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Marketing Mix: Product and Services Strategy
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Marketing Mix: Product and Services Strategy

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Questions and Answers

What is a product?

Anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want.

How are consumer products classified based on consumer buying behavior?

  • Convenience products (correct)
  • Specialty products (correct)
  • Unsought products (correct)
  • Shopping products (correct)
  • ____ products are consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort.

    Convenience

    Specialty products are consumer products that have no unique characteristics or brand identification.

    <p>False</p> Signup and view all the answers

    Match the following product attributes with their descriptions:

    <p>Product Quality = Refers to the quality level and conformance quality Features = Characteristics that deliver benefits to satisfy needs Brand = Identifies the maker or seller of a product Packaging = Designing and producing the container or wrapper</p> Signup and view all the answers

    What are some characteristics of the introduction stage in the product life cycle?

    <p>Slow sales growth, Little or no profit, High distribution and promotion expense</p> Signup and view all the answers

    Which stage of the product life cycle involves slow sales growth, many suppliers, substitute products, and increased promotion and R&D?

    <p>Maturity Stage</p> Signup and view all the answers

    In the decline stage of the product life cycle, firms can choose to maintain, harvest, or ____ the product.

    <p>drop</p> Signup and view all the answers

    Interactive marketing in service firms depends heavily on the quality of buyer-seller interaction during the service encounter.

    <p>True</p> Signup and view all the answers

    Match the following service marketing strategies with their descriptions:

    <p>Internal marketing = Motivating customer-contact employees and supporting service employees to work as a team for customer satisfaction Interactive marketing = Emphasizing the quality of buyer-seller interaction during service encounters Service differentiation = Creating a competitive advantage from distinctive service features, delivery, and image Service quality = Delivering consistently higher quality than competitors</p> Signup and view all the answers

    Study Notes

    Products, Services, and Experiences

    • A product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want.
    • A service is a product that consists of activities, benefits, or satisfaction that is essentially intangible and does not result in the ownership of anything.

    Classification of Consumer Products

    • Consumer products are classified into four categories: convenience, shopping, specialty, and unsought products.
    • Convenience products are consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort.
    • Examples of convenience products include newspapers, candy, and fast food.
    • Shopping products are consumer products and services that the customer compares carefully on suitability, quality, price, and style.
    • Examples of shopping products include furniture, cars, and appliances.
    • 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.
    • Examples of specialty products include medical services, designer clothes, and high-end electronics.
    • Unsought products are consumer products that the consumer does not know about or knows about but does not normally think of buying.
    • Examples of unsought products include life insurance, funeral services, and blood donations.

    Individual Product and Service Decisions

    • Product or service attributes communicate and deliver the benefits.
    • Examples of product or service attributes include product quality, features, style, and design.
    • Brand is the name, term, sign, or design that identifies the maker or seller of a product or service.
    • Packaging involves designing and producing the container or wrapper for a product.
    • Labels identify the product or brand, describe attributes, and provide promotion.
    • Product support services include services offered after the sale of a product.

    New-Product Development Process

    • The new-product development process consists of eight stages: idea generation, idea screening, concept development and testing, marketing strategy development, business analysis, product development, test marketing, and commercialization.
    • Idea generation is the systematic search for new-product ideas.
    • Sources of new-product ideas include internal and external sources.
    • Internal sources refer to the company's own formal research and development, management and staff, and intrapreneurial programs.
    • External sources refer to sources outside the company such as customers, competitors, distributors, suppliers, and outside design firms.
    • Idea screening involves identifying good ideas and dropping poor ideas.
    • R-W-W screening framework includes three questions: Is it real? Can we win? Is it worth doing?
    • Concept development and testing involves developing a detailed version of the idea stated in meaningful consumer terms.
    • Concept testing refers to testing new-product concepts with groups of target consumers.
    • Marketing strategy development refers to the initial marketing strategy for introducing the product to the market.
    • Business analysis involves a review of the sales, costs, and profit projections to find out whether they satisfy the company's objectives.
    • Product development involves the creation and testing of one or more physical versions by the R&D or engineering departments.
    • Test marketing involves introducing the product and marketing program into more realistic marketing settings.
    • Commercialization is the introduction of the new product into the market.

    Product Life-Cycle Strategies

    • The product life cycle consists of four stages: introduction, growth, maturity, and decline.
    • Introduction stage involves slow sales growth, little or no profit, high distribution and promotion expense, and high investment costs.
    • Growth stage involves rapid market acceptance, increasing profits, and high promotion and R&D expense.
    • Maturity stage involves slowdown in sales growth, many suppliers, substitute products, overcapacity, and increased promotion and R&D expense.
    • Decline stage involves sales fall off, profits drop, and strategies to maintain, harvest, or drop the product.

    Service Marketing

    • Service marketing involves marketing strategies for service firms.
    • Characteristics of a service include intangibility, inseparability, variability, and perishability.
    • Service-profit chain links service firm profits with employee and customer satisfaction.
    • Internal marketing means that the service firm must orient and motivate its customer contact employees and supporting service people to work as a team to provide customer satisfaction.
    • Interactive marketing means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter.
    • Marketing strategies for service firms include managing service differentiation, service quality, and service productivity.

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    Description

    This quiz covers product and services strategy, including consumer product classification, individual product decisions, new-product development, and product life-cycle strategies. Test your knowledge of marketing mix and product management!

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