10.2 Develop Effective Products and Services

services

activities that are consumed at the same time they are being produced

product features

additions and improvements to the basic product

secondary research

analyzing existing information gathered for another purpose but used to solve a current problem

perishable

availibility of a service must match the demand for that service at a specific time

brand name

unique identification for a company's product

guarantee/warranty

way to build customer confidence in a company's product; will repair, replace, or give a refund if an item doesn't meet expectations

options

choice of features

observations

collect information by recording the actions of consumers rather than asking them questions

full scale production

competitors are watched

inseparable

consumed at the same time they are produced

surveys

gather information from people using a carefully planned set of questions

idea development

generating new product ideas; come from customer surveys, employees, scientists, salespeople; usually made to existing products

intangible

having no physical form

production and financial planning

identify people, facilities, and equipment needed; cost and marketing are determined; will a profit be made?

experiment

presents 2 carefully controlled alternatives to subjects in order to determine which is preferred or has better results

packaging

provides protection and security for the project before it is used

basic product

simplest form of a product

focus groups

small number of consumers take part in group discussion

primary research

studies carried out to gather new information specifically directed at a current problem

strategy development

target market is studied - must be a strong need

limited production and test marketing

tested in a small part of the market; makes sure the product can be produced and marketed as planned before a lot of money has to be spent

heterogeneous

differences in the type and quality of service provided

marketing research

finding solutions to problems through carefully designed studies involving consumers

idea screening

evaluate ideas to determine which have the best chance to be successful; does a demand exist? are there similar products? is the price reasonable? is it safe and legal?

product

everything a business offers to satisfy a customer's needs