CHAPTER 9

1. CHAPTER 9 PRODUCT

2. “ … the need satisfying offering of a firm …”Translation what you buy, that satisfies what you want to be able to do What is a Product? Page 299 9th edition Page 255 10th edition Page 243 11th edition

3. what you buy, that satisfies what you want to be able to do 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 What is a Product?

4. “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 What is a Product?

5. Q U A L I T Y “… A product’s ability to satisfy a customer’s needs or requirements …” Quality is often tied in to comparison with what the competitor does at the same price - always important to remember the “Competitive Environment”

6. g o o d s and s e r v i c e s Page 257-258

7. g o o d s and s e r v i c e s Goods- things you can touch - “tangible” Services - things you can’t touch - but you can see their effect “intangible”“… services are not physical, they are intangible…”

8. “a product assortment (mix) is all the product lines … that the company sells…” Product Mix / Product Lines Page 260 10th edition Page 235 9th edition Page 302 8th edition

9. The assortment of product lines and individual offerings available from a company. the combination of product lines offered by the manufacturer Product Mix / Product Lines Product Mix

10. 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 …” Product Mix / Product Lines Product Line

11. shoes Nike, addidas, reebok, fila, new balance, british knight, brooks, converse, vans, asic, puma notebooks toshiba, nec, TI, compaq, IBM, DELL Apple, HP, Hitachi, Mitsubishi, Matsushita, Product Lines Brands

12. service providers have product lines and product mixes as wellexamples Mastercard insurance telephone services cable services ISPs - internet service providers airlines, first class, economy class banks Service Providers Not in the text

13. Larkhill Clothing Manufacturing Inc. Larkhill Group example of a company, and its product line Not in the text

14. the different product lines = the product mix of the whole company

15. The Canada Packers Product Mix Width of Assortment Meats Groceries Nonedible Fresh meats Peanut butter By-products Bacon Mincemeat Soap Pepperoni Canned pumpkin Hides Wieners Cheese Pharmaceutical raw Bologna Lard materials Canned ham Shortening Poultry Kolbassa Garlic sausage Depth of Assortment Not in the text

16. Situation involving one product taking sales from another offering in a product line (Text) Cannibalization occurs when sales of a new product cut into (reduce) the sales of a firm’s existing products. Cannibalization Not in the text

17. Consumer Goods Consumer Services Industrial Goods Industrial Services Industrial = Business

18. Consumer Goods Consumer Services Industrial Goods Industrial Services Consumer Goods and Services - are for consumers, the final customer Industrial Goods and Services - are used in making consumer goods and services Page 236 in 9th edition Page 303 in 8th edition Industrial = Business

19. Consumer Goods Classification of: 1. Convenience 2. Shopping 3. Specialty 4. Unsought Products Page 261 10th edition

20. Convenience goods and services things consumer wants to buy frequently minimum effort, low risk small amount of money, not much time Shopping goods and services “stuff” people buy after they “shop & compare” Speciality goods and services jewellery, special clothing special entertainment Unsought things people don’t want to buy, but have to eg. Auto insurance, funeral plan Different Classes Consumer Goods Classification of:

21. POP ATM $ $ Classes of Consumer Products 14-1 Convenience Shopping Specialty Impulse Products Goods Services Not in the text

22. Convenience goods and services things consumer wants to buy frequently minimum effort, low risk small amount of money, not much timethree types1. Staples - bought routinely2. Impulse products - unplanned purchases3. Emergency products - bought immediately Different Classes Consumer Goods Classification of: Page 261

23. Shopping goods and services “stuff” people buy after they “shop & compare” they have the time to compare prices Homogenous - stuff that is the samesimply 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” Different Classes Consumer Goods Classification of: Page 261

24. Speciality 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 Different Classes Consumer Goods Classification of: Page 261

25. Unsought things people don’t want to buy, but have to eg. Auto insurance, funeral plan the only way to sell this is to convince people of the benefit because the benefit is not easily seen by the average person. Different Classes Consumer Goods Classification of: Page 261

26. Various Classes of Consumer and Industrial Goodsand Services Not in the text

27. An Important Part of the Product convinces people to buy protects the contents when shipped and handled adds to the value describes features, advantages and benefits of using product contains Warranty Information cautions and warnings about contents and misuse UPC code and tax information (cigarettes) Packaging

28. W A R R A N T Y PAGE 280