Product vs. Service
What is the difference between a good and a service?
A good is tangible; a service is intangible.
Define product/service management.
Obtaining, developing, maintaining, and improving a product/service mix in response to market opportunities.
Name one internal factor that influences product/service management.
Company goals and strategies.
Name the four stages of the product life cycle in order.
Introduction, Growth, Maturity, Decline.
What are the three phases of product/service management?
New-product development, monitoring existing products, eliminating weak products.
What type of service is attached to a tangible good?
Product-related service.
Name one activity included in product/service management.
Discovering new products, coordinating mix, sustaining successful products, eliminating weak ones, etc.
What external factor involves what competitors are doing?
Competition
During which stage are sales and profits first growing rapidly?
Growth
What’s the first step in developing a new product?
Idea generation.
What type of service is not connected to a physical product?
Pure service.
Who performs product/service management in small businesses?
The owner or manager.
What factor ensures businesses follow safety and labeling laws?
Government regulations.
What happens to products during the decline stage?
Sales and profits decrease; may be discontinued.
What does test marketing involve?
Introducing a product to a limited market to see customer reactions.
Give one example of a bundled good and service.
(Ex: Smartphone + connection plan)
What 3 things are accomplished in Product/Service Management?
New product development, monitor existing products, eliminate weak products
What do companies use to learn and understand customer needs and wants?
Market research.
What stage requires a lot of promotion to build awareness?
Introduction.
What is it called when a product goes into full-scale production?
Commercialization.
What are customers actually buying when they purchase goods or services?
Benefits
Why is product/service management important for businesses?
It helps meet customer needs, increase profits, and stay competitive.
What factor involves available materials, money, or technology?
Costs and available resources.
How does product/service management differ at each stage?
Managers make different decisions about pricing, promotion, and distribution based on the stage.
Why would a business discontinue a product?
Low sales, low profits, or better alternatives on the market.