Elements of production planning for good services

ELEMENTS OF PRODUCTION

PLANNING FOR GOODS & SERVICES

MARKETING MANAGEMENT

PRESENTED BY: AUGUSTINE P. JOLO

CUTTINGTON GRADUATE SCHOOL

MONROVIA, LIBERIA

ID #: GP-15023

PRESENTED TO: JAMES N. SAMOKAH

LECTURER

DATE: FEBRUARY 17, 2016

4/5/2016AUGUSTINE P. JOLO, SON OF A FARMER

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INTRODUCTION

Product means the need satisfying offering of a firm. Theidea of product as potential customer satisfaction orbenefits is very important, Many business managerstrained in the production' side of a business get wrappedup in the technical details. They think of product in termsof physical components, like effect on the way mostcustomers view the product. Most customers just want aproduct that satisfies their needs.

Business product classes are based on how buyers seethe products and how they are used knowing thisproduct classes and learning how marketers handlespecific products within this classes will help developyour marketing sense. Branding gives marketingmanagers a choice.

4/5/2016AUGUSTINE P. JOLO, SON OF A

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AFTER MY PRESENTATION,YOU

SHOULD BE ABLE TO UNDERSTANT

THE COUSE VERY WELL

Product definition

The key differences between goods and services

Know the differences among the various consumer and

business product classes

Understand how the product classes can help a

marketing manager plan marketing strategies.

Branding and usage in strategy planning.

The importance of packaging in strategy planning.

The role of warranties in strategy planning


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PRODUCT

The product is the need satisfying offering of a firm or

product is the sum total of the benefits or attributes

that consumer get from the firm.

There are five product levels

Core Product

Basic Product

Expected Product

Augmented Product

Potential Product


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THE KEY DIFFERENCES BETWEEN

GOODS AND SERVICES

A GOOD is a physical tangible thing that can be stored.

Producers can be far from consumers

A SERVICE is intangible (deed or action) that cannot be

stored. It’s used, experienced, consumed upon production.

Most products are a combination of tangible and intangible

elements.

Services cannot be stored or transported.

Service providers often work in the presence of the

customer.


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PRODUCTS ASSORTMENT AND

PRODUCT LINES Product Assortment: set of all product lines and individual

products offered by the firm.

Product Line: a set of individual products that are closely

related.

Individual Product: a particular product within a product line.

It’s usually differentiated by brand, price, etc.


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PRODUCT CLASSIFICATION

Consumer Products: those meant for the final consumer.

Consumer products based upon how consumers think

about and buy the products.

Consumer products classified into 4 groups: (1)

convenience, (2) shopping (3) specialty, (4) unsought

goods.

Business Products: meant for use in producing other

products

Convenience Products: those that consumers need but is

not willing to spend much time or effort to acquire. They are

purchased often.

Staples -routine, regular purchase.

Impulse - bought immediately on sight

Emergency - bought when urgently needed


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SHOPPING PRODUCTS,SPECIALTY

PRODUCTS & UNSOUGHT

PRODUCT Shopping Products: those that consumers feel are

worth the time and effort to seek out and compare. They

may be

(a) homogeneous - seen as basically the same and

lowest

price is important. (b) heterogeneous - seen as

different

and quality and suitability important.

Specialty Products: those that consumers really want

and

makes a special effort to find. They are the products

that

consumers are eager to search for because they must

have


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BUSINESS PRODUCTS

Business Products determined based on how buyers seethe product and how it is used (capital versus expenseitem, durables versus non-durables).

Capital items (long-lasting, expensive, depreciatedproduct) and expense items (cost viewed as a businessexpense against short-run profit and taxes) treateddifferently by firms.

The demand for business products is derived based onthe demand for final products on the market.

Slight increases in price might not reduce the quantitydemanded for business products.

Suppliers may face almost pure competition if there aremany sellers with similar products on the market.


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BUSINESS PRODUCTS CLASSES

All products fit into one or two broad groups based on the type ofcustomer that will use them. Consumer is base on the type ofcustomer that will use products. Consumer products are productsmeant for the final consumer. Business products are productsmeant for use in producing other products and businesscustomers requires at least two different strategies.

You don't have to treat every product as unique when planningstrategies. Some product classes require similar marketing mixes.These product classes are useful starting point for developingmarketing mixes for new products and evaluating present mixes.


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COMPONENTS PARTS AND

MATERIALSUSED IN PRODUCTION Components - processed expense items that become part

of a finished product. Components parts include: (1) finished

and ready for assembly; (2) nearly finished product.

Components must meet product specifications.

Quality is extremely important since they affect the quality of

the final product.


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SUPPLIES &SERVICES VS

BRANDING &STRATEGY Supplies - expense items that do not become part of a

finished product. They are called maintenance, repair

and operations supplies.

Professional Services - specialized services that support

the firm’s operations, usually an expense item. They are

usually expense items, engineering or management

consulting services can improve the plant cut layout or

the company’s efficiency, Computer services can process

data.

