chapter 7 Flashcards
A product is more than a simple set of tangible features. Each product or service offered to customers can be viewed on three different levels
- Core customer value
- Actual product
- Augmented product
Core customer value
Consists of the core problem solving benefits that consumers seek when they buy a product
Actual product
Exists around the core and includes the quality level, features, design, brand name, and packaging
Augmented product
The actual product plus the various services and benefits offered with it, such as a warranty, free delivery, installation, and maintenance
Products are
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
Services are
Products that consist of activities, benefits, or satisfactions offered for sale that are essentially intangible, such as banking, tax preparation etc
Products and services fall into two broad classes based on the type of consumers who use them which are
Consumer and Industrial products
Consumer products are
Bought by final consumers and are usually classified according to consumer shopping habits
Industrial products are
Those purchased for further processing or use in conducting business including materials and parts, capital items, and supplies and services
Product attributes are
Decisions which involve product quality, features, and style and design
Branding is
making decisions which include selecting a brand name and developing a brand strategy
Packaging
Provides many key benefits, such as protection, economy, convenience, and promotion
Package design often includes
Designing labels, which identify, describe, and possibly promote the product
Companies also develop product support services that
Enhance customer service and satisfaction and safeguard against competitors
Product lines are
A group of products that are related in function, customer purchase needs, or distribution channels
