Chapter Nine
Goods & Services: The Basics
Objectives
Define product
Learn to classify products
Understand differences between product lines
& product mixes
Review brand-related terminology
What is a Product?
Primary characteristics
Auxiliary dimensions
The total product
Core & Augmented Product
Augmented
product
Core
product
Primary
Characteristics
AUXILIARY
CHARACTERISTICS
Product Strategy & Product
Concept
Selection and blending of a product’s primary
and auxiliary dimensions into a unified mix
emphasizing a particular set of consumer
benefits
Consumer
Benefits
Product Differentiation
Product elements (tangible or intangible) separating
your product from others
Colored paperclips that
don’t rust
Classifying Consumer
Products
Durable
goods
Nondurable
goods
Services
Classifying Consumer
Products
Convenience
Products
Shopping
Products
Effort expended
Specialty
Products
Goods-Services Continuum
Trowel
Good
Restaurant’s
offering
Good/service
Employment
agency service
Service
Classifying Organizational
Products
Capital
products
Production
products
Operating
products
Installation
Accessory
equipment
Raw & process
material
Manufactured/
component
parts
Supplies
Services
Software
Information
Product Lines & Product
Mixes
Product item
Product line
Product class
Market growth rate
The Product Portfolio
High
PROBLEM
CHILD
DOG
?
STAR
CASH COW
Low
Low
High
Market share
Branding
Brand/Logo
Brand Names
Brand Marks
Trademarks & Service
Marks
Trademarks: legally
protected brand names
or brand marks
Registered domestically
and internationally
®
®
Service marks
“Fly the Friendly Skies of United”
®
®
Generic Names
Used to
describe a
product class
These were all originally
brand names.
•Nylon
•Kerosene
•Escalator
•Formica
•Cellophane
Good Brand Names:
Easy to remember and
pronounce
mnemonic quality
Invokes positive association
Suggests a positive image
Reinforces product concept
Communicates product
benefits
Says something about the
user
Avoids linguistic traps
•Outward Bound
•Palm computers
•L’Eggs
•Moist & Easy
•Citgo
•Toast Em Pop-Ups
•Amazon
Generic Brands
Carries neither a manufacturer nor a
distributor brand
Plain packaging
Stark lettering
Packaging
An auxiliary product dimension including:
Labels
Inserts
Instructions
Graphic design
Shipping cartons
Sizes and types of containers
Package: Extension of
Product
Attention
Identifiable image
Protection
Promotion
Ecological function
Information & inserts
Encourage multiple unit
purchases
Review
Define product
Learn to classify products
Understand differences between product lines
& product mixes
Review brand-related terminology