Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e

9. Elements of Product
   Planning for Goods and
   Services

Text © The McGraw−Hill

Companies, 2002

Elements of Product Planning for Goods and Services 253

brand of soap is an individual product. Middlemen usually think of each separate

product as a stock-keeping unit (sku) and assign it a unique sku number.

Each individual product and target market may require a separate strategy. For

example, Sara Lee’s strategy for selling tea in England is different from its strategy

for selling men’s underwear in the United States. We’ll focus mainly on developing

one marketing strategy at a time. But remember that a marketing manager may have

to plan severalstrategies to develop an effective marketing program for a whole

company.

You don’t have to treat everyproduct as unique when planning strategies. Some

product classes require similar marketing mixes. These product classes are a useful

starting point for developing marketing mixes for new products and evaluating

present mixes.

All products fit into one of two broad groups—based on the type of customer that

will use them. Consumer productsare products meant for the final consumer.

Business productsare products meant for use in producing other products. The same

product—like Bertolli Olive Oil—mightbe in both groups. Consumers buy it to use

in their own kitchens, but food processing companies and restaurants buy it in large

quantities as an ingredient in the products they sell. Selling the same product to both

final consumers and business customers requires (at least) two different strategies.

There are product classes within each group. Consumer product classes are based

on how consumers think about and shop for products.Business product classes are based

on how buyers think about products and how they’ll be used.

Product classes start

with type of customer

Product Classes Help Plan Marketing Strategies

Consumer Product Classes

Consumer product classes divide into four groups: (1) convenience, (2) shopping,

(3) specialty, and (4) unsought. Each class is based on the way people buy products.

See Exhibit 9-3 for a summary of how these product classes relate to marketing

mixes.^4

Convenience productsare products a consumer needs but isn’t willing to spend

much time or effort shopping for. These products are bought often, require little

service or selling, don’t cost much, and may even be bought by habit. A conven-

ience product may be a staple, impulse product, or emergency product.

Some items in Bridgestone’s line

of tire products sell as consumer

products, others sell as business

products, and some are both.

However, when different target

markets are involved the rest of

the marketing mix may also need

to be different.

Convenience

products—purchased

quickly with little effort