Product v Service
A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
A service is an activity, benefit, or satisfaction offered for sale; it is intangible and does not result in ownership of anything.
Both are included in market offerings
Core customer value
First level of product level
Deals with what is bought by the customer. For example, people who buy an Apple iPad are buying much more than just a tablet computer. They are buying entertainment, self-expression, productivity, and connectivity with friends and family—a mobile and personal window to the world.
-More complex products
Product planners
Second level of product level
Need to develop product and service features, a design, a quality level, a brand name, and packaging. For example, the iPad is an actual product. Its name, parts, styling, operating system, features, packaging, and other attributes have all been carefully combined to deliver the core customer value of staying connected.
- Brand name, features, design, packaging, quality level
Augmented product
Third level of product level
The core benefit and actual product by offering additional consumer services and benefits. For example, when consumers buy an iPad, Apple and its resellers also might give buyers a warranty on parts and workmanship, quick repair services when needed, and a Web site to use if they have problems or questions. Apple also provides access to a huge assortment of apps and accessories.
- After-sale service, tarranty, product support, delivery and credit
3 levels of product
Core, actual, augmented
Industrial products v Consumer Products
Bought by individuals and organizations for further processing or for use in conducting a business
- Materials and parts, capital items, supplies and services
Bought by final consumers for personal consumption
Marketing considerations
Convenience, shopping, specialty, unsought
Convenience
Frequent purchase, little planning
Low price
Widespread distribution
Toothpaste, Kitkat
Shopping
Less frequent purchase, more planning and shopping effort
Higher price
Selective distribution
Television, furniture
Specialty
Strong brand preference
Highest price
Exclusive distribution
Luxury goods such as Rolex
Unsought
Little product awareness or knowledge
Varies
Aggressive advertisment
Life insurance, blood donations
Individual product decisions
Product attributes - design, quality, style
Branding - term, symbol, name
Packaging - container, wrapper
Labeling and logos - tags,
Product support services - surveys
Product line vs product mix
Product line
Closely related products that have similar functions and groups
Product mix
Total number of product lines a company has
Product mix dimensions
Width
Number of different product lines the company carries
Length
Total number of items a company carries within its product lines
Depth
Number of versions offered for each product in the line
Consistency
Relativity of the various product lines in end use, production requirements, distribution channels, or some other aspect
Major brand strategy decisions
Brand positioning
Attributes, benefits, beliefs and values
Brand name selection
Selection, protection
Brand sponsorship
Private brand, licensing, co-branding
Brand development
Line extensions, brand extensions, multibrands
Brand development strategies
Brand name / product category
Existing / existing - Line extension
New / existing - Multibrands
Existing / new - brand extension
New / new - New brands
Four service characteristic
Intangibility
Services cannot be seen, tasted, felt, heard before purchase
Variability
Quality of services depends on who provides them and when, where, and how
Inseparability
Services cannot be separated from their providers
Perishability
Services cannot be stored for later sale or use