Comm 296 - Chapter 8

Comm 296 - Chapter 8 - Comm 296 Chapter 8: Developing and...

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Comm 296 Chapter 8: Developing and Managing Products and Services WHAT IS A PRODUCT? Product : anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need Services : an activity, benefit or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything PRODUCTS, SERVICES AND EXPERIENCES - Key element in overall market offering o Offering becomes the basis upon which the firm builds profitable customer relationships - Pure tangible good (eg toothpaste) – no services accompany product - Pure services (eg haircut) – only service is offered - Firms aim to create and manage customer experiences with their brands or company, instead of only offering products and services o Experiences – eg Disney manufactures dreams and memories through its movies and theme parks o Customers buy more than just products/services – buy what those offers do for them ORGANIZATIONS, PERSONS, PLACES, AND IDEAS - Organization marketing : consists of activities undertaken to create, maintain, or change the attitudes and behaviour of target consumers toward an organization - Corporate image advertising : when firms market themselves and polish their images - People, person marketing: activities undertaken to create, maintain, or change attitudes or behaviour toward particular people – used to build reputation o Politicians, entertainers, sport figures, real-estate agents, lawyers, etc - Place marketing: activities undertaken to create, maintain, or change attitudes or behaviour toward particular places o Cities and countries use this to attract tourists, new residents, offices and factories - Idea marketing: market a idea of a concept or of a product LEVELS OF PRODUCTS AND SERVICES - Each product managed as 3 levels, each level adds more customer value o Core customer value – what is buyer really buying?; what consumers really want (to address problem) o Actual product – need to develop product and service features, design, quality level, brand name, packaging o Augmented product – additional consumer services and benefits - Consumers see products as complex bundles of benefits that satisfy their needs PRODUCT AND SERVICE CLASSIFICATIONS Consumer Products Consumer products : product bought by final consumers for personal consumption - Include convenience products, shopping products, specialty products, and unsought products (pg 292) Convenience products: products and services customers buy frequently, immediately, minimal comparison and buying effort – low customer involvement, low price, widespread distribution, mass promotion – eg toothpaste Shopping products : product that customer, in the process of selection and purchase, usually compares on such bases as suitability, quality, price and style – higher price, selective distribution, advertising by producer and resellers – eg TV Specialty products : consumer product with unique characteristics or brand identification for which a significant group of buyers is
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Comm 296 - Chapter 8 - Comm 296 Chapter 8: Developing and...

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