Marketing
Product
Overview
Definition of product vs. service
 The importance of branding and packaging
 Consumer and industrial products
 Product mix and product line
 Product differentiation
 The stages of the product life cycle

Marketing Mix: The “Four (5) P’s”
roduct
ricing
lace
romotion
(Distribution)
ackaging
What’s a Product?
anything that can be offered to a market for
attention, acquisition, use, or consumption and that
might satisfy a want or need.
 tangible or intangible





Good
Service
Event
Idea (social marketing; recycling; public service
ads)
 Place (tourism)
 Person (politicians, entertainers, athletes, lawyers)
 Organization (profit & non-profit)
What’s a Service?

any activity/benefit that one party can offer to
another that is essentially intangible and does
not result in the ownership of anything.
• Renting a hotel
room
• depositing $ in a
bank
• traveling on an
airplane
• getting a haircut
• having car repaired
• watching a
professional sport
• seeing a movie
• having clothes
cleaned at a dry cleaner
• getting advice from a
lawyer
Classifying Goods & Services
Specialty Goods
Shopping
Goods
Convenience
Goods
Consumer Markets
Expense
Items
Capital Items
Industrial Markets
based on WHO will use them; HOW will be used
Consumer Products
Based on HOW/WHERE consumers buy them
Industrial Products


Consumed by businesses
Expense Items
– Consumed within 1 year
– Include raw materials,
parts, supplies
– At SMC?
• Capital Items:
– Permanent (expensive)
– Buildings, fixed equipment
– At SMC?
Classified according to COST and USE
Strategic Decisions
What features are part of a product and differentiate it from another?
Packaging

Functional benefits
– Convenience
– Protection
– Storage

Promotional/Communication benefits
– Directions
– Legal requirements or product disclosure

Perceptual Benefits
– Color
– Connote status, economy, quality
Product Line & Product Mix
Product Mix
The total group of products or
product lines offered by a company
Product Line
A group of closely related product items
Product Line & Product Mix
Product Line & Product Mix
Product line (depth)
Product Mix (width)
Product Differentiation by Branding
• Brand
• Brand Name
• Trademark
Trade Characters
Mr. Clean
(Procter &
Gamble)
Quaker Oats
Kellogg’s
Aflac
Geico
Types of Brands

National brands/Manufacturer’s Brand
– Producers are identified with their products

Licensed brands
– The manufacturer sells the license for the brand
name or symbol to be put on accessories.

Private brands
– Retailers or wholesalers selling products under
their own private (= non-manufacturer) label
Product Differentiation


Definition: “the creation of a product or product
image that differs enough from existing products
to attract customers”
Standardized/homogeneous products
 Example—fast food: juicier hamburgers, crispier fries
Product Life Cycle
iPod
Music CDs
iPhone
Hydrogen car
Analog cameras
Product Life Cycle
Effect on sales and profits
Summary
Products vs. Services
 Classification
 Strategic Decisions
 Product Mix vs. Product Line
 Branding
 Packaging
 The Product Life Cycle
