Marketing 220 term paper

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Product and Service Strategy

Week 4 Notes MKT 220

Charter Oak State College Principles of Marketing Kevin W. Fitzgerald, 2012

Notes based on Marketing, an Introduction by Gary Armstrong & Philip Kotler

Introduction

Week 4 Notes MKT 220

A product is more than a simple set of tangible features. Many marketing offers consist of combinations of both tangible goods and services, ranging from pure tangible goods at one extreme to pure service at the other.

Each product or service offered to customers can be viewed on three levels: (1) the core product consists of the core problem-solving benefit that consumers seek when they buy a product; (2) the actual product exits around the core and includes the quality level, features, design, brand name and packaging; (3) the augmented product is the actual product plus the various services and benefits offered with it, such as a warranty, free delivery, installation and maintenance.

This Week’s Objectives…

Week 4 Notes MKT 220

At the end of this week you should be able to:

1. Define product and the major classifications of products or services.

2. Describe the roles of product and service brands, packaging, labeling and product support services.

3. Explain the decisions companies make when developing product lines and mixes.

4. Identify the four characteristics that affect the marketing of a service.

5. Discuss the additional marketing considerations for services.

What is a Product?

Week 4 Notes MKT 220

“A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.”

-Gary Armstrong & Philip Kotler

What is a Service?

Week 4 Notes MKT 220

“A Service is any activity or benefit that once party can offer to another that is essentially intangible and does not result in the ownership of anything.”

-Gary Armstrong & Philip Kotler

Levels of Products

Week 4 Notes MKT 220

Core benefit or service

Packaging

FeaturesBrand Name

Quality Level

Design

Installation

Warranty

After Sale

Service

Delivery and

Credit

Augmented Product

Actual Product

Core Product

Product Classification

Week 4 Notes MKT 220

Consumer Products

Convenience Products

Specialty Products

Unsought Products

Industrial Products

Non Tangible Products

•Organizations

•Persons

•Places

•Ideals

Product Attributes

Week 4 Notes MKT 220

Product Quality

Product Features

Product Design

Product Decisions

Week 4 Notes MKT 220

Product Attributes

Branding Packaging Labeling Product Support Services

What is a Brand?

Week 4 Notes MKT 220

“A Brand is a name, term, sign, symbol or design (or a combination of these) intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.”

-Gary Armstrong & Philip Kotler

Example: Brand Extensions

Week 4 Notes MKT 220

Star Wars is an excellent example of brand extensions and marketing.

After Star Wars was released, action figures sold so well that many products were created to capitalize on the brand name and images.

This is one of the first times in history when marketing was used to promote a movie.

Star Wars creator, George Lucas, knew the power of marketing and branding.

Brand Decisions

Week 4 Notes MKT 220

Brand Name Selection

Selection

Protection

Brand Sponsor

Manufacture's Brand

Private Brand

Licensed Brand

Co-branding

Brand Strategy

New Brands

Line Extension

Brand Extension

Multibrands

Brand Strategies

Week 4 Notes MKT 220

Brand Extension

Multibrands

Line Extension

New Brands

E x is

t in

NewExisting

N e w

Product Category

B r a n

d N

a m

Example: Packaging

Week 4 Notes MKT 220

Kentucky Fried Chicken = KFC

The popular story is that Kentucky Fried Chicken saw a growing trend away from fried food. They attempted to eliminate that negative unhealthy impression by changing their name from Kentucky Fried Chicken to KFC on all their promotional materials and packaging. They wanted to brand themselves as the healthy choice for chicken.

Service Characteristics

Week 4 Notes MKT 220

Intangibility

Services cannot

be seen, tasted,

felt, heard or

smelled before

purchase

Variability

Quality of service

depends on who

provides them and

when, where and

how

Inseparability

Services cannot be

separated from their

providers

Perishability

Services cannot

be stored for later

Services

Charter Oak State College Kevin W. Fitzgerald 2005

Designing the Business Portfolio

Week 4 Notes MKT 220

Company

CustomerEmployees

External Marketing

Internal Marketing

Interactive Marketing

Fitzgerald Fun Fact

Week 4 Notes MKT 220

California Raisins – Marketers created a campaign around emotions to increase sales.

As they danced to Marvin Gaye’s “Heard it through the grape vine”, customers became captivated by the raisins.

The campaign was VERY successful and raisin sales dramatically increased.

Key Terms

Week 4 Notes MKT 220

•Brand

•Brand Equity

•Brand Extension

•Co-Branding

•Consumer Product

•Convenience Product

•Industrial Product

•Interactive Marketing

•Internal Marketing

•Line Extension

•Packaging

•Private Brand

•Product

•Product Line

•Product Mix

•Product Quality

•Service

•Service Inseparability

•Service Intangibility

•Service Perishability

•Service Variability

•Service – Profit Chain

•Shopping Product

•Slotting Fees

•Social Marketing

•Specialty Product

•Unsought Product

Relevant Websites

Week 4 Notes MKT 220

AdSolutions http://www.adsolutions.com

Advanced Promotion Technologies http://www.apt.com

Sales Promotion http://www.salespromotion.com

InterPromo, Inc. http://www.interpromo.com

Jornik Promotional Products http://www.promotions.com

StorePoint Communications http://www.storepoint.com

Val-Pak Coupons http://www.valpak.com

http://www.adsolutions.com/

http://www.apt.com/

http://www.salespromotion.com/

http://www.interpromo.com/

http://www.promotions.com/

http://www.storepoint.com/

http://www.valpak.com/