Marketing Department
Principles of Marketing
CHAPTER 7
PRODUCT DECISIONS
Learning Objectives
2
Study how companies develop and manage products and brand
Get to know the concept of product in marketing, levels of product
and product classifications
Have overall knowledge about product attributes, packaging,
branding,…; product lines and product mixes
Product, Services, and Branding Strategy
Topic Outline
What Is a Product?
Product and Services Decisions
What Is a Product?
Products, Services, and Experiences
Product is anything that can be offered in a
market for attention, acquisition, use, or
consumption that might satisfy a need or want
Service is a product that consists of activities,
benefits or satisfaction that is essentially
intangible and does not result in the
ownership of anything.
Experiences represent what buying the product
or service will do for the customer.
What Is a Product?
Levels of Product and Services
What Is a Product?
Product and Service Classifications
Consumer Industrial
products products
What Is a Product?
Product and Service Classifications
Consumer products are products and services
for personal consumption
Classified by how consumers buy them
Convenience products
Shopping products
Specialty products
Unsought products
What Is a Product?
Product and Service Classifications
Convenience products
consumer products and services that the
customer usually buys frequently,
immediately, and with a minimum comparison
and buying effort
What Is a Product?
Product and Service Classifications
Shopping products
consumer products and services that the
customer compares carefully on
suitability, quality, price, and style
What Is a Product?
Product and Service Classifications
Specialty products
consumer products and services with unique
characteristics or brand identification for which a
significant group of buyers is willing to make a
special purchase effort
What Is a Product?
Product and Service Classifications
Unsought products
consumer products that the consumer does not
know about or knows about but does not normally
think of buying
Life insurance
Funeral services
Blood donations
What Is a Product?
Product and Service Classifications
Industrial products
products purchased for further processing or for
use in conducting a business
Classified by the purpose for which the product is
purchased
Materials and parts
Capital items
Supplies and services
What Is a Product?
Product and Service Classifications
Capital items are industrial products that aid in the
buyer’s production or operations.
Materials and parts include raw materials and
manufactured materials and parts usually sold
directly to industrial users.
Supplies and services include operating supplies,
repair and maintenance items, and business
services.
What Is a Product?
Organizations, Persons, Places, and Ideas
Organization marketing consists of activities
undertaken to create, maintain, or change
attitudes and behavior of target consumers
toward an organization
What Is a Product?
Organizations, Persons, Places, and Ideas
Person marketing consists of activities
undertaken to create, maintain, or change
attitudes and behavior of target consumers
toward particular people
What Is a Product
Organizations, Persons, Places, and Ideas
Place marketing consists of activities
undertaken to create, maintain, or
change attitudes and behavior of target
consumers toward particular places.
Social marketing is the use of commercial
marketing concepts and tools in
programs designed to influence
individuals’ behavior to improve their
well-being and that of society
Product and Service Decisions
Individual Product and Service Decisions
Product and Service Decisions
Individual Product and Service Decisions
Product or service attributes
communicate and deliver the benefits
Quality
Features
Style and design
Product and Service Decisions
Individual Product and Service Decisions
Product quality is the characteristics of a
product or service that bear on its ability to
satisfy customer needs
Product Quality Level is the level of quality
that supports the product’s positioning
Product Conformance Quality is the product’s
freedom from defects and consistency in
delivering a targeted level of performance
Product and Service Decisions
Individual Product and Service Decisions
Product features
are a competitive tool
for differentiating a
product from
competitors’ products
are assessed based on
the value to the
customer versus the
cost to the company
Product and Service Decisions
Individual Product and Service Decisions
Style describes the
appearance of the product
Design contributes to a
product’s usefulness as
well as to its looks
Product and Service Decisions
Individual Product and Service Decisions
Brand is the name, term, sign, or design—or a
combination of these—that identifies the maker
or seller of a product or service
Product and Service Decisions
Individual Product and Service Decisions
Packaging involves designing and producing the
container or wrapper for a product
Product and Service Decisions
Individual Product and Service Decisions
Labels identify the product or brand, describe attributes, and provide
promotion
Product and Service Decisions
Individual Product and Service Decisions
Product support services augment actual products
Product and Service Decisions
Product Line Decisions
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
Product and Service Decisions
Product Line Decisions
Product linelength is the number of items in the product line
Line stretching
Line filling
Product and Service Decisions
Product Mix Decisions
Product mix consists of all the products and items
that a particular seller offers for sale
- Width
- Length
- Depth
- Consistency
