This document discusses product and service strategies, including different types of products and classifications. It covers: 1) Goods are tangible products that can be seen, heard, smelled, tasted or touched, while services are intangible and require interaction between the buyer and seller. 2) Products are classified based on consumer buying habits into convenience, shopping, and specialty categories which have different behavior patterns. 3) Business products are classified based on use into installations, accessory equipment, component parts and materials, raw materials, and supplies.

1. Product and Service StrategiesIntro to MarketingChapter 11

2. What is a Product?A bundle of physical, service and symbolic attributes designed to satisfy a customers wants and needs.Consumers purchase benefits when they buy a product.

3. What are Goods & Services? Goods Tangible Products Customers Can See, Hear, Smell, Taste or Touch

4. ServicesIntangibleInseparable from the providerPerishableNot easily standardizedUsually require frequent interaction between buyer and sellerQuality varies

5. Classifications - on basis of consumer buying habitsConvenience - Products purchased frequently, immediately, with minimal effort.Impulse itemsStaplesEmergency items & services-- Slotting Allowances

6. Classifications - on basis of consumer buying habits.Shopping -Products purchased after comparisons of price, quality, style or color.

7. Classifications - on basis of consumer buying habits.Specialty -Products that possess unique characteristics.Behavior patterns vary for each type of product.

8. Types of Business ProductsClassified on the basis of useInstallations - long lived, expensive Price isn’t important, downtime isAccessory Equipment - less expensive, short livedComponent Parts & Materials - products that become part of final productRaw MaterialsSuppliesBusiness Services

9. Development of Product LinesA series of related products offered by a companyFew firms today market only one product.Benefits of having product lines:growthuse of company resourcesenhancing the firms position in marketexploiting product life cycle

10. Product MixWidthNumber of product linesLengthNumber of products DepthVariations of each product

11. Product Life CycleProduct Life Cycle is different from fashion and fad cycles.

12. Product Life Cycle - extended by:Increase frequency of useIncrease number of usersFind new usesChange package sizes, labels, quality