Lecture Basic Marketing: A global-managerial approach: Chapter 9 - William D. Perreault, E. Jerome McCarthy

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