Products and Service

What is Product?
✓ An article or substance that is
manufactured or refined for sale
✓ Every product or service has a purpose
✓ Products are tangible, they can be seen or
touched, felt or experienced
✓ There will be time gap between production
and consumption of goods
✓ Anything that can be offered in a market
for attention, acquisition, use, or
consumption that may satisfy a need or
want
What is Product?
Types of Products
1. Consumer products
2. Shopping products
3. Specialty products
4. Unsought products
5. Business products
Types of Products
1. Convenience products
▪ Buy frequently and immediately
▪ Low priced
▪ Many purchase location
▪ Staple goods
▪ Impulse goods
▪ Emergency goods
Types of Products
2. Shopping products
▪ Gather product information
▪ Fewer purchase location
▪ Compare for
▪ Stability and quality
▪ Price and style
Types of Products
3. Specialty products
▪ Unique characteristics
▪ Brand identification
▪ Few purchase locations
Types of Products
4. Unsought products
▪ Products consumer don’t want to think about
▪ Require much advertising and personal selling
Types of Products?
5. Industrial products
▪ Are products purchased for further processing
or for use in conducting a business
▪ Raw materials and parts – include raw materials
and manufactured materials and parts usually sold
to directly to industrial users
▪ Capital – industrial products that aid in the buyer’s
production and operations
▪ Supplies and services
Products (Organizations)

Organization marketing consists of activities

undertaken to create, maintain, or change
attitudes and behavior of target consumers
toward an organization
Products (Persons)

Person marketing consists of activities

undertaken to create, maintain, or change
attitudes and behavior of target consumers
toward particular people

- Rakhi’s Swayamwar
Products (Place)

Place marketing consists of activities

undertaken to create, maintain, or change
attitudes and behavior of target consumers
toward particular places

- Tourism
Products (Ideas)

Social marketing is the use of commercial

marketing concepts and tools in programs
designed to influence individual’s behavior to
improve their well – being and that of
society

- Public health campaign

- Tourism
Products (Experiences)

Experiences represent what buying the

product or service will do for the customer

- Treasure land
- Disney land
Products (Service)

Service is a form of product that consists of

activities, benefits, or satisfactions offered
for sale that are essentially intangible and do
not result in ownership

- Doctor’s exam
- Legal advice
Products and Product Mix
Potential customers judge product offerings
according to three elements:

1. Product features and quality

2. Services mix and quality
3. Value – based prices
Products and Product Mix
The customer value hierarchy:

1. Core benefit
2. Basic product
3. Expected product
4. Augmented product
5. Potential product
Products and Product Mix
Levels of products and service
1. Core benefit – represent what buyer is
really buying

2. Actual product – represents the design,

brand name, and packaging that delivers
the core benefit to the customer

3. Augmented product – represents the

additional services or benefits of the
actual product
Product Mix Decisions
Product mix consists of all the products and
items that a particular seller offers for sale

➢ Width – number of product lines

➢ Length – total number of items in the mix
➢ Depth – number of product variants
➢ Consistency – degree to which product
lines are related
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 Mix Width
Is the number of different product lines the
company carries

Product Mix Length

The total number of items the company
carries within the product lines
Product Mix Depth
Is the number of versions offered of each
product in the line

Consistency
Is how closely the various product lines are
in end use, production requirements, or
distribution channels
Product Line and Mix
Brands –is award, mark, symbol, or a combination of them
used to identify marketers product or service

Brandname – is something which can be vocalized or

spoken

Brandmark – non - registered design, symbol or product

logo

Tradename – registered company name

Trademark – a brand registered under the Philippine Patent

Office
Individual Product and Service
Decisions
BRAND is the name, term, sign, or design,
or combination of these, that identifies the
maker or seller of a product or service

BRAND represents the customer’s

perceptions and feelings about a product
and its performance. It is company’s promise
to deliver a specific features, benefits,
services, and experiences consistently to the
buyers
Brand Decisions
Brands can convey six levels of meaning
1. Attributes

2. Benefits

3. Values

4. Culture

5. Personality

6. User
Brand Decisions
Aeker identified five levels of customer
attitudes toward brands:
1. Will change brands, especially for price.
No brand loyalty
2. Satisfied – has no reason to change

3. Satisfied – switching would incur costs

4. Values brand, sees it as a friend

5. Devoted to the brand

Brand Decisions
Brand identity decisions include:
1. Name

2. Logo

3. Colors

4. Taglines

5. Symbol

Consumer experience create brand bonding,

brand advertising does not.
Brand Name selection
Desirable qualities
✓ Suggests benefits and qualities

✓ Easy to pronounce, recognize, and

remember
✓ Distinctive

✓ Extendable

✓ Translatable for the global economy

Brand Decisions
Marketers should attempt to create or
facilitate awareness, acceptability,
preference, and loyalty among consumers

Valuable and powerful brands enjoy high

levels of brand loyalty.
What is a Service?
✓ A service is something someone can do for
money

✓ They are not tangible

✓ A major part of service marketing depends

on the relationship the marketer/seller is
able to establish with the customer.
Service

