2. Anything that can be offered to a market for
attention ,acquisition ,use or consumption
that might satisfy a want or need.
3. Any activity or benefit that one party can
offer to another that is essentially intangible
and does not result in ownership of anything.
4. Product is a key element in the market
A company’s market offering often includes
both tangible goods and services. Each
component can be a minor or major part of
the total offer. Ex.
Pure tangible good
Companies differentiate their offers by
developing and delivering total customer
5. Experiences are
with services, but
experiences are as
distinct from services as
services are distinct
Whereas products and
services are external,
experiences exist only in
the mind of the
10. Three Levels:
The most basic level is the core benefit, which
addresses the question What is the buyer really
buying?. When designing products, marketers must
first define the core , problems-solving benefits or
services that consumers seek.
At the second level, product planners must turn the
core benefit into an actual product. They need to
develop product and services features, design, a
quality level, a brand name, and packaging.
Finally, product planners must build augmented
product around the core benefit and actual product
by offering additional consumer services and
11. Consumer products – bought by final
customers for personal consumption.
Convenience products – Consumer product that
the customer usually buys frequently,
immediately, and with a minimum of comparison
and buying effort.
Shopping products – Consumer goods that the
customer, in the process of selection and
purchase, characteristically compares on such
bases as suitability, quality, price and style.
12. Specialty products – Consumer product with
unique characteristics or brand identification for
which a significant group of buyers is willing to
make a special purchase effort.
Unsought products – Consumer product that the
consumer either does not know about or knows
about but does not normally think of buying.
13. Industrial products – purchased for further
processing or for use in conducting a
Materials and parts – includes raw materials and
manufactured material and parts.
Capital items – are industrial products that aid in
the buyer’s production or operations, including
installations and accessory equipment.
Supplies and services – Supplies are the
convenience products of the industrial field
because they are usually purchased with a
minimum of effort or comparison. Business
services include maintenance and repair services
and business advisory services.
14. Marketers have broadened the concept of a product to include
other market offerings. Such as:
Organization Marketing – consists of activities undertaken to
create, maintain or change the attitudes and behavior of
target consumers toward an organization.
Corporate Image Advertising – a major tool companies use
to market themselves to various publics.
Person Marketing - consists of activities undertaken to create,
maintain or change attitudes or behavior toward particular
Place Marketing – involves activities undertaken to create,
maintain or change attitudes or behavior toward particular
Ideas – can also be marketed.
Social Marketing – the design, implementation, and control
of programs seeking to increase the acceptability of a
social idea, cause, or practice among a target group.
15. Marketers make product and services decisions
at three levels:
1. Individual Product Decisions
2. Product Line Decisions
3. Product Mix Decisions
16. o Product Attributes
• Product Quality – the ability of a product
to perform it’s functions; it includes the
product’s overall durability, reliability,
precision, ease of operation and repair and
other valued attributes.
• Total Quality Management(TQM) – is an approach in
which all the company’s people are involved in
constantly improving the quality of products, services
and business processes.
17. Two Quality Level
Performance Quality – the ability of a
product to perform its functions.
Conformance Quality – freedom form
defects and consistency in delivering
a targeted level of performance.
• Product Features – are a competitive
tool for differentiating the company’s
product from competitor’s product.
• Product Style and Design – style simply
describes the appearance of a product
and design is the larger concept of style.
18. o Branding – gives the seller several advantage.
• Brand – a name, term, sign, symbol, or design, or a
combination of these, intended to identify the goods and
services of one seller or group of sellers and to
differentiate them from those of competitors.
o Packaging – the activities of designing and
producing the container or wrapper for a
o Labeling – printed information appearing on or
with the package. It has been affected in
recent times by the following:
• Unit Pricing – stating the price per unit of standard
• Open Dating – stating the expected shelf life of the
• Nutritional Labeling – stating the nutritional values
in the product.
19. o Product Line Decisions
• Product Line – a group of products that are closely
related because they function in a similar manner.
• Product Line Length – the number of items in the
Product Line Stretching – occurs when a company lengthen
its product line beyond its current range.
