal 9/26/2012 7:31:58 PM

The trust factor is greater in a service than in a product. Think of it in terms of a salon; you go in to get your haircut and you describe to the stylist how you want it to look and then you leave it in the hands of the stylist to produce the end result. If they cut too much it is not like they can glue it back on so a consumer is placing a huge amount of trust in the word of others who have used the service.

RE:

Marketing of

Services

Daveed Yisrael 9/26/2012 9:11:42 PM

Just to add to Jason's and Rose's comments. I feel when marketing products, a marketer’s strategy is to coordinate decision on product mixes. Products can be classified in several ways durability, reliability consumer goods and industrial goods. When planning, marketers must think through five levels of product, which is basic, expected, augmented, potential and core benefit. When marketers attempts to market services they must find way to give intangible to intangibles to increase productivity. Marketers differentiate service marketing by adding value.

RE:

Marketing

Professor Forbes

9/29/2012 9:21:45

AM

of

Services

So what are some best practices here with services and their delivery- what have we got in the text?

How about out there?

Marketing

Services vs.

Marketing a

Product

Kristin Muchowski 9/23/2012 2:07:25 PM

When marketing a product, you are marketing something tangible that the consumer can physically reach out and touch, whereas marketing a service is intangible and may vary from each time the service is completed. There are many challanges when marketing a service, the service must be as standardized as possible to create some sort of consistency with the service. The best way to market a service is word-ofmouth, since it is something that the end consumer can not physically evaluate before complete, they often seek opinons of others who have already used the service.

RE:

Marketing

Services vs.

Marketing a Product

Ira Hughes 9/24/2012 2:07:13 PM

Try going door to door selling a service as opposed to selling a product. Chances are the person selling the product will have much more success than the person selling the service. Why is this? First and foremost the product is a tangible item. This means that a person can size up the importance of the item a lot quicker than a service. Services are a bit harder to size and determine if you want them being that you can't see them. Although, a person may be willing to pay substantially more for a service than a product.

RE:

Marketing

Services vs.


Drew Gallagher 9/26/2012 2:54:08 PM

In selling a service, a lot of time personality plays a key role in getting sales. Trust is a major influence in selling a service because you don't get to see the product being sold. If a person selling a

service can build a level of trust within the consumer then it's much more likely that the sale can be made. This all fits into the holistic approach where everything goes into making a sale of your service.

RE:

Marketing

Services vs.



Anish, Kristen, Ira & All: So what's the mix?

Many times we do not see things so black and white as a pure service like baby sitting and a pure good like say soap...there can be some cross over so to speak.... What are these categories of service mix and what the implications and while we are here what are the challenges of evaluating services versus goods... How does it change the game so to speak.....Check your text for insights!

RE:

Marketing

Services vs.


Latonya Hughes 9/27/2012 8:03:19 AM

I believe perception has a lot to do with it. Perception has to do with how a person feel about a service and product. I believe call centers are challenging to evaluate. Companies chooses call centers for various reasons. Some say they have chosen it to cut cost with staffing and others state that they do it to provide overall customer service so that they can accommodate all of their customers. They feel that customers should not get a voice message and that they should be able to take care of business without a representative quickly if needed. However, some people like call centers and others do not. In my opinion, it depends on the services needed in regards to a call center. I particular do not like to have to go through a call center when I am trying to take care of a medical or financial situation. Especially, those that will not allow you to press

"o" to get to an operator quickly without having to answer what feels like a million questions. Another one is how a company is able to stock a product. The challenge is keeping up with the demand of that product on shelf and removing

those that aren't moving quickly.

RE:

Marketing

Services vs.

Kristin Muchowski


9/26/2012 9:08:35 AM

I think the main difference in evaluating a good is. service is that the majority if the time when you have a product, it either worked or it didn't work. When you evaluate a service the consumer has opinions on what service was performed, who performed the service, you have to take in other considerations including length of time it took, the friendliness of the staff that completed the service, if they have other feedback or a preexisting opinion of the company, if it something pleasant or unpleasant... Obviously the people play a big role when a service is performed, it is not just the end result that is being evaluated.

RE:

Marketing

Services vs.



The first category of service mix is Pure tangible good- no services accompany the product. Second is tangible good with accompanying services- this offering consists of a tangible good accompanied by one or more services. Third is Hybrid- this consists of equal parts goods and services. Fourth is major service with accompanying minor goods and services- this consists of a major service along with additional services or supporting goods. Finally fifth is pure service- This offering consists primarily of a service.

RE:

Marketing

Services vs.


Timothy Rinard 9/30/2012 11:48:48 PM

A product is a tangible thing that can be used to draw peoples attention due to their need for the product, or what the product does, making the product in a way almost like its own marketer, where as when we are selling a service, we must understand that it is not tangible, and is therefore, harder to sell than a product that is manufactured, that can be reviewed

Challenges of marketing a service?

Marketing shoes vs shoe repair?

