Basic Marketing, 13th edition

1
Chapter 9 Elements of Product Planning for
Goods and Services
2
Defining Product
Exhibit 9-1
9-3
3
Distinctive Features of Services

• Services are Intangible - difficult to
  demonstrate, illustrate sample
• Services are Perishable - difficult to store for
  times of peak use
• Services are Unique - difficult to standardize
• Services are often shaped by the buyer

4
Strategic Considerations for Services

• Customer attitudes are important
• Judging Service Quality Often Hard for users
• Displaying information is hard
• If buyer must be present - big problems
• Timing of supply and demand is critical
• If you can standardize, it helps a lot
• Customer ability to gain more information can help

5
Product Classes

• Two broad classes
• consumer products
• business products
• Classes help in planning marketing mix needed
• Based on how the customer views the product
• how consumers think about and shop for products
• how business/organizational buyers think about
  products and how they'll be used

6
Consumer Product Classes
9-4
7
Special Considerations with Business Products

• Derived demand
• Demand for goods and services is derived from the
  demand for what firms produce and sell
• Demand elasticity faced by whole industry
• Tax treatment
• Capital item
• Expense item

8
Business Products
9-5
9
Branding
9-6
10
What Kind of Brand to Use?
9-7
11
Packaging

• Opportunity to promote the product
• at the point of purchase
• links product to earlier promotion
• at the point of consumption
• Opportunity to protect the product
• reduces costs of shipping and storing
• reduces theft, spoiling, etc.
• Improve the basic product
• easier to use, more convenient
• appeals to new target markets

12
Per Capita Consumption of Paper and Board
(Packaging)
Consumers in the U.S. like the convenience of
disposable packaging and small serving sizes, but
some critics argue that it is wasteful and bad
for the environment.
700
670
491
Pounds per person
347
88
98
22
U.S.
Japan
China
World
W. Europe
E. Europe
13
Warranties

• Warranty what the seller promises about its
  product
• Regulated by the Magnuson-Moss Act (1975)
• producers must provide clearly written warranty
  if a warranty is offered
• warranty does not have to be "strong"
• Federal Trade Commission provides guidelines
• must be clear and definite
• may not be "unfair" or "deceptive"
• must be available for inspection before the
  purchase