Amanda Staubitz 1/6/07
Mr. Delman Period 1 Scale
Chapter 11 Outline
BUSINESS
Chapter 11: Developing and Pricing Products
I. What is a product?
i. Product: value package
ii. In developing the marketing mix for any product, whether goods or services, marketers must consider what consumers really buy when they purchase products.
b. The Value Package
i. Feature: tangible and intangible qualities that a company builds into a product
ii. Value package: product marketed as a bundle of value-adding attributes, including reasonable cost
iii. Increasingly buyers expect to receive products with greater value?with more benefits at reasonable costs.
c. Classifying Goods and Services
i. Classifying products according to expected buyers into 2 groups:
1. Consumer Products
2. Industrial Products
ii. Classifying Consumer Products
1. Convenience goods and services: are consumed rapidly and regularly. They are inexpensive and are purchased often.
2. Shopping Goods and Services: are more expensive and are purchased less often than convenience products. Consumers often compare brands, sometimes in different stores.
3. Specialty goods and services: are extremely important and expensive purchases. Consumers usually decide on precisely what they want and will accept no substitutes.
iii. Classifying Industrial Products
1. Expense items: are goods or services that are consumed within a year by firms producing other goods or supplying other services.
2. Capital items: are permanent, expensive, long-lasting, goods and services.
d. The Product Mix
The group of products that a company makes available for sale, whether consum ...