Anish Varghese 9/23/2012 3:42:51 PM

The main challenge of marketing a service is that you are not marketing a physical or tangible item but rather your experience or service related to a particular product. When you are marketing a shoe, you are marketing a physical item with tangible value. But when you are marketing a shoe repair service you are marketing your skills of repairing and servicing the shoes as opposed to the marketing the physical shoe itself.



Great Start Team....

Let's focus on the Four Distinctive Characteristics of Services-

Thanks for the quick start All...

I see Intangibility is clear....What else we got? Let's dig in on these really deep- What are they- What are the issues? How do you deal with the marketing challenges?

Feel free to pick one of the four, elaborate and go with examples and feel free to add any other issues you see unique to marketing services- Remember we have to cover off the marketing implications- let's see some examples of how this is done in action- Also share examples of companies who do this well and why-

RE:


Jason Ho

Modified: 9/25/2012 10:14 PM

9/25/2012 10:14:14 PM

The most common characteristics of services are: Intangibility. Inseparability. Perish ability.

Variability Intangibility Services are activities performed by the provider, unlike physical products they cannot be seen, tasted, felt, heard or smelt before they are consumed. Since, services are not tangibles, they do not have features that appeal to the customers senses, their

evaluation, unlike goods, is not possible before actual purchase and consumption.

Variability Services are highly variable, as they depend on the service provider, and where and when they are provided. Service marketers face a problem in standardizing their service, as it varies with experienced hand, customer, time and firm. Service buyers are aware of this variability. So, the service firms should make an effort to deliver high and consistent quality in their service; and this is attained by selecting good and qualified personnel for rendering the service.

RE:

Marketing of

Services


Service marketers must be able to transform intangible services into concrete beneifts and a well-defined experience. Unlike a product, a service cannot be seen, tasted, felt, heard, or smelled before they are bought. This is why companies need to provide evidence of their quality. A land scaping company might put up pictures of lawns they have done to show potential customers of the quality they can expect. A design firm may put positive customer reviews on their website in order to show customers of the level of satisfaction achieved through previous work.

RE:


Connie Brooks 9/26/2012 6:34:25 AM

Variability - services involve people, and people are all different. Services depends on who provides them and when and where they are provided. Three steps companies that provide services can take are:

1 - Invest in good hiring and training procedures

2 - Standardize the service performance process through out the organization

3 - Monitor customer satisfaction

RE:


Michael Soo 9/25/2012 4:11:53 PM

The four characteristics of services are intangibility, perishability, inseperability, and variability.

Perishability means that products and services have a limited lifetime or shelf life. This can be explained in terms of a taxi ride. The taxi driver provides the service, moving the person from one location to the final destination. Once this has been accomplished, the person can not be driven to the destination at

that particular point in time, and thus the service has perished. Dealing with this issue involves keeping the customer returning after they have used the service once.

RE:


Julio Rhymer 9/28/2012 9:13:12 PM

Inseparability is a concept that a one action cannot happen with another.

Therefore the example of a barber cant give a haircut without being present is ideal because it shows that the service cant be performed without the service provider being present.

RE:

Marketing


Services

9/30/2012 6:39:39 AM

All...Holistic marketing of services....What is going on here and why is the a

"service" thing? Also when we have talk about successful brands we often think of products- what service brands resonate with you and why?

RE:



The four distinctive characteristic of service are intangibility, inseparability, variability and perishability. Intangibility is services that cannot be experience before the service is purchased. Intangibility services have to marketed with concrete benefits and a well defined experience. Inseparability occurs when service are produced and consumed simultaneously, the marketing challenges of inseparability is service providers have to learn to work with larger group. Variability services are highly variable services that offer service guarantees to reduce consumer perceptions of risk. Perishability services are service that cannot be stored therefore these services typically.

RE:


Ira Hughes 9/27/2012 9:31:04 PM

The four characteristics of service consist of the following: Intangibility,

Inseparability, Perishability, and Variability.

If intangibility is considered clear, Inseparability must be considered crystal clear. The service of inseparability brings the provider of the service and the customer (the receiver of the service or product together). For instance an automobile salesman and the person purchasing a car are brought together. These two people need one another in order to accomplish the ultimate sales contract. Although internet technology has strained this relationship over the last few years. Ultimately salesman and the customer must come together in order to complete the deal.


Andreana Collins 9/25/2012 4:59:10 PM

The following are four characteristics of services that differ from those of a product:

Intangibility services can’t be seen, tasted, felt, heard or smelled before they are bought.

Inseparability- services are typically produced and consumed simultaneously.

Variability Services are offered by different people in different places. Because of this, the quality of service varies from person to person.

Perishability services cannot be stored.

I think the challenge of marketing a service stems from customer perception. Every customer has unique needs that they want to be met. These different needs lead to a difference in expectations. When someone buys a product, they pretty much know what to expect. With services, the level of expectation changes with the situation. It is the marketer’s job to exceed these expectations by training superior staff members and making sure all customer concerns are handled with care. In the shoe example, a person marketing shoes knows exactly who their customer is; they have studied and researched that specific target market. Any marketing activities will be engineered for that select group. Someone marketing a shoe repair service could possibly have customers from every walk of life! Each customer could be dramatically different from the next. They have to learn how to offer the same excellent customer service across the board.

Kotler, K., Keller, K. (2011). Marketing Management. [VitalSource Bookshelf].

Retrieved from http://online.vitalsource.com/9781256083979



Great work-

Looks like we have gotten all four- Have we covered enough good examples of variability, perishability, and how to deal with it and inseparability?

Let's make sure we are comfortable through examples of the challenges here and how to over come them from a marketing standpoint.....

Also-Based on service quality models what are the five determinates of service quality? What is the big #1? Do you agree? What can one do to increase there effectiveness in these areas?

Thanks again for the great work here!

RE:



The five determinates of service quality are reliability, responsiveness, assurance, empathy and tangibles. The number one factor in service quality has to be assurance. The service providers that is courteous to their employees and have the ability to convey trust and confidence with their customers. In order to increase effectiveness in the service quality companies have to be customer obsessed, have a commitment to service quality and have high quality standards

RE:


Bweleka Kasonso 9/26/2012 2:26:50 PM

Tangibles, Responsiveness, Assurance, Empathy and Reliability. Reliability is the most important quality and I agree. You have to be able to perform the service you promised in an accurate and dependable manner. If you can’t perform your services accurately then you have nothing to offer. Providing the services is why you are in business so if you cannot do that properly then you have no business. All the other qualities are there to support this one.

Source:

Berry, L. (1994). Improving service quality in America: Lessons learned .

Retrieved from http://areas.kenanflagler.unc.edu/Marketing/FacultyStaff/zeithaml/Selected

Publications/Improving Service Quality in America- Lessons Learned.pdf

RE:

Marketing

Anish Varghese of

Services

9/26/2012 5:13:25 PM

Yes, I do agree with Bweleka Kasonso. I do believe that reliability is one of the most important qualities out the five determinants of service quality. Here is an example, if you are making a decision on buying a new car, your decision will be based on how reliable the car is going to be and whether it has the ability to perform as promised.

RE:

Marketing of

Services

Indisha Mussington 9/26/2012 7:01:03 PM

I agree with you both. I would also like to add that if you contract all or part of your manufacturing else where you have to ensure that your vendors are reliable and able to deliver goods on time as well. Recently, there was a problem at Foxconn's plant in China. Foxconn manufactures products for Apple and other large companies. Just a few days ago the entire plant shut down which means 79,000 people are not working and products are not being assembled. For a large company like Apple this means they need to move production/manufacturing to another plant. However, if my product from my marketing plan was being assembled here I would be in deep trouble. I would be seen as unreliable and unable to uphold my manufacturing responsibilities. http://www.policymic.com/articles/15306/iphone-5problems-foxconn-factory-riots-show-young-chineseworkers-demanding-their-human-rights

RE:

Marketing


Services

9/27/2012 9:12:44

AM

Bweleka, Anish, Indisha & All...

This is the direction I wanted to go here-

The big #1.......Do you agree? What can one do to increase there effectiveness in these areas?

And where does this fit against your thoughts on pricing-

Nordstrom leads with service but you pay a price right? What are your thoughts- are you always willing to pay the premium price or are you willing to make some sacrifice here...

RE:

Marketing of

Services

Kristin Muchowski

9/27/2012 10:52:05

AM

I think it depends on the product you are looking to purchase. I am willing to pay a premium price if it is something I plan to have for a long time and see the value with that price tag.

RE:

Marketing of

Services

Michael Soo

9/27/2012 5:32:58

PM

I agree with both Kristin and the

Professor.

Nordstrom is an excellent example of a company that takes service very seriously, and will exchange/return any item that is purchased from their store. This happens so often, that there are people (such as my aunt) who have left the company because while they agreed with the policy initially, they ended up not wanting to work for the company as too many people take advantage.

I for one don't typically purchase anything from Nordstrom, mainly

due to the fact that I am not willing to pay the premium. When I look at online companies and I look to purchase from them, service simply means getting the product to me cheap and fast, and just like it says online. Other than that, I have real specifications. I'm simply looking for a good deal on the product I want. Does anyone else feel like this is the case? That sales are going more out of touch with the human element, and more in touch with faster and cheaper?

RE:

Marketing of

Services

Kristin Muchowski

9/27/2012

6:05:04 PM

You know who also has excellent customer service? WalMart, I would much rather pay those types of prices!!!

