product and service strategy chapter 9. product-service continuum sugar restaurant university...
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Product and Product and Service StrategyService Strategy
Chapter 9Chapter 9
Product-Service Product-Service ContinuumContinuum
Sugar Restaurant
University
Education
Pure Tangible
Good
Pure Service
What is a product?What is a product?
One definition of a product:One definition of a product: A good, service, or idea consisting of a A good, service, or idea consisting of a
bundle of tangible and intangible bundle of tangible and intangible attributes that satisfies consumers and is attributes that satisfies consumers and is received in exchange for money or other received in exchange for money or other unit of valueunit of value
Product Concept:Product Concept: Defines the essence, or core idea Defines the essence, or core idea
underlying the product features and underlying the product features and benefits that appeal to the target market.benefits that appeal to the target market.
A Product’s Three PartsA Product’s Three Parts Core Product – benefit, basic features, value, serviceCore Product – benefit, basic features, value, service Actual Product/Primary characteristics – features, Actual Product/Primary characteristics – features,
quality, design, attributes, colour, packaging quality, design, attributes, colour, packaging (depending on product)(depending on product)
Augmented Product – credit, payment plans, Augmented Product – credit, payment plans, warranties, after the sales service, delivery, packaging, warranties, after the sales service, delivery, packaging, etc.etc.
Discussion Question – Page Discussion Question – Page 249, #3249, #3
Types of Consumer Types of Consumer ProductsProducts
ConvenienceConvenience:: purchased frequently, immediately, purchased frequently, immediately, and with a minimum of comparison and buying and with a minimum of comparison and buying efforteffort
ShoppingShopping:: the consumer compares product the consumer compares product alternatives on such bases as suitability, quality, alternatives on such bases as suitability, quality, price, and styleprice, and style SpecialtySpecialty:: a product with unique characteristics a product with unique characteristics
or brand identification, which the consumer is or brand identification, which the consumer is willing to make a special purchase effortwilling to make a special purchase effort
UnsoughtUnsought:: a product the consumer does not a product the consumer does not know about, or normally consider buyingknow about, or normally consider buying
Product item
Product line
Product class
Product mix
Example: General Motors
Product line and mixesProduct line and mixes
Line ExtensionLine Extension
• As Marriott’s product extension grew in popularity, it extended the product further.
Product Mix DecisionsProduct Mix DecisionsProduct mix:Product mix: the set of all product lines and items that a particular seller offers for salethe set of all product lines and items that a particular seller offers for sale
Width:Width: the number of different product lines carried the number of different product lines carried
Length:Length: the total number of items carried within the product lines. the total number of items carried within the product lines.
http://www.pg.com/product_card/prod_card_laundry.jhtmlhttp://www.pg.com/product_card/prod_card_laundry.jhtml
Depth:Depth: the number of versions offered of each the number of versions offered of each product in the line product in the line
http://www.homemadesimple.com/sites/http://www.homemadesimple.com/sites/en_US/cascade/products/index.shtmlen_US/cascade/products/index.shtml
BrandingBranding
Creating, maintaining, Creating, maintaining, protecting and protecting and enhancing products enhancing products and services.and services.
A brand is a name, A brand is a name, term, sign, symbol, term, sign, symbol, design or a combination of these design or a combination of these that identifies the maker or seller of that identifies the maker or seller of a product or service.a product or service.
Types of Brands
•Family Brands – i.e. Campbell’s, Marriott •Flanker brand•Co-branding
•Ingredient branding •Cooperative branding •Complementary branding
•Private brands
What’s HappeningWhat’s Happening
http://www.amazon.com/Kindle-Amahttp://www.amazon.com/Kindle-Amazons-Wireless-Reading-Device/dp/B0zons-Wireless-Reading-Device/dp/B000FI73MA00FI73MA
Brand Name Selection Brand Name Selection
• It should suggest product’s benefits and It should suggest product’s benefits and qualities.qualities.
• It should be easy to pronounce, It should be easy to pronounce, recognize and remember.recognize and remember.
• It should be distinctive.It should be distinctive.• It should be extendable.It should be extendable.• It should translate easily into foreign It should translate easily into foreign
languages.languages.• It should be capable of registration and It should be capable of registration and
legal protection.legal protection.• Should reinforce the product conceptShould reinforce the product concept
Discussion Question – page Discussion Question – page 249, #4249, #4
PackagingPackaging
Containment Containment functionsfunctions
Protection in Protection in transit functiontransit function
Storage functionStorage function Usage facilitation Usage facilitation
functionfunction Promotion functionPromotion function Ecological functionEcological function
The heart shape bowl communicates a
healthy diet
PackagingPackaging
Dutch Boy recently came up with a long overdue innovation—paint in plastic containers with twist-off caps.
LabellingLabelling Printed information appearing Printed information appearing
on or with the package.on or with the package. Performs several functions:Performs several functions:
Identifies product or brand.Identifies product or brand. Describes several things about Describes several things about
the product.the product. Promotes the product through Promotes the product through
attractive graphics.attractive graphics. Legal/regulatory issuesLegal/regulatory issues
What is a service?What is a service?
One definition of a service:One definition of a service: Activities, deeds, or other basic Activities, deeds, or other basic
intangibles offered for sale to intangibles offered for sale to consumers in exchange for money or consumers in exchange for money or something else of value.something else of value.
Characteristics of Characteristics of ServicesServices
IntangibilityCannot be seen, tasted, felt or smelled before
purchasing
VariabilityService quality depends on who provides and
under what conditions
InseparabilityProduction and,
consumption, and from the provider
PerishabilityCannot be stored,
for resale or later use