TYPES OF GOODS

Setup a PowerPoint according to what is listed Individual assignment Identify & Provide 2 Examples of each goods Staple:Must Have’s Convenience:Routine D.M. Fashion:Trendy Specialty:Rare Shopping:Limited / Extensive D.M. Seasonal:Time Sensitive Not Unsought & Industrial VIRTUAL SHOPPING ASSIGNMENT

STAPLE GOODS: REPLACE IMMEDIATELY Milk Eggs

CONVENIENT GOODS: ROUTINE DECISION-MAKING Snacks School Supplies

FASHION GOODS: TRENDY ITEMS TOMS LIVESTRONG Bracelet

SEASONAL GOODS: TIME SENSITIVE GOODS Peeps Swimsuits

SPECIALTY GOODS: RARE MUST HAVES Preference for particular store & brand Extremely rare items that requires you to go to great lengths to obtain Rare Art Designer Clothes Exotic Perfumes Limited Edition Cars Ferrari

SHOPPING GOODS: LIMITED &/ OR EXTENSIVE DECISION-MAKING Customers typically shop around for best version Items purchased usually require limited or extensive decision making Washing Machine

PRODUCT LIFE CYCLE

INTRODUCTION PHASE The iPad Air is in the introduction phase Launched November 1, 2013 $ Focus will be on production & promotion

GROWTH STAGE Customers are aware of iPhone 5S Focus is on making them happy Sales and production/distribution are increasing Released in35 additional countries last Friday 16 more countries on 11/1/13

MATURITY STAGE Competition is strong Similar models in stores Product is mass produced Product is not as popular but is still popular WOW factor is gone Sales have slowed Price Drop Money is spent combating competition

DECLINE STAGE Product starts to lose money Price drops to point it costs more to product Product may be liquidated Virtually no competition because no one wants product

PRODUCT MIX Nike

Nike owns the following brands Nike Golf Nike Pro Nike+ Nike Skateboarding Air Jordan Converse Hurley International NikeTown Retail Stores NIKE EXAMPLE

4 Product Lines Examples Converse (Brand) Basketball (Sport) Soccer (Sport) Clothing (Apparel) Could’ve broken it down by: Others Sports (baseball, football) Hurley, Golf, Jordan Activity (Running & skateboarding) NIKE PRODUCT MIX EXAMPLE

Converse All Star Ox $49.99 Nike Club Swoosh Full Zip Hoodie $39.99 Nike Air Max 2013 $ PRODUCT ITEMS

MARKETING Product Packaging Scavenger Hunt

Promote & Sell Product: New Balance Define Product Identity: Absolut Meet Customer Needs: Squirt Bottle Ensure Safe Use: Child Proof Medicine Bottle

Provide Information: ASUS Headphone Protect the Product: Egg Carton Mixed Bundling Strategy: Bicardi & Coke

Blisterpack: Jolt Gum Environmentally Friendly: French Rabbit Wine Cause Packaging: Tide

CUPCAKE CHALLENGE Objective: Plan, Promote, & Sell 24 Cupcakes Goal is to make the most profit possible Cupcakes will be sold at school event / Hawkapalooza Can be done with a partner Develop a Team Name

CUPCAKE CHALLENGE Step #1: Create a unique cupcake & name Maybe easier to do after the fact Step #2: Choose a Grocery List This will determine the total amount spent (COGS) If using worksheet check line If doing in real life, just write down amount spent Step #3: Add up total grocery bill (COGS)

CUPCAKE CHALLENGE Step #4: How will you promote the product Must choose 1 of the 5 methods given ____ 5 Large handmade posters ($9.00) ____ 20 Computer-generated, colored copy posters ($14.00) ____ 100 Computer-generated, colored copy fliers ($11.00) ____ 12 Assorted balloons ($12.00) ____ School bulletin, neighborhood blog, Facebook, Twitter (No Charge) Step #5: Add up your total promotion cost Step #6: Add up Grocery Bill & Promotional Cost Total Cost of Cupcakes

CUPCAKE CHALLENGE Step #7: Divide Amount from Step # 6 / 24 This is total cost per cupcake Example Step # 6: $24.50 Step # 7: / 24 = $1.03 / Cupcake Step # 8: Skip this step Although you may want to look at others in class Step # 9 & 10: Discuss & Determine how much to charge Need to sell 24 Need to make a profit

CUPCAKE CHALLENGE Step # 11: Subtract the cost from Step # 7 (Cost per Cupcake) from Step # 10 (Price / Cupcake) $ $1.03 = $1.97 Step # 12: Multiple amount from #11 by 24 $1.97 * 24 = $47.28

CUPCAKE CHALLENGE Physically making the cupcake will result in 25 extra credit points If you do not make the cupcake you need to have an illustration of it Computer or by hand is fine We need to see whether or not it looks appealing