Chapter 10 Developing New products and Services

Chapter 10 Developing New products and Services - Chapter...

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Chapter 10 Developing New products and Services product- a good, service or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers -tangible attributes- physical characteristics such as color or sweetness -intangible attributes- becoming healthier or wealthier THE VARIATIONS OF PRODUCTS -varies in terms of whether it is a consumer or business good 1) Product Line and Product Mix i) Product Line- a group of products that are closely related b/c 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 (a) Each product line usually has its own marketing strategy (b) Benefit of havinga broad product line is it enables both consumers and retailers to simplify their buying decisions (c) Within each product line is the product item, a specific product as noted by a unique brand, size, or price 1. stock keeping unit (SKU)- a unique identification number that defines an item for ordering or inventory purposes ii) Product mix- the number of product lines offered by a company 2) Classifying Products -government classification method helps it collect information on industrial activity -Companies classify products to help develop similar marketing strategies for the wide range of products offered -2 ways: type of user and degree of product tangibility i) Type of User (a) Consumer goods-products purchase by the ultimate consumer (b) Business goods- products that assist directly or indirectly in providing products for resale 1. can be both (ex. Apple computer) ii) Degree of Tangibility (a) Nondurable good- an item consumed in one or few uses, such as food products and fuel 1. consumer advertising and wide distribution in retail outlets (b) Durable good- usually lasts over an extended number of uses, such as appliances, automobiles, and stereo equipment 1. personal selling is an important marketing activity in answering consumer questions and concerns (c) Services-activities, benefits or satisfactions offered for sale, such as marketing research, health care, and education 1. government data says the US is becoming a service economy
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Chapter 10 Developing New products and Services - Chapter...

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