Transcript No Slide Title

Chapter 11
Product Strategy
Contemporary Marketing Wired, 9th Edition
© 1998 The Dryden Press
Product
A bundle of physical, service, and symbolic
attributes designed to enhance buyers want
satisfaction.
Contemporary Marketing Wired, 9th Edition
© 1998 The Dryden Press
Figure 11.2 Classification of Consumer Products
Specialty Products
Luxury Cars,
Designer Clothing,
Health Foods
Unsought
Products
Life Insurance,
Self-Improvement
Courses
Cemetery Plots
Consume
r
Products
Convenience
Products
Impulse Items:
Magazines
Staples: Gas, Bread
Emergency Items:
Bandages,
Candles
Contemporary Marketing Wired, 9th Edition
Shopping Products
Homogeneous: Washing
Machine, Portable Fan
Heterogeneous:
Physical Fitness
Training
© 1998 The Dryden Press
Marketing Impact of the Consumer Products
Table 11.1a
Classification System
Factor
Convenience
Products
Shopping
Products
Specialty
Products
CONSUMER FACTORS
Planning time involved in purchase
Very little
Considerable
Extensive
Purchase frequency
Frequent
Less frequent
Infrequent
Importance of convenient location
Critical
Important
Unimportant
Comparison of price and quality
Very little
Considerable
Very little
Contemporary Marketing Wired, 9th Edition
© 1998 The Dryden Press
Marketing Impact of the Consumer Products
Table 11.1b
Classification System
Factor
Convenience
Products
Shopping
Products
Specialty
Products
Low
Relatively high
High
Advertising and
promotion by
producer
Personal selling
and advertising
by both producer
and retailer
Personal selling
and advertising
by producer and
retailer
Long
Relatively short
Very short
Many
Few
Very few; often
one per market
area
Unimportant
Very important
Important
MARKETING MIX FACTORS
Price
Promotion
Distribution channel length
Number of retail outlets
Importance of store image
Contemporary Marketing Wired, 9th Edition
© 1998 The Dryden Press
Figure 11.5 Classification of Business Products
Installations
Plant: Factories
Major Equipment:
Mining
Equipment
Components
Computer Chips,
Lawn Mower Motors,
Auto Stereos
Busines
s
Product
s
Accessory
Equipment
Advertising,
Drill Presses,
Desks, Delivery
Raw Materials
Trucks
Eggs, Cotton,
Leather, Bauxite,
Wheat
Contemporary Marketing Wired, 9th Edition
Business
Services
Advertising,
Grounds
Maintenance,
Workshops
MRO Supplies
Floor Cleaning
Compounds, Pens,
Staples
© 1998 The Dryden Press
Table 11.2a
Factor
Marketing Impact of the Business Products Classification System
Installations
Accessory
Equipment
Component
Parts &
Materials
Raw
Materials
Supplies
Business
Services
ORGANIZATIONAL FACTORS
Planning time
involved in
purchase
Extensive
Less
extensive
Less
extensive
Varies
Very little
Varies
Purchase
frequency
Infrequent
More
frequent
Frequent
Infrequen
t
Frequent
Varies
Quality very
important
Quality and
price
important
Quality
important
Quality
important
Price
importan
t
Varies
Comparison of
price and
quality
Contemporary Marketing Wired, 9th Edition
© 1998 The Dryden Press
Table 11.2b Marketing Impact of the Business Products Classification System
Factor
Installations
Accessory
Equipment
Component
Parts &
Materials
Raw
Materials
Supplies
Business
Services
Relatively
high
Low to high
Low to
high
Low
Varies
Personal
selling
Advertising by
producer
Varies
Short
Long
Varies
MARKETING MIX FACTORS
Price
High
Promotion
method
Personal
selling by
producer
Advertising
Personal
selling
Distribution
channel length
Very short
Relatively
short
Short
Contemporary Marketing Wired, 9th Edition
© 1998 The Dryden Press
Product Line
A series of related products.
Contemporary Marketing Wired, 9th Edition
© 1998 The Dryden Press
Product Life Cycle
The four basic stages through which a successful
product progresses-introduction, growth, maturity,
and decline.
Contemporary Marketing Wired, 9th Edition
© 1998 The Dryden Press
Figure 11.8 Stages in the Product Life Cycle
Sales and Profits
Introduction
Growth
Cellular
Phones
Network
Computers
Maturity
Food
Processors
Decline
Cassette
Tapes
Industry
Sales
Industry
Profits
Time
Hint: This WILL be on the test
Contemporary Marketing Wired, 9th Edition
© 1998 The Dryden Press
Figure 11.10 Overlapping Life Cycles for Two Products
Introduction
Growth
Maturity
Decline
Industry Sales
Product A
Product B
Time
Contemporary Marketing Wired, 9th Edition
© 1998 The Dryden Press
Extending the Product Life Cycle
• Increasing Frequency of Use
• Increasing the Number of Users
• Finding New Uses
• Changing Package Sizes, Labels, or Product Quality
Contemporary Marketing Wired, 9th Edition
© 1998 The Dryden Press
Product Mix
A company’s assortment of product lines and
individual offerings.
*width, length, and depth
Contemporary Marketing Wired, 9th Edition
© 1998 The Dryden Press
Line Extension
Introduction of a new product that is closely
related to other products in the firm’s existing line.
Contemporary Marketing Wired, 9th Edition
© 1998 The Dryden Press