to accompany basic marketing, ppt slides compiled by prof. tim richardson slide 1 what is a product?...

To accompany Basic Marketing, ppt slides Compiled by Prof. Tim Richardson

Slide 1

What is a Product?• “… a good or 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”chpt 10 Marketing, 8th Cdn Edition..Crane Kerin et al

• “ … the need satisfying offering of a firm …”

Translation

• what you buy, that satisfies what you want to be able to do


Slide 2

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


Slide 3

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 4

“… 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”


Slide 5


Slide 6

GoodsGoods - things you can touch - “tangible”

ServicesServices - things you can’t touch - but you can see their effect “intangible”“… services are not physical, they are intangible…”


Slide 7

Product Mix / Product Lines

• “a product assortment (mix) is all the product lines … that the company sells…”


Slide 8

• The assortment of product lines and individual offerings available from a company.

• the combination of product lines offered by the manufacturer

Product Mix



Slide 9

• A series of related products A series of related products

• a group of products that are physically a group of products that are physically similar in performance, use or features similar in performance, use or features and intended for a similar marketand intended for a similar market

• “… “… a set of products that are closely a set of products that are closely related …”related …”

Product Line



Slide 10

Ford’s product mix


Slide 11

SONY’s product mix


Slide 12

Apple’s product mix


Slide 13

Apple’s product line - phones


Slide 14

Apple’s product line – phones - competition


Slide 15

The Canada Packers Product Mix

Meats Groceries Nonedible

Fresh meats Peanut butter By-productsBacon Mincemeat SoapPepperoni Canned pumpkinHidesWieners Cheese Pharmaceutical rawBologna Lard materialsCanned ham ShorteningPoultryKolbassaGarlic sausage

Width of Assortment

Depth of Assortment

Not in the text


Slide 16

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,


Slide 17

Service Providersservice providers have product lines and service providers have product lines and

product mixes as wellproduct mixes as wellexamplesexamples

• MastercardMastercard• insuranceinsurance• telephone servicestelephone services• cable servicescable services• ISPs - internet service providersISPs - internet service providers• airlines, first class, economy classairlines, first class, economy class• banksbanks

Not in the text


Slide 18

The Canada Packers Product Mix

Meats Groceries Nonedible

Fresh meats Peanut butter By-productsBacon Mincemeat SoapPepperoni Canned pumpkinHidesWieners Cheese Pharmaceutical rawBologna Lard materialsCanned ham ShorteningPoultryKolbassaGarlic sausage

Width of Assortment

Depth of Assortment

Not in the text


Slide 19

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


Slide 20

Cannibalization

Not in the text

http://www.witiger.com/ecommerce/cannibalization.htm


Slide 21

Industrial = Business


Slide 22

Industrial = Business

Consumer Goods and Services

- are for consumers, the final customer

Industrial Goods and Services

- are used in making consumer goods and services


Slide 23

1. Convenience

2. Shopping

3. Specialty

4. Unsought Products

Consumer Goods Classification of:


Slide 24

Different Classes• ConvenienceConvenience goods and services goods and services

• things consumer wants to buy frequentlythings consumer wants to buy frequently• minimum effort, low riskminimum effort, low risk• small amount of money, not much timesmall amount of money, not much time

• ShoppingShopping goods and services goods and services• ““stuff” people buy after they “shop & compare”stuff” people buy after they “shop & compare”

• SpecialitySpeciality goods and services goods and services• jewellery, special clothingjewellery, special clothing• special entertainmentspecial entertainment

• UnsoughtUnsought• things people don’t want to buy, but have to eg. things people don’t want to buy, but have to eg.

Auto insurance, funeral planAuto insurance, funeral plan

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Slide 25

Classes of Consumer ProductsClasses of Consumer Products

Impulse ProductsImpulse Products

ConvenienceConvenience ShoppingShopping SpecialtySpecialty

GoodsGoods

ServicesServices

POP

14-1

$$

ATM

Not in the text


Slide 26

Different Classes• ConvenienceConvenience goods and services goods and services

• things consumer wants to buy frequentlythings consumer wants to buy frequently• minimum effort, low riskminimum effort, low risk• small amount of money, not much timesmall amount of money, not much time

three typesthree types

1. Staples 1. Staples - bought routinely- bought routinely

2. Impulse products2. Impulse products- unplanned purchases- unplanned purchases

3. Emergency products3. Emergency products- bought immediately- bought immediately

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Slide 27

Different Classes• ShoppingShopping goods and services goods and services

• ““stuff” people buy after they “shop & compare”stuff” people buy after they “shop & compare”• they have the time to compare pricesthey have the time to compare prices• Homogenous - stuff that is the sameHomogenous - stuff that is the same

simply pick the lowest pricesimply pick the lowest priceeg. Condensed milk, eg. Condensed milk,

• Heterogeneous - stuff that is different, so the Heterogeneous - stuff that is different, so the customer will take time to compare features customer will take time to compare features and pricesand prices- “some retailers carry competing brands”- “some retailers carry competing brands”

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Slide 28

Different Classes• SpecialitySpeciality goods and services goods and services

• jewellery, special clothingjewellery, special clothing• special entertainmentspecial entertainment• ““Willingness to search, not extent of searching, Willingness to search, not extent of searching,

makes it a specialty product”makes it a specialty product”• if people are willing to look and look at different if people are willing to look and look at different

products, before they commit, it is a specialty products, before they commit, it is a specialty itemitem

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Slide 29

Different Classes• UnsoughtUnsought

• things people don’t want to buy, but have to eg. things people don’t want to buy, but have to eg. Auto insurance, funeral planAuto insurance, funeral plan

• the only way to sell this is to convince people of the only way to sell this is to convince people of the benefit because the benefit is not easily the benefit because the benefit is not easily seen by the average person.seen by the average person.

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Slide 30

Various Classes of Consumer and Industrial Goods and Services

eg . n ewsp ap er

eg . Mac's Milk

Con ven ien ce G ood s

eg . g roceries

eg . cloth in g

Sh op p in g G ood s

C on su m er G ood s

eg . travel

eg . b an kin g

Sp ecialty Services

eg . fast food s

Con ven ien ce Services

C on su m er S ervices

raw m ateria lg ra in , s tee l

eg . w irin gh arn ess

eg . c ircu it b oard

com p on en tp arts

m aterialsn u ts, b olts

P rod u c tion G ood s

In d u s tria l G ood s

accessory eq u ip m en ttools, com p u ters

eg . b u ild in g s

in stallation s

S u p p ort S ervices

In d u s tria l S ervices

Good s an d S ervic es

Not in the text


Slide 31

to accompany basic marketing, ppt slides compiled by prof. tim richardson slide 1 what is a product?...

Documents

tim richardson slide

intangible slide

apples product mix slide

fords product mix slide

sonys product mix slide

basic marketing

ppt slides

product assortment mix