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Marketing Ch_11
Product and Service Strategies
Question | Answer |
---|---|
Product | bundle of physical, service, and symbolic attirbutes designed to satisfy a customer's wants and needs |
Services | intangible goods, tasks that satisfy the needs of consumer and business users |
goods | tangible products customers can see, hear, smell, taste, or touch |
Features of Services | Intangible, inseparable from the service providers, perishable, cannot easily be standardized, and buyers play important roles in the creation and distribution |
marketing mix | blending of the four strategy elements- product, promotion, price, and physical distribution, -to fit the needs and preferences of a specific target market |
backshoring | customers react negatively toward offshoring and as a result the company reacts and brings jobs back |
Homeshoring | Allowing people to work from home as it is cheaper not to have to pay for office space |
Consumer product | product destined for use by ultimate consumers |
Business- to Business (B2B) Product | product that contributes directly of indirectly to the output of other products for resale; also called industrial or organizational product |
Unsought Products | products marketed to consumers who may not yet recognize any need for them |
Convenience Products | Goods-and-services consumers want to purchase frequently, immediately, and with minimal effort |
Impulse goods and services | purchased on the spur of the moment |
Staples | convenience goods and services consumers constantly replenish to maintain a ready inventory (gasoline, shampoo, etc) |
Emergency goods and services | bought in response to unexpected and urgent needs. A snow blower during a snow storm. |
Shopping Products | Products consumers purchase after comparing competing offerings |
Specialty Products | offer unique characteristics that cause buyers to prize those particular brands |
Installations | Specialty products of the business market are called installations |
Accessory Equipment | Capital items that typically cost less and last for shorter periods than installations. Price significantly affect these decisions |
Industrial Distributor | a wholesaler |
companent parts and materials | represent finished business products of one producer that become part of the final products of another producer |
Raw materials | farm products such as beef, cotton, eggs, poultry, and soybeans, and natural resources each as coal, copper, iron ore, and lumber |
Supplies | constitute the regular expenses a firm incurs in its daily operations. These expenses do not become become part of the buyer'es final products |
MRO Items | Supplies, which fall into (1)Maintenance items (2)repair items (3)operating supplies |
Business services | intangible products firms buy to facilitate their production and operating processes |
Total quality management | continuous effort to improve products and work processes with the goal of achieving customer satisfaction and world-class performance |
benchmarking | important tools used to set performance standards, to achieve superior performance that results in a competitive advantage in the marketplace |
Service encounter | the point at which the customer and service provider interact. Employees such as bank tellers, cashiers, and customer service representatives have a powerful impact on their customers' decision to return or not |
Service quality | refers to the expected and perceived quality of a service offering, and it has a huge effect on the competitiveness of a company |
Variables that determine service quality | tangible, reliability, responsiveness, assurances, empathy |
product line | series of related products offered by one company |
product mix | is a company's assortment of product lines and individual product offerings |
Width of Product mix | refers to the number of product lines the firm offers |
Length of Product mix | refers to the number of different products a firm sells |
depth of Product depth | refers to variations in each product the firm markets in its mix |
Line extension | adds individual offerings that appeal to different market segments while remaining closely related to the existing product line |
Product lifecycle | progression of a product through introduction growth , maturity, and decline stages |
introductory stage | a firm works to stimulate demand for the nw market entry. Products in this stage might bring new technology to a product category |
Growth Stage | sales volume rises rapidly as new customers make initial purchases and early buyers repurchase the product, such as camera phones and gps devices |
Maturity Stage | sales of a product category continue to grow during the early part, but eventually reach a plateau as the backlog of potential customers dwindles |
Decline Stage | innovations or shifts in consumer preferences bring about an absolute decline in industry sales |
Extension of the product lifecycle | (1)increasing frequency of use (2)increasing number of users (3)finding new uses (4)changing package sizes, labels, or product quality |