D' MARKETING A SMALL BUSINESS

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D. MARKETING A SMALL BUSINESS

• 7.00 Identify product decisions necessary
  
  
  
  
  for a small business.
• 7.01 Explain products/services that
• make up the product mix.

(The logos used in this PowerPoint were copied
directly from corporate websites. They have
not been altered in any way.)
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Terms related to product/service planning
Product/service planning Process of developing
the product/service mix for a business by
incorporating decisions relating to market
opportunities. Product mix All the products a
business makes or sells. Goods
Tangible, physical products that satisfy a want
or need. Services Intangible or conceptual
products produced to satisfy a want or need
tasks performed for the customer for a fee.
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Product/Service Considerations

• New product/idea development Development of
  products/ideas that have not been offered on the
  market or which modify what is presently on the
  market.

Steps Generate ideas

Screen ideas
Make prototype and develop
business proposal Develop new product
Test market the
product
Introduce product
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Product/Service Considerations

• Product selection Choosing products for the
  business that meet needs or wants for the area
  and target market.

--Monitoring existing products --Eliminating weak
products
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SUPPLIERS

• Manufacturers
• Wholesalers
• Tradeshows

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Manufacturers

• Producer of goods to sell to other manufacturers,
  wholesalers, and/or retailers.

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Wholesalers

• Middlemen who obtain goods from manufacturers and
  resell them to industrial users, other
  wholesalers, and/or retailers.

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Tradeshows

• Special meetings, shows, and exhibitions allowing
  vendors and manufacturers to introduce new items,
  display products, and promote established
  products/services.

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Classifications of products/services
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Consumer products/services
Consumer products Goods used by consumers for
personal, family, or household purposes.
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Consumer products/services
Consumer services Activities purchased
by a consumer for personal or family
purposes.
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Classifications of consumer products/services
Convenience goods Inexpensive products that
require little time and effort on the purchase
decisions and are purchased regularly.

• Staple goods
• Impulse goods
• Emergency goods

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Classifications of consumer products/services
Shopping goods Products that usually require a
great deal of time and effort for the purchase
decision. Consumers search and compare similar
products prior to purchase.
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Classifications of consumer products/services
Specialty goods Sought by a consumer who
desires a specific brand or product.
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Classifications of consumer products/services
Pure services Activities performed that do not
include a tangible product.

• Non-good services Personal/professional service
  for a fee.
• Owned-good services Activities that alter,
  improve, or repair products already owned.
• Rented-good services Provide a product to use
  for a brief period for a fee.

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Classifications of consumer products/services
Product related services Activities offered
with or to compliment a product.
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Industrial products/services
Industrial goods Goods purchased by a business
to produce other goods or to resell to consumers.
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Industrial products/services
Industrial services Activities used by a
business to insure proper operation, or
contracted by a business to perform a task.
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Classifications of industrial products/services
Installation and accessory equipment Part of
the production process used to MAKE products.
Raw materials, components, fabricated parts
CONSUMED to produce a product or become part of
the final product.
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Classifications of industrial products/services
Industrial supplies SUPPORT or FACILITATE the
use of industrial goods of the operation of the
business.
Maintenance and repair Cleaning, repairing,
painting, or decorating that is performed for or
by a business.
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Classifications of industrial products/services
Business advisory Management consulting, legal,
engineering, or accounting performed for or by a
business.
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Elements of the product mix
Product line A group of closely related
products manufactured and/or sold by a business.
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Elements of the product mix
Product item A specific model, brand or size of
product within a product line.
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Elements of the product mix
Product length or depth The number of product
items offered within a product line an
assortment of sizes, colors, and models.

• Deep mix Many items offered in the same line
  meets many needs.
• Shallow mix Few items offered in the same line
  specializes in meeting certain needs.

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Elements of the product mix
Product width or breadth
The
number of different product lines
a business manufactures or sells.

• Narrow mix Limited number of product lines
  focuses on a specific target market.
• Broad mix Many different product lines offered
  focuses on one-stop shopping to meet many needs
  and wants.

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Elements of the product mix
Product consistency
The relationship of a businesss product line
offerings in terms of use, price range, target
market, and methods of distribution and
production.
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Importance of Product/Service Planning and Mix

• Competition - Beating the competition
  increasing the market share.
• Direct competition Same product is offered by
  like competitors.
• Indirect competition Competitors offer similar
  or substitute products.

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Importance of Product/service Planning Mix

• Changes in the Market
• Observe changes in the product life cycle.
• Observe changes in consumer preferences and
  trends.