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Lecture 10

MK 201 Lecture 10: Lesson 10 Study Guide

6 Pages
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Department
Marketing
Course Code
MK 201
Professor
Watson

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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,
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