1. Develop Effective Products & Services
Chapter 10
Section 2

2. Goals Justify the importance of marketing research.
Identify the components of a product.
Describe how services differ from products.

3. Creative and Improve Products
Marketing Research – finding solutions to problems through carefully designed studies involving consumers.
Steps in Marketing Research
Define the marketing problem
Study the situation
Develop a data collection procedure
Gather and analyze information
Propose a solution

4. Secondary Research – analyzing existing information gathered for another purpose but used to solve a current problem Primary Research – studies carried out to gather new information specifically directed at a current problem

5. Types of Research Studies
Surveys – gather information from people using a carefully planned set of questions
Focus Group – a small number of consumers take part in a group discussion
Discussions include experiences with a product or suggestions for product improvements.
Observations – record the actions of consumers rather than asking them questions.
Experiments – presents two carefully controlled alternatives to subjects in order to determine which is preferred or has better results

6. Product Planning Parts of a Product
Basic product: the simplest form of a product
Product feature: additions and improvements to the basic product
Brand name: produces a unique ID for a company’s product
Packaging: provides protection and security for the product before it is used
Guarantee or Warranty: allows for customers to repair, replace, or receive a refund

7. Product Planning Procedures
Idea Development:
Idea Screening: evaluation of ideas to determine which have the best chance to be successful
Strategy Development: create a marketing strategy
Product & Financial Planning
Limited Production & Test Marketing: produce a limited quantity of the prod. & test in a small part of the market
Full-Scale Production

8. Services
Services are activities that are consumed at the same time they are produced
more difficult to market
Intangible (no physical form)
Perishable (availability of a service must match the demand for that service at a specific time)
Cannot be stored for use at a later date
Heterogeneous (differences in the type and quality of service provided)
The skill, training, and motivation of the service provider affect service quality