ELEMENTS OF PRODUCTION
PLANNING FOR GOODS & SERVICES
MARKETING MANAGEMENT
PRESENTED BY: AUGUSTINE P. JOLO
CUTTINGTON GRADUATE SCHOOL
MONROVIA, LIBERIA
ID #: GP-15023
PRESENTED TO: JAMES N. SAMOKAH
LECTURER
DATE: FEBRUARY 17, 2016
4/5/2016AUGUSTINE P. JOLO, SON OF A FARMER
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INTRODUCTION
Product means the need satisfying offering of a firm. Theidea of product as potential customer satisfaction orbenefits is very important, Many business managerstrained in the production' side of a business get wrappedup in the technical details. They think of product in termsof physical components, like effect on the way mostcustomers view the product. Most customers just want aproduct that satisfies their needs.
Business product classes are based on how buyers seethe products and how they are used knowing thisproduct classes and learning how marketers handlespecific products within this classes will help developyour marketing sense. Branding gives marketingmanagers a choice.
4/5/2016AUGUSTINE P. JOLO, SON OF A
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AFTER MY PRESENTATION,YOU
SHOULD BE ABLE TO UNDERSTANT
THE COUSE VERY WELL
Product definition
The key differences between goods and services
Know the differences among the various consumer and
business product classes
Understand how the product classes can help a
marketing manager plan marketing strategies.
Branding and usage in strategy planning.
The importance of packaging in strategy planning.
The role of warranties in strategy planning
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PRODUCT
The product is the need satisfying offering of a firm or
product is the sum total of the benefits or attributes
that consumer get from the firm.
There are five product levels
Core Product
Basic Product
Expected Product
Augmented Product
Potential Product
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THE KEY DIFFERENCES BETWEEN
GOODS AND SERVICES
A GOOD is a physical tangible thing that can be stored.
Producers can be far from consumers
A SERVICE is intangible (deed or action) that cannot be
stored. It’s used, experienced, consumed upon production.
Most products are a combination of tangible and intangible
elements.
Services cannot be stored or transported.
Service providers often work in the presence of the
customer.
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PRODUCTS ASSORTMENT AND
PRODUCT LINES Product Assortment: set of all product lines and individual
products offered by the firm.
Product Line: a set of individual products that are closely
related.
Individual Product: a particular product within a product line.
It’s usually differentiated by brand, price, etc.
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PRODUCT CLASSIFICATION
Consumer Products: those meant for the final consumer.
Consumer products based upon how consumers think
about and buy the products.
Consumer products classified into 4 groups: (1)
convenience, (2) shopping (3) specialty, (4) unsought
goods.
Business Products: meant for use in producing other
products
Convenience Products: those that consumers need but is
not willing to spend much time or effort to acquire. They are
purchased often.
Staples -routine, regular purchase.
Impulse - bought immediately on sight
Emergency - bought when urgently needed
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SHOPPING PRODUCTS,SPECIALTY
PRODUCTS & UNSOUGHT
PRODUCT Shopping Products: those that consumers feel are
worth the time and effort to seek out and compare. They
may be
(a) homogeneous - seen as basically the same and
lowest
price is important. (b) heterogeneous - seen as
different
and quality and suitability important.
Specialty Products: those that consumers really want
and
makes a special effort to find. They are the products
that
consumers are eager to search for because they must
have
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BUSINESS PRODUCTS
Business Products determined based on how buyers seethe product and how it is used (capital versus expenseitem, durables versus non-durables).
Capital items (long-lasting, expensive, depreciatedproduct) and expense items (cost viewed as a businessexpense against short-run profit and taxes) treateddifferently by firms.
The demand for business products is derived based onthe demand for final products on the market.
Slight increases in price might not reduce the quantitydemanded for business products.
Suppliers may face almost pure competition if there aremany sellers with similar products on the market.
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BUSINESS PRODUCTS CLASSES
All products fit into one or two broad groups based on the type ofcustomer that will use them. Consumer is base on the type ofcustomer that will use products. Consumer products are productsmeant for the final consumer. Business products are productsmeant for use in producing other products and businesscustomers requires at least two different strategies.
You don't have to treat every product as unique when planningstrategies. Some product classes require similar marketing mixes.These product classes are useful starting point for developingmarketing mixes for new products and evaluating present mixes.
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COMPONENTS PARTS AND
MATERIALSUSED IN PRODUCTION Components - processed expense items that become part
of a finished product. Components parts include: (1) finished
and ready for assembly; (2) nearly finished product.
Components must meet product specifications.
Quality is extremely important since they affect the quality of
the final product.
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SUPPLIES &SERVICES VS
BRANDING &STRATEGY Supplies - expense items that do not become part of a
finished product. They are called maintenance, repair
and operations supplies.
Professional Services - specialized services that support
the firm’s operations, usually an expense item. They are
usually expense items, engineering or management
consulting services can improve the plant cut layout or
the company’s efficiency, Computer services can process
data.
