MGMT 1 Chapter Notes - Chapter 14: Product Differentiation, Life Insurance, Aspirin
Document Summary
Developing and pricing goods and services (chapter 14) Consumers perform cost/benefit analyses when deciding what to buy and whom to buy it from. Can"t just come up with one group of products or menu items or destinations one time - this needs to be an ongoing process. Reputation: company is known for being a good company. Line of goods essentially the same and compete with each other (ex. Group of products that are physically similar or intended for a similar market. This is done because there is a wide variety of customers (need to have product in a variety of formats) Three divisions, each with a product mix made up of a variety of product lines o. Product differentiation: creation of real or perceived product differences. Marketers use a mix of pricing, advertising, and packages to create different images (ex. doesn"t have much difference: bottled water, aspirin, fast-food) Specialty goods and services: unique, high quality, expensive and well known (ex.
