Learning takeaway of chapter 10&11&12

 Chapter 10

1. Definition of Products and Services

A product is a combination of tangible and intangible attributes that satisfies consumer needs and is provided in exchange for payment. Products include tangible goods, services, and ideas.

 

2. Classification of Consumer Products and Business Products

Consumer products are classified into the following four categories based on purchase frequency and purchase process:

Convenience: Products that are purchased frequently and without much effort.

Shopping: Products that are purchased after comparison and consideration.

Specialty: Products that require special effort to find.

Unsought: Products that are unknown or not actively sought after.

 

Business products are classified as follows:

Components: Products that are part of a final product

Support Products: Products that assist in production

Services are classified based on the provider (person or machine), the providing organization (for-profit or non-profit), and whether they are provided by the government or the private sector.

 

3. The meaning of “novelty” and consumer learning

The “novelty” of a new product is classified based on how much new behavior is required of consumers when using it:

Continuous innovation: Requires little new behavior

Dynamic continuous innovation: Requires minor changes in behavior

Discontinuous innovation: Requires entirely new behavior patterns

 

4. Factors Contributing to the Failure of New Products and Services

― The main reasons for the failure of new products include the following:

― Insufficient differentiation

― Inadequate market and product verification

― Failure to meet customer needs

― Poor timing

― Difficulty accessing sales channels

― Mistakes in executing the marketing mix

― Low market appeal

― Quality issues

 

5. Seven steps of new product development

The new product development process proceeds in the following seven stages:

1.      Strategy development: Clarify the role of the new product

2.      Idea generation: Collect ideas from consumers, competitors, R&D, etc.

3.      Screening and evaluation: Evaluate feasibility

4.      Business analysis: Develop market strategy and financial forecasts

5.      Development: Produce prototypes and conduct initial testing

6.      Market testing: Conduct sales testing with actual consumers

7.      Commercialization: Full-scale market launch and sales expansion

 

Chapter 11

1. Product Life Cycle

Products go through four stages in the market: “introduction, growth, maturity, and decline,” and sales, profits, and marketing strategies differ at each stage. For example, in the introduction stage, demand creation is required, in the maturity stage, market share maintenance is required, and in the decline stage, product withdrawal or minimum maintenance strategies are required.

 

2. Methods of Managing the Life Cycle

There are three strategies for managing the product life cycle:

1.      Modifying product characteristics

2.      Expanding into new markets or expanding usage applications

3.      Repositioning in response to changes in competitors or the market

 

3. Branding (Brand Strategy)

A brand is not merely an identifier but an important asset that builds relationships with consumers through brand equity. There are several types of brand strategies:

― Multiproduct Branding

― Multibranding

― Private Branding

― Mixed Branding

 

4. Packaging & Labeling

Packaging affects not only the functionality and safety of a product, but also its brand image and consumer desire to purchase it. Current challenges include environmental considerations, health and safety, and cost reduction.

 

Chapter 12

1. The 4 Characteristics of Services (The 4 I's)

Intangibility: Services are invisible and intangible.

Inconsistency: The quality of services varies depending on the provider.

Inseparability: It is difficult to separate the provider from the service.

Inventory: It is necessary to maintain the ability to provide services in response to demand.

 

2. Classification of Services

Services can be classified based on the provider (human or machine), whether they are for-profit or non-profit, and whether they are provided by the government.

 

3. Methods of Evaluating Services

Since services are intangible, it is difficult to evaluate them before purchase, so consumers make judgments based on experience, trust, and reputation. Evaluation is conducted along the following five axes:

1.      Reliability

2.      Tangibility

3.      Responsiveness

4.      Assurance

5.      Empathy

 

4. Customer Contact Audit

Service providers and customers are mapped in a flowchart to visualize where value can be provided. This is used to strengthen customer relationships.

 

5. 7P Marketing Mix (Product, Price, Place, Promotion, People, Physical Environment, Process)

The service-specific elements of “People,” “Physical Environment,” and “Process” are important. Staff training (Internal Marketing) and the design of the overall customer experience (CEM) are required.

 

6. Internal Marketing & CEM

Employees themselves are the target of marketing (Internal Marketing), and employee motivation and skills are essential for customer satisfaction. It is important to enhance the overall experience value through Customer Experience Management (CEM).

Through Chapters 10 to 12, I learned that many strategic elements are involved in marketing products and services. In particular, I felt that adjusting marketing strategies according to the product life cycle (from the introduction stage to the decline stage) and the seven stages of new product development are essential for companies to succeed in the market. Additionally, the “four I's” unique to services—intangibility, variability, inseparability, and inventories—were extremely helpful in understanding the differences between products and services. Furthermore, through brand strategy and the 7P marketing mix, I realized that the key to long-term success lies not just in selling products, but in how to build relationships with customers and communicate value.