m&m ch 12 quiz

Product Features

tangible and intangible qualities that a company builds into its products

Value Package

a product is marketed as a bundle of value-adding attributes, including a reasonable cost

Consumer

person who purchases products for personal use

Industrial Buyer

a company or other organization that buys products for use in producing other products (goods or services)

Convenience Goods and Services

inexpensive physical goods and services that are consumed rapidly and regularly

Shopping Goods and Services

moderately expensive, infrequently purchased physical goods or services

Specialty Goods and Services

expensive, rarely purchased physical goods and services

Table 12.1 Consumer Products

Classifying Organizational Products

- Production items

- Expense items

- Capital items

Production items

goods or services that are used in the conversion (production) process to make other products

Expense Items

industrial products purchased and consumed within a year by firms producing other products

Capital Items

expensive, long-lasting, infrequently purchased industrial products, such as a building, or industrial services, such as a long-term agreement for data warehousing services

Table 12.2 Organizational Product

The Product Mix

-The product mix

-product line

Product Mix

groups of products that a firm makes available for sale

Product Line

a group of products that are closely related because they function in a similar manner, or are sold to the same customer groups who will use them in similar ways

Portfolio Analysis

- Management's evaluation of the products and businesses that make up the company

- Direct resources toward more profitable businesses and phase down or drop its weaker ones

Boston Consulting Group Matrix (BCG)

Method of analyzing the product portfolio of a business in terms of market share and market growth

- Analyze performance and current position of existing portfolios

- Planning action to be taken with existing products

- Planning introduction of new products

Market share

the percentage of sales in the total market sold by one business

Market growth

The percentage change in the total size of a market (volume or value) over a period of time.

Invest

grow the product

Milk

use the cash flow to invest in other products

Build

selectively invest

Divest

exit, sell or replace product

Product Positioning

how a new brand will relate to other brands in the market in the minds of consumers

Product Position Map/Perception Map

a graph that analyses consumer perceptions of each of a group of competing products in respect of two product characteristics

Uses for Product Position/Perception Map

The product position/perception map may be used to analyze

- Potential gaps in the market

- 'Niche' potential for products

- Opportunities for repositioning

Differences in the Process for Services

Differences in the development of Services

1) Service Idea

2) Screening

3) Concept testing

4) Business analysis

5) Services process design

6) Product testing and test marketing

7) Commercialization

(only 1 and 5 are different)

1. Service Idea

Defining the service value package, identifying tangible and intangible features, and stating service specifications

5. Service process design

1. Process selection

2. Worker requirements

3. Facility requirements

Process Selection

identifying each step of the service, including sequence and timing

Worker Requirements

stating employee behaviors, skills, capabilities, and interactions with customers during service performance

Facility Requirements

Designate all equipment that supports delivery at the service