Chapter 9:
Elements of Product
Planning for Goods
and Services
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Chapter 9 Objectives
When you finish this chapter, you should
1. Understand what “Product”
really means.
2. Know the key differences
between goods and services.
3. Know the differences among
the various consumer and
business product classes.
4. Understand how the product
classes can help a marketing
manager plan marketing
strategies.
9-2
5. Understand what branding is
and how to use it in strategy
planning.
6. Understand the importance of
packaging in strategy
planning.
7. Understand the role of
warranties in strategy
planning
8. Understand the important new
terms.
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Defining “Product”
Target Market
Product
Place
Promotion
Price
Product
Idea
Brand
Package
Warranty
Physical
good/service
Features
Quality level
Accessories
Installation
Instructions
Product line
Type of Brand:
Individual or
family
Manufacturer or
dealer
Protection,
Promotion,
or both
None, full, or
limited
Exhibit 9-1
9-3
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Consumer Product Classes
Convenience
Consumer
Product
Classes
Shopping
Specialty
Unsought
9-4
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Business Products
Installations
Professional
Services
MRO
Supplies
Accessories
Business
Product
Classes
Raw
Materials
Component
Parts and
Materials
9-5
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Branding
Rejection
Focus:
Change Position
Focus:
Nonrecognition
Increase Awareness
Focus:
Recognition
Preference
Insistence
9-6
Continue Education
Focus :
Maintain Availability
Focus : Develop High
Brand Equity
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
What Kind of Brand to Use?
?
Family
Brand
?
?
?
Individual
Brand
Brand
Choices
?
Manufacturer
Dealer
?
?
Generic
9-7
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
The Strategic Importance of Packaging
Convenient packages
are easier to use,
making purchase
decisions easier for
the customer as well.
9-8
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Using Warranties to Improve the
Marketing Mix
A warranty says the
company stands behind
the product. Consumers
often feel more
comfortable with
products they know
come with assurances.
9-9
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Key Terms
Product
Quality
Service
Product Assortment
Product Line
Individual Product
Consumer Products
Business Products
Convenience Products
Staples
Impulse Products
Emergency Products
Shopping Products
Homogeneous
Heterogeneous
Specialty Products
Unsought Products
New Unsought
Regularly Unsought
Derived Demand
9-10
Expense Item
Capital Item
Installations
Accessories
Raw Materials
Farm Products
Natural Products
Components
Supplies
Professional Services
Branding
Brand Name
Trademark
Service Mark
Brand Familiarity
Rejection
Nonrecognition
Recognition
Preference
Insistence
Brand Equity
Lanham Act
Family Brand
Licensed Brand
Individual Brands
Generic Products
Manufacturer Brand
Private/Dealer Brands
Battle of the Brands
Packaging
UPC
Federal Fair Packaging
and Labeling Act
Warranty
Magnuson-Moss Act
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill