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Marketing 333
Chapter 8
Elements of Product Planning for Goods and Services
What is a Product?
A bundle of benefits What the buyer gets…
not what the seller sells Tangible items, services,
ideas
The Total Product
A wide range of tangible and intangible benefits that a buyer might gain from a product after purchasing it
A product might have:– Primary characteristics– Auxiliary characteristics
CoreCoreproductproduct
PrimaryPrimary
CharacteristicsCharacteristics
AugmentedAugmentedproductproduct
Product Strategy
Planning and development of a mix of the primary and auxiliary dimensions of a product’s attributes.
Classifying Consumer ProductsClassifying Consumer Products
Three Types of Consumer Products:Three Types of Consumer Products:
ServicesServicesNondurable Nondurable
goodsgoods
Durable Durable goodsgoods
Goods-Services ContinuumGoods-Services Continuum
GoodGood ServiceServiceGood/serviceGood/service
Restaurant’sRestaurant’sofferingoffering
EmploymentEmploymentagency serviceagency service
ShovelShovel
Classifying Products by Consumer BehaviorClassifying Products by Consumer Behavior
ConvenienceConvenienceproductsproducts
ShoppingShoppingproductsproducts
SpecialtySpecialtyproductsproducts
Convenience Products
Inexpensive Purchased regularly Easily accessible
Shopping Products
Make comparisons Shop around Not purchased
frequently
Specialty Products
Usually expensive Special effort to
purchase
Classifying Organizational ProductsClassifying Organizational Products
Three types:Three types:
CapitalCapitalProductsProducts
ProductionProductionProductsProducts
OperatingOperatingProductsProducts
Capital Products
Installations Accessory equipment Examples: buildings,
forklifts, copying machines
Production Products
Raw materials Manufactured
materials Component parts Process materials
Operating Products
Routinely Purchased Used in daily
operations
Services
Instrumental Services Consummatory Services
Characteristics of Services
IntangibilityPerishability
Inseparability
Heterogeneity
Product Line and Mix
Product line: group of products that are fairly closely related
Product Mix: All the product offerings of an organization, no matter how unrelated
Dimensions of the Product Mix
Breadth or width Depth or length
Branding
Brand name Brand mark Logo Trademark Service Mark
Brand Name and Brand Marks
Brand name: verbal part of the brand Brand mark: unique symbol that is part of
the brand Logo: brand name or company name
written in a distinctive way
Trademarks and Service Marks
Trademark: legally protected brand name or brand mark for goods
Service mark: symbol that identifies services
What makes a good brand name?
A good brand name:– Is easy to pronounce– Has mnemonic quality– Suggests a positive image– Reinforces product concept
Communicates product benefits
– Says something about the user– Avoids linguistic traps
Manufacturer and Distributor Brands
Manufacturer brand: owned by the maker of the product
World (global) brand: distributed and recognized around the world
Distributor brand: owned by a retailer or wholesaler
Generic Brands
Carries neither a manufacturer nor a distributor brand– Plain packaging– Stark lettering
Family Brands
The same brand name is used in different categories of products– E.g. Healthy Choice
Individual Brand
Example: Mar’s candies Example:P & G’s laundry
detergents
Co-Branding
Use of two brands on a single product
Pizza Hut Tostitos
Pizza Hut Pizza flavored
Tostitos
Brand Equity
Value associated with a brand– Crayola– Harley-Davidson– Disney
Functions of Packaging
Contain product Protects product Facilitates storage and use of product Promotes product Recycling issues
Labeling
Label: Paper or plastic sticker attached to a container to carry product information
UPC (universal product code): permits computerization of checkout and compilation of sales and inventory information
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