Beckman%20PowerPoint%20Presentation

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CHAPTER 9
PRODUCT
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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
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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

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What is a Product?

• Most customers think about product in terms of
  the total satisfaction
• this can lead to statements such as we dont
  sell cars, we sell safety !
• we dont sell houses, we sell homes

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Q U A L I T Y
A products ability to satisfy a customers
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 cant touch - but you can see their
effect intangible services are not physical,
they are intangible
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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
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Product Mix / Product Lines
Product Mix

• The assortment of product lines and individual
  offerings available from a company.
• the combination of product lines offered by the
  manufacturer

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Product Mix / Product Lines
Product Line

• 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

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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,

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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
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Larkhill Group

• Larkhill Clothing Manufacturing Inc.

example of a company, and its product line
Not in the text
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the different product lines the product mix of
the whole company
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The Canada Packers Product Mix
Width of Assortment
Meats Groceries Nonedible Fresh meats Peanut
butter By-products Bacon Mincemeat Soap Pepperon
i Canned pumpkin Hides Wieners Cheese Pharmaceuti
cal raw Bologna Lard materials Canned
ham Shortening Poultry Kolbassa Garlic sausage
Depth of Assortment
Not in the text
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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 firms
  existing products.

Not in the text
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Consumer Goods Consumer Services Industrial
Goods Industrial Services
Industrial Business
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Consumer Goods Consumer Services Industrial
Goods Industrial Services
Consumer Goods and Services - are for consumers,
the final customer Industrial Goods and
Services - are used in making consumer goods and
services
Page 236 in 9th edition Page 303 in 8th edition
Industrial Business
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Consumer Goods Classification of
1. Convenience 2. Shopping 3. Specialty 4.
Unsought Products
Page 261 10th edition
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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 dont want to buy, but have to eg.
  Auto insurance, funeral plan

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

• Unsought
• things people dont 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
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Various Classes of Consumer and Industrial Goods
and Services
Not in the text
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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