Chapter 8-Elements of Product Planning for Goods and Services

Chapter 8-Elements of Product Planning for Goods and Services

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Chapter 8-Elements of Product Planning for Goods and Services Thursday, February 24, 2011 2:50 PM 1. What is a Product? 1.a. Companies are selling satisfaction, use, or benefit the customer wants 1.a.i. Marketing managers deliver the highest level of satisfaction when the customer's entire experience with the product meets the customer's needs 1.a. Product: the need-satisfying offering of a firm 1.a.i. May require a combination of: excellent service, a physical good with the right features, useful instructions, a convenient package, a trustworthy warranty, familiar name that has satisfied consumer in the past 1.a. Quality: a product's ability to satisfy a customer's needs or requirements 1.a.i. Relative quality: focused on when comparing their products to competitors' offerings 1.a.i. A product with better features is not a higher-quality product if the features aren't what the target market wants 1. Differences in Goods and Services 1.a. Good is a tangible item 1.a.i. Typically mass produced in a factory far away from the customer 1.a. Services are not physical-they are intangible 1.a.i. Experienced, used, or consumed 1.a.i. Service is usually produced in person (where the customer is located) after the customer has committed to buy 1.a.i. Services are perishable/cannot be stored 1. Whole Product Lines must be Developed too 1.a. Product assortment: set of all product lines and individual products that a firm sells 1.a. Product line: set of individual products that are closely related 1.a. Individual product: a particular product within a product line 1.a.i. Usually differentiated by: brand, level of service offered, price, some other characteristic 1. Branding is a Strategy Decision 1.a. Branding: means the use of a name, term, symbol, or design to identify a product 1.a.i. Uses brand names, trademarks, and all other means of product identification 1.a.i. Brand name: a word, letter, or a group of words or letters 1.a.i.1. Sometimes the only element in a firm's marketing mix that a competitor can't copy 1.a.i. Trademark: legal term; includes only those words, symbols, or marks that are legally registered for use by a single company 1.a.i.1. Service mark: same as a trademark except that it refers to a service offering 1. Conditions Favorable to Branding 1.a. Product is easy to label and identify by brand or trademark 1.a. Product quality is easy to maintain and the best value for the price 1.a. Dependable and widespread availability is possible
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1.a.i. When customers start using a brand, they want to be able to continue using it 1.a. Demand is strong enough that the market price can be high enough to make the branding effort profitable 1.b. There are economies of scale 1.a.i. If branding is really successful, costs should drop and profits should
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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-Elements of Product Planning for Goods and Services

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