MARKETING 2.06 – APPLY QUALITY ASSURANCES TO ENHANCE PRODUCT/SERVICE OFFERINGS

STANDARDS Standards - statements that specify a product’s size, contents, or quality used for comparing or judging goods or services Beds come in standard sizes so that sheets and comforters fit.

STANDARDS ALL children’s fever-reducing medicine contains: same ingredients; same dose Size and % Sizes to fit different cars Lumber standards set for strength. Buildings built to specific standards.

WHY ARE STANDARDS USED? Standards are used to establish uniform, consistent products. Determine product quality. Light Bulbs and DVDs manufactured anywhere will fit/work in all products.

GRADES Grades - ratings assigned to products based on set standards. Determines the extent that standards are met

GRADES AND STANDARDS Movies: Rated: R Restaurants: Andy’s Rated: 97.5

INTERRELATIONSHIP BETWEEN GRADES AND STANDARDS Standards are set. Product is rated against the standards assigned a grade. Example: School grading system is set. You have to do this to earn an “A” in this class. Your work is compared to the standards and your grade is determined. Gasoline grades:

GRADES AND STANDARDS DETERMINE: How the product can be used Motor oil for different engines Grades of gasoline for cars Grades of milk for consumers, animals, or cheese and yogurt. Where the product will be sold Gap places higher quality clothes at the Gap and their lower grade clothing at Old Navy

GRADES AND STANDARDS: Determine who the user can/should be Movie ratings indicate the audience: G, PG, PG13, and R Help the Salesperson People pay more for higher quality Recommend products based on grade Indicate product safety Industrial or Residential Grade?

GRADES AND STANDARDS AID BUYING AND SELLING Their use speeds up the process because consumers can buy products without having to inspect Consumers rely on grades and standards for product information

GRADES AND STANDARDS IN GLOBAL TRADE The ISO 9000 are international standards for quality This standard guarantees that manufacturers have met certain requirements for producing and shipping their products Important in international trade.

WHO SETS GRADES AND STANDARDS? Government agencies FDA – food and drugs FCC – communication County Health Dept. - restaurants Trade and professional organizations AAA – American Automobile Association Rates highways and hotels BBB – Better Business Bureau Rates businesses and services Businesses McDonalds buns have an exact size and color. Auto manufacturers must have parts made to very specific standards.