Product, in the marketing context is anything which is offered to the market for exchange or consumption. In goods marketing it is always said that, there is a tangible component to which some intangibles like style, after sales service, credit, etc., are integrated. In the case of services, on the contrary, the tangible component is nil or minimal. Conventionally, it is said a product as an object, which is developed, produced, delivered and consumed. However, in services there is no or a little tangible element. Therefore, the services are considered to be as benefits which are offered to the target market.
Five product
levels
|
|
Core Benefit
|
The fundamental benefit or service the customer is buying
(hotel : rest/ sleep)
|
Basic Product
|
Basic functional attributes (room, bed, bath)
|
Expected Product
|
Set of attributes / conditions
the buyer normally expects (clean room. Large towel, quietness )
|
Augmented Product
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That meets the customers'
desire beyond expectations
|
Potential product
|
The possible evolution to
distinguish the offer.
|
Developing new services
In order to develop a service product, as a manager you will have to follow the following stages:
i) Customer Benefit Concept: The service product which is offered in the market place must have its origin in the benefits which the customers are seeking.
ii) Service Concept: Using the customer benefits as the starting point, the service concept defines the specific benefits which the service offers.
iii) Service Offer: Having defined the business in which you are operating, the next step is to give a specific shape and form to the basic service concept.
iv) Service Forms: In what form should the services be made available to the customers is another area of decision-making.
v) The service delivery system – It is the mode of service dissemination.
Choosing a brand name for a consumer product or service is one of the most important decisions. A well chosen brand name can provide a number of specific advantages to the organization. These include suggesting product benefits, evoking feeling of trust, confidence, security and simplifying shopping. The American Marketing Association defines a brand as follows: 'A brand is a name , term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
