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1. Chapter 8 -slide 1
Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter Five
Product

2. Chapter 8 -slide 2
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Product, Services, and
Branding Strategy
•What Is a Product?
•Product and Services
Decisions
Topic Outline

3. Chapter 8 -slide 3
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Productis anything that can be offered in a
market for attention, acquisition, use, or
consumption that might satisfy a need or
want
Experiencesrepresent what buying the
product or service will do for the customer
Products, Services, and Experiences

4. Chapter 8 -slide 4
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Levels of Product and Services
Core benefitsrepresent
what the buyer is really
buying.
Actual product
represents the design,
brand name, and
packaging that delivers
the core benefit to the
customer.

5. Chapter 8 -slide 5
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Levels of Product and Services
Augmented productrepresents
additionalservicesorbenefitsofthe
actualproduct.Youcanoftenfind
augmentedproductfeaturesonthe
product’sWebsitesincluding
games,featuresandsupport.

6. Chapter 8 -slide 6
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Consumer
products
Industrial
products
Product and Service Classifications

7. Chapter 8 -slide 7
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
•Consumer products are products and
services for personal consumption
•Classified by how consumers buy them
–Convenience products
–Shopping products
–Specialty products
–Unsought products
Product and Service Classifications

8. Chapter 8 -slide 8
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Convenience products are consumer products and
services that the customer usually buys
frequently, immediately, and with a minimum
comparison and buying effort
•Newspapers
•Candy
•Fast food
Product and Service Classifications

9. Chapter 8 -slide 9
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Shopping products are consumer products and
services that the customer compares carefully on
suitability, quality, price, and style
•Furniture
•Cars
•Appliances
Product and Service Classifications

10. Chapter 8 -slide 10
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Specialty products are consumer products and
services with unique characteristics or brand
identification for which a significant group of
buyers is willing to make a special purchase effort
•Medical services
•Designer clothes
Product and Service Classifications

11. Chapter 8 -slide 11
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Unsought products are consumer products that the
consumer does not know about or knows about
but does not normally think of buying
•Life insurance
•Blood donations
Product and Service Classifications

12. Chapter 8 -slide 12
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Industrial products are products purchased for
further processing or for use in conducting a
business
•Classified by the purpose for which the product is
purchased
–Capital
–Materials and parts
–Supplies and services
Product and Service Classifications

13. Chapter 8 -slide 13
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Capital items are industrial products that aid in the
buyer’s production or operations
Materials and partsinclude raw materials and
manufactured materials and parts usually sold
directly to industrial users
Supplies and servicesinclude operating
supplies, repair and maintenance items, and
business services
Productand Service Classifications

14. Chapter 8 -slide 14
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Organization marketing consists of activities
undertaken to create, maintain, or change
attitudes and behavior of target consumers
toward an organization
Organizations, Persons, Places, and Ideas

15. Chapter 8 -slide 15
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product?
Person marketing consists of
activities undertaken to
create, maintain, or
change attitudes and
behavior of target
consumers toward
particular people
Organizations, Persons, Places, and Ideas

16. Chapter 8 -slide 16
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
What Is a Product
Place marketing consists of activities undertaken to
create, maintain, or change attitudes and
behavior of target consumers toward particular
places
Social marketing is the use of commercial
marketing concepts and tools in programs
designed to influence individuals’ behavior to
improve their well-being and that of society
Organizations, Persons, Places, and
Ideas

17. Chapter 8 -slide 17
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Individual Product and Service Decisions

18. Chapter 8 -slide 18
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Product attributesare the benefits of the product
or service
•Quality
•Features
•Style and design
Individual Product and Service Decisions

19. Chapter 8 -slide 19
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Brand is the name, term, sign, or design—or a
combination of these—that identifies the maker
or seller of a product or service
Brand equity is the differential effect that the brand
name has on customer response to the product
and its marketing
Individual Product and Service
Decisions

20. Chapter 8 -slide 20
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Packaginginvolves designing and
producing the containeror
wrapper for a product
Labelsidentify the product or
brand, describe attributes, and
provide promotion
Individual Product and Service
Decisions

21. Chapter 8 -slide 21
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Product support services augment actual products
Individual Product and Service
Decisions

22. Chapter 8 -slide 22
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
Product lineis 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 linelength is the
number of items in the
product line
Product Line Decisions

23. Chapter 8 -slide 23
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Product and Service Decisions
•Line stretching
is when a company lengthens its product line beyond its current range.
–Downward product line stretching is used by companies at the
upper end of the market to plug a market hole or respond to a
competitor’s attack.
–Upward product line stretching is by companies at the lower end
of the market to add prestige to their current products.
–Combination line stretching is used by companies in the middle
range of the market to achieve both goals of upward and
downward line stretching.
•Line filling: occurs when companies add more items within the
present range of the line.
Product Line Decisions

24. Chapter 8 -slide 24
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Assignment
•Discuss Levels of Product and Services
•Discuss Individual Product and Service
Decisions
•Discuss Product Line Decisions