Transcript Beckman PowerPoint Presentation

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
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
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
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
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
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
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”
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
Slide 5
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
Slide 6
Goods - things you can touch “tangible”
Services - things you can’t touch - but
you can see their effect “intangible”
“… services are not physical, they are
intangible…”
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
Slide 7
Product Mix / Product Lines
• “a product assortment (mix) is all the
product lines … that the company
sells…”
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
Slide 8
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
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
Slide 9
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 …”
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
Slide 10
Ford’s product mix
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Basic Marketing,
Compiled by Prof. Tim Richardson
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Slide 11
SONY’s product mix
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Basic Marketing,
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Slide 12
Apple’s product mix
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Basic Marketing,
Compiled by Prof. Tim Richardson
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Slide 13
Apple’s product line - phones
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
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Slide 14
Apple’s product line – phones - competition
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
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Slide 15
The Canada Packers Product Mix
Width of Assortment
Depth of
Assortment
Meats
Groceries
Nonedible
Fresh meats
Bacon
Pepperoni
Wieners
Bologna
Canned ham
Poultry
Kolbassa
Garlic sausage
Peanut butter
By-products
Mincemeat
Soap
Canned pumpkinHides
Cheese
Pharmaceutical raw
Lard
materials
Shortening
Not in the text
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
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,
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
Slide 17
Service Providers
service providers have product lines and
product mixes as well
examples
• Mastercard
• insurance
• telephone services
• cable services
• ISPs - internet service providers
Not in the text
• airlines, first class, economy class
• banks
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
Slide 18
The Canada Packers Product Mix
Width of Assortment
Depth of
Assortment
Meats
Groceries
Nonedible
Fresh meats
Bacon
Pepperoni
Wieners
Bologna
Canned ham
Poultry
Kolbassa
Garlic sausage
Peanut butter
By-products
Mincemeat
Soap
Canned pumpkinHides
Cheese
Pharmaceutical raw
Lard
materials
Shortening
Not in the text
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
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
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
Slide 20
Cannibalization
http://www.witiger.com/ecommerce/cannibalization.htm
Not in the text
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
Slide 21
Industrial = Business
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
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Slide 22
Consumer Goods and Services
- are for consumers, the final customer
Industrial Goods and Services
- are used in making consumer goods and services
Industrial = Business
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
Slide 23
Consumer Goods Classification of:
1. Convenience
2. Shopping
3. Specialty
4. Unsought Products
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
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Consumer Goods Classification of:
Slide 24
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 don’t want to buy, but have to eg.
Auto insurance, funeral plan
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
Slide 25
Classes of Consumer Products
14-1
Goods
POP
Convenience
Shopping
Specialty
Impulse Products
ATM
Services
$
$
Not in the text
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
Consumer Goods Classification of:
Slide 26
Different Classes
• Convenience goods and services
• things consumer wants to buy frequently
• minimum effort, low risk
• small amount of money, not much time
three types
1. Staples
- bought routinely
2. Impulse products
- unplanned purchases
3. Emergency products
- bought immediately
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
Page 261
ppt slides
Consumer Goods Classification of:
Slide 27
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 same
simply pick the lowest price
eg. Condensed milk,
• Heterogeneous - stuff that is different, so the
customer will take time to compare features
and prices
- “some retailers carry competing brands”
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
Consumer Goods Classification of:
Slide 28
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
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
Consumer Goods Classification of:
Slide 29
Different Classes
• Unsought
• things people don’t 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.
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides
Slide 30
Various Classes of Consumer and
Industrial Goods and Services
G ood s an d S ervic es
C on su m er G ood s
C on su m er S ervices
C on ven ien ce G ood s
S h op p in g G ood s
S p ecialty S ervices
C on ven ien ce S ervices
eg . M ac's M ilk
eg . cloth in g
eg . b an kin g
eg . fast food s
eg . n ew sp ap er
eg . g roceries
eg . travel
raw m aterial
g rain , steel
In d u strial G ood s
In d u strial S ervices
P rod u ction G ood s
S u p p ort S ervices
com p on en t
p arts
m aterials
n u ts, b olts
accessory eq u ip m en t
tools, com p u ters
eg . b u ild in g s
eg . circu it b oard
eg . wirin g
h arn ess
Not in the text
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
in stallation s
ppt slides
Slide 31
To accompany
Basic Marketing,
Compiled by Prof. Tim Richardson
ppt slides