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

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

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

Q U A L I T Y “… 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”

g o o d s and s e r v i c e s

g o o d s and s e r v i c e s 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…”

Product Mix / Product Lines “a product assortment (mix) is all the product lines … that the company sells…”

Product Mix / Product Lines The assortment of product lines and individual offerings available from a company. the combination of product lines offered by the manufacturer

Product Mix / Product Lines 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 …”

Ford’s product mix

SONY’s product mix

Apple’s product mix

Apple’s product line - phones

Apple’s product line – phones - competition

The Canada Packers Product Mix Width of Assortment Meats Groceries Nonedible Fresh meats Peanut butter By-products Bacon Mincemeat Soap Pepperoni Canned pumpkin Hides Wieners Cheese Pharmaceutical raw Bologna Lard materials Canned ham Shortening Poultry Kolbassa Garlic sausage Depth of Assortment Not in the text

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,

Service Providers service providers have product lines and product mixes as well examples Mastercard insurance telephone services cable services ISPs - internet service providers airlines, first class, economy class banks Not in the text

The Canada Packers Product Mix Width of Assortment Meats Groceries Nonedible Fresh meats Peanut butter By-products Bacon Mincemeat Soap Pepperoni Canned pumpkin Hides Wieners Cheese Pharmaceutical raw Bologna Lard materials Canned ham Shortening Poultry Kolbassa Garlic sausage Depth of Assortment Not in the text

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

Cannibalization Not in the text http://www.witiger.com/ecommerce/cannibalization.htm Not in the text

Consumer Goods Consumer Services Industrial Goods Industrial Services Industrial = Business

Consumer Goods Consumer Services Industrial Goods Industrial Services Consumer Goods and Services - are for consumers, the final customer Industrial Goods and Services - are used in making consumer goods and services Industrial = Business

Consumer Goods Classification of: 1. Convenience 2. Shopping 3. Specialty 4. Unsought Products

Different Classes Consumer Goods Classification of: 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 Consumer Goods Classification of:

Classes of Consumer Products 14-1 Convenience Shopping Specialty POP Impulse Products Goods ATM $ Services Not in the text

Different Classes Consumer Goods Classification of: 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 Consumer Goods Classification of: Page 261

Different Classes Consumer Goods Classification of: 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” Consumer Goods Classification of:

Different Classes Consumer Goods Classification of: 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 Consumer Goods Classification of:

Different Classes Consumer Goods Classification of: 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. Consumer Goods Classification of:

Various Classes of Consumer and Industrial Goods and Services Not in the text

W A R R A N T Y