Transcript Slide 1

PRODUCTS
What is a product?
A product is the object of a transaction!
What is a product?
It can be a:
1. Good
What is a product?
It can be a:
1. Good
2. Service
What is a product?
It can be a:
1. Good
2. Service
3. Idea
What is a product?
There are, by definition…
CONSUMER PRODUCTS:
1. Convenience
minimal effort… little decision making
What is a product?
There are, by definition…
CONSUMER PRODUCTS:
1. Convenience
2. Shopping
minimal effort… little decision making
more involvement
What is a product?
There are, by definition…
CONSUMER PRODUCTS:
3. Specialty
high involvement , unique, hobbies
What is a product?
There are, by definition…
CONSUMER PRODUCTS:
3. Specialty
4. Unsought
high involvement , unique, hobbies
emergencies supplies, etc.
What is a product?
And BUSINESS PRODUCTS:
1.
2.
3.
4.
5.
Installations nonportable, facilities and equipment
Accessory equipment
used for production
Raw materials
Component parts finished parts to build something else
Process materials used to make other thing, but
disappears or is used up.. Coal
6. MRO supplies
7. Business services
Maintenance, repair & operating
What customers think they are buying
What customers is actually buying
Life Cycle between Countries
The steps in product development:
Services
Services
Most business in the United States is services:
Services
Few things are pure good or service… it is a continuum
Services
Few things are pure good or service… it is a continuum
Teaching
Intangible
McDonalds
Salt
Tangible
Differences with service marketing:
A. Generic
1. Intangibility experienced not possessed
2. Production method
3. Perishable
(new term: de-marketing)
Differences with service marketing:
A. Generic
1.
2.
3.
4.
5.
6.
7.
8.
Intangibility experienced not possessed
Production method
Perishable(new term: de-marketing)
Distribution channels
Promotion
Pricing
How do you price a service?
Inseparability produced and consumed at same time
Client-based relationships
Differences with service marketing:
A. Contextual differences
1.
2.
3.
4.
5.
6.
Narrow viewpoint
Historical lack of marketing application
Different organization structures
Historical lack of competitive data
Impact of regulation & deregulation
Nonprofit aspects
The Service Encounter:
1. Social elements
Social class
Doctor (surgeon)
Airports
Customer rage
“America’s businesses would save billions if they
find employees who would apologize.”
The Service Encounter:
2. Servicescapes
The physical area in which the service takes place.
Provides physical evidence of intangibles
The Service Encounter:
2. Servicescapes
The physical area in which the service takes place.
Provides physical evidence of intangibles
This includes websites
http://www.kitco.com/
The Service Encounter:
3. Service Quality
Search qualities: attributes that can be examined
before purchase
The Service Encounter:
3. Service Quality
Search qualities: attributes that can be examined
before purchase
Experience qualities: experience before & after
Credence qualities: One of the reasons people show
diplomas, etc.
The Service Encounter:
4. Service Evaluation
Hard to do… what does it mean?
How do you know if you have any validity?
The Service Encounter:
5. Personnel
a. Insure QSCV
Q: Quality
S: Service
C: Cleanliness
V: Value
Disney was a pioneer….
The Service Encounter:
5. Personnel
a. Insure QSCV
b. Staff behavior, appearance, uniforms
c. Proper people
Interpersonal skills
Behavioral flexibility
Empathy
d. Marketing plan modifications
Recognitions and awards
Incentive and rewards
Sales and relationship training
Orientation programs
Communications
The Service Encounter:
6. Keys to Service
a.
b.
c.
d.
e.
f.
Quality
Reliability (consistency)
Responsiveness
Assurance (trust and confidence)
Employee training and evaluation
Management
g. MANAGEMENT!
Branding
Name, term, sign, symbol, or design
or combination of the above
that identify good or services of one
seller or group of sellers and to differentiate them
from those of competitors
Strong brands have brand equity
Strong brands have brand equity
Brand equity gives, or is created by,
1.
2.
3.
4.
5.
High brand awareness
Brand loyalty
Emotional connection
Price premiums
Product line extensions
A brand name should be:
Short
A brand name should be:
Short
Easy to remember
A brand name should be:
Short
Easy to remember
Create an image
A brand name should be:
Short
Easy to remember
Create an image
Be legal
A brand name could be:
1.
2.
3.
4.
5.
Founder and/or Owner name
Functional name (DuraCell)
Invented names
Experiential names (Magellan)
Evocative names (Apple)
Brand Liability
Brands can also go bad…
1. Customer dissatisfaction
Brand Liability
Brands can also go bad…
1. Customer dissatisfaction
2. Product or Service Failures
Brand Liability
Brands can also go bad…
1. Customer dissatisfaction
2. Product or Service Failures
3. Questionable Practices
Brand Liability
Brands can also go bad…
1. Customer dissatisfaction
2. Product or Service Failures
3. Questionable Practices
4. Poor Record on Social Issues
Brand Liability
Brands can also go bad…
1. Customer dissatisfaction
2. Product or Service Failures
3. Questionable Practices
4. Poor Record on Social Issues
5. Negative Associations
Market Share = Product position + Marketing effort
Product
Price
Promotion
Distribution
Product Positioning
Product Positioning
“Who is our target market”
Product Positioning
Product must be differentiated from others
Why should anyone buy your product over
your competitors?
Two chances:
You can differentiate by:
Product
Service
Product Positioning
Product differentiation: Quality
1. Requirements
Reliability (QC)
Conformance (defects that should
not occur)
2. Drivers
Performance
Durability
3. Enhancers
Features
Serviceability
4. Aesthetics
Appearance
Reputation
Product Positioning
Product differentiation: Service
1. Requirements
Service Reliability
Service Assurance
Product Positioning
Product differentiation: Service
1. Requirements
Service Reliability
Service Assurance
2. Drivers
Performance
Responsiveness
3. Enhancers
Extended Services
Customer Empathy
4. Aesthetics
Appearance
Reputation
There is a special case of differentiation:
Price
Low-Price Position
Lower Transaction Costs
One is good…
The other is awful!!!
Products can be extended
The core product is the umbrella band
Extensions are called flanker brands
Products extended in two ways
Horizontal
Vertical