Study Guide > Chapter 8 Marketing Notes – Developing/Managing Products and Services

Chapter 8 Marketing Notes – Developing/Managing Products and Services Product- anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need Services: prod ...

Chapter 8 Marketing Notes – Developing/Managing Products and Services Product- anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need Services: product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything Product is a key element in the overall market offering pure tangible good, such as soap, toothpaste, or salt pure services, for which the offer consists primarily, or solely, of a service; credit cards Core customer value, which addresses the question “What is the buyer really buying?” Actual product—the physical device with all its features and associated brand name and packaging Augmented product—the additional services and benefits that go with it Consumer Products- are purchased by consumers for their personal (i.e., nonbusiness) use Convenience Products- are consumer products and services that customers usually buy frequently, immediately, and with a minimum of comparison and buying effort Shopping Products- are less frequently purchased consumer products and services that shoppers compare carefully on suitability, quality, price, and style Specialty Products- are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort Unsought Products- are consumer products that the consumer either does not know about or knows about but does not normally think of buying Industrial Products- A product bought by individuals and organizations for further processing or for use in conducting a business The three groups of industrial products and services are materials and parts, capital items, and supplies and services; Materials and parts include raw materials and manufactured materials and parts.  Raw materials consist of farm products (wheat, cotton, livestock) and natural products (fish)  Manufactured materials and parts consist of component materials (iron) and component parts (small motors) Capital items are industrial products that aid in the buyer’s production or operations, including installations and accessory equipment supplies and services  Supplies include operating supplies (lubricants, coal, paper, pencils) and repair and maintenance items (paint, nails, brooms)  Business services include maintenance and repair services (window cleaning, computer repair) and business advisory services (legal, management consulting, advertising) New-product Development- the development of original products, product improvements, product modifications, and new brands through the firms own product development efforts Diffusion of Innovation Theory- a social sciences theory that divides members of a social group into segments according to how likely they are to adopt a new idea Technology Adoption Life Cycle- a marketing theory that proposes that when marketing a technology product, marketers must cross a chasm, or a significant gap, between members of the early adopter’s segment and members of the early majority segment, before a new product will become successful