Chapter_10-marketing - Chapter 10-marketing 3014 The...

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Chapter 10-marketing 3014 The essence of marketing is in developing products to meet buyer needs. Product - good, service, or idea consisting of tangible and intangible features that satisfies consumers and is received in exchange for money or some other unit of value. Tangible attributes=color, sweetness Intangible attributes=becoming healthier/wealthier Product Line- group of products that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same type of outlets, or fall within a given price range. Ex. Nike has shoe and clothing product lines. Mayo clinic has inpatient care, outpatient physician service, research. Each product line has its own marketing strategy. Within each product line is the product item , a specific product as noted by a unique brand, size, or price. Product Mix- number of product lines offered by a company. Classifying Products: 1) Type of User- Consumer goods - products purchased by the ultimate consumer. Business goods- products that assist directly/indirectly in providing products for resale. Some products can be considered to be in both categories though. 2) Degree of Tangibility- divides products into 3 categories. Nondurable good- item consumed in or a few uses like fuel or food products. Durable good- item that usually lasts over an extended number of uses such as appliances, cars, stereos. Services- intangible activities/benefits that an organization provides to consumers in exchange for money or something of value. These three methods provide direction for marketing actions to cater to the needs of each category. Services account for approx. 40% of GDP. There are 4 unique elements to services also called the four I’s of services. 1) Intangibility- services cannot be held, touched, or seen before the purchase decision. They tend to be a performance rather than an object so they are much more difficult for consumers to evaluate. Marketers try to make the service tangible or show the benefits of a service to help consumers compare differences. 2) Inconsistency- the quality of a service is often inconsistent so developing pricing, promoting and delivering of services is challenging. Services depend on the people who provide them and their quality will vary with each person’s capabilities/job performance. 3) Inseparability- consumers often cannot distinguish the deliverer of the service from the service itself. 4) Inventory- Inventory with goods means the items are perishable and that carrying costs exist to store/handle the inventory. Carrying costs for services are more subjective and related to idle production capacity -when the supply of the service exceeds demand for it. Inventory cost of a service is the cost of paying the people used to provide the service along with any needed equipment. Classifying Consumer Goods-depends on the individual for where they classify the good.
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This note was uploaded on 03/25/2008 for the course MKTG 3104 taught by Professor Ebcoupey during the Spring '08 term at Virginia Tech.

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Chapter_10-marketing - Chapter 10-marketing 3014 The...

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