Download MM 8.01 Slide Show

Monday, April 11
Unit E – Product/Service Mgmt & Pricing
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Unit D7 Test – Quia
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Vocabulary – Unit E8 – Terms & Definitions
Unit E8 - Obj. 8.01– Understand
product/service management as a function
of marketing.
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Slide Show/Notes
Do activities/worksheets as noted in slideshow
Tuesday, April 12th
Unit E – Product/Service Mgmt & Pricing
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Warm up – E8 Vocabulary quiz –
Obj. 8.01 - Understand product/service
management as a function of marketing.
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Complete slide show/notes, activities
Obj. 8.02 – Product Assortments
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Complete Slide show/notes, activities
UNIT E
PRODUCT/SERVICE MANAGEMENT
AND PRICING
8.00 – Understand
products/service
management
UNIT E
PRODUCT/SERVICE MANAGEMENT
AND PRICING
8.01 Understand
product/service
management as a function
of marketing.
Product/service management
 Concepts and procedures
necessary to develop, maintain,
distribute, and improve a
product or service mix in
response to market
opportunities.
Product/service management
Elements of product/service
management
• New product development
• Consumer research
• Product research
• Product design
• Product production
Class Activity
If you had to break this list of items into two
categories – How would you do it??
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Bubble Gum
Baby Phat Jeans
Under Amour T-shirt
Microsoft Xbox 360
Coke
Jeep Liberty
Gillette Shave Gel
Prada handbag
Sony LCD Flatscreen TV
Doritos tortilla Chips
Hummer
Pentel #2 Mechanical Pencil
Class Activity
Inexpensive
Expensive
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Bubble Gum
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Under Amour T shirt
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Coke
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Prada Handbag
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Shaving Cream
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Sony Flat Screen Tv
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Doritos
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Hummer
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Mechanical Pencil
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Baby Phat Jeans
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Xbox 360
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Jeep Liberty
Product classifications –
WHY is it important?
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Products are marketed
to reach specific target
markets.
Product classifications –
WHY is it important? (cont)
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All marketing decisions
are affected by the
classification into
which a product is
placed.
Product classifications – WHY is it
important? (cont)
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Common characteristics of
consumer and industrial
buying behaviors serve as
measures to categorize
products into specific
classifications.
Product classifications – WHY is it
important? (cont)
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The same item may not be
classified the same way by
different consumers.
Same product may have
different classification by same
consumer
Major Product classifications for goods
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Consumer goods: Products
designed for personal or home
use.
Industrial goods: Products
designed for use by another
business.
Product classifications for goods
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Consumer goods: Products
designed for personal or home
use.
1. Convenience goods
2. Shopping Goods
3. Specialty Goods
4. Unsought Goods
Product classifications for goods
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Consumer goods:
1. Convenience goods: Inexpensive items
that consumers purchase without much
thought.
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Consumers are not willing to shop
around for these products.
Marketers must make these products
accessible in many stores and
convenient for purchase on a daily
basis.
Types of convenience goods
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Staple items
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Impulse items
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Emergency items
Consumer goods (cont.)
2. Shopping goods: Less frequently
purchased products that are usually
higher in price and require more
thought on the part of the buyer.
• Consumers compare brands, features,
and prices to receive the best-perceived
value.
• Marketers do not need exposure in as
many stores for these products, but the
choice of stores and outlets must match
the products’ target market.
Consumer goods (cont.)
3. Specialty goods: Very specific
products that customers insist
upon and are willing to search for.
• Specialty goods may be more expensive
than items in other categories.
• Customers may be seeking specific
brand names.
• Some customers may insist on
certain product features.
• Customers are usually less
concerned with price.
• These products can be placed in fewer
stores. The fact that they are less
available may make them even more
desirable.
Consumer goods (cont.)
4. Unsought goods: Products
that customers will not shop
for because they do not know about
the product or do not feel a strong
need for the product.
•
These products require
direct personal selling. It is
up to the marketer to
inform consumers and
convince them of a need in
order to make the sale of
these products.
Activity – Classifying Consumer Goods
Make a list of the last 30 products purchased
for your home
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Categorize each as either:
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convenience product,
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shopping product,
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specialty product, or
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unsought product.
TURN IN!!
Product classifications for goods
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Industrial goods: Products designed
for use by another business.
1. Raw materials
2. Major equipment/installations
3. Accessory equipment
4. Component parts
5. Processed materials
6. Consumable supplies
7. Business-to-business services
Industrial goods
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Raw materials:
Unprocessed primary
materials that come
from nature and are
used to make products.
Industrial goods
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Major
equipment/installations:
Investment purchases of
large tools and machines that
will be used to produce
products or services.
Industrial goods (cont.)
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Accessory equipment: An
industrial product that is used
in the operation of a business
but does not become a
component part of any finished
product.
Industrial goods (cont.)
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Component parts: Items
that become part of the
finished product
completely with little or no
additional processing.
Industrial goods (cont.)
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Processed materials: Industrial
products used in production
that do not become an
identifiable part of the product.
Industrial goods (cont.)
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Consumable supplies:
Items that facilitate an
organization’s production
and operations but do not
become part of the finished
product.
Industrial goods (cont.)
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Business-to-business
services: Business
assistance and/or advice
provided for a fee by one
business to another business.
Activity – Consumer or Industrial
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Complete Worksheet and turn in