Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
38 Cards in this Set
- Front
- Back
What is the Marketing Mix?
|
The blending of the four strategy elements:
product price promotion place to fit the needs and preferences of a specific target market |
|
What is a product?
|
A bundle of physical, service, and symbolic attributes designed to satisfy a customer's wants and needs
|
|
What is a service?
|
Intangible tasks that satisfy the needs of consumers and business users
|
|
What are goods?
|
Tangible products that customers can see, hear, smell, taste, or touch
|
|
Goods services continuum
|
Spectrum along which goods and services fall according to their attributes, from pure good to pure service
|
|
What are some characteristics of services?
|
-intangible
-inseparable from the service providers -perishable -cannot be standardized -buyers play important roles in the creation and distribution of services -wide variations in service standards |
|
Importanceof the Service Sector
|
Mostservice firms emphasize marketing as a significant activity for two reasons:
•Growth potential of service transactionsrepresents a vast marketing opportunity •Environment for services is changing |
|
Consumer (B2C) products
|
Productdestined for use by ultimate consumers
|
|
Business (B2B) products
|
Productthat contributes directly or indirectly to the output of other products forresale; also called industrial or organizational product
|
|
Classificationof Consumer Products
|
|
|
ClassifyingConsumer Services: Marketersrely on five questions to classify services
|
What is the nature of the service?
What type of relationship does theservice organization have with its customers? How much flexibility is there forcustomization and judgment on the part of the service provider? Do demand and supply for the servicefluctuate? How is the service delivered? |
|
Applyingthe Consumer Products Classification System: Classificationsystem poses a few problems name a few of them
|
•Obstacle to implementing this systemresults from the suggestion that all goods and services must fit within one ofthe three categories: •Convenience goods
•Shopping goods •Specialty goods •Problem emerges because consumers differin their buying patterns |
|
MarketingImpact of the Consumer Products Classification System
|
|
|
Classificationof Business Products
|
|
|
MarketingImpact of the Business Products Classification System
|
|
|
Define Quality
|
A keycomponent to a firm’s success in a competitive marketplace
|
|
Total qualitymanagement (TQM)
|
Continuouseffort to improve products and work processes with the goal of achievingcustomer satisfaction and world-class performance
|
|
Benchmarking
|
Measuringquality by comparing performance against industry leaders
Involvesthree main activities •Identifying manufacturing or businessprocesses that need improvement •Comparing internal processes to those ofindustry leaders •Implementing changes for qualityimprovement Requirestwo types of analyses: internal and external •Company must first analyze its ownactivities to determine strengths and weaknesses•External analysis involves gatheringinformation about the benchmark partner, to find out why the partner isperceived as the industry’s best |
|
Service encounter
|
Pointat which the customer and service providerinteract
|
|
Service quality
|
Expectedand perceived quality of a service offering
|
|
Qualityof Services. Determinedby five variables:
|
•Tangibles•Reliability•Responsiveness•Assurances•Empathy
|
|
Product line
|
Seriesof related products
Desireto grow •Growth potential is limited if a companyfocuses on a single product |
|
TheProduct Mix
|
Assortment of product lines and individual product offerings
|
|
Product mix width
|
Number of product lines a firm offers
|
|
Product mix length
|
Number of different products a firm sells
|
|
Product mix depth
|
Variations in each product that the firm markets
|
|
Product Mix Decisions
|
To evaluate a firm’s product mix, marketers look at the effectiveness of its depth, length, and width
Firms may decide to add to their mixes by purchasing product lines from other companies |
|
Line extension
|
Development of individual offerings that appeal to different market segments while remaining closely related to the existing product line
|
|
Stages in the Product Lifecycle
|
|
|
Introductory stage
|
•Products in this stage might bring newtechnology to a product category
•Technical problems and financial lossesare common |
|
Growth stage
|
•Sales volume rises rapidly as newcustomers make initial purchases and early buyers repurchase the product
|
|
Maturity stage
|
•Sales of a product category continue togrow during the early part of this stage but eventually reach a plateau as thebacklog of potential customers dwindles
|
|
Decline stage
|
•Innovations or shifts in consumerpreferences bring about an absolute decline in industry sales
|
|
Extending the Product Lifecycle
|
-Increasing frequency of use
-Increasing the number of users -Finding new uses -Changing package sizes, labels, or product quality |
|
Increasing frequency of use
|
•Convincingcurrent customers to buy a product more frequently boosts total sales even ifno new buyers enter the market
|
|
Increasing the number of users
|
•Attracting new customers who have notpreviously used the product
|
|
Finding new uses
|
•New applications extend a product’slifecycle
|
|
Changing package sizes, labels, orproduct quality
|
•New packaging and labels with updatedimages and slogans can help revitalize a product
|