RE:

Marketing

Michael Soo of

Services

9/29/2012

12:40:41 PM

I'm not contesting

Walmart, as I shop there regularly, but where I live,

Fry's Food and

Drug has directly attacked

Walmart's prices, calling them cheaper on some items, more expensive on others. I've actually noticed

RE:

Marketing

Rose Neal of

Services

9/29/2012

5:17:26 PM

I agree Kristin! I am not one to pay a premium price for most things that I buy. I would rather do without most times; but that comes from how

I was raised. My

Mother is a very frugal person and rarely buys anything that she doesn't absolutely need. For most things I can almost always find an alternative at a this to some degree. Walmart will billboard certain items like

TV's and computers at ridiculously low prices. They will sell them at cheaper than cost prices in some cases simply to get people in the door (I LOVE this by the way), but then make up the costs on smaller items like socks, ketchup, razor blades, etc.

Very interesting marketing plan.

cheaper price so I tend to look for lower priced comparable rather than spending the premium price for things.

RE:

Marketing of

Professor Forbes

Services

9/30/2012

6:37:23 AM

Lots of balance-

Thanks- To me the big #1 is #1 because of time- we are all so rushed and squeezed with our lives, careers and such that I do not have time to deal with service problems or reliability issues...Remember- the opportunity cost you pay if you have to spend time here...

RE:

Marketing

Bweleka Kasonso of

Services

9/27/2012 12:54:34

PM

I agree that reliability is the most important service quality.

Reliability-businesses can improved reliability by hiring employees who are properly trained to perform the service accurately and dependably; and by keeping abreast with changes in their industry as relates to new and better ways of performing the service. Welcome feedback from customers so you can know what you are doing right and areas you can do better.

Credibility-businesses can improve credibility by providing excellent services to each customer. Be honest about your expertise and don't advertise for services that you are not equiped to provide just so you can sound as good or better than the competition.

RE:

Marketing of

Services

Anish Varghese

9/27/2012 5:30:06

PM

Modified: 9/27/2012 5:31 PM

I do agree that reliability is one of the most important qualities out the five determinants of service quality. And we can increase the effectiveness in this area by truthfully providing the promised service to the customers. Yes,

Nordstrom leads with service but the customers have to pay a price for that. Personally, I am willing to take some sacrifice if I can get a good price but it all depends on the product.

RE:

Marketing of

Services

Ryan Phillips

9/30/2012 7:14:06

PM

Reliability is certainly important and there is no replacing that. Just today I was speaking with my brother in law on how reliable my

Nissan truck has been. Reliability goes a long ways especially when it comes to vehicles due to the fact if they mess up you just can't get rid of it. As far as Nordstrom is concerned, I will forever be a fan. Yes you are paying the price for their service but I tell anyone their service is impeccable. Not only do they have great service

they also offer a great selection in products as well as quality. No matter which Nordstrom you walk into you will always find friendly and attentive sales persons.

RE:


Jason Ho 9/26/2012 10:32:37 PM

Reliability as my classmates stated above is important, but Quality Service is also need to be accurate. Accuracy is doing precisely what the customer needs you to do. It is paying attention to what you are being told by your customer. It is asking the right questions to find out precisely what the customer's problems are What do they really need? And the final word is satisfaction, regardless of what kind of services quality being offered, the problem is remedied and the customer is satisfied then we got a big #1.

RE:


Andreana Collins

The five determinants of service quality are:

9/27/2012 6:39:02 PM

1.

Reliability - the ability to perform the promised service dependably and accurately.

2.

Responsiveness - the willingness to help customers and to provide prompt service.

3.

Assurance - the knowledge and courtesy of employees and their ability to convey trust and confidence.

4.

Empathy - the provision of caring, individualized attention to customers.

5.

Tangibles - the appearance of physical facilities, equipment, personnel, and communication materials.

The most important service quality is reliability. I agree that this is the most important because this basic need must be met in order for the subsequent qualities to occur. At the very least, customers expect a company to be reliable. And a company can’t possibly be responsive, assuring, empathetic, and provide tangibles to accompany a service without first being reliable. One major thing companies can do to increase their effectiveness in these areas is to keep customers first. All of these qualities are based on the importance of open communication and providing customers excellent

service.

Kotler, K., Keller, K. (2011). Marketing Management. [VitalSource

Bookshelf]. Retrieved from http://online.vitalsource.com/9781256083979

RE:

Marketing

Julie Hicks of

Services

9/27/2012 11:57:11 PM

Andrea, you are right. I expect a company to be reliable because I want the quality and care that I was promised in my warranty. Another way they can improve customer service is reduce the number of automated voice and replace them with a person that provides human contact. Communication is the key to a to any business to maintain loyalty form there customers.

Marketing

Services

Semyya Cunningham 9/26/2012 5:33:51 PM

As a nurse, my services are not tangible, but highly valuable. It is hard to quantify for billing purposes what I do. It is much harder to market a service than a product. I can touch and use a product. When marketing a service, I am really marketing a relationship with you, and the value of that relationship.

Invaluable and fragile to say the very least.

Service Cary Mitchell 9/26/2012 7:29:16 PM

Marketing a services is different because unlike a product you can not touch it or feel it. Marketing a service can be difficult because have to get the consumer to feel as though they need this service provide and it has to be for a realistic price. Marketing shoes is different because most company's talk about the brand and how the shoe would feel on your feet where as shoe repair talks about the ability to fix damage or worn out shoes for a little of nothing which is for a minimum cost.

9/26/2012 10:22:31 PM Marketing Ryan Phillips

Marketing a service is more or less what the product can do. Marketing of services all boils down to performance and how you want that product to perform. Marketing of a product is totally different because you want them strictly to purchase that item based off emotional factors such as look, taste, feel, cost just to name a few. Marketing of services is more or less results driven. The key question is how can this service make your job or life less stressful or easier.

Marketing shoes again goes back to that appeal or that emotional attachment. Shoe repair again goes back to service aspect which equals performance.

Product... Professor Forbes 9/27/2012 9:10:50 AM

Say Can I Ask...

.....A few product questions? ..........Looks like Chapter 12 to me.....

What are Product levels? What's this about? Classifications? What is the relevance and what are the marketing implications? How can they be differentiated? Issues with services versus products?

And... When it comes to product strategy what are the elements that comprise this?

On a sidebar.......how would you define Heterogeneous shopping goods, Specialty goods and

Unsought goods?

RE:

Product...

Jason Ho 9/27/2012 10:56:03 PM

Level of Product:

Product planners need to think about products and services on three levels. Each level adds more customer value.

1. CORE BENEFIT

2. ACTUAL PRODUCT

3. AUGMENTED PRODUCT

The most basic level is core benefit, which addresses the question what is the buyer really buying? When designing products, marketers must first define the core, problem solving benefits or services that consumer seek.

At the Second level, product planners must turn the core benefit into an actual product. They need to develop product and service features, design, a quality level, a brand name, and packaging and other attributes have all been combined carefully to deliver the core benefit of staying connected.

Finally, product planners must build an augmented product around the core benefit and actual product by offering additional consumer services and benefits. BlackBerry must offer more than just a communications device. It must provide consumers with a complete solution to mobile connectivity problems.

RE:

Product...

Andreana Collins 9/28/2012 10:18:49 AM

Ok, I think I’ll take a stab at defining heterogeneous, specialty and unsought goods. Shopping goods are defined as goods that the consumer characteristically compares on such bases as suitability, quality, price, and style (Kotler & Keller,

2011, p. 320). Heterogeneous shopping goods are goods that have different product features and services than. With these types of goods, the buyer may consider these added features and services before they consider the price. Recently I decided to purchase a new bed. And anyone who has ever purchased a bed knows that there are many options, haha. One could choose memory foam, springs, pillow tops, cushions, etc. I think this is a good example of heterogeneous goods because all the beds had different features and varying levels of service associated with them. Specialty goods are those with brands that people associate with quality and are unique. For example, a man will pay more money for an Armani suit because of the reputation associated with the brand and the quality he knows he will receive. Unsought goods are goods that people don’t really think about purchasing. The book uses life insurance as a great example of an unsought good that we don’t normally think to buy, but one that we should buy.

Kotler, K., Keller, K. (2011). Marketing Management. [VitalSource Bookshelf].

Retrieved from http://online.vitalsource.com/9781256083979

RE:

Product...

Yonny Leon 9/28/2012 1:01:55 PM

I believe that consumers often think that a product is simply the physical item that he or she buys. In order to actively explore the nature of a product further, let’s consider it as three different products - the core product, the actual product, and finally the augmented product.

RE:

Product...


When customers heterogenously shop, they are looking for specific features and the price isn't as important as finding a product with the desired features. I do this all the time. Never called it this though. I abhor shopping. When I do it, I know exactly what I am looking for and I go get it. No window shopping.

RE:

Product...

Professor Forbes

Yonny, Jason, Semyya, Et al...

9/30/2012 6:35:40 AM

So how do these product levels facilitate new product development?

Where do you think the greatest action is in new product development here?

RE:

Product...

Latonya Hughes 9/29/2012 9:36:39 PM

According to the following website below, unsought goods are "consumer products that the consumer either does not know about or knows about but does not normally think of buying". Typically unsought goods is mainly a product or service that has just come out and the consumers aren't aware of it yet or know little about it. This could be a new type of insurance. I will say,

I felt this way when legal and accidental insurance came out. It was introduced to me by a friend and I didn't know enough about it to get it or felt that I really needed it. The company has to really market these things and prove to the consumer that it is worth having. Like later, my job started offering it in whom I trust, so it made me rethink about getting it.

RE:

Product...

