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CHAPTER 11 Developing and Managing Goods and Services OVERVIEW: This chapter examines several ways to improve an organization’s product mix, including managing existing products through line extensions and product modifications. Next, we discuss how firms develop new products, from idea generation to commercialization. After development of new products, the process of product differentiation through quality, design, and support services is discussed. We discuss the goals and timing of product positioning and repositioning, as well as when a product should be deleted from the product mix. Then we examine the nature of services, focusing on the growing importance of service industries in our economy. We address the unique characteristics of services—intangibility, inseparability of production and consumption, perishability, heterogeneity, client-based relationships, and customer contact. We next present issues associated with developing marketing mixes for services. Finally, we discuss the organizational alternatives in managing products, including the product manager, market manager, and venture team approaches. OBJECTIVES: 1.Understand how companies manage existing products through line extensions and product modifications.
2.Describe how businesses develop a product idea into a commercial product.
3.Know the importance of product differentiation and the elements that differentiate one product from another.
4.Explain product positioning and repositioning.
5.Understand how product deletion is used to improve product mixes.
6.Understand the characteristics of services and how these characteristics present challenges when developing marketing mixes for service products.
7.Be familiar with organizational structures used for managing products.
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Class Prep: Read Chapter 11 |
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