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Chapter 6

Chapter 6- The 4 Ps-Product


Department
Management (MGT)
Course Code
MGTA02H3
Professor
Bill Mc Conkey
Chapter
6

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Chapter 6- The 4 Ps- Product
1- Explain the definition of a product as a value package
WHAT IS A PRODUCT?
Marketers must consider what consumers really buy when they purchase
products
The Value Package
Features- the qualities, both tangible and intangible, that a company builds into its
products
To attract buyers, features also must provide benefits
Benefits- what marketers perceive will be of extra value to the consumer
Reputation of the seller
Image of those who use the product
Special quality or service associated with the product
Value package- product marketed as a bundle of value-adding features (Ex:
reasonable cost)
When buying a product, consumers are also buying an image and reputation,
along with the visible features and benefits
Classifying Goods and Services
Buyers fall into 2 groups:
oBuyers of consumer products
oBuyers of industrial products
Classifying Consumer Products
Convenience goods/services- relatively inexpensive consumer goods or services
that are bought and used rapidly and regularly, causing consumers to spend
little time looking for them or comparing their prices (Ex: milk, newspaper,
fast-food restaurants)
Shopping goods/services- moderately expensive consumer goods or services
that are purchased less frequently, causing consumers to spend some time
comparing their prices (Ex: stereos, tires, insurance)
Speciality goods/services- very expensive consumer goods or services that are
purchased rarely, causing consumers to spend a lot of time finding the exact
item desired (Ex: wedding gowns, catering for wedding receptions)
Classifying Industrial Products
Expense items- relatively inexpensive industrial goods that are consumed
rapidly and regularly (Ex: bulk loads of tea processed into tea bags)
Capital items- expensive, long-lasting industrial goods that are used in
producing other goods or services and have a long time (Ex: buildings and
computers)
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