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Unit8.ProductClassificationandProductDecisionsProductsandServicesProductisakeyelementinthemarketoffering.Marketing-mixplanningbeginswithformulatinganofferingthatbringsvaluetotargetcustomersandsatisfiestheirneeds.Thisofferingbecomesthebasisuponwhichthecompanybuildsprofitablerelationshipswithcustomers.Inmodernmarketingwedefineaproductasanythingthatcanbeofferedtoamarketforattention,acquisition,use,orconsumptionandthatmightsatisfyawantorneed.Productsincludemorethanjusttangiblegoods.Broadlydefined,productsincludephysicalobjects,services,events,persons,places,organizations,ideas,ormixesoftheseentities.Thus,throughoutthistext,weusethetermproductbroadlytoincludeanyoralloftheseentities.Productplannersneedtothinkaboutproductsandservicesonthreelevels(SeeP141Figure8.1).Eachleveladdsmorecustomervalue.Themostbasiclevelisthe
corebenefit,
whichaddressesthequestionWhatisthebuyerreallybuying?Whendesigningproducts,marketersmustfirstdefinethecore,problem-solvingbenefitsorservicesthatconsumersseek.Awomanbuyinglipstickbuysmorethanlipcolor.Asanexecutiveofoneofthefamouscosmeticscompaniessaid:"Inthefactory,wemakecosmetics;inthestore,wesellhope."4BrandNameQualityLevelPackagingDesignFeaturesDelivery&CreditInstallationWarrantyAfter-SaleServiceCoreBenefitorServiceActualProductCoreProductAugmentedProductThreeLevelsofProduct
(SeeP140-141Fig.8.1)Atthesecondlevel,productplannersmustturnthecorebenefitintoanactualproduct.Theyneedtodevelopproductandservicefeatures,design,aqualitylevel,abrandname,andpackaging.Forexample,aSonycamcorderisanactualproduct.Itsname,parts,styling,features,packaging,andotherattributeshaveallbeencombinedcarefullytodeliverthecorebenefit—aconvenient,high-qualitywaytocaptureimportantmoments.
Finally,productplannersmustbuildanaugmentedproductaroundthecorebenefitandactualproductbyofferingadditionalconsumerservicesandbenefits.Sonymustoffermorethanjustacamcorder.Itmustprovideconsumerswithacompletesolutiontotheirpicture-takingproblems.ProductClassificationsProductsandservicesfallintotwobroadclassesbasedonthetypesofconsumersthatusethem--consumerproductsandindustrialproducts.Broadlydefined,productsalsoincludeothermarketableentitiessuchasexperiences,organizations,persona,places,andideas.ConsumerproductsConsumerproducts
areproductsandservicesboughtbyfinalconsumersforpersonalconsumption.Marketersusuallyclassifytheseproductsandservicesfurtherbasedonhowconsumersgoaboutbuyingthem.Consumerproductsincludeconvenienceproducts,shoppingproducts,specialtyproducts,
and
unsoughtproducts7UnsoughtProducts
NewinnovationsProductsconsumersdon’twanttothinkabouttheseproductsRequiremuchadvertising&personalsellingi.eLifeinsurance,blooddonationProductClassifications
ConsumerProductsSpecialtyProductsSpecialpurchaseeffortsHighpriceUniquecharacteristicsBrandidentificationFewpurchaselocationsi.eLamborghini,RolexShoppingProductsBuylessfrequentlyHigherpriceFewerpurchaselocationsComparisonshopi.eClothing,cars,appliancesConvenienceProductsBuyfrequently&immediatelyLowpricedMassadvertisingManypurchaselocationsi.eCandy,newspapersIndustrialproductsIndustrialproducts
arethosepurchasedforfurtherprocessingorforuseinconductingabusiness.Thus,thedistinctionbetweenaconsumerproductandanindustrialproductisbasedonthepurposeforwhichtheproductisbought.Ifaconsumerbuysalawnmowerforusearoundhome,thelawnmowerisaconsumerproduct.Ifthesameconsumerbuysthesamelawnmowerforuseinalandscapingbusiness,thelawnmowerisanindustrialproduct.Thethreegroupsofindustrialproductsandservicesincludematerialsandparts,capitalitems,andsuppliesandservices.Materialsandpartsincluderawmaterialsandmanufacturedmaterialsandparts.9SuppliesandServicesMaterialsandPartsCapitalItemsProductClassifications
IndustrialProducts(SeeP143-144)ProductDecisions
Marketersmakeproductandservicesdecisionsatthreelevels:individualproductdecisions,productlinedecisions,andproductmixdecisions.Wediscusseachinturn.
