Marketing Management Products and Services Paul Dishman Ph

Marketing Management Products and Services Paul Dishman, Ph. D. Department of Business Management Marriott School of Management Brigham Young University Lecture 11

Marketing Management What is a Product? • A Product is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. • Includes: – – – – Physical Objects Services Events Persons Places Organizations Ideas Combinations of the above Paul Dishman, Ph. D.

Marketing Management What is a Service? • A Service is a form of product that consist of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. • Examples include: – – Banking Hotels Tax Preparation Home Repair Services Paul Dishman, Ph. D.

Marketing Management The Product-Service Continuum Service With Tangible Good Pure Hybrid Offer. Accompanying With Minor Goods Tangible Accompanying Good Services Soap Pure Service Auto With Airline Trip Accompanying Restaurant With Doctor’s Repair Accompanying Exam Services Snacks Paul Dishman, Ph. D.

Marketing Management Product Classifications Consumer Products Convenience Products • Buy frequently & immediately Ø Low priced Ø Many purchase locations Specialty Products • Special purchase efforts Ø Ø High price Unique characteristics Brand identification Few purchase locations Shopping Products • Buy less frequently Ø Higher price Ø Fewer purchase locations Ø Comparison shop Unsought Products • New innovations Ø Products consumers don’t want to think about these products Ø Require much advertising & personal selling Paul Dishman, Ph. D.

Marketing Management Product Classifications Other Marketable Entities • Activities undertaken to create, maintain, or change the attitudes and behavior toward the following: – Organizations – Persons – Places – Ideas Paul Dishman, Ph. D.

Marketing Management Individual Product Decisions Product Attributes Branding Labeling Packaging Product Support Services Paul Dishman, Ph. D.

Marketing Management Major Branding Decisions (Fig. 8. 3) Brand Name Selection Protection Brand Sponsor Manufacturer’s Brand Private Brand Licensed Brand Co-branding Brand Strategy Line Extensions Brand Extensions Multibrands New Brands Paul Dishman, Ph. D.

Marketing Management Brand Strategy • Line Extension – Existing brand names extended to new forms, sizes, and flavors of an existing product category. Smokey Red BBQ • Multibrands – New brand names introduced in the same product category. • Brand Extension – Existing brand names extended to new or modified product categories. • New Brands – New brand names in new product categories. Paul Dishman, Ph. D.

Marketing Management Packaging • Activity of designing and producing the container or wrapper for a product. • Packaging used to just contain and protect the product. • Packing now has promotional value and marketers should: – Establish a packaging concept, – Develop specific elements of the package, – Tie together elements to support the positioning and marketing strategy. Paul Dishman, Ph. D.

Marketing Management Nature and Characteristic of a Service Intangibility Inseparability Variability Perishability Can’t be seen, tasted, felt, heard, or smelled before purchase. Can’t be separated from service providers. Quality depends on who provides them and when, where and how. Can’t be stored for later sale or use. Paul Dishman, Ph. D.

Marketing Management The Service-Profit Chain Healthy Service Profits and Growth Internal Service Quality Satisfied and Productive Service Employees Satisfied and Loyal Customers Greater Service Value Paul Dishman, Ph. D.

Marketing Management Marketing Strategies for Service Firms • Managing Service Differentiation – Develop differentiated offer, delivery and image. • Managing Service Quality – – Empower front-line employees, Become “Customer obsessed”, Develop high service quality standards, Watch service performance closely. • Managing Service Productivity – Train current or new employees better, – Work on quality as well as quantity, – Utilize technology. Paul Dishman, Ph. D.

Marketing Management Review of Concept Connections • Define product and the major classifications of products and services. • Describe the roles of product and service branding, packaging, labeling, and product support services. • Explain the decisions companies make when developing product lines and mixes. • Identify the four characteristics that affect the marketing of a service. • Discuss the additional marketing considerations for services. Paul Dishman, Ph. D.

Marketing Management Group Exercise • Cadbury's wants to introduce a new chocolate bar targeted at 8 to 12 year old boys in America. Please come up with a brand name for the initial plain chocolate bar and then brand names for two additional line extensions. Creativity as well as applicability of the brand name count here. Prepare a professional looking colored overhead transparency with the brand name, logo, or wrapper design to show the class. Due next class period. Paul Dishman, Ph. D.