Product mix decisions Now, discuss each in turn. Social media marketing is about making emotional connections through positive customer experiences, exceptional service and engaging conversations. (pp 229-236) Individual product decisions involve product attributes, branding, packaging, labeling, and product support services. Process selection and capacity planning impact the ability of the product system to deform and to satisfy customers. LO 9-2 Explain how a two-stage product costing system works. The individual product decisions are completed by labelling and product support services. F. Life cycle assessment involves incorporating where the product or service is in its life cycle into system design decision making. Describe the decisions companies make regarding their individual products and services, product lines, and product mixes. 4 Types of Product policy decision | Management Education Promotion- How the customer is found and persuaded to buy the product. Marketers make product and service decisions at three levels: individual product decisions, product line decisions, and product mix decisions. ADVERTISEMENTS: Pricing Decisions: Influencing Factors, Methods and Economic Approach! Describe the decisions companies make regarding their ... Psychological Factor 5. 4.2 Types of B2B Buyers - Principles of Marketing Product Decision. Develop new products and services - Info entrepreneurs Firstly, we look at product attributes. 10 key service activities. Introduction to Operations Management of Products and ... Defining Key Concepts: Products vs. Services For example, if your product has a short lifetime, it needs to have a fast response and action from customers to survive. Cost behavior and forecasting Decisions about a new car, a vacation trip, or whether to go to a local or an out-of-town college are consumption decisions usually made within the context of a family setting. We review their content and use your feedback to keep the quality high. Product Line Decisions Product line • A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. However, some people often confuse the two terms and often use them interchangeably to refer to […] Individual product & service decisions: This decision involves product attributes, branding , packaging, labeling & support services. The goal is to distill who your audience is, what they need, and how your product can uniquely help. You can find the matrix referred to as Hayes-Wheelwright Matrix. The product brand, quality of the products and services, prices and packaging of the products, the products' availability in the market, and the promotional strategies employed by the organization's management are some of the factors influencing a consumer's decision to buy some product. What is Product Positioning? | Aha! software Product line decisions; 3. Consumer behavior. d) Product labeling: labeling on the product is very essential as it gives the consumer information regarding the manufacturer's name, place, date of manufacturing, expiry date, calories, carbohydrates, nutritional value etc. Branding decisions include selecting a brand name and . More than two-thirds of the U.S. work force is employed in services, roughly tow-thirds of the gross national product (GNP) is produced by services, and investment per office worker The planning of products and services (the outputs from the system) includes market research to: Clarify the needs and wants of potential groups (market niches) of customers, as well as how those needs and wants might be met with certain products and services. Product line decisions include. Compliment this with skills from the "P" session Place, where you consider channels . Product and service design 1. Factors That Influence The Buying Decision, Contact Discovery, Influencing Customers Buying Decisions, iSN, iSN Global Solutions, Sales Support Services, Account Profilling 5. We will focus on . Compliment this with skills from the "P" session Place, where you consider channels . It's a conceptual model which describes the stages and some of the characteristics, both good and bad, in each stage. OM's Transformation Process OM's Transformation Role Manufacturers vs Service Organizations Similarities for Service/Manufacturers Service vs Manufacturing Growth of the Service Sector OM Decisions OM Decisions OM Decisions Plan of Book-Chapters link to Types of OM Decisions Historical Development of OM Historical Development con't Today . Who are the experts? Individual product decisions required can be sorted into five categories or stages. If that's what you bought into, you're going to be disappointed. This guide will outline the key stages in the lifecycle of products and services so you know when the time is right for your business to start the development process. 