Applying knowledge for the

benefit of another
Types of Service
▪ The nature of the service providing
process
▪ The subject of the service
▪ The nature and function of the service
▪ The company class
Difference between products and
services
Difference between products and
services
Difference in managing product
and service
1. Who comes to whom
➢ Products are transported to through
distribution channels
➢ Services are location – based

2. Standardization or customization
➢ Customers like many of their products to be
standardized
➢ Customers want most of their services to be
customized
Difference in managing product
and service
3. Quality delivery
➢ Quality of product within itself is embedded
at the time of manufacture
➢ Qualities that people expect from service
includes customization and variation

4. Tangibility
➢ The products are tangible and can be
inspected / sampled before buying
➢ Service on the other hand is experiential and
sometimes based on a belief
Difference in managing product
and service
5. Scalability
➢ Is scaled up by expanding the manufacturing
capacity , distribution and sales reach, and
access to more customers
➢ It needs a supply of trained service providers
and this involving other poaching people
from the competitors, induction, training and
innovation
Difference in managing product
and service
6. Ownership
➢ A products can be an asset that builds the
wealth
➢ A service cannot be owned as is always
shown as an expense

7. The source of value

➢ The quality of the products depend on how
materials are chosen and converted
➢ The quality of the service depends on how
the service providers are selected, trained
and motivated
Difference in managing product
and service
8. The role of senior management
➢ The process of creating a market – driven
design in a product business involves many
months of work by expert manpower and
managers before the product is produced
➢ The same process of creating a market
driven design needs to happen in front of the
customer in few minutes in services
Difference in managing product
and service
9. The position of the customer
➢ The customer is outside the manufacturing
process
➢ In the service business the customer is inside
the business
Difference in managing product
and service
10. The role of standardization and
mechanization
➢ Frequently standardizes its products.
Mechanization is used extensively in the
processes.
➢ Asking customers on-line what they desire
and then the company tries to deliver it in an
individualized manner in real time.
Essentials in improving Service
Quality
1. Tangibles
2. Reliability
3. Responsiveness
4. Assurance
5. Empathy
Service Quality
o Is a comparison of expectations with
performance
o A business with high service quality will
meet customer needs whilst remaining
economically competitive
o Improved service quality may increase
economic competitiveness
How to improve service quality?
1. Learn to listen to the customers first
2. Look at all complaints about the service
as an opportunity to improve
3. Establish an environment where great
service is recognized and rewarded and
poor service is challenged and rectified
4. Have weekly fun staff meetings where
both the good and bad service elements
are discussed
How to improve service quality?
5. Ensure the staff feel they are an
important part of the success
6. Lead by example
7. Do things regularly to improve the
workplace
8. Give the staff a reason to come to work
with a big smile on their face and great
attitude
Service Gap Model
▪ The service quality model highlights the
main requirements for delivering high
quality service

▪ It identifies 5 gaps that causes

unsuccessful delivery
Service Gap Model
▪ The aim may be achieved by
understanding and improving operational
processes; identifying problems quickly
and systematically; establishing valid and
reliable service performance measures and
measuring customer satisfaction and other
performance outcomes.
Service Gap Model
Service Gap Model
Service Gap Model
Service Gap Model
Service Gap Model
Closing the Gap
Gap 1: Learn what customers expect

Gap 2: Establish the right service quality

standards

Gap 3: Ensure the service performance

meets standards

Gap 4: Ensure the delivery matches

promises
Gap 1
✓ Use research, complaint analysis,
customer panels
✓ Increase direct interactions between
managers and customers
✓ Improve upward communication
✓ Act on information and insights
Gap 2
✓ Top management commitment to
providing service quality
✓ Set, communicate, and reinforce customer
– oriented service standards
✓ Establish challenging and realistic service
quality goals
✓ Train managers to be service quality
leaders
✓ Be receptive to new ways to deliver
service quality
Gap 2
✓ Standardize repetitive tasks
✓ Prioritize tasks
✓ Gain employee acceptance of goals and
priorities
✓ Measure performance of service standards
and provide regular feedback
✓ Reward managers and employees for
achievement of quality goals
Gap 3
✓ Attract the best employees
✓ Select the right employees
✓ Develop and support employees
✓ Train employees
✓ Provide appropriate technology and equipment
✓ Encourage and build teamwork
✓ Empower employees
✓ Internal marketing
Gap 3
✓ Retain good employees
✓ Measure and reward service quality
achievements
✓ Develop equitable and simple reward systems
Gap 4
✓ Seek input from operations personnel on
what can be done
✓ Reality advertising
✓ Real employees, real customers, real situations
✓ Seek input from employees on advertising
✓ Gain communications between sales,
operations and customers
✓ Internal marketing programs
Gap 4
✓ Ensure consistent standards in multi – site
operations
✓ In advertising, focus on service
characteristics that are important to
customers
✓ Manage customer’s expectations
✓ What are realistic expectations?
✓ Explain industrial realities
✓ Tiered service options
✓ Offer different levels of service – user pays