1. 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

2. 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

3. 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

4. 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”

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

6. 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…”

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

8. 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

9. 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 …”

10. Ford’s product mix

11. SONY’s product mix

12. Apple’s product mix

13. Apple’s product line - phones

14. Apple’s product line – phones - competition

15. 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

16. 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,

17. 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

18. 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

19. 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

20. Cannibalization Not in the text
Not in the text

21. Consumer Goods Consumer Services Industrial Goods Industrial Services
Industrial = Business

22. 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

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

24. 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:

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

26. 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

27. 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:

28. 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:

29. 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:

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

31. W A R R A N T Y