Marketing Theory and Principles (Grade A)

Summary:

This Marketing Theory and Principles note, presented in three parts, explores the concepts of products, services, and brands in the context of marketing. In the first part, the levels of products and services are discussed, emphasizing the core customer value and how it is transformed into an actual product with added features and benefits. The second part focuses on classifying products, distinguishing between consumer products and industrial products. Consumer products are further categorized into convenience products, shopping products, specialty products, and unsought products based on consumer buying behaviour. The third part delves into the decisions companies make regarding individual products and services, covering aspects such as product attributes (quality, features, style, and design), branding, packaging, labelling and logos, and product support services. Additionally, the text examines the unique characteristics of services, including intangibility, inseparability, variability, and perishability, and their implications for marketing strategies. Overall, this comprehensive overview provides insights into the essential elements and considerations involved in the marketing of products, services, and brands.

Excerpt:

Marketing Theory and Principles

School of Business
Department of Marketing
BMKT300 – Marketing Theory and Principles
Chapter 8 | Part 1
Products, Services, and Brands

Objectives:
• Understand the levels of products and services.
• Describe the major classification of products and services.

What is a Product?

A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want.

Levels of Products and Services

•  Product planners need to think about products and services on three levels.
•  Each level adds more customer value.
•  Consumers see products as complex bundles of benefits that satisfy their needs.

1. The most basic level is the core customer value.
• It addresses the question: “What is the buyer really buying?”
• Represents the problem-solving benefits or services that consumers seek.

2. At the second level, core customer value is turned into an actual product.
• Features, design, quality, brand name, and packaging are developed.
• Combined to deliver the core customer value.

3. At the third level, the augmented product is built.
• By offering additional customer services and benefits such as warranty, delivery and credit.