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
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