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?