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CHAPTER 14 terms

Understanding Business

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CHAPTER 14 - Developing and Pricing Products and Services Product Development and Value Package Value good quality at a fair price - when consumers calculate the value of a product, they look at the benefits and subtract the cost to see if the benefits exceed the costs Total Product Offer consists of everything that consumers evaluate when deciding whether to buy something - potential components include: Price - Brand Name - Convenience - Package - Store Surroundings - Service - Internet Access - Buyer’s Past Experience - Guarantee - Delivery Speed - Advertising Image - Producer’s Reputation Product Line a group of products that are physically similar or are intended for a smaller market - usually face similar competition Product Mix the combination of all product lines offered by a manufacturer -i.e. Phillip Morris - Miller, Jell-o, Kraft, Marlboro Product Differentiation the creation of real or perceived product differences Marketing Different Classes of Consumer Goods and Services: Convenience Goods and Services products that the consumer wants to purchase and with a minimum of effort (gum, snacks, banking) - location and image Shopping Goods and Services products the consumer buys only after comparing value, quality, price and style from a variety of sellers - sold largely through shopping centers where consumers can make choices Specialty Goods and Services consumer products with unique characteristics and brand identity - the consumer puts forth great effort to purchase them Unsought Goods and Services products that consumers are unaware of, haven’t necessarily thought of buying, or find that they need to solve an unexpected problem Marketing Industrial Goods and Services: Industrial Goods (sometimes Business or B2B Goods) products used in the production of other products - categories: Installations - major capital equipment: factories or heavy machinery Capital Items - products that last a long time and cost a lot of money Accessory Equipment - capital items that are not as long lasting or expensive (a new factory building is both a capital item and installation; computers,
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CHAPTER 14 terms - CHAPTER 14 Developing and Pricing...

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