Lecture 1

• Product


  Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need
• Service


  An activity, benefit or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything
• Types of products and services

  • Products
  • Services
  • Experiences
• Product and service classifications


  • Consumer products
  • Industrial products
  • Organisations, persons, places, events and ideas
• Consumer product


  A product bought by final consumers for personal consumption
• Types of consumer products

  • Convenience products
  • Shopping products
  • Speciality products
  • Unsought products
• Convenience products


  • Frequent purchase, little planning, little comparison or shopping effort, low customer involvement
• Shopping products


  • Less frequent purchase, much planning and shopping effort, comparison of brands on price, quality, style
• Specialty products


  • Strong brand preference and loyalty, special purchase effort, little comparison of brands, low price sensitivity
• Unsought products


  • Little product awareness, knowledge (or, if aware, little or even negative interest)
• Marketing considerations for consumer goods

  • Customer buying behaviour
  • Price
  • Distribution
  • Promotion
• Industrial product


  A product purchased by individuals and organisations for further processing or for use in conducting business
• Types of industrial products

  • Materials and parts
  • Capital items
  • Supplies and services
• Social marketing


  The use of commercial marketing concepts and tools to influence behaviours that benefit individuals and communities for the greater social good
• Product and service decisions

  • Individual product and service decisions
  • Product and service attributes
  • Branding
  • Packaging
  • Product line decisions
  • Product mix decisions

  
• Brand


  A name, term, sign, symbol or design, or a combination of these, that identifies the maker or seller of a product or service
• Packaging


  The activities of designing and producing the container or wrapper for a product
• Product line


  A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets or fall within given price ranges
• Product line filling


  Expansion of a product line by adding more products within the existing line
• Product line stretching


  Expansion of a product line by adding products that are new to the company but related to the existing line
• Accor group - product line stretching

  • Economy - Ibis
  • Mid-scale - Novotel
  • Premium - Grand Mercure
  • Luxury - Sofitel
• Product mix


  The set of all product lines and items that a particular seller offers for sale
• Product mix decisions


  • Width - number of different product lines
  • Length - total number of items the company carries
  • Depth - number of versions of each product in the line
  • Consistency - how closely related the various product lines are
• Four service characteristics


  • Intangibility
  • Inseparability
  • Variability
  • Perishability
• Three types of service marketing

  • Managing service differentiation
  • Managing service quality
  • Managing service productivity
• Brand equity


  The differential effect that knowing the brand name has on customer response to the product or its marketing
• Measures of brand equity

  • Differentiation
  • Relevance
  • Knowledge
  • Esteem
• Brand positioning levels


  • Product attributes
  • Association with desirable benefits
  • Beliefs and values that connect with and engage consumers
• Brand sponsorship


  • National brand vs store brand/private brand
  • Licensed brand
  • Co-brand
• Brand development strategies


  • Line extensions
  • Brand extensions
  • Multibrands
  • New brand names
• Brand management


  • Internally and externally "live" the brand values
  • Conduct brand audits regularly