Textbook Notes (362,812)
Canada (158,056)
MGMA01H3 (184)
Chapter 9

Chapter 9 Notes

5 Pages
Unlock Document

University of Toronto Scarborough
Management (MGM)
Alison Jing Xu

Chapter 9 Products, Services, and Brands Building Customer Value Notes What is a Product? product anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy want or need services activity or benefit that one party offers to another that is intangible and does not result in ownership of anything Products, Services, and Experiences marketing-mix planning begins with building an offer that brings value to target customers this offering becomes the basis upon which the company builds profitable customer relationships a companys market offering ranges from a pure tangible good to pure services to differentiate their offers beyond simply making products and delivering services, companies are creating and managing customer experiences with their brands or company Levels of Products and Services the most basic level is the core customer value, which is the core, problem-solving benefits or services that consumers seek at the second level, product planners must turn the core benefit into an actual product they need to develop product and service features, a design, a quality level, a brand name, and packaging finally, product planners must build an augmented product around the core benefit and actual product by offering additional consumer services and benefits, such as installation, warranty, and delivery and credit consumers seek products as complex bundles of benefits that satisfy their needs when developing products, marketers first must identify the core customer value that consumers seek from the product; they must then design the actual product and find ways to augment it to create this customer value and the most satisfying customer experience Product and Service Classifications Consumer Products consumer product a product bought by final consumers for personal consumption; consumer products include convenience products, shopping products, speciality products, and unsought products Type of Consumer Product Marketing Considerations Convenience Shopping Speciality Unsought Frequent purchase, little Less frequent purchase, Strong brand preference Little product awareness planning, little shopping much planning and and loyalty, special Customer buying effort or comparison, shopping effort, purchase effort, little or knowledge (or, if behaviour low customer comparison of brands comparison f brands, aware, little or even negative interest) involvement on price, quality, style low price sensitivity Price Low price Higher price High price Varies Widespread, convenient Selective in fewer Exclusive in 1 or a few Distribution locations outlets outlets per market area Varies Advertising and More carefully targeted Aggressive advertising Mass promotion by the Promotion producer personal selling by both promotion by both and personal selling by producer and resellers producer and resellers producer and resellers Toothpaste, magazines, Major appliances, TVs, Luxury goods, such as Life insurance, blood Examples laundry detergent furniture, clothing Rolex or fine crystal donations Business Products business product a product bought by individuals and organizations for further processing or for use in conducting a business the three groups of business products and services include materials and parts, capital items, and supplies and services materials and parts include raw materials (farm products and natural products) and manufactured materials and parts price and service are the major marketing factors; branding and advertising tend to be less important capital items are business products that aid in the buyers production or operations, including installations (major purchases, such as buildings and fixed equipment) and accessory equipment (portable factory equipment and tools, and office equipment) supplies include operating supplies and repair and maintenance items; services are the convenience products of the business field because they are usually purchased with a minimum effort or comparison Organizations, Persons, Places, and Ideas organization marketing consists of activities undertaken to create, maintain, or change the attitudes and behaviour of target consumers toward an organization; both profit and not-for-profit organizations use it business firms sponsor public relations or corporate image advertising campaigns to market themselves and polish their images person marketing consists of activities undertaken to create, maintain, or change attitudes or behaviour toward particular people place marketing involves activities undertaken to create, maintain, or change attitudes or behaviour toward particular places social marketing the use of commercial marketing concepts and tools in programs designed to influence individuals behaviour to improve their well-being and that of society www.notesolution.com
More Less

Related notes for MGMA01H3

Log In


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


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.