CH+10+Product+Strategies

Veronica Parihar ** Product: **Physical/service/symbolic; satisfies customers need. ** Service: **“Intangible” tasks satisfy needs. · Can not hold service like goods. · Inseparable from providers. · Perishable. · Can’t easily be standardized. · Buyers play role in creation/distribution. · Show wide variation. · Services are on the rise. o Provides products/jobs for economy in Canada (70%). · Classified on convenience, shopping, and specialty. · 5 Questions that classify service: o What nature is the service? o What is the relationship status with the customer? o What is the flexibility and custom part of service provider? o Demand/supply. o How is it delivered? ** Goods: **Tangible products (see, touch, hear, and taste…ECT.). ** Home shoring: **Hiring contract workers who work from home. ** B2C Products: **Consumer Products. ** B2B Products: **Business Products. · For output use, resale to consumers. · Example: pharmaceutical companies sell medication to doctors who then sell to patients. ** Unsought Products: **Products a buyer does not recognize as a need. · Such as insurance or funeral services. ** Impulse goods/services: **Spur of the moment purchases. · Such as a car wash or gum purchase. ** Staples: **Consumers constantly replenish inventory for these items. · Such as Gasoline. ** Emergency goods/services: **Bought at unexpected needs that arise. · Umbrellas and visits to the pet hospital are examples. · Location makes a huge difference. ** Slotting allowance: **Money that is paid by producers to companies. · This allows the product to have good display. ** Shopping Products: **Consumers buy this product after comparing it to other products. · __Homogenous:__ One product brand seems the same as others. · __Heterogeneous:__ Products having different variations. ** Specialty Products: **These are unique, expensive, and luxury items. · Buyer begins shopping with complete information. · The buyer will not accept substitutions. ** B2B Products fall into 6 Categories:  ** 1. __Installations:__ Major investments for new factories, heavy machinery, and telecommunication systems. 2. __Accessory Equipment:__ These cost less and don’t last as long as installations. a. Prices affect decisions on purchase. 3. __Component Parts and Materials:__ These are finished products that become apart of final procedures. 4. __Raw materials:__ Farm products and natural resources that resemble component parts. 5. __Supplies:__ Regular expenses that firm incurs in daily operations. 6. __Business Services:__ Intangible products that allow business’ to run more smoothly. ** Product Mix: **Product lines and offerings. · Measure this mix with width, length, and depth. · __Width:__ Number of product lines that a firm offers. · __Length:__ Number of products a firm sells. · __Depth:__ Variations of each product. ** Product life cycle:  ** · __Introductory Stage:__ Start demand for new product. · __Growth Stage:__ Early buyers purchase the product, resulting in a sales volume increase. · __Maturity Stage:__ When the product reaches a plateau. · __Decline Stage:__ When the product no longer produces sales.

by Ruveen product= bundle of a physical thing, service, and symbolic attributes designed to satisfy a __customers wants and needs.__ ***satifying wants*** services= intangible task that satisfies the needs of consumer and business users. ***satisfying needs*** -services are intangible -services are inseparable from the service providers (ie: doctor, lawyer, salon) -services are perishable (cant maintain count/inventory) -companies cant easily standardize services -buyers play important roles in the creation & distr. of services -service standards show wide variations
 * Services Vs Goods** //(goods=// tangible product cx can see, hear, smell, taste, or touch)

-__unsought products__ (pre-need funeral plan, long term healthcare insurance) -__convenience__=goods/services cx wants to purchase freq. with min. effort [//impulse//: magazine, snacks; //staples//: gas, milk, drycleaning; //emergency//: plumbing vet visit, puffers] -__shopping products__= products cs's buy after comparing competing offerings [//homogenous//-where one brand seems very similar to another. ie airfarem computer, refridgerator] [//heterogenous//- ie furniturem gym training, vacations, clothing] //more costly than convenience products. store name and reputation have influence. personal selling is big here.// //-//__specialty products-__ carry high prices and represent well-known brands (ie Hermes, Gucci, Tiffany, Hummer)
 * Types of Consumer Products (4)**

//Product lines= series of related products offered by one company// Companies want to make complete product lines because: -desire to grow (avoid limitation w/ single product) -enhance competitive position in market (this reduces avg. production/marketing costs per yr) -optimize use of company resources -exploit the product life cycle
 * Development of product lines**

//product mix= assortment of product lines and ind. product offerings that a company sells. measured according to width, length, length.// Width- # of product lines a firm offers (ie: J&J offers retail consumer products and B2B) Length- # of diff. products a firm sells (ie J&J-healthcare brands like Bandaid, motrin, tylenolm neutrogena) Depth-variations in each product that the firm markets in its mix (ie: J&J Bandaids have a variety of sizes and designs)
 * Product Mix**

1. Intoduction (investment)- goal is to stimulate **demand** for the new market entry -technical problems and financial losses common 2. Growth- sales volume rises rapidly. New cx's -target hesitant buyer:word of mouth, mass mrkt, lower prices -increases competitors -> addition $$ on promo/distrib. needed 3. Maturity - sales continue to grow and then //plateau// //-//supplies>demands... competitive environment important -cutting cost is easiest move to duplicate as competitor :( ... -> decreased revenues 4. Decline- absolute decline in industry sales -product life, innovations, shift in consumer preferences -sales decrease -> $$ product category decr. -> firms cut prices -> get rid of product lines
 * Product life Cycle:**

Hardeep Kangaroo