Product And Its Classifications
-
Upload
anujsurana -
Category
Business
-
view
1.558 -
download
1
description
Transcript of Product And Its Classifications
PRODUCT AND ITS CLASSIFICATIONSBy: group 6
WHAT IS A PRODUCT? “ … the need satisfying offering of a firm …”
what you buy, that satisfies what you want to be able to do
CONT… 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
CONT.. “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
PRODUCT MIX / PRODUCT LINES
PRODUCT MIX
“A product mix is all the product lines … that the company sells…”
The combination of product lines offered by the manufacturer
CONT..
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…”
SERVICE PROVIDER
Service providers have product lines and product mixes
as well. Standard Chartered Credit Card banks Telephone services ISPs - internet service providers Airlines, first class, economy class
CONSUMER GOODS CLASSIFICATION
1. Convenience
2. Shopping
3. Specialty
4. Unsought Products
CONT… ConvenienceConvenience goods and services
things consumer wants to buy frequently minimum effort, low risk small amount of money, not much time
ShoppingShopping goods and services “stuff” people buy after they “shop & compare”
SpecialitySpeciality goods and services jewellery, special clothing special entertainment
UnsoughtUnsought things people don’t want to buy, but have to eg. Auto
insurance, funeral plan
ConvenienceConvenience 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 e.g. milk, eggs
2. Impulse products - unplanned purchases e.g. chocolates
3. Emergency products - bought immediately e.g. Umbrellas.
ShoppingShopping 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 priceeg. Condensed milk,
Heterogeneous - stuff that is different, so the customer will take time to compare features and prices- “some retailers carry competing brands”
SpecialitySpeciality 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
UnsoughtUnsought things people don’t want to buy, but have to eg. Auto
insurance. The only way to sell this is to convince people of the
benefit because the benefit is not easily seen by the average person.
DISTRIBUTION STRATEGIES
Various factors govern the choice of appropriate channels. These include: Type of products Experience of the company Marketing facilities available within the company Availability of middlemen Finance and cost.
The various possibilities of distributing products currently adopted fall very much along the lines of various basic channel patterns. They are as follows: M-A-W-R-C M-W-R-C M-A-R-C M-R-C M-A-C M-C M-Direct Selling Organisation-C
M-Manufacturer; A-Agent; W-Wholesaler; R-Retailer; C-Consurner.
CONT… Convenience Goods
These are used more or less regularly by large number of consumers e.g. detergents, soap, soft drinks and many other household items. Manufacturers usually adopt an intensive and extensive distribution strategy
Usuallly adopt M-A-W-R-C or M-W-R-C pattern. e.g. Vicks, Pepsi,
CONT… Shopping Goods
These are purchased not so regularly as convenience goods, therefore, fewer retail outlets are necessary e.g. cosmetics, shoes, watches and electrical goods like TV, refrigerators, fans etc. The manufacturer usually adopts a selective distribution strategy, that is, by selecting only a limited number of retail outlets in each area
Usually adopt M-R-C pattern. e.g. VIP luggage, Whirlpool refrigerators
Specialty Goods These items are very infrequently purchased. The
manufacturer may appoint an exclusive agent in each territory or town to sell to consumers.
Usually adopt M-A-C or M-R-C pattern. e.g. Cars or air travel tickets by travel agents.