13, Slide 13 Market analysis § Discuss . Business buyers can be either nonprofit or for-profit businesses. This decision area of operations management is applied based on market research, trends and forecasting. This would include retail where the products are clothing, with service being customer support or personal shopper experience. The Product session is designed to provide you with the knowledge to understand and manage the strategic role of brands and products in generating business results, whilst the focus on Pricing will cover the main concepts and techniques to formulate prices. Experts are tested by Chegg as specialists in their subject area. There are product factors and non-product factors. Overall, price/cost of ownership remains the most influential decision driver, with nearly half of the respondents considering it as one of the top three factors for selecting a product or service. These decisions are about product attributes, branding, packaging, labeling, and. THE FAMILY Explain what is structured decisions, semi-structured decisions, and unstructured decisions. The early-stage development and design process is easily one of the most important periods of time for any business, whether you are product or service based. Product/Service Planning. Section 4.2 • Identify ways to solve consumer problems. There is a constant need for a regular review of the range and for elimination decisions to be made where a product is either in its decline stage or simply failing to generate . The Product session is designed to provide you with the knowledge to understand and manage the strategic role of brands and products in generating business results, whilst the focus on Pricing will cover the main concepts and techniques to formulate prices. To do . Product knowledge is an essential sales skill. Preparing an Effective Business Plan § Mary Ellen Guffey, Business Communication: Process and Product, 6e § Mary Ellen Guffey, Business Communication: Process and Product, 6e § 13 Ch. M any health care products and services are avail-able to the consumer. Place (Distribution) Promotion. A two-stage system first allocates costs Individual product decisions; 2. Service and product are different, however, there is a hybrid called service as a product (SaaP), which combines products and services offering. Decisions regarding the product, price, promotion and distribution channels are decisions on the elements of the "marketing mix". • Identify the factors that influence consumer decisions about health care products and services. To remain competitive, marketers look for gaps in their assortment and fill them with new products or modified versions of existing ones. Both of these product line decisions involve adding items to the line. Thus, the scope of product planning is very wide. (a) Identify and briefly explain the Six (6) steps that will be followed or considered in order to arrive at a good decision in Operations Management [5 Marks] (b) There are Two (2) fundamental decision making areas in Operations Management decision paradigms. PART THREE System Design S atisfying the customer begins Work design focuses on System design encompasses deci- with product and service the human element in production sions involving: design. Products and services are two closely aligned concepts, and, in fact, most products have an element of service in them. • Demonstrate ways to utilize criteria to evaluate health products for appropriateness. As a major consumption unit, the family is also a prime target for the marketing of many products and services. Apple Inc.: 10 Decision Areas of Operations Management. How do consumers make decisions? Before going into the detail of factors affecting pricing decisions, let's discuss some of the basic concepts of pricing, which are also important to know. 4 Explain product and service classification. Need recognition, whether prompted internally or externally, results in the same response: a want. We will focus on the important decisions in the development and marketing of individual products. The study of when, where, and how people buy things and then dispose of them. As marketers manipulate the various principles of marketing, so do the consumers they seek to reach—choosing which products and services to buy, and which not to buy, choosing which brands to use, and which brands to ignore. The strategy should answer key questions such as who the product will serve (personas), how it will benefit those personas, and the company's goals for the product throughout its life cycle. These services augment actual product. 3. The product process matrix was developed by Robert H. Hayes and Steven C. Wheelwright. Companies have to develop strategies for the items of their product. Identify the various costs of manufacturing products, services, and selling and administrative expenses C. Prepare income statements for manufacturing and service organizations III. You have limited time to make a profit . Let's explain all five stages of the buyer decision process. Need recognition of Problem Recognition is the first stage of the buyer decision process. Examples of production, product and service innovations. 2: Expanding the product line. Product. When it comes to choosing one product versus another, consumers - whether consciously or subconsciously - weigh a variety of factors. Factors Influencing Pricing Decisions: Pricing of a product or service refers to the fixation of a selling price to a product or service provided by the firm. Google's product design involves different teams for the company's various products. Individual Product Decisions - Decisions in the development and marketing of individual products. This helps marketers to build "Types" of marketing strategies for similar products It needs considerable planning and organisation. Difference between Product and Service Product vs Service People require different services and products to satisfy various needs and wants. 