MKTG 409 Exam 3 MindTap Study Guide – Product Strategy, Pricing & Marketing
Mix Review
product - ✔✔- A good, a service, or an idea received in an exchange.
- It can be either tangible or intangible and includes functional, social, and psychological utilities
or benefits.
good - ✔✔- A tangible physical entity, such as an iPad or a Subway sandwich.
service - ✔✔- Is intangible.
- It is the result of the application of human and mechanical efforts to people or objects.
- EX: a performance by Beyonce, online car insurance, a medical examination
idea - ✔✔- A concept, philosophy, image, or issue.
- Ideas provide the psychological stimulation that aids in solving problems or adjusting to the
environment.
total product offering: - ✔✔Has three interdependent elements:
- the core product
- its supplemental features
- its symbolic or experiential benefits.
core product - ✔✔- Consists of a product's fundamental utility or main benefit and usually
addresses a fundamental need of the consumer.
supplemental features - ✔✔- Provide added value or attributes that are in addition to the
product's core utility or benefit.
,- Supplemental product features often include perks such as free installation, guarantees,
product information, promises of repair or maintenance, delivery, training, or financing.
symbolic benefits - ✔✔- Customers also receive benefits based on their experiences with the
product, which give symbolic meaning to many products (and brands) for buyers.
- The atmosphere and décor of a retail store, the variety and depth of product choices, the
customer support, and even the sounds and smells all contribute to the experiential element.
consumer products - ✔✔Products purchased to satisfy personal and family needs
business products - ✔✔- Those bought to use in a firm's operations, to resell, or to make other
products.
- Business buyers seek to satisfy the goals of their organizations.
- Business products are usually purchased on the basis of an organization's goals and objectives.
four types of consumer products: - ✔✔- Convenience
- Shopping
- Specialty
- Unsought products.
convenience products - ✔✔- Are relatively inexpensive, frequently purchased items for which
buyers exert only minimal purchasing effort.
- The buyer spends little time planning the purchase or comparing available brands or sellers.
- Even a buyer who prefers a specific brand will generally choose a substitute if the preferred
brand is not conveniently available.
- Because sellers experience high inventory turnover, per-unit gross margins can be relatively
low.
- Packaging and displays are also important because many convenience items are available only
on a self-service basis at the retail level.
,shopping products - ✔✔- Are items for which buyers are willing to expend considerable effort
in planning and making the purchase.
- Buyers spend considerable time comparing stores and brands with respect to prices, product
features, qualities, services, and perhaps warranties.
- These products are expected to last a fairly long time and are more expensive than
convenience products.
- Inventory turnover is lower, and marketing channel members expect to receive higher gross
margins to compensate for the lower turnover.
- In certain situations, both shopping products and convenience products may be marketed in
the same location.
- A marketer must consider several key issues to market a shopping product effectively,
including how to allocate resources, whether personal selling is needed, and cooperation within
the supply chain.
specialty products - ✔✔- Possess one or more unique characteristics, and generally buyers are
willing to expend considerable effort to obtain them.
- On average, this is the most expensive category of products.
- Buyers conduct research, plan the purchase of a specialty product, know exactly what they
want, and will not accept a substitute.
- Specialty products are often distributed through a very limited number of retail outlets.
- They are purchased infrequently, causing lower inventory turnover and thus requiring high
gross margins to be profitable.
unsought products - ✔✔- Are those purchased when a sudden problem must be solved,
products of which customers are unaware until they see them in a store or online, and products
that people do not plan on purchasing.
- Emergency medical services and automobile repairs are examples of products needed quickly
and suddenly to solve a problem.
, seven categories of business products: - ✔✔- Installations
- Accessory equipment
- Raw materials
- Component parts
- Process materials
- MRO supplies (maintenance, repair, and operating)
- Business services.
installations - ✔✔- Include facilities, such as office buildings, factories, and warehouses, and
major nonportable equipment such as production lines and very large machines.
- Normally, installations are expensive and intended to be used for a considerable length of
time.
- Often made by high-level management
- Marketers of installations must frequently provide a variety of services, including training,
repairs, maintenance assistance, and even aid in financing.
accessory equipment - ✔✔- Does not become part of the final physical product but is used in
production or office activities.
- Examples include file cabinets, fractional-horsepower motors, calculators, and tools.
- Compared with major equipment, accessory items usually are less expensive, purchased
routinely with less negotiation, and are often treated as expense items rather than capital items
because they are not expected to last as long.
raw materials - ✔✔- Are the basic natural materials that actually become part of a physical
product.
- They include minerals, chemicals, agricultural products, and materials from forests and oceans
component parts - ✔✔- Become part of the physical product and are either finished items
ready for assembly or products that need little processing before assembly.
