7.1 What Is a Product? Flashcards
(41 cards)
Definition of Product
Product:
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
Definition of Service
Service:
An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything.
What are products a key element in?
Products are a key element in the overall market offering.
Marketing mix planning begins with building an offering that brings value to target customers.
This offering becomes the basis on which the company builds profitable customer relationships.
What are pure tangible goods? Some examples?
At one extreme, the market offer may consist of a pure tangible good, such as soap, toothpaste, or salt; no services accompany the product.
What are pure services? Examples?
Pure services, for which the market offer consists primarily of a service. Examples include a doctor’s exam and financial services.
Other then simply making products and delivering services, how are companies differentiating their offerings?
To differentiate their offers, beyond simply making products and delivering services, they are creating and managing customer experiences with their brands or companies.
What are the three levels of product?
Core customer vaules
Actual product
Augumented product
What is the core customer value level of product?
The most basic level is the core customer value, which addresses the question:
What is the buyer really buying?
When designing products, marketers must first define the core, problem-solving benefits, services, or experiences that consumers seek.
Figure 7.1 Three Levels of Product
What is the Actual Product of Product level?
At the second level, product planners must turn the core benefit into an actual product. They need to develop product and service features, a design, a quality level, a brand name, and packaging.
What is the augumented product level?
Finally, product planners must build an augmented product around the core benefit and actual product by offering additional consumer services and benefits.
Thus, when consumers buy a Harley, Harley-Davidson and its dealers also give buyers a warranty on parts and workmanship, quick repair services when needed, a showroom full of accessories, and web and mobile sites to use if they have problems or questions.
Summery of Product level.
Consumers see products as complex bundles of benefits that satisfy their needs.
When developing products, marketers first must identify the core customer value that consumers seek from the product.
They must then design the actual product and find ways to augment it to create customer value and a full and satisfying brand experience.
Products and services fall into two broad classes based on the types of consumers who use them.
What are they?
Consumer products and Industrial products.
Broadly defined, products also include other marketable entities such as experiences, organizations, persons, places, and ideas.
Definition of Consumer product
Consumer product:
A product bought by final consumers for personal consumption.
Marketers usually classify these products and services further based on how consumers go about buying them. Consumer products include…
- Convenience products
- Shopping products
- Specialty products
- Unsought products
Table 7.1 Marketing Considerations for Consumer Products (Part 1)
Table 7.1 Marketing Considerations for Consumer Products (Part 2)
Table 7.1 Marketing Considerations for Consumer Products (Part 3)
Definition of Convenience Product
Convenience product:
A consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort.
Examples include laundry detergent, candy, magazines, and fast food.
Convenience products are usually low priced, and marketers place them in many locations to make them readily available when customers need or want them.
Definition of a Shopping product
Shopping product:
A consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style.
Examples include furniture, clothing, major appliances, and hotel services.
Shopping product marketers usually distribute their products through fewer outlets but provide deeper sales support to help customers in their comparison efforts.
Definition of Specialty product
Specialty product:
A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
Examples include specific brands of cars, high-priced photography equipment, designer clothes, gourmet foods, and the services of medical or legal specialists.
Buyers normally do not compare specialty products. They invest only the time needed to reach dealers carrying the wanted brands.
Definition of Unsought product
Unsought product:
A consumer product that the consumer either does not know about or knows about but does not normally consider buying.
Most major new innovations are unsought until consumers become aware of them through marketing.
Classic examples of known but unsought products and services are life insurance, preplanned funeral services, and blood donations to the Red Cross.
By their very nature, unsought products require a lot of promoting, personal selling, and other marketing efforts.
Definition of Industrial Product
Industrial product:
A product bought by individuals and organizations for further processing or for use in conducting a business.
What is the distinction between a consumer product and an industrial product?
Thus, the distinction between a consumer product and an industrial product is based on the purpose for which the product is purchased.
If a consumer buys a lawn mower for use around home, the lawn mower is a consumer product. If the same consumer buys the same lawn mower for use in a landscaping business, the lawn mower is an industrial product.
