Class Notes (922,055)
US (355,819)
QU (1,467)
MK (25)
MK 201 (3)
Watson (2)
Lecture 10

MK 201 Lecture 10: Lesson 10 Study Guide

6 Pages
47 Views

Department
Marketing
Course Code
MK 201
Professor
Watson

This preview shows pages 1-2. Sign up to view the full 6 pages of the document.
1
LESSON 10: DEVELOPING NEW PRODUCTS AND SERVICES
LO 9-1: Recognize the terms that pertain to products and services.
A product is defined as a good, service or idea consisting of a bundle of tanglible and intangible attritbues
that satifies consumers needs and is received in exchange for money or something of value
Services are intangible activities or benefits that an organization provides to satisfy consumers needs in
exchange for money or something else of value
LO 9-2: Identify the ways to classify consumer and business products and services.
Consumer products are products purchased by the ultimate constumer
Business products are products organizations buy that assist in providing other products for resale
Basis of
Comparison
Type of Consumer Product
Convenience
Shopping
Specialty
Example of
Product
Toothpaste, cake mix,
hand soap
Camera, tv, airline tickets
Rolls Royce, rolex,
surgery
Price
Relatively inexpensive
Fairly expensive
Usually very expensive
Place
widespread
Large number
Very limited
Promotion
Price, availability and
awareness stressed
Differentiation from
competitors stressed
Uniqueness of brand and
status
Brand
Loyalty
Aware of brand but will
accept substitutes
Prefer specific brands but
will accept substitutes
Very brand loyal, will not
accept substitutes
Purchase
Behavior of
Consumers
Frequent purchases
Infrequent
Infrequent
CONCEPT CHECK: How is the concept of involvement related to the different types of consumer
products?
Involvement is all about how much effort and time the consumer puts into purchasing the product.
Based on the different types of consumer products the consumer will either put in more or less
time into the decision. Consumers are the most involved in purchasing a speciality product, has
medium involvement in purchasing a shopping product and has the least involvement in buying a
convenience product.
find more resources at oneclass.com
find more resources at oneclass.com
2
LO 9-3: Describe the four unique elements of services.
The four I’s of services are the four unique elements that distinguish services from goods; intangibility,
inconsistency, inseparability, and inventory.
List the four I’s of services define each.
The four unique
elements of services
are:
Definition:
Intangibility
Services cant be touched or seen before the purchase decision.
Inconsistency
Depend on the people who provide them; quality varies.
Inseparability
Consumer cannot distinguish the service provider from the service
itself.
Inventory
Handling costs.
Idle production capacity is defined as when the service provider is available but there is no demand for
the service
A product item is a specific product that has unique brand, size or price
A product line is defined as a group of products that are closely related because they are similar in terms
of consumer needs and uses, market segments, sales outlets or prices
A product mix is defined as all the product lines offered by a company
CONCEPT CHECK: Give an example of a product item, a product line, and a product mix.
One example of a product item is ultra downy softener for clothes. An example of a product line is
Nike’s shows and clothing. A product mix is Cray Inc. which has three product lines.
LO 9-4: Explain the significance of “newness” and “consumer learning” in terms of new products
and services.
Basis of
Comparison
Low Degree of New Consumer Learning Needed High
Definition
Examples
find more resources at oneclass.com
find more resources at oneclass.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
LESSON 10: DEVELOPING NEW PRODUCTS AND SERVICES LO 9-1: Recognize the terms that pertain to products and services. A product is defined as a good, service or idea consisting of a bundle of tanglible and intangible attritbues that satifies consumers needs and is received in exchange for money or something of value Services are intangible activities or benefits that an organization provides to satisfy consumers needs in exchange for money or something else of value LO 9-2: Identify the ways to classify consumer and business products and services. Consumer products are products purchased by the ultimate constumer Business products are products organizations buy that assist in providing other products for resale Basis of Type of Consumer Product Comparis on Convenience Shopping Specialty Example Toothpaste, cake Camera, tv, airline Rolls Royce, rolex, of mix, hand soap tickets surgery Product Price Relatively Fairly expensive Usually very inexpensive expensive Place widespread Large number Very limited Promotio Price, availability andDifferentiation from Uniqueness of brand n awareness stressed competitors stressed and status Brand Aware of brand but Prefer specific Very brand loyal, will Loyalty will accept brands but will not accept substitutes accept substitutes substitutes Purchase Frequent purchases Infrequent Infrequent Behavior 1 of Consume rs CONCEPT CHECK: How is the concept of involvement related to the different types of consumer products? Involvement is all about how much effort and time the consumer puts into purchasing the product. Based on the different types of consumer products the consumer will either put in more or less time into the decision. Consumers are the most involved in purchasing a speciality product, has medium involvement in purchasing a shopping product and has the least involvement in buying a convenience product. LO 9-3: Describe the four unique elements of services. The four I’s of services are the four unique elements that distinguish services from goods; intangibility, inconsistency, inseparability, and inventory. List the four I’s of services define each. The four unique Definition: elements of services are: Services cant be touched or seen before the purchase Intangibility decision. Depend on the people who provide them; quality varies. Inconsistency Consumer cannot distinguish the service provider from the Inseparability service itself. Handling costs. Inventory Idle production capacity is defined as when the service provider is available but there is no demand for the service A product item is a specific product that has unique brand, size or price 2 A product line is defined as a group of products that are closely related because they are similar in terms of consumer needs and uses, market segments, sales outlets or prices A product mix is defined as all the product lines offered by a company CONCEPT CHECK: Give an example of a product item, a product line, and a product mix. One example of a product item is ultra downy softener for clothes. An example of a product line is Nike’s shows and clothing. A product mix is Cray Inc. which has three product lines. LO 9-4: Explain the significance of “newness” and “consumer learning” in terms of new products and services. Low ← Degree of New Consumer Learning Needed → High Basis of Dynamically Compariso Continuous Continuous Discontinuous n Innovation Innovation Innovation Definition Disrupts consumers Requires new Requires no new normal routine but learning and learning by does not require consumption consumers totally new learning patterns by consumers Examples New improved Electric toothbrush, Wireless router, shaver, detergent,
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

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