Product Line Filling – adding more items within the present
range of the line.
o Product Mix Decisions
• Product Mix or Product Assortment – the set of all product
lines and items that a particular seller offers for sale.
1. Product Mix Width – refers to the number of different product
lines the company carries.
2. Product Mix Length – the total number of items the company
carries within its product lines.
3. Product Line Depth – the number of versions offered of each
product in the line.
4. Consistency – how closely related the various product lines are
in end use, production requirements, distribution channels, or
some other way.
20. A strong brand is a valuable asset.
Brand Equity – the positive differential
effect that knowing the brand name has on
customer response to the product or
Brand Valuation – the process of estimating
the total financial value of a brand.
Customer Equity – the value of the
customer relationship that the brand
22. Marketers need to position their brands clearly
in target customer’s minds. They can position
brands at any of three levels.
At the lowest level, they can position the
brand on product attributes. Consumers are
interested in what the attributes will do for
A brand can be better positioned by associating
it’s name with a desirable benefit.
The strongest brands are positioned on beliefs
and values. These brands pack an emotional
23. A good name can add greatly to a product’s
1. It should suggest something about the product’s
benefits and qualities.
2. It should be easy to pronounce, recognize and
3. The brand name should be distinctive.
4. It should be extendable.
5. The name should translate easily into foreign
6. It should be capable of registration and legal
Once chosen, the brand name must be protected.
24. Manufacturer’s Brands – national brand
Private Brands – a brand created and owned
by a reseller of a product or service.
Licensing – can provide an instant and proven
Co-Branding – the practice of using the
established brand names of two different
companies on the same product.
25. Line Extensions – using a successful brand name
to introduce additional items in a given product
category under the same brand name, such as
new flavors, forms, colors, added ingredients, or
Brand Extensions – using a successful brand name
to launch a new or modified product in a new
Multibrands – offers a way to establish different
features and appeal to different buying motives.
New Brands – a company may create a new brand
name when it enters a new product category for
which none of the company’s current brand
names is appropriate.
26. Service industry vary greatly.
Governments – offers services through courts,
employment services, hospitals, military
services, police and fire departments, postal
service and schools.
Private-not-for-profit Organizations – offers
services through museums , charities, churches,
colleges, foundations and hospitals.
Business Organizations – offers services through
airlines, banks, hotels, insurance companies,
consulting firms, medical and law practices,
entertainment companies, real estate firms,
advertising and research agencies and retailers.
28. Just like manufacturing businesses, good
service firms use marketing to position
themselves strongly in chosen target
SERVICE PROFIT CHAIN – links service firms
profits with employee and customer
Internal Service Quality
Satisfied and Productive Service Employees
Greater Service Value
Satisfied and Loyal Customers
Healthy Service Profits and Growth
30. Internal Marketing – marketing by a service
firm to train and effectively motivate its
customer contact employees and all the
supporting service people to work as a team
to provide customer satisfaction.
Interactive Marketing - marketing by a
service firm that recognizes that perceived
service quality depends heavily on the
quality of buyer-seller interaction.
31. Ritz-Carlton, a chain of luxury hotels renowned
for outstanding service, caters to the top 5
percent of corporate and leisure travellers.
His success is based on a simple philosophy: To
take care of customers, you must first take
care of those who take care of customers.
Satisfied employees deliver high service
value, which then creates satisfied
customers. Satisfied customers, in turn,
create sales and profits for the company.
32. Managing Service Differentiation
The solution to price competition is to develop a
differentiated offer, delivery and image.
Managing Service Quality
Customer retention is perhaps the best measure of
quality – a service firms’ ability to hang on to its
customers depends on how consistently it delivers
value to them.
Managing service Productivity
We often think of technology’s power to save time
and costs in manufacturing companies, it also has
great and often untapped potential to make service
workers more productive.
33. Product Decisions and Social Responsibility
Marketers should consider carefully a number of
public policy issues and regulations involving
acquiring or dropping products, patent
protection, product quality and safety, and
International Product and Services Marketing
Companies must respond to the differences by
adapting their product offering.