2. PRODUCT STRATEGY Product Bundle of physical, service, and symbolic attributes designed to satisfy buyers’ wants. Classifying Goods and Services Classifying Consumer Goods and Services Convenience products Shopping products Specialty products

3. Classifying Business Goods Goods: installations, accessory equipment, component parts and materials, raw materials, and supplies Services: Intangible, perishable, difficult to standardize. Marketing Strategy Implications Product Lines and Product Mix Product line Group of related products that are physically similar or are intended for the same market. Product mix A company’s assortment of product lines and individual offerings.

4. PRODUCT LIFE CYCLE Product life Four basic stages through which a successful product progresses. Stages of the Product Life Cycle Introduction stage, growth stage, maturity stage, and decline stage. Marketing Strategy Implications of the Product Life Cycle Marketer’s objective is to extend the life cycle as long as product is profitable. Common strategies Increasing customers’ frequency of use Adding customers Finding new uses for product Changing package sizes, labels, and product designs

5. Stages in New-Product Development Expensive, time-consuming, and risky. Only about one-third of new products become success stories. Each step requires a “go or no-go” decision. New-Product Development Process: 1.generating new product ideas 2.screening to ensure new products align with company goals and capabilities 3.concept development and business analysis 4.product development 5.test marketing 6.commercialization

6. PRODUCT IDENTIFICATION Brand Identifies and differentiates products. Selling an Effective Brand Name Good brands are easy to pronounce, recognize, and remember. Brand Categories Family branding strategy, individual branding strategy Brand Loyalty and Brand Equity Brand recognition, brand preference, and brand insistence Added value that a respected and successful name gives to a product Packages and Labels Product identification Must meet legal requirements

7. DISTRIBUTION STRATEGY Distribution channel Path through which products flow from producer to customers. Direct distribution Direct contact between producer and customer. Distribution channels using marketing intermediaries Producers distribute products through wholesalers and retailers.

8. WHOLESALING Wholesaler Distribution channel member that sells primarily to retailers, other wholesalers, or business user. Manufacturer-Owned Wholesaling Intermediaries Sales branches and sales offices. Independent Wholesaling Intermediaries Merchant wholesalers, agents and brokers, and manufacturers’ reps. Retailer-Owned Cooperatives and Buying Offices Buying groups and cooperatives.

9. RETAILING Retailer Channel member that sells goods and services to individuals for their own use rather than for resale. Types of Non-Store Retailers: 1.Direct-response retailing 2.Internet retailing 3.Automatic merchandising 4.Direct selling

10. The Wheel of Retailing New retailers enter the market by offering lower prices made possible through reductions in service. New entries gradually add services as they grow and ultimately become targets for new retailers.

11. How Retailers Compete Retailers must choose merchandising, customer service, pricing, and location strategies that will attract customers in their target market segments. Identifying a target market Selecting a product strategy Selecting a customer service strategy Selecting a pricing strategy Choosing a location Building a promotional strategy Creating a store atmosphere

12. DISTRIBUTION CHANNEL DECISIONS AND LOGISTICS Selecting Distribution Channels Market factors greatly affect decision. Selecting Distribution Intensity Distribution intensity: intensive, selective, and exclusive distribution. Logistics and Physical Distribution Supply chain Logistics Physical distribution Customer service