Kotler 2020, Marketing Chapter 10 - Products and Services

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the first step in the new product development process?

Idea generation (correct)

Launch planning

Market analysis

Product testing

Which source primarily involves the insights and suggestions of employees within the company?

Suppliers

Competitors

Internal sources (correct)

Marketing channels

How can marketers contribute to the idea generation process?

By judging the viability of ideas in the marketplace (correct)

By only conducting market surveys

By providing technical expertise

By managing product launches exclusively

What role do external sources play in idea generation?

They offer ideas based on consumer problems and new product possibilities. Signup and view all the answers

What kind of internal initiatives can encourage idea generation among employees?

Social networks and intrapreneurial programs Signup and view all the answers

Which of the following factors does NOT contribute to successful new product development?

Prolonged random experimentation Signup and view all the answers

What might hinder effective collaboration between marketers and engineers in the idea development process?

Tensions due to differing expertise and priorities Signup and view all the answers

What is one potential benefit of using a hackday concept in a company like LinkedIn?

Encouragement of innovative thinking without constraints Signup and view all the answers

What is the primary goal of business analysis in the product development process?

To assess the business attractiveness of a product proposal Signup and view all the answers

Which of the following best describes product development?

Translating the product concept into a physical product Signup and view all the answers

Which aspect of product development is most important during the testing phase?

Involving actual customers in the product testing Signup and view all the answers

What is a major risk associated with product development?

The potential for lengthy development timelines Signup and view all the answers

How does a company typically estimate potential sales for a new product?

By examining the sales history of similar products and conducting market surveys Signup and view all the answers

What role does R&D play in product development?

To develop and test physical versions of the product concept Signup and view all the answers

What is a significant investment consideration during the product development phase?

The financial commitment required to develop a working prototype Signup and view all the answers

What is one of the potential outcomes if a product concept fails the business test?

The company will abandon the concept and review alternatives Signup and view all the answers

What comprises the product mix offered by a seller?

The total range of products and services Signup and view all the answers

What dimension of the product mix refers to the total number of items in a product line?

Length Signup and view all the answers

Which characteristic of services involves their inability to be stored or saved?

Perishability Signup and view all the answers

Why do marketers try to make services more tangible?

To enhance customer understanding Signup and view all the answers

What is the service-profit chain primarily used to link?

Employee engagement and customer satisfaction Signup and view all the answers

What marketing strategy is crucial for service companies to motivate employees?

Internal marketing Signup and view all the answers

What does service-dominant logic in marketing focus on?

Services as the primary offer over goods Signup and view all the answers

Which of the following is NOT included in the concept of products according to the discussed perspective?

Policies Signup and view all the answers

What is the primary purpose of product labels?

To identify the product or brand and relay important information to customers Signup and view all the answers

What type of concerns have historically been associated with product labeling?

False, misleading or deceptive labels leading to unfair competition Signup and view all the answers

How can customer service strategy impact future sales?

By ensuring that customers experience good service, leading to repeat purchases Signup and view all the answers

What is a product line?

A group of products that are closely related in function or target market Signup and view all the answers

What role do focus group interviews play in customer support strategy?

To gather feedback and assess the value of current services Signup and view all the answers

What is a significant outcome of providing good customer service, according to research?

Customers are five times more likely to repurchase from the same brand Signup and view all the answers

What might labels fail to include that raises concerns among consumers?

Important ingredients and safety warnings Signup and view all the answers

What aspect of product strategy can enhance customer satisfaction and profitability?

Identifying and fixing issues in support services Signup and view all the answers

What effect does provider-customer interaction have on service outcomes?

It influences the service outcome positively or negatively. Signup and view all the answers

What does service variability indicate?

Service quality can vary based on several factors. Signup and view all the answers

Why do doctors charge for missed appointments?

Because the service value is lost if the appointment is missed. Signup and view all the answers

What challenge do service firms face when demand fluctuates?

Finding enough qualified employees to match demand. Signup and view all the answers

How do hotels encourage guests during off-peak seasons?

By offering discounts to compete for bookings. Signup and view all the answers

What makes marketing strategies for service firms different from those for tangible goods?

Services cannot be stored and require immediate consumption. Signup and view all the answers

What is the primary promise made by Radisson Blu to its guests?

100% satisfaction guarantee or no payment. Signup and view all the answers

What does service perishability imply?

