Product and Service Strategy

1. Product and Service Strategy Chapter 9

2. University Education Restaurant Sugar Pure Service Pure Tangible Good Product-Service Continuum

3. What is a product? One definition of a product: • A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or other unit of value Product Concept: • Defines the essence, or core idea underlying the product features and benefits that appeal to the target market.

4. A Product’s Three Parts • Core Product – benefit, basic features, value, service • Actual Product/Primary characteristics – features, quality, design, attributes, colour, packaging (depending on product) • Augmented Product – credit, payment plans, warranties, after the sales service, delivery, packaging, etc.

5. Discussion Question – Page 249, #3

6. Types of Consumer Products • Convenience:purchased frequently, immediately, and with a minimum of comparison and buying effort • Shopping:the consumer compares product alternatives on such bases as suitability, quality, price, and style • Specialty:a product with unique characteristics or brand identification, which the consumer is willing to make a special purchase effort • Unsought:a product the consumer does not know about, or normally consider buying

7. Product item Product line Product class Product line and mixes Product mix Example: General Motors

8. Product Mix Decisions Product mix:the set of all product lines and items that a particular seller offers for sale • Width: the number of different product lines carried • Length:the total number of items carried within the product lines. • Depth:the number of versions offered of each product in the line • http://www.pg.com/product_card/prod_card_laundry.jhtml

9. Branding • Creating, maintaining, protecting and enhancing products and services. • A brand is a name, term, sign, symbol, design or a combination of these that identifies the maker or seller of a product or service.

10. Types of Brands • Family Brands – i.e. Campbell’s, Marriott • Flanker brand • Co-branding • Ingredient branding • Cooperative branding • Complementary branding • Private/Generic brands

11. Brand Name Selection • It should suggest product’s benefits and qualities. • It should be easy to pronounce, recognize and remember. • It should be distinctive. • It should be extendable. • It should translate easily into foreign languages. • It should be capable of registration and legal protection. • Should reinforce the product concept

12. Discussion Question – page 249, #4

13. Packaging • Containment functions • Protection in transit function • Storage function • Usage facilitation function • Promotion function • Ecological function The heart shape bowl communicates a healthy diet

14. Packaging Dutch Boy recently came up with a long overdue innovation—paint in plastic containers with twist-off caps.

15. Labelling • Printed information appearing on or with the package. • Performs several functions: • Identifies product or brand. • Describes several things about the product. • Promotes the product through attractive graphics. • Legal/regulatory issues

16. What is a service? One definition of a service: • Activities, deeds, or other basic intangibles offered for sale to consumers in exchange for money or something else of value.

17. Characteristics of Services Intangibility Cannot be seen, tasted, felt or smelled before purchasing Inseparability Production and, consumption, and from the provider Variability Service quality depends on who provides and under what conditions Perishability Cannot be stored, for resale or later use