Brands are very important because they use of a name,

term, symbol, or design to identify a product.

Brand name: word or letter, or group of letters.

Trademark: Only words, symbols or marks legally

registered for use by a single firm.


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THE IMPORTANT OF BRANDNG IN

MARKETING

Brands provide identification

Makes shopping easier

Helps firms differentiate their products, reduces sellingtime, improves firm’s image

Conditions Favorable To Branding

Product easy to identify by brand.

Product quality is best value for price and quality is easy to maintain.

Brand dependable and widespread.

Demand for product class is large.

Branding profitable.

There are economies of scale - costs drop and profits increase


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BRAND FAMILIARITYMARKETING

Focuses on how well customers recognize unacceptable a

brand on the market.

Rejection - won’t buy unless image changes

Non-recognition - brand not recognized

Recognition - customers remember brand

Preference - brand chosen over others

Insistence - insist on brand and will search

Brand Equity is a value of brand overall strength in the

market.


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TYPE OF BRANDS

Family Brand: same brand name for many products.

Licensed Brand: sellers pay fee to use a well known

brand name.

Individual Brands: separate brand name for each

product. Helps to avoid confusion and makes

segmentation and positioning easier.

Generic Products: those with no brand other than

contents identification.

Manufacturer Brand: created by the producer (A.P.J.

)“national brands” since they are promoted across the

country.

Dealer or Private Brand: created by middlemen. Dealer

brands sold only at dealer’s outlet.


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THE ROLE OF PACKAGING IN

MARKETING Packaging involves promoting and protecting the product.

Packaging can be important to both seller and customers.

Packaging can make a product more convenient to use or store.

It can prevent spoiling or damage. Good packaging makes

products easier to identify and promotes the brand at the point of

purchase and even in use.

Sends a message and may lower distribution costs.

Improves convenience but increase cost.

A new package can make the important difference in a new

marketing strategy be meeting customer's needs better. A better

box wrapper can, or bottle may help coast a 'new' product or a

new market. For example, crest toothpaste is now available in a

neat squeeze pump dispenser that makes less mess and leaves

less waste


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ETHICS AND PRODUCT PRICE

Should marketers use any packaging?

What type of packaging should marketers use?

Pricing involves placing the price per ounce or near theproduct. This makes price comparison easier. To speedhandling of fast selling products, government and industryrepresentatives have develop a Universal Product Code(UPC) that identifies each product with marks readable byelectronic scanners.

The codes help consumers too because they speed thecheckout process. Also, most systems now include a printedreceipt showing the name, size and price of each productbought. These codes will become even more widely used inthe future because they do lower operating cost.


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Explains what marketer promises about their product.

Warranties may improve the marketing mix.

Service guarantees may be used to attract and keep

customers.

Warranty support can be costly especially where customers

abuse products. View extended warranties and service

contracts.

WARRANTIES


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RECOMMENDATION

Most importantly we should know that a firm's product is whatsatisfies the needs of its target market. Branding andpackaging can be created new and more satisfying products.Branding gives marketing manager a choice. They can addbrands and use individual or family brands. The degree ofbrand familiarity is a measure of the marketing manager'sability to carve out a separate market. And brand familiarityaffects place, price and promotions.

To succeed in our increasingly competitive markets, themarketing manager must also be concerned about packaging,branding and warranties.

Warranties are also important in strategy planning.


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REFERENCES

Anderson, Paul (1982). Marketing Planning and Firm. Journal of

Marketing Spring.

Bonoma, Thomas (1984). "Making your marketing strategy work".

Harvard Business Review.

Cravens, David W. (1986). Strategy Forces affecting Marketing Strategy.

Business Horizons. Charles, M. (1984). Planning Development and

Control.

Grey, Daniel H. (1987). "User and Misuser of Strategic Planning" Lenz,

R. T. (1987). "Managing and Evolution of the Strategic Planning

Process". Business Horizons


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CONCLUSION

A product may not be a physical good at all. It may be a service, or it may be some combination of goods and services like a meal at a restaurant. We introduced consumer product and business product classes and showed their effect on planning marketing mixes. Consumer product classes are based on consumer's buying behavior.

Business product classes are based on how buyers see the products and how they are used knowing this product classes and learning how marketers handle specific products within this classes will help develop your marketing sense. Branding gives marketing managers a choice. They can add brands and use individual family brands. In the end, however customers express their approval or disapproval of the whole product including the brand.

Warranties are also important in strategy planning. But some customers find strong warranties attractive, product is concerned with much than physical goods and services. To succeed, marketing manager must also be concerned about packaging, branding and warranties


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THANKS


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THANKS

Let me use this medium to extend my special thanks and appreciations to Mr. James N. Samokahfor the level of education provided to me through the Cuttington Graduate school.

Thanks!!!!!!

ooooooo

4/5/2016AUGUSTINE P. JOLO, SON OF A FARMER

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Elements of production planning for good services

Marketing

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