CHAPTER EIGHT
Elements of Product
Planning for Goods
and Services
For use only with
Perreault/Cannon/McCarthy
or Perreault/McCarthy texts.
© 2008 McGraw-Hill
Companies, Inc.
McGraw-Hill/Irwin
www.mhhe.com/fourps
Product Decisions for Marketing Strategy Planning
(Exhibit 8-1)
CH 8: Elements of
Product Planning for
Goods & Services
Product
idea
Product
classes
CH 9: Product
Management &
New-Product
Development
Brand
Package
Warranty
Goods and/or Services Are the Product (Exhibit 8-2)
Consumer Product Classes
Staples
Convenience Products
Products
Convenience
Impulse Products
Emergency Products
Shopping Products
Homogeneous
Shopping Products
Heterogeneous
Shopping Products
Specialty Products
Unsought Products
New Unsought
Products
Regular Unsought
Products
Business Product Classes – How They Are Defined
Accessories
Raw
Materials
Installations
Professional
Services
Business
Product
Classes
MRO Supplies
Component
Parts &
Materials
Conditions Favorable to Branding
Best Value for
the Price
Dependable,
Widespread
Availability
Easy to
Easy to Label
Label and
and Identify
Identify
Key
Issues
Favorable
Shelf or
Display Space
Market Price
Price
Market
Can Be
Be High
High
Can
Enough
Enough
Economies of
Scale
Achieving Brand Familiarity Is Not Easy
Brand
Insistence
Brand
Preference
Brand
Recognition
Brand NonRecognition
Brand Rejection
The Right Brand Name Can Help
(Exhibit 8-6)
Short & Simple
Easy to Spell & Read
Easy to Recognize & Remember
Easy to Pronounce
Can Pronounce in Only One Way
Can Pronounce in All Languages
Suggests Product Benefits
Meets Packaging/Labeling Needs
No Undesirable Imagery
Always Timely
Adapts to Any Advertising Medium
Legally Available for Use
What Kind of Brand to Use?
Licensed
Brand
Family Brand
Brand
Choices
Generic
“Brand”
Individual
Brand
Who Should Do the Branding?
Manufacturer
Brands
•
Also called
national brands
•
Created/owned
by producers
•
Develop demand
across many
markets
Dealer Brands
Battle
of the
Brands
•
Also called
private brands or
store brands
•
Created/owned
by middlemen
•
Create higher
margins for
dealers