Creating Offerings
Think about why you purchase things. In this section you will read material on offerings and distinguish between the three major components of an offering: product, price, and service. Summarize the points for both sides of a product-dominant and a service-dominant approach, Review how each component composes different types of offerings. Then distinguish between technology platforms and product lines.
What Composes an Offering?
The Product-Dominant Approach to Marketing
From the traditional product-dominant perspective of business, marketers consider products, services, and prices as three separate and distinguishable characteristics. To some extent, they are. HP could, for example, add or strip out features from a piece of testing equipment and not change its service policies or the equipment's price. The product-dominant marketing perspective has its roots in the Industrial Revolution. During this era, businesspeople focused on the development of products that could be mass produced cheaply. In other words, firms became product-oriented, meaning that they believed the best way to capture market share was to create and manufacture better products at lower prices. Marketing remained oriented that way until after World War II.