Product and Service Issues

1
Product and Service Issues
2
Products

• Products Anything that satisfies a want or need
  in terms of use, consumption or acquisition.
• Consumer
• Industrial (Business)

3
Product Considerations

• Type of Good
• Industrial
• Consumer
• Products as Innovations
• Type/Degree of Innovation
• Characteristics of Innovation
• Attribute-Benefit Analysis
• Competitive Comparison
• Competitive Advantage

4
Consumer-Goods Classification

• Convenience Products
• Frequent immediate purchase
• Low priced
• Many purchase locations
• Includes
• Staple goods
• Impulse goods
• Emergency goods

• Shopping Products
• Buy less frequently
• Gather product information
• Fewer purchase locations
• Compare for
• Suitability Quality
• Price Style

• Specialty Products
• Special purchase efforts
• Unique characteristics
• Brand identification
• Fewer purchase locations

• Unsought Products
• New Innovations
• Products consumers do not want to think about
• Require much advertising personal selling

(Source2000 Prentice Hall)
5
Industrial Goods Classification

• Production Goods
• Raw Materials
• Manufactured Materials Parts
• Support Goods
• Installations
• Accessory Equipment
• Operating Supplies
• Business Services

6
Products as Innovations
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Product Attribute Analysis

• Attribute (characteristic, feature)
• A physical element Ingredient, material,
  component, form, etc.
• A measurable strategic/tactical outcome
• E.g., brand, reputation, distribution, price,
  image, etc.
• Consider that which is inherent ins the product?

8
Mystic Maid Example
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Attribute Analysis

• Mystic Maid Example
• Weave
• Fiber
• Size
• Colors
• - - - - - - - - - -
• Store Location
• Price
• Brand Recognition
• Name
• Guarantee

• Specify the relevant attributes/ characteristics/
  features of the product/brand.
• ---------------
• Specify and consider marketing mix attributes.

10
Benefit Analysis

• Benefit
• What each attributes delivers
• What the buyer realizes as result of the
  attribute
• Positive/negative, functional, emotional
• A single attribute may have several benefits

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Attribute-Benefit Analysis

• Weave remove grease, streak free,
  environmentally friendly, course when dry
• Micro Fiber streak free, durability, small
  particles, environmentally friendly, course when
  dry
• Size large enough to do the job, portable,
  stores easily
• Colors differentiate between uses, readily
  identifiable
• - - - - - - - - - -
• Store Location specialty stores, hard to find,
  higher price
• Price expensive, perceived quality, special
• Brand Recognition low, no reputation
• Name gender connotation, demeaning, indicates
  cleaning purpose
• Guarantee reassurance, safety, reduced risk

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Why are Product Attributes Benefits Important?

• Product

Product Features/ Attributes
Product Benefits
Buyer Motivation
Buyer Need
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Brand Decisions

• Sponsorship manufacturer, distributor, licensed
• Brand Strategy
• Multiproduct (Family, Corporate)
• Line Extensions, Subbranding, Brand Extensions
• Multibrand (Individual)
• Private Branding, Mixed Branding

15
Two-Way Product Line Stretch Marriott Hotels
Quality
Superior
Good
Standard
Economy
Marriott Marquis (Top executives)
High
Marriott (Middle managers)
Above average
Courtyard (Salespeople)
Price
Average
Fairfield Inn (Vacationers)
Low
(Source2000 Prentice Hall)
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Exercise 2.

• VALS www.sric-bi.com
• Demographic Characteristics
• Age, income gender, marital status, ethnicity,
  occupation
• Lifestyle Characteristics
• How do people spend their time, resources?
• What are their media habits, values?
• How do they view themselves?
• Shopping Behaviors
• How, Where, When, Why, Who