2. What is a Product? A bundle of physical, service and symbolic attributes designed to satisfy a customers wants and needs. Consumers purchase benefits when they buy a product.
3. What are Goods & Services? Goods Tangible Products Customers Can See, Hear, Smell, Taste or Touch
4. Services Intangible Inseparable from the provider Perishable Not easily standardized Usually require frequent interaction between buyer and seller Quality varies
5. Classifications - on basis of consumer buying habits Convenience - Products purchased frequently, immediately, with minimal effort. Impulse items Staples Emergency items & services -- Slotting Allowances
6. Classifications - on basis of consumer buying habits. Shopping -Products purchased after comparisons of price, quality, style or color.
7. Classifications - on basis of consumer buying habits. Specialty -Products that possess unique characteristics. Behavior patterns vary for each type of product.
8. Types of Business Products Classified on the basis of use Installations - long lived, expensive Price isn’t important, downtime is Accessory Equipment - less expensive, short lived Component Parts & Materials - products that become part of final product Raw Materials Supplies Business Services
9. Development of Product Lines A series of related products offered by a company Few firms today market only one product. Benefits of having product lines: growth use of company resources enhancing the firms position in market exploiting product life cycle
10. Product Mix Width Number of product lines Length Number of products Depth Variations of each product
11. Product Life Cycle Product Life Cycle is different from fashion and fad cycles.
12. Product Life Cycle - extended by: Increase frequency of use Increase number of users Find new uses Change package sizes, labels, quality
Editor's Notes
Homshoring – hiring contract workers to do job from home
