1. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Chapter 8: Elements of Product Planning for Goods and Services

2. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill When you finish this chapter, you should 8-2 Chapter 8 Objectives 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. 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.

3. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 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 8-3 Exhibit 8-1 Defining “Product”

4. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Consumer Product Classes Convenience Specialty Unsought Shopping 8-4 Consumer Product Classes

5. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Business Product Classes Installations Component Parts and Materials Accessories Professional Services Raw Materials MRO Supplies 8-5 Business Products

6. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Branding Rejection Nonrecognition Recognition Preference Insistence Change Position Increase Awareness Continue Education Maintain Availability Develop High Brand Equity Focus: 8-6

7. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill What Kind of Brand to Use? Generic Family Brand Individual Brand Branding Choices Manufacturer Dealer ? ? ? ? ? ? ? 8-7

8. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Convenient packages are easier to use, making purchase decisions easier for the customer as well. 8-8 The Strategic Importance of Packaging

9. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 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 8-9 Using Warranties to Improve the Marketing Mix

10. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill 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 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 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 Magnuson-Moss Act 8-10 Key Terms