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What is a Product?
Product (e.g. Fast Moving Consumer
Product)
P&G and Unilever (pure-tangible good)
Services
Prudential Insurance Ltd (pure-services)
Movies
– U&A Cinema
Good-and-Service Combinations
Dell Computer (with Warranty, Installation and Delivery)
Good
and Services Provide Experiences to Customers
Product and Service Classifications
Discussion
over the Dell /IBM Computer/ Sony for the Levels of Product and Services
Core Benefit – What is the buyer really buying for Computer? (Problem-Solving)
Actual Benefit – Brand Name, Features, Design, Packaging and Quality Level
Augmented Product – Delivery and Credit, Installation, Warranty and After-Sales Service
Product and Service Classifications
Consumer Products
u Convenience Product – Goods at Supermarket (e.g. Wellcome and Park’N Shop
u Shopping Product – furniture (e.g. IKEA) and clothing (e.g. G2000 / Esprit)
u Specialty Product – e.g. stamp shop
u Unsought Product – Innovative Products (e.g. IT and Digital Products
– HK Golden/ e-zone / HK PC Market Magazine)
Industrial Product
u Materials and Parts – Intel (e.g. CPU for Computer)
u Capital items – for printing – Heidelberg Printing Machine), - for photocopying – Xerox Printing Machine
u Supplies– operating services (e.g. Lubricants, coal, paper and
pencils)
u Business Services – maintenance, repair service and business advisory
services
Organizations, Persons, Places and Ideas – Other Marketing Offerings
Activities
undertaken to create, maintain or change the attitudes and behavior of target customers towards
Organization
(e.g.
Corporate Image Advertising – IBM On-Demand business solutions)
Persons
Particular people (e.g. Lawyers and Accountants)
Places
Particular
Place (e.g. Hong Kong – Live it! Love it!)
Ideas
Particular
Ideas (e.g. Social Marketing – environmental campaign – Friends of Earth HK)
PRODUCT AND SERVICE DECISIONS
Individual Product and Service Decisions
Product and Service Attributes
Product Quality – TQM (Total Quality Management) (Q Mark)
Product
Features – (e.g. Digital Camera – Canon or Mobile
Phone
– Samsung)
Product
Style and Design (e.g. Apple I Mac or iPod+iTunes)
Branding
Sunkist Orange
Dole pineapple
Chiquita banana
Packaging
Colgate toothpaste
Labeling
HK
labeling Law – Contents and Ingredients (e.g. Energy Efficiency Labelling Scheme for Air-conditioners)
Product Line Decisions and Product Mix Decisions
An Overview over
Some of Consumer Products
u Electronic
Appliances (e.g. Panasonic, Sharp and Sony)
u FMCG
(P&G , Unilever, J&J, Lam Soon, Vitasoy and Lee Kum Kee Sauce Oil, Nissin Noodle)
Points to consider about the Product Line
u Product Line – a group of product that they are closely related
u Product Line Length – the number of items in the product line
n Product line stretching – e.g. downwards or upwards by class level
– Private Car (e.g. Toyota)
n Product Line Filling – e.g. Adding more items with the present range of the line (e.g. shampoo series of P&G HK)
Points to consider about the Product Mix
u Product Mix (or Product Assortment) – consists of all the product
lines and items that a particular seller offers for sale (e.g. Avon’s Product Mix – beauty products, wellness products, jewelry and accessories, gifts and “inspirational” products (inspiring
gifts, books, music and home accents)
u Product Mix Dimensions –
n Width – the number of different product lines the company carries
n Length – the total number of items that company carries within
its products
n Depth – refers to the number of versions offered for each product
in the line
n Consistency – refers to how closely related the various product
lines are in end use
Branding Strategy: Building Strong Brands
Brand Equity
Definition - The positive differential effect that knowing the brand name has on customer response to the product and service.
A measure of brand equity is the extent
to which customers are willing to pay more for the brand.
Strong
Brand = Valuable Assets (e.g. Coca Cola, IBM, General Electric, Intel, Microsoft, Nokia, Disney, McDonald’s and Mercedes)
Building Strong Brands
Brand Positioning – in the minds of customers
u
By product attributes (e.g. P&G Head and Shoulders - dandruff-free hair.)
u
By benefits {e.g. Volvo (Safety), Hallmark (caring), FedEx (Guaranteed Overnight Delivery) and Nike (Performance)}
u
Beliefs and Values – (e.g.
Starbuck – refreshing and relaxing)
Brand Name Selection
u Related
to benefits and qualities (e.g. 快潔 cleaning products)
u Easy
to pronounce, recognize and remember(e.g. 有骨氣 Chinese Restaurant)
u Distinctive
(e.g Toy”R” us)
u Extendable
(e.g. Yahoo! Finance and Shopping)
u Translated
to other languages
u Capable
of registration and legal protection (e.g. Lenovo Against Legend)
Brand Sponsorship
u Manufacturer’s
Brand (e.g. IBM)
u Store
Brand and Distributor’s Brand (e.g No Frills or First Choice)
u Licensed
Brand
u Co-Brand
Brand Development
u Line
Extension (e.g. Nissin Noodle in different favours)
u Brand
Extension (e.g Knife Peanut Oil , Corn Oil and Sunflower Seed Oil)
u Multi-brands
(e.g. P&G Shampoo Series)
u New
Brands
Managing Brands
u Brand
Experience by Brand Managers for better Customers’ Positioning towards the Brands – contact and touch points
Service Marketing
Nature and Characteristics of a Service
Intangibility
Inseparability
Variability
Pershishability
Marketing Strategies for Service Firms
The Service-Profit Chain
u Internal
Service Quality
u Satisfied
and Productive Service Employees
u Greater
Service Value
u Satisfied
and loyal Customers
u Healthy
Service Profits and Growth
Internal Marketing Vs Interactive Marketing
Refers to the Textbook
Managing Service Differentiation
e.g.
Airway Business (e.g Cathay Pacific Airways, Singapore Airlines and Dragon air)
e.g.
Delivery Service (e.g. HK Post Office Vs FedEx)
Managing Service Quality
Managing Service Productivity
Additional Product Considerations
Product Decisions and Social Responsibility
International Product and Services Marketing
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