Warm-up
List five changes McDonalds made to improve their business.
Learning Targets
1. I can explain what's included in a value package.
2. I can explain the difference between a product line and product mix.
3. I can identify the three major classes of products and what they mean for marketers.
Product Strategies Developing products and services to meet customers needs.
Price
Package
Store atmospherics
Guarantee
Reputation of
producer
Brand name
Service
Past experience
Accessibility
What do you take into consideration when buying a product?
Developing a Value Package
Value Package:
Everything that consumers evaluate when deciding whether to buy something.
Standing Out
Product Differentiation:
The creation of real or perceived product differences.
Price Features Packaging Image
Product Lines and the Product Mix
Product Line:
A group of products that are similar or intended for a similar market.
Product Mix:
The combination of product lines offered by a manufacturer.
http://www.apple.com/
Classes of Goods
Convenience Goods & Services
Consumer want to purchase frequently and with minimum of effort
Examples: snacks, gas, banking, milk
Location, brand awareness and image are important.
Classes of Goods
Shopping Goods & Services
Consumers buy only after comparing value, quality, and price from a variety of sellers.
Examples: Computers, Vacations, Clothes
Price, quality, and service are important
Classes of Goods
Specialty Goods & Services
Products that have a special attraction to consumers who are willing to go out of their way to obtain them.
Examples: Sports cars, jewelry, fine chocolate
Reaching special market segments is important
Washing Machine
Batteries
Wood Oven Pizza
Product Development
Lets learn from….
http://www.youtube.com/watch?v=JkHOxyafGpE
Cool Down
What do you feel are the keys to developing good products?