Christine Moore 9/27/2012 7:59:57 PM

Firstly shopping goods as described in the text are simply "goods that the consumer compares based on quality price and style." (Kotler p.321) Within this category lies homogeneous shopping goods which are similar in quality but differ in price, so it would be right to say that heterogeneous shopping goods are on the other side of that spectrum, described as products/services that differ in product features and services that may be more important than price. Specialty goods are those in which you search for. The consumer typically knows exactly what one wants and are searching to locate a retailer that will sell you what you are in need of. Finally unsought goods would be those that are as they sound, unsought. Generally people do not go out looking for these goods, they are products/services in which marketers must work hard to bring these goods into the minds of customers.

RE:

Product...

Deiny Moretta 9/27/2012 5:52:42 PM

Kotler suggested that if product is view on three levels it will help extract all the benefits that your product offers and that customers will choose a product based on their perceived value of it.

Kotler defined five levels to a product:

1. Core Benefit the fundamental need or want that consumers satisfy by consuming the

product or service.

2. Generic Product a version of the product containing only those attributes or characteristics absolutely necessary for it to function.

3. Expected Product the set of attributes or characteristics that buyers normally expect and agree to when they purchase a product.

4. Augmented Product inclusion of additional features, benefits, attributes or related services that serve to differentiate the product from its competitors.

5. Potential Product all the augmentations and transformations a product might undergo in the future.

RE:

Product...

Bweleka Kasonso 9/30/2012 7:07:34 PM

Some of the key elements of product marketing strategy are target market, pricing, and differentiation. As we have discussed in previous weeks, you have to know what type of customer will buy your product so that you can direct marking efforts in that direction. Price is everything and you can set product price based on competition, cost or perception. You have to establish what makes you product different from the competition and use that as your products competitive advantage.

RE:

Product...

Jennifer Magana 9/30/2012 2:20:16 PM

The article at the link provided below explains the elements of product strategy. There are five questions that must be answered to obtian the information needed for a product strategy. 1. Who are you selling to? This will explain the target market. 2. What are you selling? This will explain the unique attributes of your product as compared to the competition. 3. What value do you provide your customers? This will explain what need was fulfilled with the product. 4.How will you price your product? This will have the pricing model and perceived value. 5. How will you distribute the product? This will be your plan to see the product to those consumers within the target market, this is how you will physically get the product into their hands. A product strategy is very important because it gives the marketers an idea of what target market would be best for the product and what product the customers need. ( http://www.marsdd.com/articles/product-strategy-why-itmatters-and-how-to-create-on/ )

Product... Professor Forbes 9/28/2012 8:24:26 AM

Great Work-

Let's keep it moving-

Nice work on Product Classifications- What's this about? What is the relevance and what are the marketing implications?

Also lets do some stretching...with regards product-line length what is the purpose of this and what are the types of stretches...got examples?

Annnnnnnnnnnnnnnd.....How about the elements of product strategy- what are these? Why have they been referred to as the "fifth P"..

RE:

Product...

Ira Hughes 9/28/2012 1:27:53 PM

Ultimately the goal in marketing items is to see a profit. Of course companies go about their strategies in different ways. The idea of product line length is to extend the line of a product because it is doing really well or it is perceived to be doing really well. A good example is the automobile industry. Not long ago the automobile industry was fat and bloated. Today the industry is a lot more streamlined. Fox example: General Motors cut a few of its' divisions, Pontiac, Oldsmobile, and Saturn. Today Buick produces the Enclave and Chevy makes the Traverse. Essentially these two vehicles are one in the same but, they are sold under different badges. These products fall in line under the GM brand but, they both produce a steady share of revenue. This is a successful strategy because customers have dictated that they are willing to pay for certain vehicles and there no unnecessary cost for

GM because the vehicles are essentially the same.

RE:

Product...

Latonya Hughes

Modified: 9/28/2012 1:50 PM

9/28/2012 1:45:30 PM

Packaging is considered the "fifth P". Packaging can make a significant difference to a company and its strategy when marketing a product. Packaging can catch ones eye and represent its image as well. When a product is placed on the shelf, it has to catch the attention of the consumer with its design and look. Most customers if they are like me, it is a sensitive task and sometimes the packaging and design is what helps me make my many choices in choosing certain products. Colors, labeling, design, size, and writing all makes a difference when buying a product. The

company must target to meet the needs of the majority and its target audience when designing its product and packaging. The following website describes the importance of color, shape, imagery, and words: http://www.brandingstrategyinsider.com/2012/05/effective-productpackaging-strategy.html

"1. color – invokes a physical response

2. shape – creates and supports recognition

3. imagery – stirs emotions and fulfills needs

4. words – informs"

RE:

Product...


I really enjoyed the link you shared Latonya. Packaging today is an art form. Sustainable packaging, recycled materials and less is more are buzz words today's packaging evoke. Therefore, you will notice that bottles utilize less plastic materials, packaging have the recycle symbol and much more. In addition, to choosing products based on color, shape, imagery and words, consumers look are looking at packaging and how it impacts their environment.

RE:

Product...

