Chapter 8 notes - Chapter 8 Notes I. Products, Services,...

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Chapter 8 Notes I. Products, Services, and Experiences a. Product – anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. b. Services – any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything c. Experiences – an important part of marketing for some companies because customers are buying more than just products and services. Buying what those offers will DO For them II. Levels of Product and Services 1. Core Customer Value (the most basic level) a. Marketers must define the core, problem-solving benefits or services that consumers seek 2. Actual Product a. Marketers need to develop product and service features, design, a quality level, a brand name, and packaging (i.e. Blackberry = actual product – name, parts, styling features, packaging, and other attributes have been combined to deliver core customer value of staying connected) 3. Augmented Product a. Offering additional consumer services and benefits (i.e. Blackberry – warranty on parts and workmanship, instructions how to use, quick repair services when needed, and toll-free telephone, website to use if problems or questions) III. Product and Service Classification A. Consumer Products – A product/service bought by final consumer for personal consumption 1. Convenience Products – bought frequently, immediately, and with a minimum of comparison and buying effort 2. Shopping Products – less frequently purchased, compare products carefully on suitability, quality, price, and style (i.e. furniture, clothing, used cars, major appliances, and hotel and airline services) *Usually distribute through fewer outlets but provide deeper sales support to help customers in their comparison efforts 3. Specialty Products – unique characteristics/brand identification for which a significant group of buyers is willing to make a special purchase effort (i.e. specific brands of cars, high-priced photographic equipment, designer clothes, and services of medical or legal specialist)
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4. Unsought Prodcuts – consumer does not know about or knows but does not normally think of buying (i.e. life insurance, preplanned funeral services, and blood donations) *Require a lot of advertising, personal selling B. Industrial Products - for individuals/organizations for further processing or for use in conducting a business (i.e. lawn mower for home = consumer, lawn mower for landscape business = industrial) a. materials and parts – raw materials, manufactured materials, parts (cotton, wheat, iron, lumber, tires) *Price and service are more major marketing factors; branding and advertising is little less important b . capital items – aid in buyer’s production or operations, including installations and accessory equipment (i.e. generators, large computer systems, elevators, buildings, fixed equipment c. supplies and services – operating supplies, repair, maintenance items
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This note was uploaded on 01/06/2012 for the course BUSINESS 346 taught by Professor Jeffreydanes during the Fall '10 term at Cal Poly.

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Chapter 8 notes - Chapter 8 Notes I. Products, Services,...

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