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Marketing Chapter 9.docx

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Department
Commerce
Course
COMMERCE 2MA3
Professor
Ambika Badh
Semester
Fall

Description
Chapter 9 – Product and Service Strategies The Marketing Mix  Blending of the four strategy elements (product, distribution, promotion and price) to fit the needs and preferences of a specific target market Goods and Services  Services – intangible tasks that satisfy the needs of consumer and business users (e.g. haircut)  Goods – tangible products that customers can see, hear, smell, taste or touch (e.g. car) Service Characteristics  Makes up more than 70% of the economy with 75% of all employment  Services are intangible, inseparable from service providers and perishable  Companies cannot easily standardize services  Buyers often play a role in the creation and distribution of services  Service standards show wide variations Classifying Consumer Services  Name of the service  Relationship of the service organization with its customers  Flexibility for customization and judgment on the part of the service provider  Demand and supply fluctuation (when demand is high, quality of service isn’t as good)  Delivery (person-based delivery or equipment-based services) Quality of Services  Quality of service is the expected and perceived value of service  The point of interaction is the point at which customer and service prodiver interact  Determined by five variables:  Tangibles – physical evidence associated with the service (e.g. cleanliness)  Reliability – consistency of performance and dependability  Responsiveness – willingness and readiness of employee to provide service  Assurances – confidence communicated by the service provider  Empathy – service provider’s efforts to understand customers Product  Product - bundle of physical, service and symbolic attributes designed to satisfy a customer’s wants and needs  People buy want satisfaction, not objects  People want to satisfy their needs and wants Chapter 9 – Product and Service Strategies Classifying of Consumer Products  Buying behavior patterns and marketing mix choices differ for different product types  Unsought products – products marketed to consumers who may not recognize the need for them  Convenience products – products that consumers want to purchase frequently, immediately and with minimal effort o For these products, the location where they are available is key because customers will not spend time travelling and debating o Impulse products – products purchased in the spur of moment  Slotting fees are fees that retail stores charge manufacturers to guarantee display in the store o Staples – items bought constantly to replenish and maintain a ready inventory (e.g. toothpaste) o Emergency products – products bought in response to unexpected urgent needs (e.g. medicine)  Shopping products – products purchased only after the consumer compares competing offerings on such characteristics as price, quality, style and colour o Homogeneous shopping products – consumers feel that quality is the same independent from where you buy it (e.g. appliances) o Heterogeneous shopping products – products can be different depending where they are bought from (e.g. clothing)  Specialty products – products that offer unique characteristics that cause buyers to prize those particular brands (e.g. jewelry) Classification of Business Products  Categories emphasize product use rather than
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