Lecture Marketing: The core (5/e): Chapter 9 – Kerin, Hartley, Rudelius
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LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 9, YOU SHOULD BE ABLE TO:
LO1
Recognize the terms that pertain to
products and services.
LO2
Identify the ways to classify consumer
and business products.
LO3
Describe four unique elements of
services.
LO4
Explain the significance of “newness”
and “consumer learning” to new
products and services.
92
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 9, YOU SHOULD BE ABLE TO:
LO5
Describe the factors affecting the
success or failure of a new product or
service.
LO6
Explain the purposes of each step of
the new-product process.
93
APPLE’S NEW-PRODUCT
INNOVATION MACHINE
94
APPLE’S NEW PRODUCTS
Apple’s Innovation Machine
iCloud: Where the Digital
Lifestyle is Heading
95
LO1
WHAT ARE PRODUCTS AND SERVICES?
A LOOK AT GOODS, SERVICES, AND IDEAS
Products
Goods
• Nondurable
Goods
Services
Ideas
• Durable
Goods
96
FIGURE 9-A The service continuum shows
how offerings can vary in their balance of
products and services
97
LO2
WHAT ARE PRODUCTS AND SERVICES?
CLASSIFYING PRODUCTS
Consumer Products
Business Products
98
LO2
WHAT ARE PRODUCTS AND SERVICES?
CLASSIFYING PRODUCTS
Consumer Products
• Convenience Products
• Shopping Products
• Specialty Products
• Unsought Products
99
FIGURE 9-1 How a consumer product is
classified affects which products consumers
buy and the marketing strategies used
910
LO2
WHAT ARE PRODUCTS AND SERVICES?
CLASSIFYING PRODUCTS
Business Products
• Derived Demand
• Components
• Support Products
Installations
Supplies
Accessory
Equipment
Industrial
Services
911
LO2
WHAT ARE PRODUCTS AND SERVICES?
CLASSIFYING SERVICES
Delivery by People or Equipment
Delivery by Business Firms or
Nonprofit Organizations
Delivery by Government Agencies
912
FIGURE 9-2 Services can be classified as
equipment-based or people-based
913
LO3
WHAT ARE PRODUCTS AND SERVICES?
THE UNIQUENESS OF SERVICES
Four I’s of Services
• Intangibility
• Inseparability
• Inconsistency
• Inventory
Idle Production
Capacity
Product/Service
Offering
• Core
• Supplementary
914
LO3
WHAT ARE PRODUCTS AND SERVICES?
THE UNIQUENESS OF SERVICES
Assessing Service Quality
• Gap Analysis
• Monitoring Service Failure
915
FIGURE 9-3 The five dimensions of service
quality
916
LO3
WHAT ARE PRODUCTS AND SERVICES?
THE UNIQUENESS OF SERVICES
Customer Contact Audits
• Service Encounters
• Customer Contact Audit
• A Customer’s Car Rental Activities
917
FIGURE 9-B Customer contact audit for a
car rental agency (green boxes = customer
activity; orange boxes = employee activity)
918
LO3
WHAT ARE PRODUCTS AND SERVICES?
PRODUCT ITEMS, LINES, MIXES, CLASSES AND FORMS
Product Item
• Stock Keeping Unit (SKU)
Product Line
Product Mix
919
LO3
WHAT ARE PRODUCTS AND SERVICES?
PRODUCT ITEMS, LINES, MIXES, CLASSES AND FORMS
Product Class
Product Form
920
LO3
Little Remedies
How does a broad product line benefit
both consumers and retailers?
921
LO4
NEW PRODUCTS AND WHY
THEY SUCCEED OR FAIL
WHAT IS A NEW PRODUCT?
Newness: Compared to Existing Products
922
LO4
MARKETING MATTERS
Feature Bloat: Geek Squad to the Rescue!
923
LO4
NEW PRODUCTS AND WHY
THEY SUCCEED OR FAIL
WHAT IS A NEW PRODUCT?
Newness: The Consumer’s Perspective
• Continuous Innovation
• Dynamically Continuous Innovation
• Discontinuous Innovation
Newness in Legal Terms
924
FIGURE 9-4 The degree of “newness” in a
new product affects the amount of learning
effort consumers exert to use the product
925
