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An action that provides a buyer with an intangible benefit. (Ex. a haircut)
Products and services designed to deliver value to customers to fulfill needs/satisfy wants
A characteristic of an offering.
A feature that satisfies a want or need.
Total Cost of Ownership
The amount of money paid to own, use and dispose of a product.
When the experience/service is the only thing the customer walks away with.
The best way to capture the market share to create and manufacture better products at lower prices
- Integrates product, price and service dimensions of an offering.
- Service is required to acquire, enjoy and dispose of a product.
- Focus on what customers want.
4 service characteristics
- 1. intangibility
- 2. perishability
- 3. variability
- 4. inseparability
find a way to give consumer something to walk away with after service (Ex: checklist or evaluation) **tangibilize the intangible
service or opportunity for profit can expire (Ex: empty hotel rooms or plane seats = lost profit) **control demand through price
- quality of service varies betwen competitors **quality control KEY challenge
- (Ex: 1. training
- 2. processes - defined order in which things are done, systemizing/standardizing
- 3. measure & evaluate - system to ensure & judge efficiency )
- increase productivity by adding personnel
- **increase productivity or the core person delivering the service
- (Ex: nurses & assistants, technology)
Group of related offerings
how many offerings there are in a single product line
new but similar products added to product line
function of how many different/distinct product lines a company has
entire assortment of products a firm offers
Core technology on which product is built. Defines the features. Not limited to tangible products.
What are the 4 Consumer Offerings?
- 1. Convenience Offerings
- 2. Shopping Offerings
- 3. Specialty Offerings
- 4. Unsought Offerings
- -don't put much effort into shopping
- - small difference between brands
- ex. bread
- (impulse offerings: items purchased w/o planning)
- - make effort to compare and select brand
- - more expensive
- - research & read reviews
- - highly differentiated offerings
- - brands diffrent across companies
- - purchased less frequently than convenience offerings
- - build brand recognition and educate consumers about products key differences
- - luxury goods, exclusive distribution
- - consumers shop for product only when needed
- - ex. tow truck, funeral service
5 Business Offerings
- 1. Capital equipment
- 2. Raw materials
- 3. Original equipment manufacturer (OEM)
- 4. Maintenance, repair and operating (MRO)
- 5. Facilitating
equipment purchased and used for more than one year
materials offered by firms so that other firms can make a product or provide a service
OEM or components
raw materials, manufactured materials and component parts used to make a final product
Maintenance, repair and operating (MRO)
Janitorial supplies or hardware used to repair equipment
P & S that support company's operations but aren't part of the final products it sells such as supplies
set of activities designed to create a brand and position it in the minds of consumers
spoken part of brand's identity
symbol associated with brand
occurs when a firm's new offerings eats into sales of older offerings, comes from brand extension
functions of packaging
- 1. protects products from damage, contamination, leakage, and tampering
- 2. used to communicate brand's benefits, product warnings and proper use
holds single retail unit of a product
holds single wholesale unit of a product
packaging designed especially for shipping and efficiently handling large quantities
person responsible for all business positions regarding one brand
someone with business responsibility for particular product or product line
business responsibility for decisions withing broad grouping of offerings
responsible for business decisions within a market