Mix Review
product - ✔✔- A good, a service, or an idea received in an exchange.
- It can be either tangible or intangible and includes functional, social, and psychological utilities
or benefits.
good - ✔✔- A tangible physical entity, such as an iPad or a Subway sandwich.
service - ✔✔- Is intangible.
- It is the result of the application of human and mechanical efforts to people or objects.
- EX: a performance by Beyonce, online car insurance, a medical examination
idea - ✔✔- A concept, philosophy, image, or issue.
- Ideas provide the psychological stimulation that aids in solving problems or adjusting to the
environment.
total product offering: - ✔✔Has three interdependent elements:
- the core product
- its supplemental features
- its symbolic or experiential benefits.
core product - ✔✔- Consists of a product's fundamental utility or main benefit and usually
addresses a fundamental need of the consumer.
supplemental features - ✔✔- Provide added value or attributes that are in addition to the
product's core utility or benefit.
,- Supplemental product features often include perks such as free installation, guarantees,
product information, promises of repair or maintenance, delivery, training, or financing.
symbolic benefits - ✔✔- Customers also receive benefits based on their experiences with the
product, which give symbolic meaning to many products (and brands) for buyers.
- The atmosphere and décor of a retail store, the variety and depth of product choices, the
customer support, and even the sounds and smells all contribute to the experiential element.
consumer products - ✔✔Products purchased to satisfy personal and family needs
business products - ✔✔- Those bought to use in a firm's operations, to resell, or to make other
products.
- Business buyers seek to satisfy the goals of their organizations.
- Business products are usually purchased on the basis of an organization's goals and objectives.
four types of consumer products: - ✔✔- Convenience
- Shopping
- Specialty
- Unsought products.
convenience products - ✔✔- Are relatively inexpensive, frequently purchased items for which
buyers exert only minimal purchasing effort.
- The buyer spends little time planning the purchase or comparing available brands or sellers.
- Even a buyer who prefers a specific brand will generally choose a substitute if the preferred
brand is not conveniently available.
- Because sellers experience high inventory turnover, per-unit gross margins can be relatively
low.
- Packaging and displays are also important because many convenience items are available only
on a self-service basis at the retail level.
,shopping products - ✔✔- Are items for which buyers are willing to expend considerable effort
in planning and making the purchase.
- Buyers spend considerable time comparing stores and brands with respect to prices, product
features, qualities, services, and perhaps warranties.
- These products are expected to last a fairly long time and are more expensive than
convenience products.
- Inventory turnover is lower, and marketing channel members expect to receive higher gross
margins to compensate for the lower turnover.
- In certain situations, both shopping products and convenience products may be marketed in
the same location.
- A marketer must consider several key issues to market a shopping product effectively,
including how to allocate resources, whether personal selling is needed, and cooperation within
the supply chain.
specialty products - ✔✔- Possess one or more unique characteristics, and generally buyers are
willing to expend considerable effort to obtain them.
- On average, this is the most expensive category of products.
- Buyers conduct research, plan the purchase of a specialty product, know exactly what they
want, and will not accept a substitute.
- Specialty products are often distributed through a very limited number of retail outlets.
- They are purchased infrequently, causing lower inventory turnover and thus requiring high
gross margins to be profitable.
unsought products - ✔✔- Are those purchased when a sudden problem must be solved,
products of which customers are unaware until they see them in a store or online, and products
that people do not plan on purchasing.
- Emergency medical services and automobile repairs are examples of products needed quickly
and suddenly to solve a problem.
, seven categories of business products: - ✔✔- Installations
- Accessory equipment
- Raw materials
- Component parts
- Process materials
- MRO supplies (maintenance, repair, and operating)
- Business services.
installations - ✔✔- Include facilities, such as office buildings, factories, and warehouses, and
major nonportable equipment such as production lines and very large machines.
- Normally, installations are expensive and intended to be used for a considerable length of
time.
- Often made by high-level management
- Marketers of installations must frequently provide a variety of services, including training,
repairs, maintenance assistance, and even aid in financing.
accessory equipment - ✔✔- Does not become part of the final physical product but is used in
production or office activities.
- Examples include file cabinets, fractional-horsepower motors, calculators, and tools.
- Compared with major equipment, accessory items usually are less expensive, purchased
routinely with less negotiation, and are often treated as expense items rather than capital items
because they are not expected to last as long.
raw materials - ✔✔- Are the basic natural materials that actually become part of a physical
product.
- They include minerals, chemicals, agricultural products, and materials from forests and oceans
component parts - ✔✔- Become part of the physical product and are either finished items
ready for assembly or products that need little processing before assembly.
