Transcript Marketing Management - BYU Marriott School

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:
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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:
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Banking
Hotels
Tax Preparation
Home Repair Services
Paul Dishman, Ph.D.
Marketing Management
The Product-Service Continuum
Tangible Good
Pure
With
Tangible Accompanying
Good
Services
Soap
Hybrid
Offer
Service
With
Accompanying
Minor Goods
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
 Low priced
 Many purchase locations
Specialty Products
• Special purchase efforts
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High price
Unique characteristics
Brand identification
Few purchase locations
Shopping Products
• Buy less frequently
 Higher price
 Fewer purchase locations
 Comparison shop
Unsought Products
• New innovations
 Products consumers don’t
want to think about these products
 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
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
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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.