Chapter 9: Products And Services

Front 1

What is a product?

Back 1

? It is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or a need. It can be places, events, people, organizations, employers, ideas or combinations of these.

Front 2

What is a service?

Back 2

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

Front 3

What are the three levels of a product?

Back 3

1. Augmented product: installation, after-sale service, warranty, delivery and credit
2. Actual product: packaging, features, styling, quality, brand name
3. Core product: core benefit or service

Front 4

Explain the different categories of consumer products.

Back 4

- Consumer products: products and services bought by final consumers for personal consumption
o Convenience product: a consumer product that customers usually buy frequently, immediately and with a minimum of comparison and buying effort
→ Examples: toothpaste, magazines, laudry detergent
o Shopping product: a consumer product that customers, in the process of selection and purchase, usually compare on such bases as suitability, quality, price and style
→ Examples: major appliances, televisions, furniture, and clothing
o Specialty product: a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort
→Example: luxury goods
o Unsought products: a consumer product that the consumer either does not know about or knows about but does not normally think of buying
→Examples: life insurance, red cross blood donations

Front 5

Explain the different categories of industrial products.

Back 5

- Industrial products: those products purchased for further processing or for use in conducting a business. The difference between a consumer- and industrial product is the purpose for which the product is bought.
o Materials and parts
o Capital items → products that aid the buyer’s production or operations, such as instillations.
o Supplies and services
o Business services

Front 6

What is social marketing?

Back 6

o Social marketing: the use of commercial marketing concepts and tools in programs to influence individuals’ behavior to improve their well-being and that of society

Front 7

Name the four major decisions regarding the product.

Back 7

1. Product and service attributes: developing a product or service involves defining the benefits that it will offer
a. Product quality: is closely linked to customer value and satisfaction. Product quality has two dimensions – level and consistency
b. Product features: a competitive tool for differentiating the company’s product from competitor’s products. The company has to assess each features value to customers versus its cost to the company
2. Product style and design: this is another way to add customer value. Design goes to the very heart of the product while style simply describes the appearance of the product. Packaging is an important part of style and design
3. Labeling: the labels identify the product or brand and might describe several things about it. It helps to promote the brand
4. Product support services

Front 8

What is a product line?

Back 8

A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges

Front 9

In which two ways can a company expand its product line?

Back 9

- Line filling: adding more items within the present range of the line.
→ Reasons for line filling: reaching extra profits, satisfying dealers, using excess capacity, being the leading full-line company, plugging holes to keep out competitors
- Line stretching: a company lengthens its product line beyond its current range
→ The line can be stretched upwards (add prestige to their products), downwards (to attract new customers) or in both directions

Front 10

Name the four different service characteristics.

Back 10

- Service intangibility: a major characteristic of services – they cannot be seen, tasted, felt, heard or smelt before they are bought
- Service inseparability: they are produced and consumed at the same time and cannot be separated from their providers
- Service variability: services quality may vary greatly, depending on who provides them and when, where and how
- Service perishability: services cannot be stores for later sale or use

Front 11

Describe the service profit chain.

Back 11

1. Internal service quality
2. Satisfied and productive service employees
3. Greater service value
4. Satisfied and loyal customers
5. Healthy service profits and growth

Front 12

Explain the three types of marketing in service industries.

Back 12

- Internal marketing: the service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction
- External marketing: traditional marketing with the four P’s
- Interactive marketing: service quality depends heavily on the quality of the buyer-seller interaction during the customer encounter

Front 13

What is service-dominant logic?

Back 13

Service-dominant logic: a perspective in which the good is the provider of the service to the customer.