Product marketing

Slide 1: 

CHAPTER 9 PRODUCT

What is a Product? : 

What is a Product? “ … the need satisfying offering of a firm …”Translation what you buy, that satisfies what you want to be able to do Page 299 9th edition Page 255 10th edition Page 243 11th edition

What is a Product? : 

What is a Product? what you buy, that satisfies what you want to be able to do it can be “good feeling” cause you bought some cosmetics and someone said you looked pretty it could be a happy stomach cause you bought a meal that tasted great it could be easier homework cause you bought new software for your computer

What is a Product? : 

What is a Product? “Most customers think about product in terms of the total satisfaction …” this can lead to statements such as “we don’t sell cars, we sell safety ! “ we don’t sell houses, we sell homes

Slide 5: 

Q U A L I T Y “… A product’s ability to satisfy a customer’s needs or requirements …” Quality is often tied in to comparison with what the competitor does at the same price - always important to remember the “Competitive Environment”

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g o o d s and s e r v i c e s Page 257-258

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g o o d s and s e r v i c e s Goods - things you can touch - “tangible” Services - things you can’t touch - but you can see their effect “intangible”“… services are not physical, they are intangible…”

Product Mix / Product Lines : 

Product Mix / Product Lines “a product assortment (mix) is all the product lines … that the company sells…” Page 260 10th edition Page 235 9th edition Page 302 8th edition

Product Mix / Product Lines : 

The assortment of product lines and individual offerings available from a company. the combination of product lines offered by the manufacturer Product Mix Product Mix / Product Lines

Product Mix / Product Lines : 

A series of related products a group of products that are physically similar in performance, use or features and intended for a similar market “… a set of products that are closely related …” Product Line Product Mix / Product Lines

Product Lines Brands : 

Product Lines Brands shoes Nike, addidas, reebok, fila, new balance, british knight, brooks, converse, vans, asic, puma notebooks toshiba, nec, TI, compaq, IBM, DELL Apple, HP, Hitachi, Mitsubishi, Matsushita,

Service Providers : 

Service Providers service providers have product lines and product mixes as wellexamples Mastercard insurance telephone services cable services ISPs - internet service providers airlines, first class, economy class banks Not in the text

Slide 13: 

Larkhill Clothing Manufacturing Inc. Larkhill Group example of a company, and its product line Not in the text

Slide 14: 

the different product lines = the product mix of the whole company

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The Canada Packers Product Mix Meats Groceries Nonedible Fresh meats Peanut butter By-products Bacon Mincemeat Soap Pepperoni Canned pumpkin Hides Wieners Cheese Pharmaceutical raw Bologna Lard materials Canned ham Shortening Poultry Kolbassa Garlic sausage Width of Assortment Depth of Assortment Not in the text

Cannibalization : 

Cannibalization Situation involving one product taking sales from another offering in a product line (Text) Cannibalization occurs when sales of a new product cut into (reduce) the sales of a firm’s existing products. Not in the text

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Consumer Goods Consumer Services Industrial Goods Industrial Services Industrial = Business

Slide 18: 

Consumer Goods Consumer Services Industrial Goods Industrial Services Industrial = Business Page 236 in 9th edition Page 303 in 8th edition Consumer Goods and Services - are for consumers, the final customer Industrial Goods and Services - are used in making consumer goods and services

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1. Convenience 2. Shopping 3. Specialty 4. Unsought Products Consumer Goods Classification of: Page 261 10th edition

Different Classes : 

Different Classes Convenience goods and services things consumer wants to buy frequently minimum effort, low risk small amount of money, not much time Shopping goods and services “stuff” people buy after they “shop & compare” Speciality goods and services jewellery, special clothing special entertainment Unsought things people don’t want to buy, but have to eg. Auto insurance, funeral plan Consumer Goods Classification of:

Classes of Consumer Products : 

Classes of Consumer Products Impulse Products Convenience Shopping Specialty Goods Services 14-1 Not in the text

Different Classes : 

Different Classes Convenience goods and services things consumer wants to buy frequently minimum effort, low risk small amount of money, not much timethree types1. Staples - bought routinely2. Impulse products - unplanned purchases3. Emergency products - bought immediately Consumer Goods Classification of: Page 261

Different Classes : 

Different Classes Shopping goods and services “stuff” people buy after they “shop & compare” they have the time to compare prices Homogenous - stuff that is the samesimply pick the lowest priceeg. Condensed milk, Heterogeneous - stuff that is different, so the customer will take time to compare features and prices- “some retailers carry competing brands” Consumer Goods Classification of: Page 261

Different Classes : 

Different Classes Speciality goods and services jewellery, special clothing special entertainment “Willingness to search, not extent of searching, makes it a specialty product” if people are willing to look and look at different products, before they commit, it is a specialty item Consumer Goods Classification of: Page 261

Different Classes : 

Different Classes Unsought things people don’t want to buy, but have to eg. Auto insurance, funeral plan the only way to sell this is to convince people of the benefit because the benefit is not easily seen by the average person. Consumer Goods Classification of: Page 261

Various Classes of Consumer and Industrial Goods and Services : 

Various Classes of Consumer and Industrial Goods and Services Not in the text

Packaging : 

Packaging An Important Part of the Product convinces people to buy protects the contents when shipped and handled adds to the value describes features, advantages and benefits of using product contains Warranty Information cautions and warnings about contents and misuse UPC code and tax information (cigarettes)

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W A R R A N T Y PAGE 280