hadm_q3sty_sp08 - Marketing Principles Study Guide Spring...

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Marketing Principles Study Guide Spring 2008 Exam 3 1) Product Concepts a) A good, service, or idea received in an exchange; can be tangible or intangible and includes functional, social, and psychological utilities or benefits; buyers purchase product to buy benefits and satisfaction they think product will provide b) Good – a tangible entity; iPod Nano, Subway sandwhich c) Service – an intangible result of the application of human and mechanical efforts to people or objects; concert performance by Nelly, online travel agency bookings, medical examinations, dance lessons d) Idea – a concept, philosophy, image, or issue; provides psychological stimulation that aids in solving problems or adjusting to the environment; MADD promotes safe consumption of alcohol; tires for safety, brand name, or performance i) Cores product – product’s fundamental utility or main benefit; addresses fundamental needs of consumer; thirst (dasani, aquafina, voss of Norway) ii) Supplemental features – provide added value or attributes in addition to its core utility or benefit; installation, delivery, training, financing; not require to make product function, but help differentiate it from others; starwood hotels (Aloft, loft- like guest rooms) iii) Symbolic and experimental benefits – customers receive benefits based on their experiences with the product; many products have symbolic meaning for buyers (1) Some consumers, shopping gives symbolic value and improves attitudes; stores strive to create special experience for customers (2) Build-a-bear, customize the way you want (3) Atmosphere and décor, variety and depth of product choices, customer support, sounds and smells all contribute to experiential element; hotel Monaco (fish) 2) Classifying Products a) Consumer – products purchased to satisfy personal and family needs and wants; psychological reward i) Convenience – relatively inexpensive, frequently purchased items for which buyers exert minimal purchasing effort; bread, soft drink, gum; gas, newspapers; products marketed through retail outlets like 7-eleven, Exxon mobil, starbucks; packaging important here ii) Shopping – items for which buyers are willing to expend considerable effort in planning and making purchases; buyers spend time comparing stores and brands with prices, features, qualities, services, and warranties (so few are brand loyal); best buy, circuit city, sears, home depot; appliances, bikes, furniture, stereos, cameras, shoes; products expected to last long time and are purchased less frequently iii) Specialty – items with unique characteristics that buyers are willing to expend considerable effort to obtain; buyers know exactly what they want and won’t accept substitutes; mont blanc pen, baseball memorabilia (one of a kind); like shopping products, purchased infrequently, thus lower inventory turnover and requiring relatively high gross margins iv) Unsought – products purchased to solve a sudden problem, products of which
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hadm_q3sty_sp08 - Marketing Principles Study Guide Spring...

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