Chapter 10 Summary PDF

1 Iyania Messinga Professor Holmes MK 341 19 October 2023 Chapter 10 Summary A product can be classified as a good, a service, or an idea, and can be either tangible or intangible. There are two main categories of products: consumer products and business products. Consumer products are further cate...

1 Iyania Messinga Professor Holmes MK 341 19 October 2023 Chapter 10 Summary A product can be classified as a good, a service, or an idea, and can be either tangible or intangible. There are two main categories of products: consumer products and business products. Consumer products are further categorized into convenience products, shopping products, specialty products, and unsought products, while business products are classified as installation products, accessory equipment, raw materials, component parts, processed materials, and maintenance and repair items. Each category of product offers different features, utilities, and benefits. Business products range from installations such as buildings, factories, warehouses, production lines, and large machines, to accessory equipment like file cabinets, fractional-horsepower motors, calculators, and tools. Raw materials, component parts, process materials, and MRO supplies are all used to make physical products. Business services are intangible products that many organizations use in their operations. Product items are specific versions of a product, while product lines are groups of closely related items and the product mix is the total group of products offered to customers. Product mix can be measured in terms of width (number of product lines) and depth (average number of different product items). 2 During the introduction stage of a product's life cycle, resources, technological knowledge, and marketing expertise are needed to launch the product successfully and initial prices may be high. Most products start off slowly and only 15-25% of new products succeed in the marketplace. During the growth stage, sales rise rapidly and profits reach a peak before declining. A marketing strategy should seek to strengthen market share and position the product favorably while analyzing competing brands. Production expenditures decrease slightly and advertising messages should emphasize brand benefits. Maturity is the stage of a product's life cycle during which sales peak and start to decline as profits continue to fall. This stage is characterized by intense competition due to the presence of many brands in the market. Producers may adjust their promotional and distribution efforts to remain competitive. Consumers have a high level of knowledge of the product, and marketers may expand distribution into global markets, in which case the product must be adapted to better fit the varying needs of customers. To maintain market share, promotion expenditures may be necessary. During the decline stage, sales fall rapidly and marketers must consider eliminating or repositioning the product. Similar or superior products may have been introduced, and new technology, product substitutes, or environmental considerations may play a role in the decline. Promotion efforts are usually reduced and the product becomes harder for consumers to find. In conclusion, a product can be classified as a good, a service, or an idea, and can be either tangible or intangible. Consumer products are further classified into convenience products, shopping products, specialty products, and unsought products, while business products are classified as installation products, accessory equipment, raw materials, component parts, processed materials, and maintenance and repair items. The product life cycle consists of five 3 stages: introduction, growth, maturity, decline, and termination. During each stage, different strategies and tactics are used to remain competitive in the marketplace. Understanding the product life cycle is essential for the success of any product.