Class Notes (996,806)
CA (574,824)
UTSG (54,081)
Rotman Commerce (1,175)
RSM100Y1 (287)
Lecture

Chapter 16 Notes

7 Pages
135 Views
Winter 2011

Department
Rotman Commerce
Course Code
RSM100Y1
Professor
Michael Szlachta

This preview shows pages 1-2. Sign up to view the full 7 pages of the document.
Chapter 16
Value package Product marketed as a bundle of value-adding attributes, including
reasonable costs
Classifying consumer products
Convenience goods/services relatively inexpensive consumer goods or services that are
bought and used rapidly and regularly, causing consumers to spend little time looking for
them or comparing their prices
Shopping goods/services moderately expensive consumer goods or services that are
purchased infrequently, causing consumers to spend some time comparing prices and such
Specialty goods/services very expensive consumer goods or services that are purchased
rarely, causing consumers to spend a lot of time comparing prices
Classifying industrial products
Expense items materials and services that are consumed within a year by firms
producing other goods or services
Capital items expensive, long-lasting industrial goods that are used in producing other
goods or services and have a long life
Buildings, fixed equipment (water towers, baking oven), accessory equipment
(computers, airplanes)
Capital services services for which long-term commitments are made
Employee food services, building and equipment maintenance, legal services
Product mix the group of products a company has available for sale
Product line a group of products that are closely related because they function in a similar
manner or are sold to the same customer group, who will use them in similar ways
Developing New Products
Speed to market strategy of introducing new products to respond quickly to customer
and/or market changes
The seven-step development process
Product development begins with a search for ideas for new products
www.notesolution.com
oService package identification of the tangible and intangible features that
define a service
Screening this stage is an attempt to eliminate all product ideas that do not mesh
with the firms abilities, expertise, or objectives
Concept testing once ideas have been culled, companies use the market research to
solicit consumers’ input
Business analysis this involves developing a comparison of costs and benefits for
the proposed product
Prototype development using input from the concept-testing phase, engineering
and/or research and development produce a preliminary version of the product
oService process design involves selecting the process, identifying worker
requirements, and determining facilities requirements
Product testing and test marketing the company begins limited production of the
item
Commercialization if test-marketing results are positive, the company will begin
full-scale production and marketing of the product
The Product Life Cycle
Product life cycle (PLC) based on the idea that products have a limited profit-producing
life
Stages in the PLC:
Introduction: the introduction stage begins when the product reaches the
marketplace
oBecause of extensive promotional and development costs, profits are non-
existent
Growth if the new product attracts and satisfies enough consumers, sales begin to
climb rapidly
Maturity sales growth begins to slow. Although the product earns its highest profit
level early in this stage, increased competition eventually leads to price cutting and
lower profits
Decline sales and profits continue to fall
www.notesolution.com

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Description
Chapter 16 Value package Product marketed as a bundle of value-adding attributes, including reasonable costs Classifying consumer products Convenience goodsservices relatively inexpensive consumer goods or services that are bought and used rapidly and regularly, causing consumers to spend little time looking for them or comparing their prices Shopping goodsservices moderately expensive consumer goods or services that are purchased infrequently, causing consumers to spend some time comparing prices and such Specialty goodsservices very expensive consumer goods or services that are purchased rarely, causing consumers to spend a lot of time comparing prices Classifying industrial products Expense items materials and services that are consumed within a year by firms producing other goods or services Capital items expensive, long-lasting industrial goods that are used in producing other goods or services and have a long life Buildings, fixed equipment (water towers, baking oven), accessory equipment (computers, airplanes) Capital services services for which long-term commitments are made Employee food services, building and equipment maintenance, legal services Product mix the group of products a company has available for sale Product line a group of products that are closely related because they function in a similar manner or are sold to the same customer group, who will use them in similar ways Developing New Products Speed to market strategy of introducing new products to respond quickly to customer andor market changes The seven-step development process Product development begins with a search for ideas for new products www.notesolution.com
More Less
Unlock Document

Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

You've reached the limit of 4 previews this month

Create an account for unlimited previews.

Already have an account?

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit