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Lecture 4: Faheem Azam
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What Is a Product?
Products are:
Anything that can be offered to a
market for attention, acquisition,use, or consumption and that
might satisfy a want or need.
Includes physical objects, services,
events, persons, places,
organizations, ideas, or some
combination thereof.
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What Is a Service?
Services are:
Any activity or benefit that one party
can offer to another that is
essentially intangible and does not
result in the ownership of anything.
E.g., banking, hotel, airline, retail,tax preparation, home repairs.
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Levels of Product
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Product and Service
Classification
Industrial products:Those purchased for further processing
or for use in conducting business
Distinction between consumer andindustrial products is based on thepurpose for which an item is bought.
Consumer products: Products and services bought by final
consumers for personal consumption Also included are other marketable
entities Classified by how consumers buy them
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Types of Consumer
Goods
Convenience goods:
Purchased frequently and
immediately with little comparison
shopping
Low priced
Widespread distribution with manyconvenient locations
E.g., candy, soda, newspapers
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Types of Consumer
Goods
Shopping products:
Bought less frequently, more planning and
effort, brand comparisons on basis ofprice, quality, style
Higher price
Selective distribution in fewer purchase
locations Advertising and personal selling is
undertaken by both producer and reseller
E.g. clothing, appliances
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Specialty products:
Strong brand preference and loyalty,
special purchasing effort High price
Exclusive distribution in only one or afew outlets per market area
Carefully targeted promotion by bothproducer and reseller
E.g.,Cars, Furnitures
Types of Consumer
Goods
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Unsought products:
Little product awareness or knowledge of
the brand, sometimes negative interest Pricing strategies vary
Distribution strategies vary
Require aggressive advertising and
personal selling by both producer andresellers
E.g., life insurance, cemetery plots, blooddonation
Types of Consumer
Goods
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Materials and parts:
Raw materials, manufactured
materials, and parts Capital items:
Products that aid in buyersproduction or operations
Supplies and services:
Operating supplies, maintenance,and repair items
Types of Industrial
Goods
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Organization: Profit (businesses) and nonprofit (schools and
churches) Person:
Politicians, entertainers, sports figures, doctors,and lawyers Place:
Create, maintain, or change attitudes orbehavior toward particular places (e.g., tourism)
Ideas (social marketing): Public health campaigns, environmental
campaigns, family planning, or human rights
Other Market Offerings
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Product attributes
Branding
Packaging
Labeling
Product support services
Individual Product
Decisions
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Product quality dimensions:
Performance quality
Conformance quality Product feature considerations:
Value to consumer
Cost to company
Product style and design:
How will it influence the userexperience?
Product and Service
Attributes
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Branding
Branding involves building andmanaging brands.
A brand: Is a name, term, sign, symbol, or
design, or a combination of these,that identifies the products orservices of one seller or group ofsellers and differentiates them fromthose of competitors.
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Branding
Advantages to buyers:
Helps identify products
Cue to product quality andconsistency
Advantages to sellers:
Basis for products quality story
Provides legal protection
Helps to segment markets
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Packaging
Packaging:
Involves designing and producing the
container or wrapper for a product Ideally, good packages should:
Help to market the brand
Protect the contents
Provide convenience and ease of use
Ensure product and user/child safety
Address environmental concerns
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Labeling
Labeling refers to printed information
appearing on or with the package.
Performs several functions:
Identifies product or brand
Describes several things about the
product
Promotes the product through
attractive graphics
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Product Support
Services
Monitoring of support services is key:
Talk with customers to assess the value
and quality of current services and toobtain ideas for new services.
Fix problems and put together apackage of new services that delights
the customers and yields profits for thecompany.
New technologies can often enhancemany support service offerings.
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Product Line Decisions
Product line: A group of products that are closely related
because they function in a similar manner, aresold to the same customer groups, are marketedthrough the same types of outlets, or fall withingiven price ranges.
Product line length: The number of items in a product line
Adjust line length by:
Filling Stretching
Downward, upward, or in both directions
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Product Mix Decisions
Product mix:The set of all of the product lines and
items that a particular seller offers for
sale. Product mix dimensions include:
Length: the number of items in a line. Width: the number of different product
lines the company carries. Depth: the number of versions offered of
each product in the line. Consistency: how closely related
various lines are.
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THE END
Any more Questions?