Product and Services Strategy

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Product and Services Strategy
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What is a product?

• Anything that can be offered to a market for
  attention, acquisition, use, or consumption.
• A means of meeting needs and wants
• Might be
• TANGIBLE
• INTANGIBLE
• BOTH

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Three Product Levels

• Core Product Core benefit
• WHY buy? What needs are being met?
• Actual Product/Service
• Quality level, Design, Features, Packaging, Brand
  name
• Is the manner in which benefits are delivered
• Augmented Product
• Additional features, services, other

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Consumer Products Classification

• Convenience Goods
• toothpaste, gum, cigarettes
• Shopping Goods
• cars, furniture, stereo systems, vacations
• Specialty Goods
• Mercedes, Apple Computers, Mel Gibson
• Unsought Goods
• New products, insurance, dog licenses

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INDIVIDUAL PRODUCT DECISIONS

• Product Quality
• Performance and Conformance
• Product Features
• Benefits versus Costs to consumer
• Use versus Purchasing
• Product Style Design

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BRANDING

• What are the benefits of branding to
  CONSUMERS/CUSTOMERS?
• What are the benefits of branding to firms?

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BRAND EQUITY BRAND NAME

• Brand Equity The value that accompanies a brand
  name
• Brand Names - Desirable Characteristics
• Informative
• Easy to remember and pronounce
• Distinctive
• Translate well
• Protectable

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Brand Strategy

• Line Extension
• Existing Product Category/Existing Brand Name
  Skippy Extra Crunchy, Creamy, etc.
• Brand Extension
• New Product Category/Existing Brand Honda
  Accords, Honda Snowblowers
• Multibrands
• Existing Product Category/New Brand Tide, Era.
• New Brands

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Packaging/Labeling

• Visible
• Informative
• Emotional
• Workable

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Different Classes of Attributes

• Search Attributes
• Examine/judge prior to purchase
• EX Color, weight, features of car
• Experience Attributes
• Can judge after purchase
• EX Quality of haircut, taste of meal
• Credence Attribute
• Difficult to judge even after consumption
• EX Accounting, medical, auto services

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SERVICES MARKETING

• Special Characteristics
• Intangibility Cannot be seen, tasted, etc.
  before purchase
• Inseparability Cannot be separated from their
  providers. Provider-Customer interaction
  important.
• Variability Quality varies across incidents and
  providers
• Perishability Cannot be stored