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產品consumerproduct:productboughtbyfinalconsumerforpersonalconsumption.消費品

convenienceproduct:consumerproductthatthecustomerusuallybuysfrequently,immediately,andwithaminimumofcomparisonandbuyingeffort便利品16productline:agroupofproductsthatarecloselyrelatedbecausetheyfunctioninasimilarmanner,aresoldtothesamecustomergroups,aremarketedthroughthesametypesofoutlets,orfallwithingivenpriceranges產品線

service:anyactivityorbenefitthatonepartycanoffertoanotherthatisessentiallyintangibleanddoesnotresultintheownershipofanything服務shoppingproduct:consumergoodthatthecustomer,intheprocessofselectionandpurchase,characteristicallycomparesonsuchbasesassuitability,quality,price,andstyle選購品

convenienceproduct:consumerproductthatthecustomerusuallybuysfrequently,immediately,andwithaminimumofcomparisonandbuyingeffort便利品17Specialtyproduct:consumerproductwithuniquecharacteristicsorbrandidentificationforwhichasignificantgroupofbuyersiswillingtomakeaspecialpurchaseeffort專賣品unsoughtproduct:consumerproductthattheconsumereitherdoesnotknowaboutorknowsaboutbutdoesnotnormallythinkofbuying非渴求品shoppingproduct:consumergoodthatthecustomer,intheprocessofselectionandpurchase,characteristicallycomparesonsuchbasesassuitability,quality,price,andstyle選購品

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