Marketing

1. Irwin/McGraw-Hill & Dr. Chen8-1
Product and Service
Continuum

2. Irwin/McGraw-Hill & Dr. Chen8-2
The Good/Services Continuum
Target
Market
Promotion PricePlaceProduct
Product idea Brand Package Warranty
None, limited
full, extendedPhysical
good/services
Features
Benefits
Quality level
Accessories
Installation
Instruction
Product line
Type of Brand:
Individual or
family
Manufacturer or
dealer
Protection
Promotion
Enhancement

3. Irwin/McGraw-Hill & Dr. Chen8-3
What Is a Product?
 Product:
 An idea, a physical entity (a good), a
service, or any combination of the three
that is an element of exchange to satisfy
individual or business objectives .

4. Irwin/McGraw-Hill & Dr. Chen8-4
Types of Products
Goods:
Physical products
with form and
substance
Services:
Non-physical products
usually involving
performance
Consumer Products:
Those used by
consumers for their
own use and
satisfaction.
Business Products:
Those used in the
running of a business
or in the manufacture
of products for resale.

5. Irwin/McGraw-Hill & Dr. Chen8-5
The Good/Services Continuum
Paper
Truck
Production
equipment
Auto repair
Uniform rental
Restaurant
Healthcare
Haircut
Accounting
Goods Goods
(Intangible,
Perishable,
Inseparable, and
Variable in quality)
(Tangible,
Storable,
Separable, and
Standardized in quality)

6. Irwin/McGraw-Hill & Dr. Chen8-6
Canned
foods
Ready-
made
clothes
Auto-
mobiles
Carpets Rest-
aurant
meals
Repairs:
auto, house,
Air
travel
Insurance,
Consulting,
Teaching
MOSTLY GOODS MOSTLY SERVICES
The Good/Services Continuum

7. Irwin/McGraw-Hill & Dr. Chen8-7
Product Differentiation
 Product
Differentiation:
 Exists when a firm’s
offerings differ or are
perceived to differ from
those of competing firms
on any attribute, including
price.

8. Irwin/McGraw-Hill & Dr. Chen8-8
Goods and Services
 Goods:
 Physical products.  Services:
 Nonphysical products.

9. Irwin/McGraw-Hill & Dr. Chen8-9 © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Basic Marketing
Differences in Goods and Services
Where produced
(storing and transporting)
Tangibility
When produced
relative to when
consumed
Balancing supply and
demand
Contact with customer
by producer of
product
Differences

10. Irwin/McGraw-Hill & Dr. Chen8-10
Characteristics and Strategies for Services
Service Characteristic Service Strategy
Intangible Associate service with
something tangible
Perishable Manage demand to utilize
supply
Inseparable Capitalize advantages of
person providing service
Variable Standardize service delivery
as much as possible

11. Irwin/McGraw-Hill & Dr. Chen8-11
Product Classes
• Two broad classes
– consumer products
– business products
• Classes help in planning marketing mix needed
• Based on how the customer views the product
– how consumers think about and shop for products
– how business/organizational buyers think about
products and how they'll be used

12. Irwin/McGraw-Hill & Dr. Chen8-12
Consumer and Business Products
 Consumer
Products:
 Products that are
purchased by
consumers for their
own personal use.
 Business Products:
 Products purchased by a
firm or organization for its
own use.

13. Irwin/McGraw-Hill & Dr. Chen8-13
Types of Consumer Products
Convenience
Products
Shopping
Products
Specialty
Products

14. Irwin/McGraw-Hill & Dr. Chen8-14
Types of Business Products
Capital
Products
Production
Products
Operational
Products

15. Irwin/McGraw-Hill & Dr. Chen8-15
Business Product Classes

16. Irwin/McGraw-Hill & Dr. Chen8-16
Product Components
Product
Components
Product Features
• Quality
• Design
• Branding
• Packaging
Service Features
• Purchase services
• Usage services