Product Strategy - Pennsylvania State University

[Pages:43]Product Strategy

The Ins and Outs of "What"

Overview

1. What is a product? 2. Product types 3. New Product Types 4. Product Life-Cycle 5. Packaging

? Special behavioral considerations

What is a Product?

? Product: Bundle of physical, service, and symbolic attributes designed to enhance buyers' "want satisfaction"

? People buy "need satisfaction," not objects

? Consumers buy televisions because they want entertainment, not because they want a box with a screen

? Service: Intangible task that satisfies customers' needs

? Goods-services continuum: Device helping marketers to visualize the differences and similarities between goods and services

Brand Image and Identity

? ... a major part of what a product is.

? recall individual factors of perception

? What is Mountain Dew's brand image?

?

Classifying Goods and Services for Consumers and Business Markets

? Consumer Products: Products destined for use by the ultimate consumers

? Business Products: Those that contribute directly or indirectly to the output of other products for resale

? Also called industrial or organizational products ? Ex: Ingredients, equipment,...

? Some goods (and services) fall in both categories

? We are mostly going to focus on Consumer Products

Types of Consumer Products

1. Convenience Products: Good or service that consumers want to purchase frequently, immediately, and with minimal effort

? Impulse goods and services ? purchased on the spur of the moment

? Staples ? convenience goods and services that consumers constantly replenish to maintain a ready inventory

? Emergency goods and services ? bought in response to unexpected and urgent needs

Types of Consumer Products

2. Shopping product: Good or service purchased only after the customer compares competing offerings from competing vendors on such characteristics as price, quality, style, and color

? Food shoppers often rely on previous comparisons

? Shopper lacks complete information and gathers information during the buying process

? What products aren't shopping products?

? Cost more or less than convenience items (by markup)?

Types of Consumer Products

3. Specialty product: Good or services with unique characteristics causing the buyer to value it and make a special effort to obtain it

? Usually higher-end items. Why?

4. Unsought product: Good or service marketed to consumers who may not yet recognize the need for it or know of it

? "Huh. I'll give this a try." ? often unique new products

? the goal of heavy introductory marketing is to make the product a sought item

? often unfamiliar or ethnic products

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