A service must be consumed immediately or loses value. Signup and view all the answers

What is social marketing primarily aimed at influencing?

Individuals' behavior for societal improvement Signup and view all the answers

Which of the following best exemplifies personal marketing?

Greta Thunberg advocating for climate change Signup and view all the answers

What is the primary focus of employer branding?

Marketing the organization to potential employees Signup and view all the answers

What does the product life cycle (PLC) model help marketers do?

Evaluate and plan marketing strategies Signup and view all the answers

Which of the following is NOT a factor in the product life cycle?

Marketing budget Signup and view all the answers

In the context of marketing, which of the following statements is true about ideas?

All marketing involves some aspect of idea promotion. Signup and view all the answers

Which of the following individuals is NOT typically associated with personal marketing?

A large public corporation Signup and view all the answers

Nike's annual spending on athlete endorsements is closest to what amount?

$1 billion Signup and view all the answers

Study Notes

Chapter 10 - Products and Services

Mini Contents:
- Company case: Samsung, enriching customers' lives through new-product development
- What is a product?
- Company case - Financial services: Max Matthiessen
- The product life cycle
- New product development strategy
- Product and service decisions
- Real Marketing - Nestlé: how the food industry leader utilizes new product development and innovation
- Services marketing
Chapter Preview:
- Understanding the marketing mix (tactical tools marketers use)
- Key aspect is product development (studied in this chapter)
- Product, pricing, marketing channels, and communication tools will be studied later.
Learning Objectives:
- Define product and major product categories/classifications (goods and services)
- Describe decisions about individual products and services, product lines, and product mixes
- Identify the four service characteristics that affect service marketing; additional service marketing considerations
What is a Product?
- Products aim to create customer relationships and are bundles of things that satisfy customer wants and needs.
- Products range from tangible goods (e.g., cars) to intangible services (e.g., banking)
- This extends to places, events, and people.
Product Classifications:
- The text outlines different product types based on how consumers buy products (Convenience, Shopping, Specialty, Unsought) and industrial products
Product and Service Decisions:
- Importance of individual products, product lines, and product mixes
Product Line Length: An analysis of factors affecting the product mix (the complete range of products offered) (the number of items/products in a product line)
- Line filling: adding more items to a product line (ex. More models of a car)
- Line stretching: increasing the range of a product line (ex. Expanding to a wider range of price points or markets)
Product Mix Decisions:
- Understanding the product portfolio (all product lines a company offers)
- Analyzing consistency to see if items are related
- Product mix depth (The number of versions of a product offered)
- Important aspects of product mix
New Product Development Strategy:
- Firms can get new products through:
  - Acquisition (buying a whole company, a patent, a new product)
  - New product development efforts (original products, improvements, modifications, new brands)
- Stages in New Product Development:
  - Idea generation
  - Idea screening
  - Concept development and testing
  - Marketing strategy development
  - Business analysis
  - Product development
  - Test marketing
  - Commercialization

Product Decisions & Attributes

Product Quality:
- Freedom from defects
- Ability to satisfy customer needs (performance quality)
- Consistency in quality (conformance quality)
Product Features:
- Attributes that distinguish products or services
Branding or Logos:
- Company Identity (helps promote products)
Packaging:
- Essential for product protection and marketing
Labelling:
- Identifies, describes, and promotes products (can include additional legal or safety warnings)
Product Support Services:
- Includes things like customer service
- Improves overall customer experience

Service Decisions

Service Characteristics: Intangibility, inseparability, variability, and perishability.
- Intangibility: Services can't be seen, tasted, or held before purchase.
- Inseparability: Service and service provider are connected; both affect quality.
- Variability: Service quality depends on who provides it, when, where, and how.
- Perishability: Services cannot be stored for later use; requires matching demand and supply.
Managing Service Productivity
- Employees, training, equipment
Managing Service Quality
- Customer service, employee empowerment, and quality control

Marketing Strategy

External marketing: Activities to promote your product to customers
Internal marketing: Activities to promote your brand to employees
Interactive marketing: Activities that promote your brand through interactions with your customers
Service-dominant logic: The perspective that a service provider is a key part of a product

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz explores key concepts from Chapter 10 on products and services in marketing. Topics include new product development strategies, the product life cycle, and case studies from industry leaders such as Samsung and Nestlé. Dive into how product decisions impact marketing mix and service marketing.