POM Chapter - 8 - S15

Principles of Marketing
Session #15
• Term Project Modules
• Chapter 8
Term Project
• Module 2 submission: 13th November
• Module 3 submission: 27th November
Chapter 8
Products, Services, and Brands: Building Customer Value
• IKEA’S success comes

from a deep
understanding that it’s
selling much more than
just home furnishing at
low prices—it offers
customers a lifestyle both
affordable and
comprehensive.
• IKEA stores are designed
for the customer to
experience the
whole store and be
drawn by a wide variety
of items along the way.
What is a Product?
Product is anything that can be offered in a market for attention,
acquisition, use, or consumption that might satisfy a need or want.
Broadly defined, products also include services, events, persons, places,
organizations, and ideas or a mixture of these.
Products, Services, and Experiences
Services are a form of product that consists of activities, benefits, or
satisfactions and that is essentially intangible and does not result in the
ownership of anything.
Products and services are becoming more commoditized, so
companies are now creating and managing customer experiences with
their brands or company to create differentiation.
Copyright © 2021 Pearson Education Ltd.

What is a Product?
Figure 8.1 Three Levels of Product

What is a Product?
Product and Service Classifications
• Consumer products
• Industrial products

What is a Product?
Table 8.1 Marketing Considerations for Consumer Products
Type of Consumer Product
Marketing Convenience Shopping Specialty Unsought
Considerat
ions
Customer Frequent Less frequent Strong brand Little product
buying purchase; purchase; much preference awareness
behavior little planning, little planning and shopping and loyalty; special or knowledge (or, if
comparison or effort; purchase effort; little aware, little or even
shopping effort; comparison of brands comparison of brands; negative interest)
low customer on price, quality, and low price sensitivity
involvement style
Price Low price Higher price Highest price Varies
Distribution Widespread Selective distribution Exclusive distribution in Varies
distribution; in fewer outlets only one or a few
convenient outlets per market area
locations
Promotion Mass promotion by Advertising and More carefully targeted Aggressive
the personal selling by promotion by both the advertising
producer both the producer and producer and resellers and personal selling
resellers by the producer and
resellers
Examples Toothpaste, Major appliances, Luxury goods, such as Life insurance and
magazines, televisions, furniture, Rolex watches or fine Red
and laundry and clothing crystal Cross blood
detergent donations
What is a Product?
Consumer products are products and services bought by
final consumers for personal consumption.
• Convenience products
• Shopping products
• Specialty products
• Unsought products

What is a Product?
Convenience products are consumer products and
services that the customer usually buys frequently,
immediately, and with a minimum comparison and buying
effort.
• Newspapers
• Candy
• Fast food

What is a Product?
Shopping products are less frequently purchased
consumer products and services that the customer
compares carefully on suitability, quality, price, and style.
• Furniture
• Cars
• Appliances

What is a Product?
Specialty products are consumer products and services
with unique characteristics or brand identification for which a
significant group of buyers is willing to make a special
purchase effort.
• Medical services
• Designer clothes
• High-end electronics

What is a Product?
Unsought products are consumer products that the
consumer does not know about or knows about but does not
normally think of buying.
• Life insurance
• Funeral services
• Blood donations

What is a Product?
Industrial products are those products purchased for
further processing or for use in conducting a business.
• Materials and parts
• Capital items
• Supplies and services

What is a Product?
Materials and parts include raw materials and
manufactured materials and parts.
Capital items are industrial products that aid in the buyer’s
production or operations.
Supplies and services include operating supplies, repair
and maintenance items, and business services.

What is a Product?
Organizations, Persons, Places, and Ideas
• Organization marketing consists of activities undertaken to create,
maintain, or change the attitudes and behaviors of target consumers
toward an organization.
• Person marketing consists of activities undertaken to create,
maintain, or change the attitudes or behavior of target consumers
toward particular people.
• Place marketing consists of activities undertaken to create, maintain,
or change attitudes and behavior toward particular places.
• Social marketing uses commercial marketing concepts to influence
individuals’ behavior to improve their well-being and that of society.

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Principles of Marketing

• IKEA’S success comes

Copyright © 2021 Pearson Education Ltd.

Copyright © 2021 Pearson Education Ltd.

Copyright © 2021 Pearson Education Ltd.

Copyright © 2021 Pearson Education Ltd.

Copyright © 2021 Pearson Education Ltd.

Copyright © 2021 Pearson Education Ltd.

Copyright © 2021 Pearson Education Ltd.

Copyright © 2021 Pearson Education Ltd.

Copyright © 2021 Pearson Education Ltd.

Copyright © 2021 Pearson Education Ltd.

Copyright © 2021 Pearson Education Ltd.

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