marketing chapter 10 notes - Chapter 10-Developing New...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 10------Developing New Products and Services Business Goods- products that assist directly or indirectly in providing products for resale Consumer Goods - products purchased by the ultimate consumer Idea Production Capacity- When the supply of the service exceeds demand for it New-product process- Sequence of activities a firm uses to identify business opportunities and convert them into salable goods or services 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 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 outlets, or fall within the same price range Product mix- All the product lines offered by a company Services- Intangible activities or benefits that an organization provides to consumers for money or something else of value Classifying Products done by type of user and degree of product tangibility Type of User Consumer goods— are products purchased by the ultimate consumer Business goods— assist directly or indirectly in providing products for resale Degree of Tangibility Nondurable good--- consumed once used a few times---food products and fuel Durable good---lasts over an extended sue---appliances, automobiles, stereo equipment Services---intangible activities or benefits an organization provides to consumer in exchange for money Nondurable goods are advertised for and distributed widely in retail. Durable products cost more so personal selling is more important marketing to be able to answer questions. Services are intangible—require special marketing effort Uniqueness of Services Services account for 40% of the gross domestic product---there are 4 unique elements 1. Intangibility---Tend to be performance rather than an object—are much more difficult for consumers to evaluate. Marketers therefore try to make them tangible or show benefits for evaluation 2. Inconsistency----Quality of service is often inconsistent so developing, pricing, promoting and delivering is often difficult 3. Inseparability---- Consumers often cannot distinguish the deliverer of the service for the service itself 4. Inventory---inventory problems exist because many items are perishable and there are “carrying costs” associated with handling and storing them. With inventory, carrying costs are more subjective and are related to idle production capacity which is when service provider is available but there is no demand. Inventory cost of a service is the cost of paying the people used to provide the service along with any needed equipement
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Classifying Goods and Services Classifying Consumer Goods Convenience goods— such as toothpaste that are purchased frequently with minimum shopping effort Shopping Goods---- such as everyday clothing, consumer compares several alternatives
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

marketing chapter 10 notes - Chapter 10-Developing New...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online