Marketing Note: Creating New Products and Services

Marketing notes Creating new products and services • Product: A good, service or idea contains tangible and intangible features that satisfy customers and is accepted in exchange for money or other assets. Concrete: Good body (color) Intangible: Be healthy or richer (local art gallery enlightens you) Variations on products Product line and product combination • Line product: A group of related products, because a class of needs, used together with , sold to the same customer segment, distributed by the same distributor, or in the price range. Nike's products are shoes and clothing. • In each product group, there are products with a special symbol, size or price tag, special products. Feather Softener: 20 Oz or 40 oz. ▪ Each size is considered a separate product or stock product (SKU). ▪ SKU: A unique identification number that identifies an item for an order or product. • Product: All products offered by the company. Fortune Brands Sports equipment (Titleist) or office equipment (Swing line staplers). Product Category User Type • Consumer Products: Products purchased by end users. • Goods: Goods that directly or indirectly assist in the resale of the product. Difficult to deploy (e.g. Apple computers) It all depends on the business plan. ▪ Consumer: in-store ▪ Business: Offered by the seller at a discount on bulk purchases. Concrete Degree • Nondurable Goods: A product that uses one or more uses (food, oil) • Durable Goods: Most can be used for many things (household appliances, cars)

• Services: Intangible activities ready to be given to customers or other individual’s money or get customer benefits in exchange for other valuables. • Each of these requires a different job. Non-Property: Promotion and Airline Promotion Product Time: Personal Selling and Answering Customer Questions Service: Communication with Buyers Special Services • Services make up 40% of GDP. • My Four Services: Disputes, disagreements, separation, goods. Intangibility • Services cannot be held, touched or seen before they are purchased. • Difficult measurement. • Marketers try to show customers good results to help measure. Inconsistent • Poor service due to doctor's skill and work. Indivisibility • The customer cannot distinguish between the service provider and the service itself. o University students: Good lectures, bad advice. ▪ Inability to separate services from the provider's point of view. Inventory • Idle Capacity: When it provides more than necessary marketing notes