In this chapter you will learn: Understand what product really means, know the key differences between goods and services, know the differences among the various consumer and business product classes, understand how the product classes can help a marketing manager plan marketing strategies,...
Chapter 9: Elements of Product Planning for Goods and Services For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter Objectives When you finish this chapter, you should 1. Understand what “Product” really means 2. Know the key differences between goods and services 3. Know the differences among the various consumer and business product classes 4. Understand how the product classes can help a marketing manager plan marketing strategies 92 5. Understand what branding is and how to use it in strategy planning 6. Understand the importance of packaging in strategy planning 7. Understand the role of warranties in strategy planning 8. Understand the important new terms For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Defining “Product” Target Market Product Place Promotion Price Product Idea Brand Package Warranty Protection, Promotion, or both None, full, or limited Physical good/service Features Quality level Accessories Installation Instructions Product line Type of Brand: Individual or family Manufacturer or dealer Exhibit 91 93 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Consumer Product Classes Convenience Consumer Product Classes Shopping Specialty Unsought 94 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Business Products Installations Professional Services MRO Supplies Accessories Business Product Classes Raw Materials Component Parts and Materials 95 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Branding Rejection Nonrecognition Recognition Preference Insistence 96 Focus: Change Position Focus: Increase Awareness Focus: Continue Education Focus : Maintain Availability Focus : Develop High Brand Equity For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill What Kind of Brand to Use? ? Family Brand ? ? Individual Brand ? Brand Choices ? Manufacturer Dealer ? ? Generic 97 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill The Strategic Importance of Packaging Convenient packages are easier to use, making purchase decisions easier for the customer as well 98 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Using Warranties to Improve the Marketing Mix Warranty 99 A warranty says the company stands behind the product. Consumers often feel more comfortable with products they know come with assurances For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Key Terms Product Quality Service Product Assortment Product Line Individual Product Consumer Products Business Products Convenience Products Staples Impulse Products Emergency Products Shopping Products Homogeneous Heterogeneous Specialty Products Unsought Products New Unsought Regularly Unsought Derived Demand 910 Expense Item Capital Item Installations Accessories Raw Materials Farm Products Natural Products Components Supplies Professional Services Branding Brand Name Trademark Service Mark Brand Familiarity Rejection Nonrecognition Recognition Preference Insistence Brand Equity Lanham Act Family Brand Licensed Brand Individual Brands Generic Products Manufacturer Brand Private/Dealer Brands Battle of the Brands Packaging UPC Federal Fair Packaging and Labeling Act Warranty MagnusonMoss Act For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill ... the customer as well 9 8 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 199 9 Irwin/McGraw-Hill Using Warranties to Improve the Marketing Mix Warranty 9 9 A warranty says the ... Licensed Brand Individual Brands Generic Products Manufacturer Brand Private/Dealer Brands Battle of the Brands Packaging UPC Federal Fair Packaging and Labeling Act Warranty MagnusonMoss Act For use only... Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 199 9 Irwin/McGraw-Hill The Strategic Importance of Packaging Convenient packages are easier to use, making purchase decisions easier for