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12785
12785
12785
What is a Product?
Anything that can be offered to a market for
attention, acquisition, use, or consumption
and that might satisfy a want or need.
Includes: physical product, service,
information, experience, person, place,
organization, ideas, or mixes of these
entities.
Figure:
Three Levels of
Product
Example: Hotel
Core benefit: rest and sleep.
Actual product: bed, bathroom, towels, desk,
closet, or food.
Augmented product: restaurant, gym, mans
suit, or remembering customers special
needs.
Example: Sony Camcorder
Core benefit: a convenient, high-quality way
to capture important moments.
Actual product: Sony Camcorder.
Augmented product: warranty, instructions,
quick, repair service, or toll-free telephone
number.
When Do a Firm Advertise the
Core Benefit?
Innovated product
Chaos stage
E.g. The war of hamburger among McDonalds,
Burger King and Wendy. Wendy: Where is the
beef ?
Product Classifications
Durability
Nondurable goods many locations, small
markup, and heavily advertise.
Durable goods more personal selling and
service, higher margin, and more seller
guarantees.
Timing of quality identification
Search goods
Experience goods
Credence goods
Continuum of Evaluation for Different Types of Products
Consequence of High in Experience
and Credence Qualities
Service consumers generally rely on word of
mouth rather than advertising.
Consumers rely heavily on price, personnel,
and physical cues to judge quality.
Consumers are highly loyal to service
providers who satisfy them.
In one-shot relationships, may a high price
signal a high quality?
Is it possible that a low price may signal a
high quality?
Product Classifications
Consumer-goods classification
Convenience goods staples, impulse goods and
emergency goods.
Shopping goods
Specialty goods
Unsought goods
Marketing considerations for consumer
products
Drift principle
Individual Product Decisions
Product attributes
Product quality performance & conformance
Product features
Product style and design
Branding
Packaging
Labeling
Product support services
Packaging
Primary container, secondary package, and
shipping package.
Functions: contain and protect the product,
describe the product, attract attention, and
create instant consumer recognition of the
company or brand.
Packaging
In an average supermarket, which stocks
15,000 to 17,000 items, the typical shoppers
passes by some 300 items per minute.
More than 60% of all purchases are made on
impulse.
The package may be the sellers last chance
to influence consumers.
Packaging Examples
Skippy SqueezIt,
Heinzs EZ Squirt,
Dutch Boy,
, and
Failure: Planters
Lifesaverss Brik-
Pacs, Aunt Jemima
Labeling
Functions: identify the product or brand,
describe the product, and promote the
product.
Legal concerns
E.g. Dr. Bronners Magic Soaps
Product Mix
Width: how many different product lines the
company carries.
Length: the total number of items in the mix.
Depth: how many variants are offered of each
product in the line.
Consistency: how closely related the various
product lines are in end use, product requirements,
distribution channels, or some other way.
Example: P&G, .
Product-Mix Width and Product-Line Length for Proctor
& Gamble Products
Product-Mix Width
Disposable Paper
Detergents Toothpaste Bar Soap Diapers Tissue
Ivory Snow Gleem (1952) Ivory Pampers Charmin
(1930) (1879) (1961) (1928)
Product Category
Existent New