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| A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value. |
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| an item consumed in one or few uses, such as food products and fuel. |
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| an item that usually lasts over many uses, such as appliances, cars, and mobile phones. |
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| Intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. |
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| products purchased by the ultimate consumer. There are 4 types of these products: 1. Convenience products 2. Shopping Products 3. Specialty Products 4. Unsought Products |
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| Products organizations buy that assist in providing other products for resale. (Also called B2B products or industrial products.) There are 2 types of these products 1. Components 2. Support Products |
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| Items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort. (Toothpaste, cake mix, hand soap, ATM cash with drawl, inexpensive, located widely, aware of the brand but will accept substitutes, frequent purchases) |
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| items for which the consumer compares several alternatives on criteria such as price, quality or style. (Cameras, TVs, Briefcases, Airline Tickets, - Fairly expensive, located largely at selective places, Prefer specific brands but will accept substitutes, Infrequent purchases; needs much comparison shopping time) |
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| Items that the consumer makes a special effort to search out and buy. (Rolls-Royce cars, Rolex watches, heart surgery - Usually very expensive, Location very limited, Very brand loyal: will not accept substitutes, Infrequent purchase: needs extensive search and decision time.) |
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| Items that hte consumer does not know about or knows about but does not initially want. (Burial insurance, Thesaurus, Price Varies, Location is Limited, Promotion is essential, will accept substitutes, Very infrequent purchases; some comparison shopping.) |
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| Items that become part of the final product. (These include raw materials such as grain or lumber, as well as assemblies or parts, such as a Ford car engine or car door hinges.) |
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| Items used to assist in producing other goods and services. (These include *Installations, such as buildingd and fixed equipment, *Accessory equipment, such as tools and office equipment, *Supplies, such as stationery, paper clips, and brooms. *Industrial services, such as maintenance, repair, and legal services.) |
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| a specific product that has a unique brans, size, or price. (Ultra Downy softener for clothes comes in several different sizes. Each size is a separate stock keeping unit, which is a unique identification number that defines an item for ordering or inventory purposes.) |
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| a group of product or service items that are closely realted because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range. |
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| consists of the product lines offered by a company. |
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| Classifying Services - People or Equipment |
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People - from unskilled labor to professional labor. The quality of all these people-based services can vary significantly depending on the abilities of the person delivering the service.
Equipment - suggest that equipment-based services do not have the marketing concern of inconsistent quality because employees do not have direct contact when providing the service to consumers. |
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| Classifying Services - Business Firms or Nonprofit Organizations |
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Business Firms - must make a profit to survive
Nonprofit Organizations- seek to satisfy clients and be efficient. |
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| Classifying Services - Government Agencies |
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| Government Agencies - Governments at the federal, state, and local levels provide a broad range of services. These organizations also have adopted many marketing practices used by business firms. For example starting a campaign for the Postal Service to compete with UPS and FedEX. |
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| The four unique elements that distinguish services from goods: Intangibility, Inconsistency, Inseparability, and Inventory. |
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| services cant be touched or seen before the purchase decision. Instead services tend to be a performance rather than an objective, which makes them much more difficult for consumers to evaluate. |
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| Services depend on the people who provide them. As a result, their quality varies with each person's capabilities and day-to-day job performance. Organizations attempt to reduce inconsistency through standardization and training. |
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| Means that the consumer cannot distinquish the service provider from the service itself. (Example Large schools where you cant get questions answered or the attention you need even though the school is good) |
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| Many goods have inventory handling costs that relate to their storage, perishability, and movement.With services, these costs are more subjective and related to idle production capacity. For a service, inventory cost involves paying the service provider along with any needed equipment. (For example, a doctor that has no patience for the day still has to get paid for that day.) |
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| When the service provider is available but there is no demand for the service. |
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| Ideally, a new product or service needs this, a statement that, before product development begins, identifies 1. a well-defined target market; 2. specific customers' needs, wants, and preferences; and 3. what the product will be and do. |
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| The seven stages an organization goes through to identify business opportunities and convert then into salable products or services. |
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| New-Product Strategy Development |
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| Stage 1: the stage of the new-product process that defines the role for a new product in terms of the firm's overall objectives. During this stage, the firm uses both SWOT analysis and environmental scanning to asses its strengths and weaknesses relative to the trends it identifies as a opportunities or threats. |
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| Stage 2: The second stage of the new-product process, involves developing a pool of concepts to serve as candidates for new products, a building upon the previous stage's results. Many forward-looking companies have discovered their own organization is not generating enough useful new-product ideas. At this stage you want to have lots of ideas.(some open innovations are, Customer and Supplier Suggestions, Employee and Co-Workers Suggestions, Research & Development Laboratories, Competitive Products, and Smaller Firms, Universities, and Inventors.) |
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Stage 3: the stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort. (Internal Approach - A firm's employees evaluate the technical feasibility of a proposed new-product idea to determine whether it meets the objective defined in the new-product strategy development stage.
External Approach - Firms use concept tests, external evaluation with consumers that consist of preliminary testing of a new-product idea rather than an actual product.) |
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| Customer Experience Management (CEM) |
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| The process of managing the entire customer experience within the company. |
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| Stage 4: specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections. This is the last check point before significant resources are invested to create a prototype (a full model of the product). |
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| Stage 5: the stage of the new-product process that turns the idea on paper into a prototype. This results om a demonstrable, producible product that involves not only manufacturing the product but also performing laboratory and consumer tests to ensure it meets the standards established for it in the protocol. |
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| Stage 6: the stage of the new-product process that involves exposing actual products to prospective consumers under realistic purchases conditions to see if they will buy. Often a product is developed, tested, refined, and then tested again to get consumer reactions through either test marketing or simulated markets. |
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| Stage 7: The stage of the new-product process that positions and launches a new product in full-scale production and sales. Companies proceed very carefully at the commercialization stage because this is the most expensive stage for most new products. |
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