For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill 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 PlaceProductPricePromotion Brand Type of Brand: Individual or family Manufacturer or dealer Product Idea Physical good/service Features Quality level Accessories Installation Instructions Product line Warranty None, full, or limited Package Protection, Promotion, or both Target Market 9-3 Exhibit 9-1 Defining “Product”

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Product Defined Product - need-satisfying offering of a firm. Potential customer satisfaction or benefits. May include service, physical product, instructions, package, warranty and brand name. Services are generally included as “product”. Quality, from a marketing perspective, refers to a product’s ability to satisfy a customer’s needs or requirements.

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Services are Unique They are intangible. They are typically produced and consumed simultaneously. They are perishable - they can’t be stored. Often difficult to achieve economies of scale (can’t be produced in large quantities ahead of time and transported to consumers).

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Whole Product Lines Individual product - e.g., Crest, tarter-free toothpaste. Product line - e.g., toothpaste or deodorant or coffee or laundry detergent. Product assortment - set of all product lines and individual products that a firm sells.

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Consumer Product Classes Convenience Specialty Unsought Shopping 9-4 Consumer Product Classes

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Consumer Product Classes Based on the way people think about and shop for products. Convenience products Staples Impulse products Emergency products Shopping products Homogeneous Heterogeneous Specialty products Unsought products New unsought Regularly unsought The same product might be seen in different ways by different target markets - at the same time.

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Business Product Classes Installations Component Parts and Materials Accessories Professional Services Raw Materials MRO Supplies 9-5 Business Products

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Business Product Classes Based on how buyers see products and how products will be used. Installations - e.g., buildings, major equipment Accessories - e.g., fax machine, copy machine Raw materials - e.g., logs, iron, wheat Components - e.g., windshield, zip drive Supplies (MRO) - e.g., paint, bearings, toner Professional services - e.g., advertising, marketing research, lawyer

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Branding Branding means the use of a name, term, symbol or design - or some combination of these - to identify a product. Brand name - word, letter or group of words or letters. E.g., Nike Trademark or Service mark - legally registered words, symbols or marks. Can be legally protected in the U.S. under the Lanham Act. Branding can: improve the company’s image encourage repeat buying develop customer loyalty lower promotion costs

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Five levels of Brand Familiarity Rejection Nonrecognition Recognition Preference Insistence Change Position Increase Awareness Continue Education Maintain Availability Develop High Brand Equity Focus: 9-6

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill What Kind of Brand to Use? Generic e.g., crackers Family Brand e.g., Delmonte Individual Brand e.g., Tide Brand Choices Manufacturer e.g., Crest Dealer e.g., Craftsman ? ? ? ? ? ? ? 9-7

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill The Strategic Importance of Packaging Packaging: protects the product in shipping and on the shelf. can serve as a useful promotional tool. should consider shelf space, safety and ecology. can increase costs to the consumer.

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill A warranty says the company stands behind the product. Consumers often feel more comfortable with products they know come with assurances. Warranty 9-9 Using Warranties to Improve the Marketing Mix