Rebecca Aub 9/28/2012 4:26:12 PM

Product line length is the ability to create a product where one can extend. This can be accomplished upwardly - an up-market stretch where the products are added to the line in differing segments; horizontally - two way stretch, where products are added in both directions to capture a market with a less expensive product in one direction and a more expensive product in the other, and vertically - down market stretching, where a less expensive product is created with value for a different appeal.

Proctor and Gamble has Tide, which appeals to a certain segment, they also have Gain - less expensive but again a different segment appeal. They have also changed their product lines for export or sale in differing countries by removing certain added values and thereby being able to market a product that provides value ( gets clothes clean ) but without for example the additive of downy fabric softener. A sort of no-frills product which is competitive due to price, yet retains the Brand name appeal.

RE:

Product...

Cary Mitchell 9/29/2012 10:02:37 AM

I agree with you on the product line length and the ability to stretch in two different ways. Apple has done a great job on this because they have taken the IPhone to new heights. They come out with different features for each generation and at the sometime making the older version more appealing and less expensive product at the sametime still have a high end product. The past few weeks the 5 has had a great week. So I say Apple has showed the product length and how to stretch in both directions.

RE:

Product...

Julio Rhymer 9/28/2012 9:20:57 PM

Product length refers to how many products in the line. One incentive in product is upselling. This is to encourage customers to slowly upgrade to a more expensive product. Such as buying a car from toyota. You buy a scion then a toyota then a lexus.

RE:

Product...

Deiny Moretta 9/28/2012 8:14:24 PM

A product strategy sets the vision of a product and it enables a company to focus on an specific market and feature for the product. When defining a product strategy, a company must have clearly identify some key questions.

1.

what's the product to be sell?

2.

What value does the product provide to customers?

3.

How does the company will price the product?

4.

How will the product be distributed?

The power of a product strategy comes from what the company defines as well as what to exclude. By identifying a particular target market in a product strategy, a company also excluding other markets, which help to understand which projects fall outside the product strategy and distract from strategic goals.

RE:

Product...

Julie Hicks 9/29/2012 8:42:48 PM

Great explanation of the elements of product strategy. The first element "what is it?,"give a simple depiction of what there product is or does. This is done through advertising like television, radio, world wide web, etc. The next element is "benefit," trying to give the consumer a visual as to why their product can be the next best thing for their well being. Another element tells the customer why their

product is better than their competitor. This is done through demonstrations and demographics. The last element is prove this product work like it says, providing evidence of testimonies are the best advertising in the world.

I'm stretched out...


I'm stretched out...

When Ford bought Volvo & Range Rover what was that?

When Mercedes Benz bought Chrysler (in general) what would that have been?

When BMW bought Mini/Cooper and Rolls Royce...what was that?

What are the pluses and negatives to these types of stretches? Pick one and go...

RE: I'm stretched out...

Jennifer Magana 9/29/2012 11:00:30 PM

When Mercedes Benz bought Chrysler it was a down market stretch. According to page 332 of the Kotler textbook, a down market stretch is when a brand in the middle market decides to expand their line with lower price products. In the case of Mercedes Benz, they are considered to see only high end luxury vehicles. One plus to having a line with lower priced vehicles is to attract a larger segment of the market. One negative to having a lower priced product is that it might tarnish the name for buyers seeking the prestige of driving a Mercedes Benz. Some consumers might see it as cheapening the brand name.



Jennifer,

Agreed, there are downsides to adding lower priced products to a line. I think one company that has successfully conquered the twoway stretch is Hilton Worldwide. Hilton has several lines of hotels that appeal to different economic groups. They include:

Luxury Line: Waldorf Astoria and Conrad Hotels & Suites

Vacation Ownership Line: Hilton Grand Vacations

Full Service Line: Hilton Hotels & Resorts, Double Tree, and

Embassy Suites & Hotels

Focused Service Line: Hilton Garden Inn, Hampton, Homewood

Suites, and Home 2 Suites by Hilton.

You would never run out of options with Hilton Worldwide!

Haha. They have stretched their market upwards and downwards in an effort to accommodate all budgets.



Well, I wasn't really aware until I did a little research but apparently

Chrysler company has had quite a tumultuous recent history but is now supposedly on the financial upswing under the direction of a new CEO;of the Italian auto giant Fiat as of 2009. Mercedes bought Chrysler to put themselves in the Mini-Van market. This was an area they weren't strong in and Chrysler was. It was at the time, a smart and lucrative move for

Mercedes, and also made Chrysler look more luxurious.


Rebecca Aub 9/29/2012 6:20:09 PM

When BMW purchased Mini and Rolls Royce, it was an example of product line extensions and two way stretching. Initially a sporty luxurious automobile, BMW attempted a downward stretch within its own Brand with the intention of capturing a different segment that would initially trade up to larger and more expensive BMW models. The purchase of Rolls was an attempt to capture a segment of a higher luxury market, whereas the purchase of Mini, was more in line with the sporty image that BMW has long promoted, for a lower price tag however.

