1. Service
    An action that provides a buyer with an intangible benefit. (Ex. a haircut)
  2. Offering
    Products and services designed to deliver value to customers to fulfill needs/satisfy wants
  3. Feature
    A characteristic of an offering.
  4. Benefit
    A feature that satisfies a want or need.
  5. Total Cost of Ownership
    The amount of money paid to own, use and dispose of a product.
  6. "Pure" Service
    When the experience/service is the only thing the customer walks away with.
  7. Product-oriented approach
    The best way to capture the market share to create and manufacture better products at lower prices
  8. Service-oriented approach
    • Integrates product, price and service dimensions of an offering.
    • Service is required to acquire, enjoy and dispose of a product.
    • Focus on what customers want.
  9. 4 service characteristics
    • 1. intangibility
    • 2. perishability
    • 3. variability
    • 4. inseparability
  10. intangibility
    find a way to give consumer something to walk away with after service (Ex: checklist or evaluation) **tangibilize the intangible
  11. perishability
    service or opportunity for profit can expire (Ex: empty hotel rooms or plane seats = lost profit) **control demand through price
  12. variability
    • quality of service varies betwen competitors **quality control KEY challenge
    • (Ex: 1. training
    • 2. processes - defined order in which things are done, systemizing/standardizing
    • 3. measure & evaluate - system to ensure & judge efficiency )
  13. inseparability
    • increase productivity by adding personnel
    • **increase productivity or the core person delivering the service
    • (Ex: nurses & assistants, technology)
  14. Product line
    Group of related offerings
  15. Line Depth
    how many offerings there are in a single product line
  16. Line Extension
    new but similar products added to product line
  17. Line Breadth
    function of how many different/distinct product lines a company has
  18. Product Mix
    entire assortment of products a firm offers
  19. Technology Platform
    Core technology on which product is built. Defines the features. Not limited to tangible products.
  20. What are the 4 Consumer Offerings?
    • 1. Convenience Offerings
    • 2. Shopping Offerings
    • 3. Specialty Offerings
    • 4. Unsought Offerings
  21. Convenience Offering
    • -don't put much effort into shopping
    • - small difference between brands
    • ex. bread
    • (impulse offerings: items purchased w/o planning)
  22. Shopping Offering
    • - make effort to compare and select brand
    • - more expensive
    • - research & read reviews
  23. Specialty Offering
    • - highly differentiated offerings
    • - brands diffrent across companies
    • - purchased less frequently than convenience offerings
    • - build brand recognition and educate consumers about products key differences
    • - luxury goods, exclusive distribution
  24. Unsought Offerings
    • - consumers shop for product only when needed
    • - ex. tow truck, funeral service
  25. 5 Business Offerings
    • 1. Capital equipment
    • 2. Raw materials
    • 3. Original equipment manufacturer (OEM)
    • 4. Maintenance, repair and operating (MRO)
    • 5. Facilitating
  26. Capital Equipment
    equipment purchased and used for more than one year
  27. Raw materials
    materials offered by firms so that other firms can make a product or provide a service
  28. OEM or components
    raw materials, manufactured materials and component parts used to make a final product
  29. Maintenance, repair and operating (MRO)
    Janitorial supplies or hardware used to repair equipment
  30. Facilitating
    P & S that support company's operations but aren't part of the final products it sells such as supplies
  31. branding
    set of activities designed to create a brand and position it in the minds of consumers
  32. brand name
    spoken part of brand's identity
  33. brand mark
    symbol associated with brand
  34. cannibalization
    occurs when a firm's new offerings eats into sales of older offerings, comes from brand extension
  35. functions of packaging
    • 1. protects products from damage, contamination, leakage, and tampering
    • 2. used to communicate brand's benefits, product warnings and proper use
  36. primary packaging
    holds single retail unit of a product
  37. secondary packaging
    holds single wholesale unit of a product
  38. tertiary packaging
    packaging designed especially for shipping and efficiently handling large quantities
  39. brand manager
    person responsible for all business positions regarding one brand
  40. product manager
    someone with business responsibility for particular product or product line
  41. category manager
    business responsibility for decisions withing broad grouping of offerings
  42. market manager
    responsible for business decisions within a market
Card Set
chapter 6