Theimportantdecisionsinthedevelopmentandmarketingofindividualproductsandservicesincludedecisionsaboutproductattributes,branding,packaging,labeling,andproductsupportservices.Wewillfocusoneachofthem.11IndividualProductDecisions
(SeeP145)ProductAttributesBrandingPackagingLabelingProductSupportServices12ProductQualityProductFeaturesProductStyle&DesignAbilityofaProducttoPerformItsFunctions;IncludesLevel&ConsistencyHelptoDifferentiatetheProductfromThoseoftheCompetitionProcessofDesigningaProduct’sStyle&FunctionDevelopingaProductorServiceInvolvesDefiningtheBenefitsthatitWillOfferSuchas:ProductAttributesProductMixDecisions
Acompany'sproductmixhasfourimportantdimensions:width,length,depth,andconsistency.Productmixwidthreferstothenumberofdifferentproductlinesthecompanycarries.Procter&Gamble(P&G)marketsafairlywideproductmixconsistingof250brandsorganizedintomanyproductlines.Theselinesincludefabricandhomecare,babycare,femininecare,beautycare,healthcare,andfoodandbeverageproducts.Productmixlengthreferstothetotalnumberofitemsthecompanycarrieswithinitsproductlines.P&Gtypicallycarriesmanybrandswithineachline.Forexample,itsellssevenlaundrydetergents,sixhandsoaps,fiveshampoos,andfourdishwashingdetergents.
Productlinedepth
referstothenumberofversionsofferedofeachproductintheline.Thus,P&G'sCresttoothpastecomesin13varieties,rangingfromCrestMulticare,CrestCavityProtection,andCrestTartarProtectiontoCrestSensitivityProtection,CrestDualActionWhitening,CrestWhiteningPlusScope,Kid'sCavityProtection,andCrestBakingSoda&PeroxideWhiteningformulations.
Finally,theconsistencyoftheproductmixreferstohowcloselyrelatedthevariousproductlinesareinenduse,productionrequirements,distributionchannels,orsomeotherway.P&G'sproductlinesareconsistentinsofarastheyareconsumerproductsthatgothroughthesamedistributionchannels.Thelinesarelessconsistentinsofarastheyperformdifferentfunctionsforbuyers.15ReviewofKeyTermsandConceptsbrand:
aname,term,sign,symbol,ordesign,oracombinationofthese,intendedtoidentifythegoodsorservicesofonesellerorgroupofsellersandtodifferentiatethemfromthoseofcompetitors品牌
product:anythingthatcanbeofferedtoamarketforattention,acquisition,use,orconsumptionthatmightsatisfyawantorneed产品consumerproduct:productboughtbyfinalconsumerforpersonalconsumption.消费品
convenienceproduct:consumerproductthatthecustomerusuallybuysfrequently,immediately,andwithaminimumofcomparisonandbuyingeffort便利品16productline:agroupofproductsthatarecloselyrelatedbecausetheyfunctioninasimilarmanner,aresoldtothesamecustomergroups,aremarketedthroughthesametypesofoutlets,orfallwithingivenpriceranges产品线
service:anyactivityorbenefitthatonepartycanoffertoanotherthatisessentiallyintangibleanddoesnotresultintheownershipofanything服务shoppingproduct:consumergoodthatthecustomer,intheprocessofselectionandpurchase,characteristicallycomparesonsuchbasesassuitability,quality,price,andstyle选购品
convenienceproduct:consumerproductthatthecustomerusuallybuysfrequently,immediately,andwithaminimumofcomparisonandbuyingeffort便利品17Specialtyproduct:consumerproductwithuniquecharacteristicsorbrandidentificationforwhichasignificantgroupofbuyersiswillingtomakeaspecialpurchaseeffort专卖品unsoughtproduct:consumerproductthattheconsumereitherdoesnotknowaboutorknowsaboutbutdoesnotnormallythinkofbuying非渴求品shoppingproduct:consumergoodthatthecustomer,intheprocessofselectionandpurchase,characteristicallycomparesonsuchbasesassuitability,quality,price,andstyle选购品
DiscussionandReviewQuestionsWhatisabrandorbrandname?2.Giveadefinitionofaproductinyourownwords.3.
Whatisconsumerproductandwhatisindustrialproduct?4.Canyoudistinguishshoppingproductfromspecialtyproduct,provideexamplestoillustratethedifferencesbetweenthem.5.Whatarethethreelevelsofproductmentionedintext?
6.Whatisproductlineinmarketingterms?
7.Whenwesaymarketingofferingswhatdowemean?
8.Companieslocatedattheupperendofthemarketcan“stretchtheirproductlinesdownward”.Commentbygivingexamples.
SelectedAnswers
toExercisesinUnit8I.Nofixedanswerstothesequestions;Studentsmaymakefreespeechaccordingtothetext.II.
1.brand2.attributes3.cemetery4.augmented5.installations6.style7.Specialty8.feature9.benefitsIII.1c;2f;3a;4e;5d;6b;7h;8g
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