chapter 10 outline

chapter 10 outline - BMGT350 Chapter 10 LO1 What is a...

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BMGT350 Chapter 10 LO1: What is a product? Product: everything, both favorable and unfavorable, that a person receives in an exchange o May be a tangible good, a service, an idea, or any combination of these 3 LO2: Types of Consumer Products Business product (industrial product): a product used to manufacture other goods or services, to facilitate an organizations operations, or to resell to other customers Consumer product: a product bought to satisfy an individuals personal wants The key distinction between business products and consumer products is their intended use Convenience product: a relatively inexpensive item that merits little shopping effort o Consumers buy convenience products regularly, usually without much planning o Normally require wide distribution in order to sell sufficient quantities to meet profit goals Shopping product: a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores o Homogeneous product: consumers typically look for the lowest-priced brand that has the desired features o Heterogeneous product: consumers often have trouble comparing these products because the prices, quality, and features vary so much; decision is highly individual Specialty product: a particular item that consumers search extensively for and are very reluctant to accept substitutes o Marketers often use selective, status-conscious advertising to maintain products exclusive image o Distribution is often limited to one or very few outlets in a geographic area Unsought products: a product unknown to the potential buyer or a known product that they buyer does not actively seek o New products fall into this category until advertising & distribution increase consumer awareness of them LO3: Product Items, Lines, and Mixes
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Product item: a specific version of a product that can be designated as a distinct offering among an organization’s products Product line: a group of closely related product items
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This note was uploaded on 03/14/2011 for the course BMGT 350 taught by Professor Boyd during the Fall '08 term at Maryland.

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chapter 10 outline - BMGT350 Chapter 10 LO1 What is a...

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