1. 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

2. 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”

3. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Distinctive Features of Services Services are Intangible - difficult to demonstrate, illustrate & sample Services are Perishable - difficult to store for times of peak use Services are Unique - difficult to standardize Services are often shaped by the buyer

4. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Strategic Considerations for Services Customer attitudes are important Judging Service Quality Often Hard for users Displaying information is hard If buyer must be present - big problems Timing of supply and demand is critical If you can standardize, it helps a lot Customer ability to gain more information can help

5. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Product Classes Two broad classes consumer products business products Classes help in planning marketing mix needed Based on how the customer views the product how consumers think about and shop for products how business/organizational buyers think about products and how they'll be used

6. 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

7. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Special Considerations with Business Products Derived demand Demand for goods and services is derived from the demand for what firms produce and sell Demand elasticity faced by whole industry Tax treatment Capital item Expense item

8. 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

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

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

11. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Packaging Opportunity to promote the product at the point of purchase links product to earlier promotion at the point of consumption Opportunity to protect the product reduces costs of shipping and storing reduces theft, spoiling, etc. Improve the basic product easier to use, more convenient appeals to new target markets

12. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Per Capita Consumption of Paper and Board (Packaging) 700 670 491 347 88 22 98 U.S.Japan W. Europe E. Europe ChinaWorld Pounds per person Consumers in the U.S. like the convenience of disposable packaging and small serving sizes, but some critics argue that it is wasteful and bad for the environment.

13. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Warranties Warranty: what the seller promises about its product Regulated by the Magnuson-Moss Act (1975) producers must provide clearly written warranty if a warranty is offered warranty does not have to be "strong" Federal Trade Commission provides guidelines must be clear and definite may not be "unfair" or "deceptive" must be available for inspection before the purchase