M9 L3 Classification of Products Services
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M9 L3 Classification of Products Services

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M9 L3 Classification of Products Services M9 L3 Classification of Products Services Presentation Transcript

  • Classification of Products/ Services
  • Goods used by consumers for personal, family, or household purposes. Examples: shampoo, notebook paper, picture frame, etc. Consumer Products
  • Activities purchased by a consumer for personal or family purposes. Examples: haircut, carwash Consumer Services
      • Convenience goods - Inexpensive products that require little time and effort on the purchase decisions and are purchased regularly.
    Staple goods - Used often/regularly and are kept on hand. Examples: bread, toilet paper Impulse goods - Unplanned purchases. Examples: magazine or candy in a grocery store check-out aisle Emergency goods - Purchased to satisfy an immediate need. Example: Medicine purchased on the way to a sporting event to sooth a headache. Classifications of Consumer Products/Services
  • Shopping goods - Products that usually require a great deal of time and effort for the purchase decision. Consumers search and compare similar products prior to purchase. Clothing items and hardware or appliances are often considered shopping goods . Classifications of Consumer Products/Services
  • Specialty goods - Sought by a consumer who desires a specific brand or product. The consumer will not accept a substitute. The consumer may have saved money for long period of time before purchasing or may have to borrow money to purchase. Examples: Rolex watch, house, boat. Classifications of Consumer Products/Services
  • Pure services : Activities performed that do not include a tangible product. Non-good services - Personal/professional service for a fee. Example: tax preparation. Owned-good services - Activities that alter, improve, or repair products already owned. Example: dry cleaning, appliance repair service. Rented-good services - Provide a product to use for a brief period for a fee. Example: carpet cleaners, movie rental. Classifications of Consumer Products/Services
  • Product related services - Activities offered with or to compliment a product. Examples: warranties, alterations. Classifications of Consumer Products/Services
  • Industrial goods - Goods purchased by a business to produce other goods or to resell to consumers. Examples: assembly line machinery, rubber Industrial products/services
  • Industrial services - Activities used by a business to insure proper operation, or contracted by a business to perform a task. Examples: Copier or cleaning services for a business Industrial products/services
  • Installation and accessory equipment - Part of the production process used to make products. Examples: assembly line machinery, industrial sewing machines Raw materials, components, fabricated parts - Consumed to produce a product or become part of the final product. Examples: wood for paper, wheat for bread Classifications of Industrial Products/Services
  • Industrial supplies - Support or facilitate the use of industrial goods of the operation of the business. Examples: computers, cash registers, Maintenance and repair - Cleaning, repairing, painting, or decorating that is performed for or by a business. Example : janitorial services Classifications of Consumer Products/Services
  • Business advisory - Management consulting, legal, engineering, or accounting performed for or by a business. Classifications of Consumer Products/Services
  • Elements of the Product Mix
    • Includes all the different products that a company makes or sells.
    • Product Line
    • Product Item
    • Product Width
    • Product Depth
  • Product Mix Strategies
    • Deep mix - Many items offered in the same line; meets many needs. Example: Procter & Gamble makes several types of Crest toothpaste.
    • Shallow mix - Few items offered in the same line; specializes in meeting certain needs. Example: Croc only has a limited selection of shoe styles.
    Product length or depth
  • Product Mix Strategies
    • Narrow mix - Limited number of product lines; focuses on a specific target market. Example: Zaxby’s only offers chicken dishes.
    • Broad mix - Many different product lines offered; focuses on one-stop shopping to meet many needs and wants. Example: Applebee’s or Chili’s has lots of meat dishes from which to choose.
    Product width or breadth
  • Product Mix Strategies
    • The plan for how the business determines which products it will make or stock
    • May develop completely new products
    • May expand or modify their current product lines
    • May drop existing products
  • Elements of the product mix Product consistency The relationship of a business’s product line offerings in terms of use, price range, target market, and methods of distribution and production.
  • Importance of Product/Service Planning and Mix
    • Competition - “”Beating” the competition; increasing the market share.
    • Direct competition – Same product is offered by like competitors. McDonald’s and Burger King are direct competitors
    • Indirect competition – Competitors offer similar or substitute products. Bath & Body Works and CVS are indirect competitors.
    Business must always be aware of what new products are available as well as what their competitors are offering.
  • Importance of Product/Service Planning and Mix
    • Changes in the Market
      • Observe changes in the product life cycle.
      • Observe changes in consumer preferences and trends.