A company might stretch its product line upward to add prestige to its current products

product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. Broadly defined, products include services, events, persons, places, organizations, and ideas, or a mixture of these. services are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. Products, Services, and Experiences Market offerings include both tangible goods and services.

Companies create and manage customer experiences with their brands or companies. -To differentiate their offers from that of the competitors three levels of product

Core customer value deals with what is bought by the customer. For example, people who buy an Apple iPad are buying much more than just a tablet computer. They are buying entertainment, self- expression, productivity, and connectivity with friends and family—a mobile and personal window to the world. actual product They need to develop product and service features, a design, a quality level, a brand name, and packaging. For example, the iPad is an actual product. Its name, parts, styling, operating system, features, packaging, and other attributes have all been carefully combined to deliver the core customer value of staying connected. augmented product build an augmented product around the core benefit and actual product by offering additional consumer services and benefits. For example, when consumers buy an iPad, Apple and its resellers also might give buyers a warranty on parts and workmanship, quick repair services when needed, and a Web site to use if they have problems or questions.

consumer products are bought by final consumers for personal consumption. Industrial products are bought by individuals and organizations for further processing or for use in conducting a business. -Materials and parts, capital items, and supplies and services other market offerings organizations, persons, places, ideas Organization marketing consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization. Business firms sponsor public relations or corporate image marketing campaigns to market themselves and polish their images. Person marketing consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people. The skillful use of marketing can turn a person's name into a powerhouse brand. For example, The Food Network's celebrity chef, Rachael Ray, is a one-woman marketing phenomenon, with her own daytime talk show, cookware and cutlery brands, dog food brand, and even her own brand of EVOO (Extra Virgin Olive Oil.) Place marketing involves activities undertaken to create, maintain, or change attitudes or behavior toward particular places. ideas can also be marketed. We will narrow our focus to the marketing of social ideas. This area has been called social marketing, which consists of using traditional business marketing concepts and tools to create behaviors that will create individual and societal well-being. Social marketing involves much more than just advertising. It involves a broad range of marketing strategies and marketing mix tools designed to bring about beneficial social change. individual product and service decisions

Satisfied and loyal customers Healthy service profits and growth three types of services marketing

marketing tasks for service companies-Managing service differentiation: Developing a differentiated offer, delivery, and image marketing tasks for service companies-managing service quality Delivering consistently higher quality than the competitors marketing tasks for service companies- Managing service productivity -Training current employees or hiring new ones -Increasing the quantity of service by giving up some quality -Harnessing the power of technology brand equity The differential effect that knowing the brand name has on customer response to the product or its marketing

With positive brand equity, consumers react more favorably to the brand than to an unbranded version of the same product. consumer perception dimensions Differentiation Relevance Knowledge Esteem brand value is the total financial value of a brand. major brand strategy decisions

brand positioning and brand names -Marketers should establish a mission and vision for the brand when positioning it. -Desirable qualities for a brand name should be

~Based on the product's benefits and qualities ~Easy to pronounce, recognize, and remember ~Distinctive and extendable ~Easily translated into foreign languages ~Capable of registration and legal protection national brands Marketed under the manufacturer's own name store brands Created and owned by a reseller of a product or service licensing Use names and symbols created by other companies or well-known movie characters or celebrities for a fee co branding Use the established brand names of two different companies on the same product brand development strategies

managing brands Communicate the brand's positioning

Manage all brand touch points

Train employees to be customer centered

Audit the brand's strengths and weaknesses If a company adds a new product line to its existing portfolio, it has increased its _________. product mix width

involves adding more items within the present range of the line. to reach for extra profits, satisfy dealers, using excess capacity, being the leading full- line company, and plugging holes to keep out competitors. Line stretching occurs when a company lengthens its product line beyond its current range. The company can stretch its line downward, upward, or both ways.

downward -plug a market hole that would attract a potential competitor

upward- to add prestige to the current product. product mix (or product portfolio) consists of all the product lines and items that a particular seller offers for sale. Service intangibility services cannot be seen, tasted, felt, heard, or smelled before they are bought. To reduce uncertainty, buyers look for signals of service quality. They draw conclusions about quality from the place, people, price, equipment, and communications that they can see. Service inseparability services cannot be separated from their providers, whether the providers are people or machines. Customer coproduction makes provider-customer interaction a special feature of services marketing. Both the provider and the customer affect the service outcome. Service variability quality of services depends on who provides them as well as when, where, and how they are provided. For example, within a Marriott hotel, one registration-counter employee may be cheerful and efficient, whereas another standing just a few feet away may be grumpy and slow. Service perishability services cannot be stored for later sale or use. Some doctors charge patients for missed appointments because the service value existed only at that point and disappeared when the patient did not show up.

Internal marketing service firm must orient and motivate its customer-contact employees and supporting service employees to work as a team to provide customer satisfaction. For example, Zappos starts by hiring the right people and carefully orienting and inspiring them to give unparalleled customer service. Interactive marketing service quality depends heavily on the quality of the buyer-seller interaction during the service encounter. In services marketing, service quality depends on both the service deliverer and the quality of delivery. All new hires at Zappos —at all levels of the company—complete a four-week customer-loyalty training regimen. Brand equity is the differential effect that knowing the brand name has on customer response to the product and its marketing. Brand value total financial value of a brand. High brand equity provides a company with many competitive advantages. A powerful brand enjoys a high level of consumer brand awareness and loyalty. Line extensions occur when a company extends existing brand names to new forms, colors, sizes, ingredients, or flavors of an existing product category. brand extension extends an existing brand name to new or modified products in a new category. Multibranding offers a way to establish different features that appeal to different customer segments, lock up more reseller shelf space, and capture a larger market share. new brand A company might believe that the power of its existing brand name is waning, so a new brand name is needed. Or, it may create a new brand name when it enters a new product category for which none of its current brand names are appropriate.

When a company lengthens its product line?

When a company lengthens a product line by adding more items beyond its current range it is?

When a company sells a new product with the current brand name?

What types of benefits does a company recognize by creating a well known brand?