Marketing 305 Exam 3 Chapter 9 Product Services o A good service or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers needs and is received I exchange for money or something else of value o Intangible activities or benefits that an organization provides to satisfy consumers needs in exchange for money or something else of value Consumer products o Products purchased by the ultimate consumer o Convenience shopping specialty unsought Business products o Products that organizations buy that assist in providing other products for resale o Passed onto consumer raw products tools that make raw products Difference between convenience products shopping products specialty products and unsought products o Convenience Products frequent purchases little time and effort spent shopping ex o Shopping Products Infrequent purchases needs much comparison shopping time Toothpaste cake mix hand soap ex Camera TVs airline tickets o Specialty Product Infrequent purchases needs extensive research and decision time ex Rolex watch Rolls Royce heart surgery o Unsought Products Very infrequent purchases some comparison shopping ex Burial insurance Derived demand when it comes to business demand o Sales of business products frequently result from the sale of consumer products o Ex consumer demand for Fords increases the company may increase its need for paint spraying equipment Types of supports products o Installations buildings and fixed equipment o Accessory equipment tools and office equipment o Supplies stationary paper clips brooms o Industrial services maintenance repair legal services Classifying services delivery by people business by non profit by government agency o People Equipment Business provide a product or service to customers ex self check in for airlines skilled labor repair people security guards o Non profit Provide a service product to the needy o Government Agency Provide services products to consumers can be sought and unsought goods and services USPS Easy come Easy go How do our expectations change based on services provided by people business by non profit by government agency o People business highest quality because getting paid o Non profit next highest quality because not being paid o Government very low expectations The uniqueness of services intangibility inseparability inconsistency inseparability inventory know what each of these are know examples of each o Intangibility services can t be touched or seen before purchase decision Services tend to be a performance rather than an object ex plumber fixes sink o Inconsistency services depend on people who provide them ex services at a restaurant may be awesome the first time and may suck the next time o Inseparability consumer cannot distinguish the service provider from the service itself ex lectures at college may be awesome but other services like counseling may but be as good o Inventory service provider is available but there is no demand for the service ex if a doctor is being to see patients but no one schedules an appointment the salary must be paid regardless of whether or not the service is performed Be familiar with the five dimensions of services definitions and examples o Reliability ability to perform the promised service dependably and accurately ex on time flight Do we deliver our promises o Tangibility appearance of physical facilities equipment personnel and communication materials clean gate plane and baggage area Do we present a professional image appearance o Responsiveness willingness to help customers and provide prompt service ex flight attendants answering questions Do we respond to our customers in a high quality manner o Assurance knowledge and courtesy of employees and their ability to convey trust and confidence flight attendants and all involved know how to do their job well Do we know and do we appear to know what we are doing o Empathy caring individualized attention provided to customers ex airline personnel assist people with special needs of any kind Do we listen take customer needs concerns seriously and really care about each customer Product line o A group of product or service items that are closely related because they satisfy a class of needs are used together are soled to the same customer group are distributed through the same outlets or fall within a given price range Product mix o Consists of all of the product lines offered by an organization Reasons new products fail from handout I used and posted to RamCT o Insufficient product protocol Insufficient product market research o Blinders caused by bias Offer a product that there isn t a demand for just because you love it and maybe people in your family love it also Same stuff that is in every other store like it o Inadequate competitive analysis o Doesn t meet consumer needs o Too small a target market o Insufficient differentiation o Poor product quality performance o Poor positioning o Inadequate budget o Insufficient access to market o Bad timing o Poor execution of marketing Organizational problems in new product failures pg 205 in 5th edition pg 219 in 4th o Not really listening to the voice of the consumer o Skipping stages in the new product process o Pushing poorly conceived product into the market to generate quick revenue o Encountering groupthink in task force and committee meetings o Not learning critical takeaway lessons from past failures o Avoiding the NIH problem not invented here The new product process starting on pg 207 in 5th edition pg 220 in 4th o New product strategy development o Idea generation o Screening and evaluation o Business analysis o Development o Market testing o Commercialization o Chapter 10 Product life cycle o Introduction Determinants of intro phase Complexity of the product Popularity features Marketing exposure o Growth o Maturity Causes of maturity Market saturation Change in technology or tastes o Decline Be familiar with the typical product life cycle graph with its four stages introduction growth maturity decline Understand the circumstances under which a stage out of the four stages of that life cycle might be lengthened or shortened Understand the circumstance s under which a product or industry might keep the maturity stage going on at a flat level without experiencing a dip into decline Be familiar with what a product life cycle would look like for a high learning product a low learning product a fashion product or a fad product What about a