Marketing Quiz Chapter 7 & 8
Terms in this set (47)
anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything
pure tangible good
a product completely unaccompanied by services
e.g. soap, toothpaste, salt
market offer which consists solely of a service
e.g. doctor's exam, financial services
How are businesses differentiating offers as products and services become more commoditized?
Businesses are creating or managing customer experiences which allows customers to purchase more than just products and services
Levels of Products and Services
1. core customer value: What is the customer really buying?
2. actual product: product and service features, a design, a quality level, a brand name, and packaging
3. augmented product: built around the core benefit and actual product by offering additional customer services and benefits
What are the two types of products and services? What is this classification based on?
Two types: Consumer and Industrial Products
Classification: type of customers who use the product or service
What are the types of consumer products?
convenience, shopping, specialty, unsought
a product bought by final consumers for personal consumption
a consumer product that customers buy frequently, immediately, and with minimal comparison and buying effort
e.g. toothpaste, magazines, laundry detergent
a consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style
e.g. major appliances, television, furniture, and clothing
a consumer product that the consumer either does not know about or knows about but does not normally consider buying
e.g. life insurance, Red Cross blood donations
a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase
e.g. luxury goods (Rolex, fine crystal)
a product bought by individuals and organizations for further processing or for use in conducting a business
What is an example of the difference between a a consumer and industrial product?
A lawnmower purchased to cut your own grass = consumer product
A lawnmower purchased to start a grass-cutting business = industrial product
What are the three kinds of industrial products?
materials and parts, capital items, and supplies and services
How have marketers broadened the concept of a product to include other market offerings?
organizations, persons, places, and ideas
consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization
consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people
involves activities undertaken to create, maintain, or change attitudes or behavior toward particular places
consists of using traditional business marketing concepts and tools to create behaviors that will create individual and societal well-being
What are the three levels at which marketers make product and service decisions?
individual product decisions, product line decisions, and product mix decisions
Individual product decisions
-product attributes, branding, packaging, labeling, product support services
-focus of decisions is to create core customer value
the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs
-includes product features, product style and design
a name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or groups of sellers and differentiates them from those of competitors
the activities of designing and producing the container or wrapper for a product
identifies the product or brand, describe several things about the product, promote the brand, support its positioning, and connect with customers
product support services
assess quality of support services and obtain new ideas through customer surveys
product line (decisions)
a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges
product line length
major product line decision -- the number of items in the product line
What are the two ways a company can expand its product line?
1. product line filling --> adding more items within the present range of the line where new items are noticeably different from existing ones
2. product line stretching --> occurs when a company lengthens its product line beyond its current range
e.g. adding a more luxurious product to stretch the product line upward
product mix (product portfolio)
the set of all product lines and items that a particular seller offers for sale
What are the four dimensions of a company's product mix?
width, length, depth, and consistency
product mix width
the number of different product lines the company carries
product mix length
the total number of items a company carries within its product lines
product mix depth
refers to the number of versions offered for each product in the line
product mix consistency
refers to how closely related the various product lines are in end use, production requirements, distribution channels, etc.
What are the four characteristics of a service?
intangibility, variability, inseparability, perishability
services cannot be seen, tasted, felt, heard, or smelled before they are bought
- to reduce uncertainty buyers look for signals of service quality from the place, people, price, equipment, and communications
services are produced and consumed at the same time and cannot be separated from their providers
the quality of services may vary greatly depending on who provides them and when, where, and how they are provided
services cannot be stored for later sale or use
service profit chain
the chain that links service firm profits with employee and customer satisfaction
orienting and motivating customer-contact employees and supporting service employees to work as a team to provide customer satisfaction
training service employees in the fine art of interacting with customers to satisfy their needs
What are the three major marketing tasks for service companies?
service differentiation, service quality, service productivity
the differential effect that knowing the brand name has on the customer response to the product or its marketing