MGMT 100 Study Guide - Final Guide: Supply Chain, Psychological Pricing, Exponential Growth
Document Summary
Lo1 explain the concept of total product offer, and summarize the functions of packaging. The best way to compete is to design and promote better products, meaning products that customers perceive to have the best value good quality at a fair price. When customers calculate the value of a product, they look at the benefits and then subtract the cost (price) to see whether the benefits exceed the cost. To satisfy customers, marketers must learn to listen better and constantly adapt to changing market demands. Marketers have learned that competition and new markets are ongoing processes. Total product offer (or value package) consists of everything that customers evaluate when deciding to buy a product. When people buy a product, they evaluate and compare total product offers on many dimensions: some are tangible (the product itself); some are intangible (the business reputation). Product line is a group of products that are physically similar or are intended for a similar market.
