MKTG1001: Products, Services, and Branding
● Product = anything that can be offered to a market for attention, acquisition, use, or consumption, aimed at
satisfying a want or need. This includes tangible items like cars and mobile phones and non-tangible items
like events, ideas, places, and services.
● Types of products:
● Consumer products = These are products purchased by final consumers for personal use. They
can be further broken down into:
● Industrial products = These are purchased by individuals or organisations for
processing or use in business. Types include capital items, materials, and supplies.
● Unsought products = These are purchased to meet unexpected needs, like an emergency
car repair.
● Broadening product scope = Marketers expand the definition of products to cover ideas,
individuals, places, and services.
● Convenience product - purchased frequently with ease
● Shopping product - purchased less regularly than convenience product but more regularly than specialty
product
● Specialty product - shoppers willing to make more effort to get it (e.g. expensive watch).
● The product value proposition:
● The value proposition of a product is defined by its attributes and the benefits it delivers. For
example, smartphones may offer features like multiple camera capabilities, extended battery life,
and fast processors. Marketers create unique propositions to fill specific consumer needs, driving
purchasing decisions.
● e total product concept:
● The total product concept categorises products into three levels:
● Core product = The fundamental benefit that the product provides.
● Actual product = The attributes that deliver the core benefit.
● Augmented product = Additional benefits that go beyond the basic product attributes,
providing differentiation and potentially fostering brand loyalty.
● Product line and mix decisions:
● As firms grow, their product decisions become more complex. Expanding product lines and mixes
serves various strategic purposes:
● Building brand equity.
● Entering new product categories.
● Blocking competitor entry and driving revenue growth.
● Providing diversity to meet market demands.
● Product line expansion strategies:
● Organisations often utilise two primary strategies when expanding product lines:
● Product line filling = This involves adding more items within the existing range to
enhance choices. For example, Rexona could introduce new scents or formulations.
● Product line stretching = This means adding new categories targeting different market
segments, either upscale (premium offerings) or downscale (budget-friendly products).
● E.g. Upward —> Premium deodorant called Rexona Elite featuring advanced skincare
ingredients, luxurious fragrances, sophisticated packaging, targeting those interested in
high-end personal care.
● E.g. Downward —> Budget —> Affordable, targeting budget conscious.
● Services as products:
● Services represent a vital form of product consisting of activities or benefits offered to consumers
that are intangible and do not confer ownership.
● Services often accompany tangible products, enhancing overall market offerings.
● Characteristics of services:
● Services are distinct from products due to specific characteristics:
● Intangibility = Services cannot be touched or owned.
● Inconsistency = Services can vary greatly depending on who provides them.
● Involvement = Consumer participation is often required.
● Product = anything that can be offered to a market for attention, acquisition, use, or consumption, aimed at
satisfying a want or need. This includes tangible items like cars and mobile phones and non-tangible items
like events, ideas, places, and services.
● Types of products:
● Consumer products = These are products purchased by final consumers for personal use. They
can be further broken down into:
● Industrial products = These are purchased by individuals or organisations for
processing or use in business. Types include capital items, materials, and supplies.
● Unsought products = These are purchased to meet unexpected needs, like an emergency
car repair.
● Broadening product scope = Marketers expand the definition of products to cover ideas,
individuals, places, and services.
● Convenience product - purchased frequently with ease
● Shopping product - purchased less regularly than convenience product but more regularly than specialty
product
● Specialty product - shoppers willing to make more effort to get it (e.g. expensive watch).
● The product value proposition:
● The value proposition of a product is defined by its attributes and the benefits it delivers. For
example, smartphones may offer features like multiple camera capabilities, extended battery life,
and fast processors. Marketers create unique propositions to fill specific consumer needs, driving
purchasing decisions.
● e total product concept:
● The total product concept categorises products into three levels:
● Core product = The fundamental benefit that the product provides.
● Actual product = The attributes that deliver the core benefit.
● Augmented product = Additional benefits that go beyond the basic product attributes,
providing differentiation and potentially fostering brand loyalty.
● Product line and mix decisions:
● As firms grow, their product decisions become more complex. Expanding product lines and mixes
serves various strategic purposes:
● Building brand equity.
● Entering new product categories.
● Blocking competitor entry and driving revenue growth.
● Providing diversity to meet market demands.
● Product line expansion strategies:
● Organisations often utilise two primary strategies when expanding product lines:
● Product line filling = This involves adding more items within the existing range to
enhance choices. For example, Rexona could introduce new scents or formulations.
● Product line stretching = This means adding new categories targeting different market
segments, either upscale (premium offerings) or downscale (budget-friendly products).
● E.g. Upward —> Premium deodorant called Rexona Elite featuring advanced skincare
ingredients, luxurious fragrances, sophisticated packaging, targeting those interested in
high-end personal care.
● E.g. Downward —> Budget —> Affordable, targeting budget conscious.
● Services as products:
● Services represent a vital form of product consisting of activities or benefits offered to consumers
that are intangible and do not confer ownership.
● Services often accompany tangible products, enhancing overall market offerings.
● Characteristics of services:
● Services are distinct from products due to specific characteristics:
● Intangibility = Services cannot be touched or owned.
● Inconsistency = Services can vary greatly depending on who provides them.
● Involvement = Consumer participation is often required.
