Products and Services - PDF

 A e s the IKEA story shows, in th...

 A e s the IKEA story shows, in their quest lo create customer relationships, marketers. must build and manage products and brands that connect with customers. This r , chapter begins with a deceptively simple question: What is a product? After addressing this question, we look at ways to classify products in consumer and business markets. Then we discuss the important decisions that marketers make regarding individ­ ual products, product lines, and product mixes. Next, we examine the characteristics and marketing requirements of a special form of product-services. Finally, we look into the critically important issue of how marketers build and manage product and service brands. Author Comment f-o What Is a Product? As you'll see, this deceptively simple question has a very complex answer. For OBJECTIVE 7-1 Define product and describe the major classifications of products and services. example, think bad< lo the opening story. We define a product as anything that can be offered to a market for attention, acquisition, use, or What Is the IKEA "product"? consumption that might satisfy a want or need. Products include more than just tangible objects, such as cars, clothing, or mobile phones. Broadly defined, products also include services, events, persons, places, organizations, and ideas or a mixture of these. Throughout this text, we use the term product broadly to include any or all these entities. Thus, an Apple iPhone, a Toyota Camry, Product and a Caffe Mocha at Starbucks are producis. But so are a aip 10 Las Vegas, Schwab online Anything that can be offered to a investment services, your Instagram account, and advice from your family doctor. market for attention, acquisition, use, Because of their importance in the world economy, we give special attention to ser or consumption that might satisfy a vices. Services are a form of product that consists of activities, benefits, or satisfactions want or need. offe.red for sale that are essentially intangible and do not result in the ownership of any Service thing. Examples include banking, hotel, airline travel, retail, wireless communication, and An activity, benefit, or satisfaction home-repair services. We will look at services more closely later in this chapter. offered for sale that Is essentially intangible and does not result in the Products, Services, and Experiences ownership of anything. Products are a key element in the overaJl market offering. Marketing mix planning begins with building an offering that brings value to target customers. This offering becomes the basis on which the company builds profitable customer relationships. 230