Products can be
Goods
services
Ideas
People
Places
Goods and services (combo)
Non durable goods
Often consumed quickly
Low cognitive involvement from the consumer
Durable goods
Often as the name suggests consumed slowly over time bc they’re durable
Often be purchases with higher cognitive involvement
Services
Includes activities. Benefits. Or satisfactions offered for sale
Baking. Going to doctor. Taking vacation. Going to movie
Services
4 elements
Intangibility:
-can’t be held touched or seen
Inconsistency:
Can vary based on provider; harder to standardize
Inseparability:
-services can’t be separated from provider. Consumer is involved in production of product
Inventory:
-fluctuating demand for services and cont be stored for times when demand increases (perishability)
Service continuums
Most product offerings are neither pure goods or pure services and usually offer a range from the tangible to the intangible
Total product concept
Products have 3 different layers
Core product: benefit a consumer gets from having product
Actual product: physical good or service
Augmented product: additional features like warranty. Delivery
Product line
Group of similar products closely related because they satisfy a similar need and are targeted to the same general target
Product mix
All of the product lines marketed by a company
Product classifications
Consumer:
-convenience
-shopping
-specialty
-unsought
B2B
-materials and parts
-capital items
-supplies and services
Product life cycle
Intro
Growth stage
Maturity stage
Decline stage
Managing product life cycle
Modifying products
-improve product or product line extensions
Modifying markets
-use new marketing approaches
-try to increase usage
Repositioning
-when reached maturity, needs something new.
-could be new product or change something about product
Introductions
-adding new product can provide focus a mature product needs
Minor innovation vs continuous vs radical
Minor
-small change. no adjustment by consumer
Continuous
-new products include a minor product improvement but don’t require radical changes by consumers
-extensive product development by the company
Radical innovations
-introduction of products entirely new to the market
Ansoff growth matrix
Product market growth strategies
Market penetration
-existing product existing market
Market development
-existing product new market
Diversification / market innovation
-new product and new market
Product development
-new product and existing market
Market penetration
Increase frequency of use
Increase quantity used
Convert non buyers
New applications
Convert lost customers
Convert competitions customer
Market development
Existing product new market
Expand to new geography’s
Expand to new segments
Product development
Product improvements
Innovations
Product line extensions
Cross selling
Diversification
Related diversification
Unrelated
Vertical integration
New product development process
Idea generation > idea screening > concept development and testing > marketing strategy development > business analysis > product development > market testing > commercialization
Why do brands matter for organization
Establish loyalty
Protects from competition
Reduce marketing costs
Allows for legal protection
Facilitates market segmentation
Provides opportunities to build brand equity
Why do brands matter for consumer
If u like a brand it’s easy to pick them next time
Help consumers identify what products they want associated with their concept of self
Branding
More than a logo
Name. Sign. Term. Symbol. Or design
Or a combination intended to identify the goods or services of one seller or group of sellers to differentiate from competitors
Types of brands
Individual
-one product line only
-tide for laundry detergent
Family brands
-full product mix
-crest isn’t just toothpaste. It’s oral health
Manufacturer brand = national brand
Private brand = store brand
