Products and Services in Marketing

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Questions and Answers

What is the main reason for purchasing a product according to the text?

Service-based add-ons upon purchasing
Tangible characteristics of the product
The benefit that a consumer can gain from using the product (correct)
Features and packaging of the product

How do services differ from products as mentioned in the text?

Products are directly delivered to customers, while services are intangible and used by customers
Products are tangible, while services are intangible and directly delivered to customers (correct)
Products are intangible, while services are tangible and directly delivered to customers
Services are tangible, while products are intangible and used by customers

What do industrial goods refer to based on the information provided?

Products and services purchased by customers for their own use
Tangible characteristics of the product, including its features and packaging
Goods used in the creation of a new product which will be sold to others (correct)
Service-based add-ons that customers are entitled to upon purchasing the product

What is the process of conceptualization and creation of innovative products called as per the text?

Idea generation (A) Signup and view all the answers

What are consumer goods based on the information provided?

Products and services purchased by customers for their own use (B) Signup and view all the answers

What does the augmented product level refer to according to the text?

Service-based add-ons that customers are entitled to upon purchasing the product (B) Signup and view all the answers

What is the purpose of test marketing in the new product development process?

To test the marketability with a specific group of customers in a specific location (B) Signup and view all the answers

What is the next step after idea screening in the new product development process?

Market and business planning (A) Signup and view all the answers

What is involved in the concept development and screening stage in the new product development process?

Carefully scrutinizing ideas to retain only those with potential for successful sales performance (D) Signup and view all the answers

What is a product line according to the provided text?

A group of similar products offered by the same company under the same brand (A) Signup and view all the answers

What is the stage when the product is launched in the market called?

Introduction (A) Signup and view all the answers

What is the purpose of commercialization in the new product development process?

To make the final decision on launching the product (D) Signup and view all the answers

What occurs during the growth stage in the new product development process?

The product gains acceptance in the market and company profits start to increase (A) Signup and view all the answers

What does idea screening involve in the new product development process?

Carefully scrutinizing ideas to retain only those with potential for successful sales performance (B) Signup and view all the answers

Which step involves expanding and testing the concept of a new product with a group of customers?

Concept development and screening (C) Signup and view all the answers

What does market and business planning involve in the new product development process?

Identifying target market, characterizing it, planning profit objectives, and identifying 4Ps components (D) Signup and view all the answers

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Study Notes

Product and Services

The main reason for purchasing a product is to satisfy a need or want.

Products vs Services

Services differ from products in that they are intangible, perishable, and cannot be stored or transported.

Product Classification

Industrial goods refer to products used for business or industrial purposes, such as machinery, equipment, and raw materials.

New Product Development Process

The process of conceptualization and creation of innovative products is called innovation.
The new product development process involves several stages, including:

Idea Generation and Screening

Idea screening involves evaluating and selecting promising ideas from a pool of potential ideas.

Concept Development and Screening

Concept development and screening involve refining and evaluating product concepts to determine their feasibility and potential.

Product Testing and Validation

Test marketing aims to test the product with a small group of customers to gather feedback and refine the product.

Product Launch and Commercialization

The next step after idea screening is concept development and screening.
The stage when the product is launched in the market is called commercialization.
Commercialization involves the launch and promotion of the product to the target market.

Product Life Cycle

During the growth stage, the product gains popularity, and sales increase rapidly.

Additional Stages

Business analysis involves evaluating the feasibility and profitability of a product idea.
Market and business planning involve creating a detailed plan for the product's launch and marketing strategy.
Concept testing involves expanding and testing the concept of a new product with a group of customers.