Chapter 8 - Chapter 8 ( international version book is...

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Chapter 8 ( international version book is chapter 9) ELEMENTS OF PRODUCT PLANNING FOR GOODS AND SERVICES Product area involves strategy decisions which affect other parts of the m/m. What is a product ? Need-satisfying offering of a firm. main focus – consumers; features, benefits, and quality level, accessories, installation requirements; instructions. must also be positioned relative to the other offerings in product line. Branding. Package protects product and can help promote/enhance its use. Product warranties - how extensive. Quality: a product’s ability to satisfy a customer’s needs or requirements. forms the basis for determining how to achieve customer satisfaction. Product quality depends on the customer's specific requirements and needs. Regarding quality : the best credit card may not be the one with the highest credit limit; the best clothing may not be a pair of slacks, but a pair of jeans; the best computer may not be the most powerful one. Products and services create the total product. Goods – tangible; produced then sold. Services - intangible. produced and consumed simultaneously. Cannot be stored/transported. Sit down dinner at restaurant. Many services require the presence/participation of the customer. Haircut. Marketing managers must think about the whole product, then make sure all of the elements fit together and work with the rest of the strategy. Consumers demand more services with the goods they buy. Product arrangements, depends on # of products offered and diversity. Product assortment: set of all product lines and individual products that a firm sells. Ie: firm produces potato chips, shortening, dishwashing detergent, laundry detergent, shampoo, disposable diapers, and facial tissues Product line: set of individual products that are closely related. May be sold to the same target market, similar types of outlets, produced and/or operate in a similar manner or may be similarly priced. Ie: Chips, coffee, disposable diapers. Individual product: a product within a product line. Ie:12 oz. size of Pert Plus It is usually differentiated by brand, level of service offered, price, m/m, or some other characteristic. Each individual product and target market may require a separate strategy. Product classes Consumer products - products meant for the final consumer. how consumers (people) think and shop for products. Business products - products meant for use in producing other products. how the product’s to be used. some products can be in both groups which require different strategies for each group.
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Consumer product classes based on how consumers think and shop for products: Convenience products : purchased quickly/little effort. inexpensive, bought often, require little service or selling, and bought by habit. Staples, Impulse, Emergency. Requires little effort. 1
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Chapter 8 - Chapter 8 ( international version book is...

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