Brands are very important because they use of a name,
term, symbol, or design to identify a product.
Brand name: word or letter, or group of letters.
Trademark: Only words, symbols or marks legally
registered for use by a single firm.
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THE IMPORTANT OF BRANDNG IN
MARKETING
Brands provide identification
Makes shopping easier
Helps firms differentiate their products, reduces sellingtime, improves firm’s image
Conditions Favorable To Branding
Product easy to identify by brand.
Product quality is best value for price and quality is easy to maintain.
Brand dependable and widespread.
Demand for product class is large.
Branding profitable.
There are economies of scale - costs drop and profits increase
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BRAND FAMILIARITYMARKETING
Focuses on how well customers recognize unacceptable a
brand on the market.
Rejection - won’t buy unless image changes
Non-recognition - brand not recognized
Recognition - customers remember brand
Preference - brand chosen over others
Insistence - insist on brand and will search
Brand Equity is a value of brand overall strength in the
market.
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TYPE OF BRANDS
Family Brand: same brand name for many products.
Licensed Brand: sellers pay fee to use a well known
brand name.
Individual Brands: separate brand name for each
product. Helps to avoid confusion and makes
segmentation and positioning easier.
Generic Products: those with no brand other than
contents identification.
Manufacturer Brand: created by the producer (A.P.J.
)“national brands” since they are promoted across the
country.
Dealer or Private Brand: created by middlemen. Dealer
brands sold only at dealer’s outlet.
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THE ROLE OF PACKAGING IN
MARKETING Packaging involves promoting and protecting the product.
Packaging can be important to both seller and customers.
Packaging can make a product more convenient to use or store.
It can prevent spoiling or damage. Good packaging makes
products easier to identify and promotes the brand at the point of
purchase and even in use.
Sends a message and may lower distribution costs.
Improves convenience but increase cost.
A new package can make the important difference in a new
marketing strategy be meeting customer's needs better. A better
box wrapper can, or bottle may help coast a 'new' product or a
new market. For example, crest toothpaste is now available in a
neat squeeze pump dispenser that makes less mess and leaves
less waste
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ETHICS AND PRODUCT PRICE
Should marketers use any packaging?
What type of packaging should marketers use?
Pricing involves placing the price per ounce or near theproduct. This makes price comparison easier. To speedhandling of fast selling products, government and industryrepresentatives have develop a Universal Product Code(UPC) that identifies each product with marks readable byelectronic scanners.
The codes help consumers too because they speed thecheckout process. Also, most systems now include a printedreceipt showing the name, size and price of each productbought. These codes will become even more widely used inthe future because they do lower operating cost.
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Explains what marketer promises about their product.
Warranties may improve the marketing mix.
Service guarantees may be used to attract and keep
customers.
Warranty support can be costly especially where customers
abuse products. View extended warranties and service
contracts.
WARRANTIES
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RECOMMENDATION
Most importantly we should know that a firm's product is whatsatisfies the needs of its target market. Branding andpackaging can be created new and more satisfying products.Branding gives marketing manager a choice. They can addbrands and use individual or family brands. The degree ofbrand familiarity is a measure of the marketing manager'sability to carve out a separate market. And brand familiarityaffects place, price and promotions.
To succeed in our increasingly competitive markets, themarketing manager must also be concerned about packaging,branding and warranties.
Warranties are also important in strategy planning.
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REFERENCES
Anderson, Paul (1982). Marketing Planning and Firm. Journal of
Marketing Spring.
Bonoma, Thomas (1984). "Making your marketing strategy work".
Harvard Business Review.
Cravens, David W. (1986). Strategy Forces affecting Marketing Strategy.
Business Horizons. Charles, M. (1984). Planning Development and
Control.
Grey, Daniel H. (1987). "User and Misuser of Strategic Planning" Lenz,
R. T. (1987). "Managing and Evolution of the Strategic Planning
Process". Business Horizons
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CONCLUSION
A product may not be a physical good at all. It may be a service, or it may be some combination of goods and services like a meal at a restaurant. We introduced consumer product and business product classes and showed their effect on planning marketing mixes. Consumer product classes are based on consumer's buying behavior.
Business product classes are based on how buyers see the products and how they are used knowing this product classes and learning how marketers handle specific products within this classes will help develop your marketing sense. Branding gives marketing managers a choice. They can add brands and use individual family brands. In the end, however customers express their approval or disapproval of the whole product including the brand.
Warranties are also important in strategy planning. But some customers find strong warranties attractive, product is concerned with much than physical goods and services. To succeed, marketing manager must also be concerned about packaging, branding and warranties
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THANKS
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THANKS
Let me use this medium to extend my special thanks and appreciations to Mr. James N. Samokahfor the level of education provided to me through the Cuttington Graduate school.
Thanks!!!!!!
ooooooo
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