Chapter 8

Chapter 8 - Chapter 8 o o o o o o What is a product Product...

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Chapter 8 What is a product? o Product : means the need satisfying offering of a firm Must customers think about a good in terms of the total satisfaction it provides o Quality : product's ability to satisfy a customer's needs or requirements Focuses on the customer and how the customer thinks a product will fit some purpose o A product may be a physical good or service or a blend of both Marketing manager must consider most of the same elements in planning products and marketing mixes no matter the blend of goods Differences in goods and services o Good is a tangible item Typically mass produced in a factory far away from the customer o Services are intangible-not physical Experiences, used, or consumed Customers often seek referrals about services Usually produced in person after the customer has committed to buy Difficult to achieve economies of scale Service quality often isn't consistent Hard to separate the service experience from the person who provides it Perishable Difficult to balance supply and demand Firms try and reduce dissatisfaction customers may feel if they must wait for service Whole product lines o Product assortment : set of all product lines and individual products that a firm sells o Product line : set of individual products that are closely related Related because they operate in a similar way, sold to same target market, priced at about the same level, etc. o Individual product : particular product within a product line Differentiated by brand, level of service offered, price, etc. o Each individual product and target market may require a separate strategy Branding is a strategy decision o Branding : use of a name, term, symbol, or design-or a combination of these to identify a product o Brand name : word, letter, or group or words or letters o Trademark : includes only those words, symbols, or marks that are legally registered for use by a single company Legal term o Servicemark : same as a trademark except it refers to a service offering o Terms are very important to firms who spend a lot of money protecting and promoting their brands Only element of a marketing mix that a competitor cannot copy o Well represented brands make shopping easier Connect product with benefits a customer can expect o Brand promotion has advantages for both branders and customers
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Reduces marketer's selling time and effort Improve company image Conditions to favorable branding o Product is easy to label and identify by brand or trademark o Product quality is easy to maintain and the best value for the price o Dependable and widespread availability is possible When customers start using a brand, they want to be able to continue using it o Demand is strong enough that the market price can be high enough to make the branding effort profitable o Economies of scale Costs should drop and profits should increase o Favorable shelf locations or display space in stores will help
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This note was uploaded on 03/05/2012 for the course BUSI 406 taught by Professor Perreault during the Fall '11 term at UNC.

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Chapter 8 - Chapter 8 o o o o o o What is a product Product...

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