Final project

When defining a product or service, we will look at the broader definitions of the terms product and service.  A product is defined as: anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. For example, food is a product because you consume the product. A tennis racket is a product because you acquire it.  A service on the other hand, is a form of a product that consists of activities, benefits, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything. For example, banking is a service because it you do not end up owning a bank, you receive the service of a bank. A hotel is a service because you receive the service of a good nights sleep – you don’t end up owning anything. The same goes for airlines, search engines, the post office, and schools. A company’s market offering often includes a combination of both a tangible product and delivering a valuable service. “Companies that market experiences realize that customers are really buying much more than just products and services. They are buying what those offers will do foe them” p. 210 Marketing an Introduction Armstrong/Kotler. Zappos is a good example of a company combining both product and service. They are creating value through exceptional customer service by managing the customer’s experience as well as selling them shoes.

Products and services can be thought of on three different levels. The first level, core customer value, addresses the question what is the buyer really buying? Marketers must first define the core, problem - solving benefits or services that consumers seek. The second level product planners must turn to the core benefit into an actual product. Companies need to develop product and service features, design, a quality level, a brand name, and packaging. “For example, the BlackBerry is an actual product. Its name, parts, styling, features, packaging, and other attributes have all been combined carefully to deliver the core customer value of staying connected.” p. 211 Marketing an Introduction Armstrong/Kotler.. . Lastly, companies must build an augmented product around the core benefit and actual product by offering additional customer services and benefits.