Contemporary Marketing Wired, 9th Edition© 1998 The Dryden Press Chapter 11 Product Strategy

Contemporary Marketing Wired, 9th Edition© 1998 The Dryden Press A bundle of physical, service, and symbolic attributes designed to enhance buyers want satisfaction. Product

Contemporary Marketing Wired, 9th Edition© 1998 The Dryden Press Figure 11.2Classification of Consumer Products Unsought Products Life Insurance, Self-Improvement Courses Cemetery Plots Shopping Products Homogeneous: Washing Machine, Portable Fan Heterogeneous: Physical Fitness Training Specialty Products Luxury Cars, Designer Clothing, Health Foods Convenience Products Impulse Items: Magazines Staples: Gas, Bread Emergency Items: Bandages, Candles Consume r Products

Contemporary Marketing Wired, 9th Edition© 1998 The Dryden Press Comparison of price and qualityVery littleConsiderableVery little Importance of convenient location Purchase frequency Planning time involved in purchase CriticalImportantUnimportant Frequent Very little Less frequent Considerable Infrequent Extensive CONSUMER FACTORS Factor Convenience Products Shopping Products Specialty Products Table 11.1a Marketing Impact of the Consumer Products Classification System

Contemporary Marketing Wired, 9th Edition© 1998 The Dryden Press Importance of store imageUnimportantVery importantImportant Number of retail outlets ManyFew Very few; often one per market area Distribution channel length Promotion Price LongRelatively shortVery short Advertising and promotion by producer Low Personal selling and advertising by both producer and retailer Relatively high Personal selling and advertising by producer and retailer High MARKETING MIX FACTORS Factor Convenience Products Shopping Products Specialty Products Table 11.1b Marketing Impact of the Consumer Products Classification System

Contemporary Marketing Wired, 9th Edition© 1998 The Dryden Press Figure 11.5Classification of Business Products Installations Plant: Factories Major Equipment: Mining Equipment Business Services Advertising, Grounds Maintenance, Workshops Raw Materials Eggs, Cotton, Leather, Bauxite, Wheat MRO Supplies Floor Cleaning Compounds, Pens, Staples Components Computer Chips, Lawn Mower Motors, Auto Stereos Accessory Equipment Advertising, Drill Presses, Desks, Delivery Trucks Busines s Product s

Contemporary Marketing Wired, 9th Edition© 1998 The Dryden Press Comparison of price and quality Purchase frequency Planning time involved in purchase Quality very important Infrequent Extensive Quality and price important More frequent Less extensive Quality important Frequent Less extensive Quality important Infrequen t Varies Price importan t Frequent Very little Varies ORGANIZATIONAL FACTORS FactorInstallations Accessory Equipment Component Parts & Materials Raw Materials Supplies Table 11.2a Marketing Impact of the Business Products Classification System Business Services

Contemporary Marketing Wired, 9th Edition© 1998 The Dryden Press Distribution channel length Promotion method Price Very short Personal selling by producer High Relatively short Advertising Relatively high Short Personal selling Low to high Short Personal selling Low to high Long Advertis- ing by producer Low Varies MARKETING MIX FACTORS FactorInstallations Accessory Equipment Component Parts & Materials Raw Materials Supplies Table 11.2b Marketing Impact of the Business Products Classification System Business Services

Contemporary Marketing Wired, 9th Edition© 1998 The Dryden Press A series of related products. Product Line

Contemporary Marketing Wired, 9th Edition© 1998 The Dryden Press The four basic stages through which a successful product progresses-introduction, growth, maturity, and decline. Product Life Cycle

Contemporary Marketing Wired, 9th Edition© 1998 The Dryden Press Figure 11.8Stages in the Product Life Cycle Introduction GrowthMaturityDecline Time Sales and Profits Industry Sales Industry Profits Network Computers Cellular Phones Food Processors Cassette Tapes Hint: This WILL be on the test

Contemporary Marketing Wired, 9th Edition© 1998 The Dryden Press Figure 11.10Overlapping Life Cycles for Two Products Introduction GrowthMaturityDecline Time Industry Sales Product A Product B

Contemporary Marketing Wired, 9th Edition© 1998 The Dryden Press Increasing Frequency of Use Increasing the Number of Users Finding New Uses Changing Package Sizes, Labels, or Product Quality Extending the Product Life Cycle

Contemporary Marketing Wired, 9th Edition© 1998 The Dryden Press A company’s assortment of product lines and individual offerings. *width, length, and depth Product Mix

Contemporary Marketing Wired, 9th Edition© 1998 The Dryden Press Introduction of a new product that is closely related to other products in the firm’s existing line. Line Extension