Understanding the elements of production planning for goods and services.

1. 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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2. INTRODUCTION
 Product means the need satisfying offering of a firm. The
idea of product as potential customer satisfaction or
benefits is very important, Many business managers
trained in the production' side of a business get wrapped
up in the technical details. They think of product in terms
of physical components, like effect on the way most
customers view the product. Most customers just want a
product that satisfies their needs.
 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.
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FARMER
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3. 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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4. 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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5. 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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6. 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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7. 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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8. 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
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9. BUSINESS PRODUCTS
 Business Products determined based on how buyers see
the product and how it is used (capital versus expense
item, durables versus non-durables).
 Capital items (long-lasting, expensive, depreciated
product) and expense items (cost viewed as a business
expense against short-run profit and taxes) treated
differently by firms.
 The demand for business products is derived based on
the demand for final products on the market.
 Slight increases in price might not reduce the quantity
demanded for business products.
 Suppliers may face almost pure competition if there are
many sellers with similar products on the market.
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10. BUSINESS PRODUCTS CLASSES
 All products fit into one or two broad groups based on the type of
customer that will use them. Consumer is base on the type of
customer that will use products. Consumer products are products
meant for the final consumer. Business products are products
meant for use in producing other products and business
customers requires at least two different strategies.
 You don't have to treat every product as unique when planning
strategies. Some product classes require similar marketing mixes.
These product classes are useful starting point for developing
marketing mixes for new products and evaluating present mixes.
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11. COMPONENTS PARTS AND
MATERIALS
USED 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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12. 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
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13. THE IMPORTANT OF BRANDNG IN
MARKETING
 Brands provide identification
 Makes shopping easier
 Helps firms differentiate their products, reduces selling
time, 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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14. BRAND FAMILIARITY
MARKETING
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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15. 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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16. 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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17. 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 the
product. This makes price comparison easier. To speed
handling of fast selling products, government and industry
representatives have develop a Universal Product Code
(UPC) that identifies each product with marks readable by
electronic scanners.
 The codes help consumers too because they speed the
checkout process. Also, most systems now include a printed
receipt showing the name, size and price of each product
bought. These codes will become even more widely used in
the future because they do lower operating cost.
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18.  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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19. RECOMMENDATION
Most importantly we should know that a firm's product is what
satisfies the needs of its target market. Branding and
packaging can be created new and more satisfying products.
Branding gives marketing manager a choice. They can add
brands and use individual or family brands. The degree of
brand familiarity is a measure of the marketing manager's
ability to carve out a separate market. And brand familiarity
affects place, price and promotions.
To succeed in our increasingly competitive markets, the
marketing manager must also be concerned about packaging,
branding and warranties.
Warranties are also important in strategy planning.
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20. 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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21. 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
4/5/2016AUGUSTINE P. JOLO, SON OF A
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22. THANKS
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23. THANKS
Let me use this
medium to extend my
special thanks and
appreciations to Mr.
James N. Samokah
for the level of
education provided to
me through the
Cuttington Graduate
school.
Thanks!!!!!!
ooooooo
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