Unit 3 The Marketing Mix – Product, Price & Place

1. Unit 3 The Marketing Mix – Product, Price & Place

2. What Is a Product? The product is the primary P of the marketing mix. • Without a product, you do not need the other Ps (price, place, promotion)

3. Types of Products Products are usually grouped into two categories. • Consumer products • sold to customers for personal use • Business products • sold to businesses for business use (Continued)

4. Types of Products Products can also be described as tangible or intangible. Tangible something that exists physically and can be touched goods are tangible (Continued)

5. Types of Products Intangible something that exists, but is not physical and cannot be touched services and ideas are intangible

6. Product Benefit The product is whatever the business sells to satisfy customer needs. The product can be a good, service or an idea The need-satisfying quality of a product is called a product benefit.

7. The Service Economy A service economy is an economy in which most of the GDP (Gross Domestic Output) comes from services and most of the workers have jobs in services. Services account for about 78 percent of GDP in the Canada.

8. Characteristics of Services Services are different from goods in four ways. Services are intangible inseparable variable perishable

9. Characteristics of Services

10. The Good-Service Continuum Many products are combinations of good and service. Example: a restaurant meal is a combination of good and service • the food itself is a good • the preparation and serving of the food is a service

11. Soap Books Restaurant MealCellphone The Good-Service Continuum Pure Goods Pure Services TutoringConcert Legend Amount of goods Amount of services

12. Product Elements The elements of a product can be grouped into four categories. basic product usage protection name Product elements can be changed to meet customers’ needs. (Continued)

14. Basic Product When you decide which product to sell, you need to make basic product decisions about quality features options

15. Quality

16. Features Option A feature that can be added to a product at the customer’s request For a good: a physical characteristic of the good For a service: one of the tasks that will be done

17. Usage • Part of the product decision is how to help the customer make the best use of the product. • Product elements that help the customer with product usage: • instructions • installation • technical support

18. Protection • Protection consists of product elements that protect the product from harm, both before and after purchase: • packaging • warranties • maintenance and repair services

19. Packaging Packaging functions • “face” of the product • a very important part of product promotion • often is the first thing that attracts a customer • part of product identity • provides product information & instructions • protect a product from damage until the customer is ready to use it • make products easier to stack on a display • discourage theft (Continued)

20. Canadian Labelling Requirements False or misleading packaging is against the law. Most packaged foods require an ingredient list. Labelling must appear in English and French. Product must be clearly identified. Quantity of product must be expressed in units of volume (1L, 25 pieces). Product must include manufacturer and dealer’s name and address.

21. Warranties and Guarantees To convince customers of the quality and reliability of their products, marketers provide warranties guarantees

22. Warranties & Guarantees Warranty Guarantees Promise that a product has a certain quality or will provide satisfaction Generally used in promotions • Written document • Assures customers of the quality and reliability of a product • Promises to correct certain problems should they occur

23. Maintenance and Repair Services Complex machines often require regular maintenance. • the availability of these services may affect the customer’s buying decision

24. Name Name • a critical part of a product • includes • product name • brand name • product “personality”

25. Product Strategy Product strategy • all of the decisions made about a product • starts with the decision about which product to offer - then makes decisions about product elements, keeping the target market in mind • distinguishes your product from the competitors • must balance meeting customers’ needs and beating competition with costs of production and marketing