1. A useful tool used by marketers in making product decisions is the product life cycle. product support services. It will explain how a planned and phased development process will help you make the wisest investment and budgeting decisions. • Explain a research-based approach to buying goods and services. Errors in product decisions are legion. Capacity Decisions are Strategic 1. However, some people often confuse the two terms and often use them interchangeably to refer to […] Increasingly, managers are 1 Product and Service Design, Chapter 4 made in this . Price. PRODUCT AND SERVICE DESIGN 2. Customers respond to enthusiastic sales staff who are passionate about their products and eager to share the benefits with them. When product costs are used for making decisions, the assumption about proportionality of the cost and output can distort decisions. The money claimed against the offered product or service in the market is called price. Types of Marketing Decisions. The stages that a product goes through is the product life cycle. This question is at the core of much of marketing examination over the past 60 or 70 years. • Analyze the health messages delivered through advertising in the media. Selling price is the amount for which customers are charged for some product manufactured or for a service provided […] 1. Product line length decision. Once consumers recognize a want, they need to gather information to understand how they can fulfill that want, which leads to step 2. To help you get a better idea of the different types of business customers in B2B markets, we've put them into four basic categories: producers, resellers, governments, and institutions. For that reason, making decisions about services and products has been becoming a big challenge for marketers. 2. Product & service decisions can be divided into three levels: 1. For example, the development and production of Macs involve a Senior VP for Mac Hardware Engineering and a VP for Mac Software . During need or problem recognition, the consumer recognizes a problem or need satisfied by a product or service in the market. Both 1 and 11. A product strategy is a high-level plan describing what a business hopes to accomplish with its product and how it plans to do so. Product classification organizes products into four categories based mostly on consumer buying behavior, similarity to competing brands, and price range. Toyota, and CitiGroup, which deliver products or services through optimized supply chains, digital companies must mobilize a network to realize their vision. Question: Provide an example of a product or service and explain how changes in demographic and economic environments affect marketing decisions a company must make. 3. Expanding the product line is the second one of the product line decisions. In the 60s, the term "marketing mix" became familiarized. Individual Product and Service Decisions. The first step of the consumer decision-making process is recognizing the need for a service or product. See the answer See the answer See the answer done loading. In an effort to organize these factors, it would be appropriate to create two distinct categories. Product Line Decisions. Moreover, decisions are made in this area impact operations and the organization's overall success. Capacity decisions affect operating costs. New product development is an important capability because the environment is constantly changing. It will explain how a planned and phased development process will help you make the wisest investment and budgeting decisions. A group of closely related products that engage same marketing efforts - types of outlets and price ranges - sold to the same customer groups. Problem or Need Recognition. Too many product introductions can risk overburdening the firm's marketing system. Knowing your products and services. Errors in product decisions are legion. In this regard, it can be observed that the marketers play a pivotal role in marketing different products and services to various targeted customers. Apple's processes in the design of its products are handled through a number of organizational components and officials. The Service Revolution - The creation of service organizations accelerated sharply after World War II and is still expanding toady. 1. See the answer See the answer See the answer done loading. 4. Typically, the greater the capacity of a productive unit, the greater its cost. A. Shifts in the socio-economic field (in what people believe, expect, want and earn) create opportunities and constraints. Customer Satisfaction begins with product and service design. Please explain the differences between each. Product/service description § Explain what you are providing and how it will benefit customers. Product positioning is the basis of your marketing story. The classification of products and services is a process that groups together certain products/services that carry similar characteristics in terms of price level, similarity between competing brands, and the way consumers approach them in the buying process. influence buying decisions. $ What You'll Learn 4 To get the most out of your reading: It can be argued that product decisions are probably the most crucial as the product is the very epitome of marketing planning. Design of Goods and Services. A company can expand its product line in two ways: Line Filling and Line Stretching. In this regard, it can be observed that the marketers play a pivotal role in marketing different products and services to various targeted customers. 