What’s Happening?
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Term Projects!
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http://www.bbc.co.uk/news/uk-12593061
Product and Service
Strategy
Chapter 9
Product-Service Continuum
Sugar
Pure Tangible
Good
Restaurant
University
Education
Pure
Service
What is a product?
One definition of a product:
 A good, service, or idea consisting of a bundle
of tangible and intangible attributes that satisfies
consumers and is received in exchange for
money or other unit of value
Product Concept:
 Defines the essence, or core idea underlying the
product features and benefits that appeal to the
target market.
A Product’s Three Parts
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Core Product – benefit, basic features, value, service
Actual Product/Primary characteristics – features, quality,
design, attributes, colour, packaging (depending on product)
Augmented Product – credit, payment plans, warranties, after the
sales service, delivery, packaging, etc.
Discussion Question – Page 249, #3
Types of Consumer Products
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Convenience: purchased frequently, immediately, and
with a minimum of comparison and buying effort
Shopping: the consumer compares product alternatives
on such bases as suitability, quality, price, and style
Specialty: a product with unique characteristics or brand
identification, which the consumer is willing to make a
special purchase effort
Unsought: a product the consumer does not know
about, or normally consider buying
Product line and mixes
Product item
Product line
Product class
Product mix
Example: General Motors
Line Extension
• As Marriott’s product extension grew in
popularity, it extended the product further.
Product Mix Decisions
Product mix: the set of all product lines and items that a particular
seller offers for sale
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Width: the number of different product lines carried
Length: the total number of items carried within the product
lines.
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Depth: the number of versions offered of each product in
the line
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http://www.pg.com/product_card/prod_card_laun
dry.jhtml
Branding
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Creating, maintaining,
protecting and
enhancing products
and services.
A brand is a name,
term, sign, symbol,
design or a combination of these that identifies
the maker or seller of a product or service.
Types of Brands
•Family Brands – i.e. Campbell’s, Marriott
•Flanker brand
•Co-branding
•Ingredient branding
•Cooperative branding
•Complementary branding
•Private/Generic brands
Brand Name Selection
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It should suggest product’s benefits and qualities.
It should be easy to pronounce, recognize and
remember.
It should be distinctive.
It should be extendable.
It should translate easily into foreign languages.
It should be capable of registration and legal
protection.
Should reinforce the product concept
Discussion Question – page 249, #4
Packaging
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Containment functions
Protection in transit
function
Storage function
Usage facilitation
function
Promotion function
Ecological function
The heart shape bowl
communicates a
healthy diet
Packaging
Dutch Boy recently
came up with a
long overdue
innovation—paint
in plastic
containers with
twist-off caps.
Labelling
Printed information appearing on or with
the package.
 Performs several functions:
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 Identifies
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product or brand.
 Describes several things about the product.
 Promotes the product through attractive
graphics.
Legal/regulatory issues
What is a service?
One definition of a service:
 Activities, deeds, or other basic intangibles
offered for sale to consumers in exchange for
money or something else of value.
Characteristics of Services
Intangibility
Inseparability
Cannot be seen, tasted,
felt or smelled before
purchasing
Production and,
consumption, and
from the provider
Variability
Perishability
Service quality depends
on who provides and
under what conditions
Cannot be stored,
for resale or
later use