In marketing, a product is anything that can be offered to a market that might satisfy a want or need. In retail, products are called merchandise. In manufacturing, products are purchased as raw materials and sold as finished goods. Commodities are usually raw materials such as metals and agricultural products, but the term can also refer to anything widely available in the open market. In project management, products are the formal definition of the project deliverables that form the objectives of the project.

2. Products, Services, and Experiences
• A product is anything that can be offered in a
market for attention, acquisition, use, or
consumption that might satisfy a need or
want.
• E.g. car, chips,…

3. Products, Services, and Experiences
• Service is a form of
product that consists of
activities, benefits, or
satisfactions offered for
sale that are essentially
intangible and do not
result in ownership.
• E.g., Doctor’s exam,
personal training.

4. Products, Services, and Experiences
• Experiences represent what buying the
product or service will do for the customer.
• E.g., Disney, Lego, Toys “R” Us
© Bradley Johnson

5. Level of Products and Services
• Core benefits represent what the buyer is really buying.
It consists of the core, problem-solving benefits that
customer seeks.
• Actual product represents five characteristics: a quality
level, product and service features, styling (design), a
brand name and packing that delivers the core benefit to
the customer.
• Augmented product represents additional customer
services and/or benefits of the actual product.

6. Level of Products and Services

7. • Customers tend to see products as complex
bundles of benefits that satisfy their needs.
• When developing a products, marketers must first
identify the core consumer needs that the product
will satisfy. They must then design the actual
product and finally ways to augment it in order to
create the bundle of benefits.
• Today most competition takes place at
augmentation level.
• Augmented benefits soon become expected
benefits.

8. Level of Products and Services
Durability
Tangibility
Use

9. Products and Services classification
Consumer
Products
Industrial
Products

10. Consumer products
• Consumer products are products and
services bought by final consumers for
personal consumption.
• Classified by how consumers buy them
(Consumer Shopping Habits)
– Convenience products
– Shopping products
– Specialty products
– Unsought products

11. Consumer products
• Convenience
products are
consumer products
and services that the
customer usually buys
frequently,
immediately, and with
a minimum
comparison and
buying effort.
• E.g. newspaper,
candy, fast-food.

12. Consumer products
• Shopping products are consumer products
and services that the customer compares
carefully on suitability, quality, price, and
style.
• E.g. cars, furniture, appliances.

13. Consumer products
• 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.
• E.g. Branded fashion wear,
Designer watches

14. Consumer products
• Unsought products are consumer products
that the consumer does not know about or
knows about but does not normally think of
buying.
• E.g. life insurance, blood donation.

15. Industrial products
Industrial products are products
purchased for further processing or for use
in conducting a business.

16. Industrial products
Materials and parts
Capital items
Supplies/
business services

17. Industrial products
• Materials and parts
include raw materials
and manufactured
materials and parts
usually sold directly
to industrial users.
• E.g. iron, wheat,
lumber.

18. Industrial products
• Capital items are industrial products that aid
in the buyer’s production or operations.
• E.g. building, computers, elevator

19. Industrial products
• Supplies and Services include operating
supplies, and repair and maintenance items, as
well as maintenance and repair services and
business advisory services.
• E.g. copy papers, training service, stationary

20. Person, place, organization, idea
• Person marketing
consists of activities
undertaken to create,
maintain, or change
attitudes and behavior
of target consumers
toward particular
people.
• E.g. mike Tyson, tiger
wood, Lionel messy,

21. Person, place, organization, idea
• Place marketing consists of activities
undertaken to create, maintain, or change
attitudes and behavior of target consumers
toward particular places.
• E.g. Walt Disney world, Sherwood forest,

22. • Idea marketing In one
sense, all marketing is
the marketing of an
idea…

23. THANK YOU