chapter 4 product
DESCRIPTION
TRANSCRIPT
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Chapter 3
Product Planning and Development
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Chapter Four
Products, Services, and Branding StrategiesBy
Rafique Ahmed
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Definitions Product Anything offered to a market
for attention, acquisition, use, or consumption that might satisfy a need or want.
Products; includes goods, services, places, persons, and ideas
Some products are sold only to consumers, while others are sold to organizations
Whether a product is a consumer product or a business product depends on how it is used
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Seller’sservices
Seller’sservices
Productquality
Productquality Physical
characteristicsof goods
Physicalcharacteristics
of goods
PricePrice
BrandBrand
DesignDesign
PackagingPackagingProductwarranty
Productwarranty
Seller’sreputation
Seller’sreputation
ColourColour
The Total Product
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Classification of productConsumer product
Product that are bought by the consumers for personal use. Consumer products include Convenience, Shopping, Specialty and Unsought Products
Business or Industrial Product
Product bought by individuals and organizations for further processing or for use in conducting a business.
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Consumer products
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Industrial products
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Classification of Consumer Goods
Consumer goods are further classified as
Convenience GoodsShopping GoodsSpecialty GoodsUnsought Goods
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Convenience Goods
Convenience goods are close goods the customer usually purchased frequently, immediately and with minimum effort
For Example.Soap, candy, newspaper and fast food, cosmetics
jeans etc
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Types of consumer productsConvenience products
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Shopping GoodsConsumer product that the consumer, in the process of selection
and purchases, characteristically compares on such basis as suitability, quality, price and style.
Less frequent purchases
More shopping effort for comparisons.
Higher than convenience good pricing
Selective distribution in fewer outlets
Advertising and personal selling
For example. Furniture, clothing, cars, major appliances, hotel and airline services.
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Types of consumer productsShopping products
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Specialty GoodsConsumer product with unique characteristics or brand
identification for which a significant group of buyers are willing to make a special purchasing effort.
High price
Exclusive distribution
Carefully targeted promotions
For example, specific brand types of cars, BMW, Armani.Designer clothes
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Types of consumer products
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Unsought Goods
Unsought Products are products you haven't actively been looking for.
Unsought goods are those now unknown to the consumer or, if known, undesired.
For example: life insurance. Gravestone etcSmoke detectors
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Classifying Business Products
1.Raw materials: unprocessed, become part of other manufactured products
2.Manufactured parts and materials: processed products that become part of other products
3.Installations: plant & machinery, major buildings and equipment etc
4.Accessory equipment: used in operations, include computers, desks, tools
5.Operating supplies: low value goods, like pencils, stationery, convenience products for businesses
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Levels of products
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1) The Core Products
The basic product which you wants to purchase for satisfaction of your needs and wants.
Actual ProductThe actual product may have as many as five
characteristics that combine to deliver the core product benefits.
The characteristics are: Quality Feature , Design Brand name , Packaging
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3) Augmented product
Any additional consumer services and benefits built around the core and actual products.
For example:Warranty/ guaranteeAfter sales servicesInstallationdelivery
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Service
A service is defined as any activity or benefit that one party can offer to another which is basically intangible and does not result in
the ownership of anything.
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Examples of Service Industries Health Care
hospital, medical practice, dentistry, eye care
Professional Services Accounting, legal, architectural
Financial Services Banking , insurance
Hospitality restaurant, hotel
Travel airline, travel agency, theme park
Others
hair styling, plumbing, lawn maintenance, counseling services, health club, interior design
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Service characteristics Intangibility
Inseperarability
Variability
Perishability
Lack of ownership
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Intangibility
Cannot be seen,
Tasted,
Felt,
Heard
Services cannot be readily displayed
or Smell before they are bought.
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Inseparability
Services produced and consumed at the same time.
Cannot be separated from providers, whether people or machines.
Customers are always involved
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Variability Quality may vary greatly depending on who
provides the service, when and how.
Staff need to know how to do something well.
Staff must be well motivated to maintain high standards of service.
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Perishability
Services cannot be stored for later sale or use.
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Lack of ownership
No physical product is exchanged and
therefore nothing owned.
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7 P’S of Service Marketing Mix…
ProductPrice
PromotionPlace
PeoplePhysical evidence
Process
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PEOPLE
All human actors who play a part in service delivery and thus influence the buyer’s perceptions: namely, the firm’s personnel, the customer, and other customers in the service environment.
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PEOPLE
People are important because: Providing a service, rather than selling a product.
Quality of personal relationships between company and clients becomes vital.
Technicians
Dealers
Other Employees
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Process
The actual procedures, mechanisms, and flow of activities by which the service is delivered—the service delivery and operating systems.
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Process of Taking a Mobile connection
Go to Etisalat Shop
Choose a product (Say Pre-paid connection)
Pay the appropriate fees
Take the Respective product (Like SIM Card in this case)
Avail the facilities
Give the feedback
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Physical Evidence
The environment in which the service is delivered and where the firm and customer interact, and any tangible components that facilitate performance or communication of the service.
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Physical Evidence….
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Brand represents the consumer’s perceptions and feelings about a product and its performance. It is the company’s promise to deliver a specific set of features, benefits, services, and experiences consistently to the buyers
OR
Brand is the name, term, sign, or design—or a combination of these—that identifies the maker or seller of a product or service
Branding Strategy: Building Strong Brands
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Brand Name Selection
Desirable qualities
1. Suggest benefits and qualities
2. Easy to pronounce, recognize, and remember
3. Distinctive
4. Extendable
5. Translatable for the global economy
6. Capable of registration and legal protection
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