M300 Chapter 9 Slide Notes

  1. Product
    It is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers, and is received in exchange for money or some other unit of value.

    The life of a company often depends on how it conceives, produces, and markets new products.

    Products can be:physical goods,services,ideas,people, or places
  2. product line
    A product line is a group of products that are closely related because they:– satisfy a class of needs;    – are used together;– are sold to the same customer group; – are distributed through the same type of outlets; – or fall within a given price range.
  3. product mix
    The product mix is the number of product lines offered by a company
  4. Durable vs Non-Durable
    Durable - high Involvment, long term benefit

    Non-durable - Wide distribution and heavy consumers advertising are essential
  5. Core product
    Core Product — actual benefits received by consumer. Theodore Levitt said, “buyers do not buy quarter-inch drills; they buy quarter-inch holes.”    - An automobile that transports people from point A to point B.    - A watch that tells time very accurately.
  6. actual product
    Actual Product — the quality level, features, design,      packaging, and brand name of the product.
  7. Augmented Product
    — delivery and credit, warranty, and after-sale service associated with the product
  8. Desired Product  —
    the product consumers really want
  9. convenience products
    products that are purchased frequently, immediately, and with a minimum of effort.
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M300 Chapter 9 Slide Notes