Wednesday, 14 December 2016

Types of Product and Managing Products

Managing Products

·         The product lifecycle.
·         Analysis of product portfolios.
·         Branding.
·         New product development.

Types of Product



Convenience
Shopping
Speciality
Example
Chewing Gum
TV
Sports Car
Distribution (Place)
Very Wide
Wide
Limited
Price
The price isn’t really that important as it is normally relatively low
The price is important as customers shop around and compare different products
The price isn’t very significant, as it is a special purchase.
Product
There is some brand loyalty.
There is some brand loyalty, but there is also comparison between brands
There is strong brand awareness
Promotion
They aim the product at large numbers of customers, they aim to draw them into the store and use in store promotions to attract impulse buys
Will raise brand awareness
The products are very targeted (e.g. people of different wealth)
Process
They are often impulse buys
They may have payment and credit terms
May want payment terms
Physical Environment
It is not very significant
It is relatively significant
It is very significant
People
There is limited importance
Important as customers want staff to know about strengths of brands and the particular model product that they are buying
Very important as staff in store reflect on the brand a lot



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