Chapter 10 PPT - Chapter 10 The Variations of Products...

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Chapter 10 The Variations of Products Product Line and Product Mix Product Mix The  product mix  is the number of product lines offered by a company  or a strategic business unit. Product Line product line  is a group of products that are closely related because they satisfy a class of needs,  are used together, are sold to the same customer group, are distributed through the same type of  outlets, or fall within a given price range. Product Item product  (item)   is a good, service, or idea consisting of a bundle of tangible and intangible  attributes that satisfies consumers and is received in exchange for money or some other unit of value. Stock Keeping    Unit (SKU) The  stock keeping unit (SKU)  is a unique version of the product item (the lowest level of the  hierarchy). Examples Classifying Products o Type of User Consumer goods     - purchased by ultimate consumer Business goods     - B2B goods, industrial goods, organizational goods; assist directly or indirectly in providing  products for resale Some goods can be considered both o Degree of tangibility - divides product into 1 of 3 categories Nondurable good - consumed in one or few uses, such as food products and fuel Durable good - usually lasts over an extended number of uses Services - activities, benefits, or satisfactions offered for sale, such as marketing research, health care, and  education Classifying Consumer and Business Goods Differ in terms of: o Effort the consumer spends on the decision o Attributes used in purchase o Frequency of purchase Consumer goods o Convenience goods     - items that the consumer purchases frequently, conveniently, and with minimum of shopping  effort o Shopping goods     - compares several alternatives on criteria, such as price, quality, or style o Specialty goods     - items, like Rolex, that requires a special effort to search out and buy o Unsought goods     - items do not know about or knows about but does not initially want o Also known as:
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Business goods-  often result of derived demand o Production goods     : used in the manufacturing process that becomes part of the final product Raw materials as well as component parts Marketing based on: price, quality, delivery, and service Tend to sell directly to industrial users o Support goods     : assist in producing other goods and services Installations - buildings and fixed equipment, through sales representatives due to mass of capital  Accessory equipment - tools and office equipment usually purchased in small-order sizes, use distributors to  contact large amount of buyers
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This note was uploaded on 05/17/2010 for the course MKT 337 taught by Professor Mcallister during the Spring '07 term at University of Texas at Austin.

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Chapter 10 PPT - Chapter 10 The Variations of Products...

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