2- Explain individual product and service decision 3- Explain Product life cycle strategy. § Describe why your idea is better than existing products or services. Explain the meaning of cost and how costs are assigned to products and services B. Branding and packaging follow. Price- How much the customer pays for the product? Classifying products helps marketers develop strategies that target consumers' specific needs. Difference between Product and Service Product vs Service People require different services and products to satisfy various needs and wants. Individual product decisions. It can be argued that product decisions are probably the most crucial as the product is the very epitome of marketing planning. considers the many reasons—personal, situational, psychological, and social—why people shop for products, buy and use them, sometimes become loyal customers, and then dispose of them. It and first published in the Harvard Business Review in 1979, provides organizations with a tool to estimate the progress of a product and its related processes and analyze the fit between a chosen product positioning and its related processes. These decisions are — development of a new product, expansion or contraction of product mix, improvement in the product, determination of brand, label, packing, color, design, size and price, etc. To see if your customer service is helping to keep current customers, and attract new ones, there are 10 areas you can check regularly: Products and services information - explaining clearly what you offer. 1. Counter and face-to-face service - helping customers meet their needs. The expand view of consumer embrace much more than the study of why and what consumer buy, but also focuses on how marketer influence consumers and how consumers use the products and services. Product attribute decisions involve product quality, features, and style and design. Marketing-mix decisions must be made for influencing Design of Goods and Services. We discuss each in turn. Product mixes and product lines undergo constant change. There are certain activities that are included as the . This guide will outline the key stages in the lifecycle of products and services so you know when the time is right for your business to start the development process. After all, the decisions that you make… A. Product Elimination is one of the most important product related decision. This problem has been solved! purchase, use, or dispose of the product, service, ideas or experiences to satisfy needs and desires ( Michael R.Solomon, 1998, p. 31). Moreover, decisions systems. For example, a car buyer now buys a comprehensive bundle of service benefits, in addition to the tangible components of the car 1.However, there is a distinct difference between them and it is important to establish some working definitions. Product Mix Product Mix Product mix, also known as product assortment or product portfolio, refers to the complete set of products and/or services offered by a company. 14 15. 4. Product Support Services 13 14. The bottom line is that social media isn't primarily about driving sales or influencing consumers' purchasing decisions. Figure 8.2 shows the important decisions in the development and marketing of individual products and services. Automate decision making by: . This problem has been solved! Decisions regarding the product, price, promotion and distribution channels are decisions on the elements of the "marketing mix". Taguchi design methods involve identifying the optimal operating or environmental conditions for a given product. Capacity decisions have a real impact on the ability of the organizationto meet future demands for products and services. and services. Price. Capacity is usually a major determinant of initial cost. Product positioning is a strategic exercise that defines where your product or service fits in the marketplace and why it is better than alternative solutions. 1- Explain Marketing Strategy for service firm. F. The goal of value analysis is to find ways of ______. e) Product support services:-these are the services which are provided to the customer after selling the product to the customer like after sale services, installation etc. Product planning is important because many decisions are taken in the process of product planning. Place- How the product is distributed to the customer. • Identify strategies for making wise buying decisions. • Describe the legal alternatives for consumers. There are four categories or areas, which are always kept in mind, while making different sorts of marketing plans for different products and services. Product- The product (or service) that the customer obtains 2. Google: 10 Decision Areas of Operations Management. It is the . Understanding your products' features allows you to present their benefits accurately and persuasively. It is one of the elements of the product decision strategy. Companies spend billions of dollars annually studying what . It needs considerable planning and organisation. A mix; Substitute Products Substitute Products Substitute products offer consumers choices when making purchase decisions by providing equally good alternatives, thus increasing . Chapter 4 - product and service design. First of all there are 3 levels of a product marketing, the first one is core product benefits, it refers to the perceived value, image, the performance and features, the second one is the Product attributes like brand name, quality, design, staff behavior, price and packaging and the . In other words the value exchanged for use of the benefits of a certain product or service. Explain why finding decision makers in business markets is challenging for sellers. LO 9-1 Understand the potential effects of using reported product costs for decision making. Product Line Decisions no. Telephone service - quick, accurate . 5 Non-Product Factors That Influence Purchase Decisions.

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