Product and Product

Strategies

CHAPTER 4
 Chapter Outline

 Product
 The Meaning of Product
 Classification of Products
 Types of Consumer Products
 Types of Industrial/Business Products

 Product Strategies
 Product Decisions
 Product Line
 Product Mix
 Definitions

Product/ Tangible Product

 Anything offered to a market for attention, acquisition, use, or
consumption that might satisfy a need or want.

Service/ Intangible Product

 A form of product that consists of activities, benefits or
satisfactions offered for sale that are essentially intangible and
do not result in the ownership of anything.

Goal 1: Understand products and their classifications

Product
Services
 Classification of Product

Consumer Product
Product that are bought by the consumers for personal use. Consumer
products include Convenience, Shopping, Specialty and Unsought
Products.

Industrial/Business Product
Product bought by individuals and organizations for further processing
or for use in conducting a business.
Consumer Products
Industrial Products
 Types of Consumer Products

 Frequent purchases bought

with minimal buying effort and
little comparison shopping
 Low price of product
 Producer made widespread
distribution of product.
Convenience  Mass production and

Shopping promotion by producer

 For Example.
Specialty  Soap, candy, newspaper and
fast food.
Unsought

Goal 1: Understand products and their classifications

 Types of Consumer Products
Convenience products
 Types of Consumer Products
 Consumer product that the
consumer, in the process of selection
and purchases, characteristically
compares on such basis as
suitability, quality, price and style.
 Less frequent purchases
 More shopping effort for
comparisons.
Convenience  Higher than convenience good
pricing
Shopping  Selective distribution in fewer
outlets
Specialty  Advertising and personal selling
Unsought  For example. Furniture, clothing,
cars, major appliances, hotel and
airline services.

Goal 1: Understand products and their classifications

 Types of Consumer Products
Shopping products
 Types of Consumer Products

 Consumer product with unique

characteristics or brand
identification for which a
significant group of buyers are
willing to make a special
purchasing effort.
 High price
Convenience
 Exclusive distribution

Shopping  Carefully targeted promotions

Specialty  For example, specific brand types

of cars, like Lamborghini, designer
Unsought clothes, and services of a medical or
legal specialist.
Goal 1: Understand products and their classifications
 Types of Consumer Products
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Specialty products
 Types of Consumer Products
 Unsought Products are products you
haven't actively been looking for.
 These are products whose purchase is
unplanned by the consumer but occur as a
result of marketer’s actions. Such
purchase decisions are made when the
customer is exposed to promotional
activity, such as purchase incentives or
special discounts etc.
Convenience  Consumer product that the consumer
either does not know about or knows
Shopping about but does not normally think of
buying.
Specialty  Little product awareness and knowledge
 Aggressive advertising and personal
Unsought selling by producers and resellers
 For example. Blood donation, life
insurance. gravestone.
Goal 1: Understand products and their classifications
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15
 Types of Industrial Product
Three types of industrial
product and services.

1. Material and Parts

2. Capital Items
3. Supplies and Services.
 Types of Industrial Product
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Material and parts  Material and parts include
raw material and
manufactured material
and parts used for
reprocessing in industries.

 For example material

parts, fruit, vegetables,
example of manufactured
parts are, iron, cement,
wires
 Types of Industrial Product

 Capital parts are industrial

Capital parts products that use in the
production or operations,
including installation and
accessory equipment.
 For example Generators, drills,
large computer systems.

Supplies and services  Supplies include operating

supplies (lubricants, paper,
pencil) and repair and
maintenance items (paint)
 Business services include
maintenance and repair
services (window cleaning,
computer repair)
 Product Decisions
 Product Attributes or
(benefits)
Key Decisions (Quality, features, style and
design)
 Branding( a brand is a name,
Individual term, sign, or design or
combination of these) that
Product identifies the maker or seller of
a product or services and
Product Line differentiate them from those
of competitors.
Product Mix  Packaging-the activities of
designing and producing the
container or wrapper for a
product.

Goal 2: Learn decisions companies make regarding products

 Example of Product Style & Design

POM brand
Pomegranate juice
used a distinctively
shaped bottle to
gain attention on
the grocery shelf

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Examples of Packaging
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21
 Product Decisions
 Labeling-label range from
simple tags attached to
Key Decisions products to complex graphics,
label indentifies the product or
brand. Label might also
describe several things about
Individual the product, like who made it,
where it was made, when it was
Product made, its contents, and how it
is to be used and how to use it
Product Line safely.
 Product Support
Product Mix Services/After Sale
Services- include warranty
and after sale services and
spares.
Goal 2: Learn decisions companies make regarding products
 Labeling

Provides consumers with various types of

information
Regulations differ by country regarding various
products.
For Example:
 Health warnings on tobacco products
 American Automobile Labeling Act clarifies the country
of origin, and final assembly point
 European Union requires labels on all food products that
include ingredients from genetically modified crops

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 Product Decisions
 “A product line is a broad
group of products, intended
for similar uses and having
similar characteristics.”
Key Decisions  A group of products that are
closely related because they
may:
Individual function in a similar manner

 be sold to the same customer
Product groups,
 be marketed through the
Product Line same types of outlets
 fall within given price ranges
Product Mix  For example- HP
computers, Scanners,
Printers, fax machines.
Goal 2: Learn decisions companies make regarding products
Product Line Example
 Product Decisions
 “The product mix is the
set of all products offered
for sale by a company.”
 It consists of all the
Key Decisions product lines and items
that a particular seller
offers for sale.
Individual
 For example- Samsung
Product product mix consists of
GSM phones, LCD,
Product Line Computers, Laptops,
Washing Machines, Micro
Product Mix waves, digital cameras

Goal 2: Learn decisions companies make regarding products

Product Mix Example
End of Chapter!