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CH10 - Chapter 10 Product and Service Strategies Marketing...

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Chapter 10 Product and Service Strategies Marketing mix Blending of the four strategy elements product, distribution, promotion, and price —to fit the needs and preferences of a specific target market Marketers develop strategies to sell both tangible goods and intangible services What is a Product? People buy want satisfaction, not objects Example: Consumers buy televisions because they want entertainment, not because they want a box with a screen Product Bundle of physical, service, and symbolic attributes designed to enhance buyers’ want satisfaction What are Goods and Services? Goods Tangible products that customers can see, hear, smell, taste, or touch Services Intangible tasks that satisfy the needs of consumer and business users Goods-Services continuum― device that helps marketers to visualize the differences and similarities between goods and services Characteristics that distinguish services from goods: Intangibility Inseparability Perishability Variability Frequent requirement of interaction between buyer and seller Products often blur the distinction between goods and services Example: Rental car company is a service that provides a good Importance of the Service Sector The service sector makes up roughly 70% of the economy Services play a crucial role in the international competitiveness of Canadian firms Concerns include offshoring―service jobs such as customer service call centres, and homeshoring ―hiring workers to do jobs from their homes Classifying Goods and Services for Consumer and Business Markets Consumer products Products destined for use by ultimate consumers Business (or B2B) products Products that contribute directly or indirectly to the output of other products for resale; also called industrial or organizational products Some products fall into both categories Example: Prescription drugs, which are marketed to doctors and to end users Consumer Product Categories Convenience products Shopping products Specialty products Unsought products Convenience product Good or service that consumers want to purchase frequently, immediately, and with minimal effort Impulse goods and services ―are purchased on the spur of the moment Staples ―are convenience goods and services that consumers constantly replenish to maintain a ready inventory Emergency goods and services ―are bought in response to unexpected and urgent needs Shopping product
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