In this chapter you will learn: Understand what "product" really means, know the key differences between goods and services, know the differences among the various consumer and business product classes, understand how the product classes can help a marketing manager plan marketing strategies,. | Chapter 9: Product Planning for Goods and Services 9-2 Strategic Planning for Product Place Product Price Promotion Brand Type of Brand: Individual or family Manufacturer or dealer Warranty None, full, or limited Package Protection, Promotion, (or both) Target Market Exhibit 9-1 Product Idea Physical good/service Features Quality level Accessories Installation Instructions Product line Defining “Product”: Key Terms and Ideas Product. Product means the need-satisfying offering of a firm. This definition is important because it reminds managers to focus on consumers and not on the technical and managerial details involved in producing products. Quality. From a marketing perspective, quality means a product’s ability to satisfy a customer’s needs or requirements. Quality may be absolute or relative, but in all cases the customer’s expectations for quality in a given product forms the basis for determining how to achieve customer satisfaction. Goods/Services. A product can be a physical good or an intangible service, or it can be a blend of both. Discussion Note: Consumers are increasingly demanding more services with the goods they buy. For example, in the personal computer business successful companies offer reliable equipment coupled with extensive, free technical telephone support services. Both together are the product the customer buys. Differences Between Goods and Services. Since both are products, this distinction is not usually necessary. But in fine tuning a product’s position, recognizing these differences can aid marketers in planning: Intangible. Goods have a physical existence. Services are deeds performed for a customer. Simultaneous production and consumption. Services are produced and consumed at the same time. Products are produced first then sold for later consumption. Perishable. Services cannot be stored for later use. Transported. Services cannot be transported to another location for sale. Customer presence. Many services require the . | Chapter 9: Product Planning for Goods and Services 9-2 Strategic Planning for Product Place Product Price Promotion Brand Type of Brand: Individual or family Manufacturer or dealer Warranty None, full, or limited Package Protection, Promotion, (or both) Target Market Exhibit 9-1 Product Idea Physical good/service Features Quality level Accessories Installation Instructions Product line Defining “Product”: Key Terms and Ideas Product. Product means the need-satisfying offering of a firm. This definition is important because it reminds managers to focus on consumers and not on the technical and managerial details involved in producing products. Quality. From a marketing perspective, quality means a product’s ability to satisfy a customer’s needs or requirements. Quality may be absolute or relative, but in all cases the customer’s expectations for quality in a given product forms the basis for determining how to achieve customer satisfaction. Goods/Services. A product can be a .
