MKT607 – lectureaid_4

MKT607 – lectureaid_4 - MKT607 Marketing...

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MKT607 – Marketing Management Study aid: Lecture 4 Introduction Marketing strategy encompasses all of the elements necessary to classify business and consumer products, create and promote brand equity, and implement new product development strategies. Product Classifications Whether a company grows, survives, and makes a profit could depend upon how their products or services are defined. According to Peter and Donnelly (2007), there are three ways in which a product can be viewed: Tangible product – the physical object or service provided to the buyer Extended product – the tangible product along with any services that accompany it Generic product – the intrinsic benefits that buyers expects to receive from the product When a company focuses solely in terms on the tangible product, it runs the risk of defining the product too narrowly. A prime example of this is rail passenger service. Had the industry defined itself as being a transportation business rather than a railroad business, it might have led to profitability rather than decline. Businesses tend to be successful by being flexible and adapting their product base. Peter & Donnelly (2007) summarize this concept as follows: In line with the marketing concept philosophy, a reasonable definition of product is that it is the sum of the physical, psychological, and sociological satisfactions the buyer derives from purchase, ownership, and consumption . From this standpoint, products are customer-satisfying objects that include such things as accessories, packaging, and service (p. 81). This is an important explanation of how products are more than just their physical entity. If a customer were to purchase a beautiful car but could not get service for the vehicle, obviously their satisfaction level would be low. Marketers must take into consideration the whole package. According to Peter and Donnelly (2007), products are classified based upon end use or market and the
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This note was uploaded on 08/16/2010 for the course BUS ECON607 taught by Professor Tbd during the Spring '10 term at Grand Canyon.

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MKT607 – lectureaid_4 - MKT607 Marketing...

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