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Chapter 6

MGTA02H3 Chapter 6: The 4 Ps -Product

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Bill Mc Conkey

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Chapter 6: The 4 Ps – Product
Features: the qualities, both tangible and intangible, that a company builds into its product
Value package: product marketed as a bundle of value-adding attributes, including reasonable cost
Consumer products divided into three categories
oConvenience goods/services: relatively inexpensive consumer goods or services that are
brought and used rapidly and regularly, causing consumers to spend little time looking for
them or comparing their prices
Consumed rapidly and regularly
oShopping goods/services: moderately expensive consumer goods or services that are
purchased infrequently, causing consumers to spend time comparing prices
Consumed less regularly than convenience goods
oSpeciality goods/services: very expensive consumer goods or services that are rarely
purchased, causing consumers to spend a great deal of time locating the exact item
one time buys ex. car
Industrial products divided in two categories
oExpense items: relatively inexpensive industrial goods that are consumed rapidly and
oCapital items: expensive, long-lasting industrial goods that are used in producing the good
or service and have a long life
Product mix: the group of products a company has available for sales
Product lines: a group of similar products intended for a similar group of buyers who will use them
in a similar fashion
Products must be continuously updated or come up with better products to keep customers happy
Number of new products hitting market every year increased
Average supermarket carries 20 000 – 25 000 different items
Lack of space – 9 out of 10 products fail
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