Chapter 10 Outline - Chapter 10 Developing New Products and Services I What are Products and Services A Product A good service or idea consisting of a

Chapter 10 Outline - Chapter 10 Developing New Products and...

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Chapter 10: Developing New Products and Services I) What are Products and Services? A) Product : 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 B) A Look at Goods, Services, and Ideas a) Good – Has tangible attributes that a consumer’s five senses can perceive; can have intangible attributes like delivery or warranty i) Nondurable- Consumed in one or few uses (Gum); consumer advertising ii) Durable – Lasts over many uses; personal selling b) Services : Intangible activities or benefits that an organization provides to satisfy consumer’ needs in exchange for money or something else of value; Tax returns c) Idea – A thought that leads to a product or action; Concept for new product C) Classifying Products a) Consumer Products : Products purchased by the ultimate consumer; types differ based on effort consumer spends on decision, attributes used in making the purchase decision, and frequency of purchase i) Convenience Products : Items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort (toothpaste) ii) Shopping Products : Items for which the consumer compares several alternatives on criteria such as price, quality, or style (TVs, briefcase, airline tickets) iii) Specialty Products : Items that consumers make a special effort to search out and buy (Rolls Royce car, Rolex) iv) Unsought Products : Items consumers do not know about or know about but do not initially want (Thesaurus) b) Business Products : B2B or industrial products; Products that organizations buy that assist in providing other products for resale i) Derived Demand : Sales of business products frequently result from the sale of consumer products; sale of cars to consumers means need to purchase more pain ii) Components : Items that become part of the final product; raw materials, assemblies or parts iii) Support Products : Items used to assist in producing other goods and services (Installations – Buildings; Accessory – Tools; Supplies – Paper clips, brooms; Industrial Services – Repair and legal services)
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D) Product Items, Product Lines, and Product Mixes a) Product Item : A specific product that has a unique brand, size or price i) Ultra Downey softener has different sizes; SKU – Stock keeping unit – Unique ID number that defines item for ordering or inventory purposes b) Product Line
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  • Fall '11
  • BHATIA
  • Marketing, new product development

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