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Chapter 8

Chapter 8 - Products and Services.docx

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Queen's University
COMM 131
Jacob Brower

Marketing: Chapter 8 – Products and Services (Week 5) Product: Anything that can be offered to a market for attention, acquisition, use, or  consumption that might satisfy a want or need Service: An activity, benefit, or satisfaction offered for sale that is essentially intangible  and does not result in the ownership of anything Pure Tangible Good: No services accompany the product Pure Services: No goods accompany the service Organization Marketing: activities undertaken to create, maintain, or change the attitudes  and behavior of target consumers toward an organization Corporate Image Advertising: marketing the corporation themselves and polishing their  image LEVELS OF PRODUCTS AND SERVICES: • Core Benefit:  o What is the buyer really buying? • Actual Product: o Specific attributes of he product • Augmented Product: o Additional customer services and benefits Marketing: Chapter 8 – Products and Services (Week 5) Two Types of Product Classifications:  1. Consumer Products:  • Products bought by final consumer for personal consumption Type of Consumer Product Marketing  Convenience Shopping Specialty Unsought Considerations Customer buying  Frequent purchase,  Less frequent  Strong brand  Little product  behavior little planning, little  purchase, much  preference and  awareness,  comparison or low  planning and  loyalty, special  knowledge (or, if  shopping effort, low  shopping effort,  purchase effort, littleaware, little or even  customer  comparison of  comparison of  negative interest) involvement brands on price,  brands, low price  quality, style sensitivity Price Low price Higher price High price Varies Distribution Widespread  Selective distribution  Exclusive  Varies distribution,  in fewer outlets distribution in only  convenient locations one or a few outlets  per market area Promotion Mass promotion by  Advertising and  More carefully  Aggressive  the producer personal selling by  targeted promotion  advertising and  both producer and  by both producer and  personal selling by  resellers resellers producer and  resellers Examples Toothpaste,  Major appliances,  Luxury goods, such  Life insurance,  magazines, laundry  televisions, furniture,as Rolex watches or  donations to  detergent clothing fine crystal Canadian Blood  Services 2. Industrial Products • Product bought by individuals and organizations for further processing  or for use in conducting a business • Includes: o Materials and Parts  Raw materials: farm products, natural products  Manufactured materials: Component materials,  component parts o Capital Items  Industrial products that aid in the buy’s production or  operations, including installations and accessory  equipment o Supplies and Services  Operating supplies, and repair and maintenance items  Maintenance and repair services PRODUCT LIFE­CYCLE: Marketing: Chapter 8 – Products and Services (Week 5) SUMMARY OF PRODUCT LIFE­CYCLE CHARACTERISTICS, OBJECTIVES, AND STATEGIES Characteristics Introduction Growth Maturity Decline Sales Low Sales Rapidly rising sales Peak sales Declining Sales Costs High cost per  Average cost per  Low cost per  Low cost per  customer customer customer customer Profits Negative Rising profits High profits Declining profits Customers Innovators Early adopters Middle majority Laggards Competitors Few Growing number Stable number  Declining number beginning to decline Marketing Objectives Create product  Maximize market  Maximize profit  Reduce expenditure  awareness and trial share while defending  and milk the brand market share Strategies Product Offer a basic product Offer product  Diversify brand and  Phase out weak items
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