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15. Explain the purpose and nature of product policy.

In narrow sense, the product is a set of basic attributes assembled in an identifiable form.

In s broad sense, a product is an umbrella term covering goods, services, places, persons and ideas.

Product:

  • The product quality;

  • Physical characteristics of goods;

  • Price;

  • Brand;

  • Packaging;

  • Design;

  • Product warranty;

  • Color;

  • Seller’s reputation;

  • Seller’s service.

Nature (components) of commodity policy:

    • Product design;

    • Product packaging;

    • Quality of goods (services);

    • Company policy;

    • Diversification;

    • The policy of differentiation of goods (services);

    • The assortment policy;

    • The policy of guarantees;

    • The policy of the brand.

16. Compare the marketing of all types of business goods.

Business products are intended for resale, for use in producing other products or providing services in an organization.

Classification of business goods:

Raw materials are the business goods that become part of another tangible product prior to being processed in any way .

Raw materials include:

    • Goods found in their natural state, such as minerals, land, and product of the forests and the sea (limited);

    • Agricultural products , such as cotton, fruits, livestock, and animal products including eggs and raw milk.

Fabricating materials and parts are the business goods that become part of the finished product after having been processed to some extent fit into the category of fabricating materials and parts.

    • Fabricating materials undergo further processing; examples include pig, iron going into still, yarn being woven into cloth, and flour becoming part of bread.

    • Fabricating parts are assembled with no further change in form; they include such products as zippers in clothing and semiconductor chip in computers.

Installations are manufactured products that are an organization’s major, expensive and long-lived equipment. (dust furnaces still mill ).

17. Give the characteristic of stages of developing new products.

Stages in the development process:

  1. Generating new products ideas. New product development starts with an idea. A system must be designed for stimulating new ideas within an organization and then reviewing them promptly.

  2. Screening ideas. As this stage new-products ideas are valuated to determine which ones warrant further study.

  3. Business analysis. A surviving idea is expended into a concrete business proposal. During the stage of business analysis, management:

  1. identifies product features;

  2. estimates market demand; competition, and the products profitability;

  3. establishes a program to develop the product;

  4. assigns responsibility for further study of the product’s feasibility.

  1. Prototype development. If the result of the business analysis are favorable, then a prototype (or trial model) of the product is developed. In the case of services, the facilities and procedures necessary to produce and deliver the new product are designed and tested.

  2. Market tests. Unlike the internal tests conducted during prototype development, market tests involve actual consumer. A new tangible product may be given to a sample of people for use in their household (in the case of a consumer good) or their organizations (a business good).

  3. Commercialization. In this stage, full-scale production and marketing programs are planned and then implemented. Up to this point in development, management has virtually complete control over the product.