This attempt was not however completely successful, BMW sold their share of the Rover group and retained the Mini Cooper Line which was more in line with the sporty nature of the BMW image and culture.


Julio Rhymer 9/29/2012 4:52:03 PM

When ford bought Volvo and Range Rover it attempted to stretch its brand across and upward. This was done to help allow the different brand to compete with the

competition for luxury automobiles and still have a luxury car such as volvo to compete in a area dominated by lexus. The negative to this was that Range Rover was a losing automobile company for years and to market a brand few were interested or could afford made it a difficult marketing product.

The Ford Motor Co., which bought loss-making Land Rover from BMW for $2.6 billion in 2000, must be relieved. Especially since Ford, which lost $5.45 billion last year, is making Range Rover and other luxury European models central to its latest restructuring plan.

Read more: http://www.time.com/time/magazine/article/0,9171,214234,00.html#ixzz27u0fADp7


Ira Hughes 9/29/2012 9:54:05 PM

The purchasing of Chrysler by Mercedes Benz was a failure. The premium luxury builder thought it could get a deeper foothold into the U.S. market by purchasing Chrysler and sharing it's world renowned engineering and technology. First and foremost Mercedes spares no expense when building cars which is totally not part of the culture at U.S. auto manufactures. Also, Mercedes has a top down culture with very little influence from below whereas Chrysler wants input from every level. Basically the cultures clashed and Mercedes could not stand the thought of being associated with a substandard product. The reality was that a premium product could not maintain and association with a super cost conscious product. http://www.casestudyinc.com/daimler-chrysler-and-the-failedmerger



Thanks for the start!

All: What kind of stretches were these moves? See my previous post here....

Know your stretches and the pros & cons- this is a very common marketing move and it can be good and bad.....More thoughts on when it works and when it does not?


Rebecca Aub

9/30/2012 10:47:45

AM

An example of a successful product stretch was Dove owner by Unilever. Originally a soap, the line expanded to bath wash for both genders, shampoo, conditioner, deodorant, a specific section for men, a specific section for women and a specific section for sensitive skin.

This two way stretch allowed for an expansion of targeted segments - a target of both men and women, a separate target for sensitive skin, inclusive of medical conditions such as excema, and an increased offering in terms of expanded product class and lines.


Rose Neal

9/30/2012 4:04:32

PM

Great example Rebecca. I was thinking along those same lines and many health and beauty lines are thinking that way also. Suave and Head & Shoulders both expanded their lines to include specific genders and conditions to attract a wider base. Suave has a line for women and men and they also branched out into deodorants. Head & Shoulders specifically targeted the segment that had dandruff but they have also branched out to include lines that include specific hair types.

Services &

Products...


Services & Products....

That covers the full gamut does it not? Know these key issues of marketing services effectively and overcoming their unique marketing challenges. On product, pay keen attention to the categorization issues we reviewed and various aspects of positioning- fascinating stuff-

How is marketing shoes

Yonny Leon 9/30/2012 12:45:46 PM

different from marketing shoe repair?

When you are marketing a product, you are marketing a physical item with tangible value. For instance, a company might be involved in marketing a brand of computer.

In this case, they are marketing the physical computer, monitor, etc. In this case, the buyer will have a physical item they are comparing and making buying decisions about. This is different from marketing a service where the person or company is marketing a non-tangible item. An example related to the physical item above would be the service of computer repair. In this case, a person or company is marketing their skills at the repair of the computer as opposed to the marketing the physical computer itself.

RE: How is marketing shoes different from marketing shoe repair?


Yonny,

I like your computer example. There is a major difference between marketing something the customer can see, feel, taste, etc. and marketing a service. Our marketing plan project has shown me just how difficult marketing a service can be! Haha. At first I chose to deliver a service rather than a product and I am now seeing the distinct differences between the two. There are situations, however, when a company's offering is a combination of the two. Our book describes five categories of offerings:

1. Pure tangible good

2. Tangible good with accompanying services

3. Hybrid

4. Major service with accompanying minor goods and services

5. Pure service

I ultimately chose to offer a hybrid offering of products and services. I like having a product because it gives the customer something tangible to associate with my company. I also chose to offer a service because services create touch points for employees to connect and communicate with customers.

Kotler, K., Keller, K. (2011). Marketing Management. [VitalSource

Bookshelf]. Retrieved from http://online.vitalsource.com/9781256083979

RE: How is marketing shoes different from marketing shoe repair?


I agree with both of you. However, I would like to point out that some companies have found a way to market both the product and repair. For example Eastpak, a book bag company has an excellent reputation when it comes to marketing their product and it's repair. As part of their marketing strategy they market their many bags in addition, they market repair should anything happen to the bag whether covered under the warranty or not. This is a good model for other companies to follow. It shows that you can be successful in marketing both a product and its repair. http://www.eastpak.com/uk-en/warranty/

Week 4: Product Positioning and Strategy

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Week 4: Product Positioning and Strategy

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