MARKETING GOLDEN CHAPTER 11

MARKETING GOLDEN CHAPTER 11

MARKETING GOLDEN CHAPTER 11

MARKETING GOLDEN CHAPTER 11

PRODUCTS

• G, S, & I.• Cluster of Satisfactions.• Consumer Products: Personal or

family needs (paper clip).• Business Products: Used in

business operations (paper clip).

MARKETING GOLDEN CHAPTER 11

CLASSIFYING CONSUMER PRODUCTS

• Convenience– Relatively inexpensive– Frequently purchased– Minimal purchasing effort– Available at lots of outlets– High turnover and low margin

• Soda, Candy, Gasoline, Newspapers

MARKETING GOLDEN CHAPTER 11

CLASSIFYING CONSUMER PRODUCTS

• Shopping– Purchased less frequently– Considerable amount of search effort– Available in fewer outlets– Lower turnover and higher margins

• Clothes, Shoes, Furniture, Electronics, House

MARKETING GOLDEN CHAPTER 11

CLASSIFYING CONSUMER PRODUCTS

• Specialty– Items with unique characteristics– Buyers will not accept substitutes– Expend considerable effort to obtain– Available at only a few outlets– Very low turnover and very high

margin• Signature Gibson, Les Paul Guitar

MARKETING GOLDEN CHAPTER 11

CLASSIFYING CONSUMER PRODUCTS

• Unsought– Purchased to solve an unexpected

problem– Not at all planned

• Replacement tire

MARKETING GOLDEN CHAPTER 11

PRODUCT MIX

• Item: Specific version of a product (Bud).

• Line: Group of closely related items (AB’s Beer Line includes Bud, Bud Lite, Bud Dry, Busch, etc.).

• Mix: Organization’s entire array of products.

• Width: Number of lines in mix.• Depth: Number of items in any line.

MARKETING GOLDEN CHAPTER 11

PRODUCT LIFE CYCLE

• Used as a guide to help management make strategic marketing decisions.

• It is the typical cycle that most products follow.

1. Introduction2. Growth3. Maturity4. Decline