services marketers have broadened the concepts of a product to include other

Services marketers have broadened the concepts of a

This preview shows page 25 - 27 out of 53 pages.

services, marketers have broadened the concepts of a product to include other market offerings- organizations, persons, places and ideas. Organization marketing consists of activities undertaken to create/maintain/change the attitudes and behaviour of customer or general public towards the organization. Person marketing consists of the same thing, however changing the opinion/attitudes/behaviours towards specific people. Place marketing is the same concept just with particular places, ie countries and cities. Product marketers need to think about the product they manage as consisting of three levels. Basic level: core customer value- when designing products, marketers must first define the core problem solving benefits that consumer seek. The second level: product marketers must turn the core benefits into an actual product- physical device with all its features and associated brand name/packaging. Finally, marketers must consider the augmented product- additional services/benefits that go with it. Consumers see products as complex bundles of benefits that satisfy their needs. Products/services fall into two broad classes: consumer products and industrial products. Consumer products are purchased by consumers for their personal use. These include convenience, shopping, specialty and unsought products. 25
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Industrial products are those purchased for further processing or for use in conducting business. There are three groups of industrial products and services; materials and parts, capital items, and supplies and services. Materials and parts include raw and manufactured materials and arts. Capital items are industrial products that aid in the buyer’s production or operations, including installations and accessory equipment. Supplies and services are operating supplies, and repair and maintenance items. LO2 A firm can obtain new products in two ways: One is through acquisition- buying a company, patent or license. The other is new product development- the development of original or new to the world products, product improvements/modifications and new brands through the firm’s own product development efforts. One reason why new products fail is that they lack differentiation which is hard if a new company tries to enter a highly competitive category. Another reason can be explained by diffusion of innovations theory: a theory that divides members of a social group into segments according to how likely they are to adopt a new idea. The theory suggests that the new idea must be diffused through the group via various forms of communications, and that because each group has very different motivations and beliefs, that diffusion is much more difficult than it might seems. In the marketing of high-tech products, marketers believe there is a “chasm” that must be crossed before mainstream consumers will accept the product—that is, before the product can become a success. In the technology adoption life -his theory proposes that when
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