Product service types

Product & Service Types Product   Product is anything that is offered to a market to satisfy a want or need Products that are marketed include physical goods, services, events, persons, information, ideas Product types Product item: a specific version of a product  Product line: a group of related products made & marketed by a manufacturer  Product type: a group of products offered by different companies which technically similar, with variations of price, appearance & marketing  Product class: a group of products as substitutes for one another  Product mix: the set of all products that a firm offers for sale  Consumer products  Consumer     products Convenience products Shopping products Specialty products Unsought products  Convenience products  products a customer needs but spends less time for shopping  they are bought often, require little service, don’t cost much, bought by habit  Shopping products  Products that a customer feels worth the time & effort to compare with competing products Specialty products  Products that a customer wants and makes a special effort to find  Any branded product is a specialty product  Unsought products  Products purchased to solve a sudden problem, products of which customers are unaware ,or not thinking about buying  Ex: coffin, gravestones, life insurance … etc  Consumer product & Marketing Mix planning Consumer product Marketing Mix Consumer behavior Convenience products ( milk, detergent , foods & drinks, toothpaste) -Maximum exposure -Low cost distribution -Mass selling -Low price -Branding is important -Habitual purchasing -Low effort -Frequent purchases -Low involvement Shopping products ( Cameras ,TV, sunglasses, washing- machine) -Price comparison -High price sensitivity -Buy irregularly -Require comparison -Found in fewer stores Specialty products ( piano, perfume) -price sensitivity -Limited distribution -Buy rarely -Search extensively -Reluctant to accept substitutes Business products& Marketing mix planning  Classes 123456- of business products : installations accessories raw materials components supplies professional services Business products Business product classes Marketing mix Buying behavior Installations - Require skillful personal selling - Require Leasing & specialized support services - Infrequent purchase - Long decision period Accessory equipment - Wide spread distribution - Price competition - Quality is important - Purchasing & operating personnel make decision - Shorter decision period Business products Business Marketing mix product classes Raw materials - Grading is important Transportation & storing can be crucial - Markets are competitive Components - Product quality & delivery Buying behavior - Long-term contracts may be required to ensure supply - Online auctions - Purchasing is influenced by competitive Business products Maintenance , repair, operating supplies Professional services - Fast delivery - Buyers don’t spend much Arrangements time on it with intermediaries are crucial - Needs may - Services customized to be very buyer’s need specialized - Customer - Personal selling is compares important service - High prices ... information, ideas Product types Product item: a specific version of a product  Product line: a group of related products made & marketed by a manufacturer  Product type: a group of products offered... Convenience products Shopping products Specialty products Unsought products  Convenience products  products a customer needs but spends less time for shopping  they are bought often, require little service, ... marketing  Product class: a group of products as substitutes for one another  Product mix: the set of all products that a firm offers for sale  Consumer products  Consumer     products Convenience