M A R K E T I N G

2.06 – APPLY QUALITY ASSURANCES TO ENHANCE PRODUCT/SERVICE OFFERINGS

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STANDARDS

• Standards - statements that specify a product’s size, contents, or quality• used for comparing or judging goods or services

Beds come in standard sizes so that sheets and comforters fit.

STANDARDS

• ALL children’s fever-reducing medicine contains:• same ingredients; same dose

Size and %

Sizes to fit different cars

Lumber standards set for strength.Buildings built to specific standards.

WHY ARE STANDARDS USED?

• Standards are used to establish uniform, consistent products.• Determine product

quality.

Light Bulbs and DVDs manufactured anywhere will fit/work in all products.

GRADES

•Grades - ratings assigned to products based on set standards.• Determines the extent that standards

are met

GRADES AND STANDARDS

•Movies:

Rated: R

•Restaurants:

Andy’s Rated: 97.5

INTERRELATIONSHIP BETWEEN GRADES AND STANDARDS

• Standards are set. • Product is rated against the standards • assigned a grade.

• Example: School grading system is set. You have to do this to earn an “A” in this class. Your work is compared to the standards and your grade is determined.

Gasoline grades:

GRADES AND STANDARDS DETERMINE:

• How the product can be used• Motor oil for different engines• Grades of gasoline for cars• Grades of milk for consumers,animals, or cheese and yogurt.

• Where the product will be sold• Gap places higher quality clothes at

the Gap and their lower grade clothing at Old Navy

GRADES AND STANDARDS:

• Determine who the user can/should be• Movie ratings indicate the audience: G, PG, PG13, and R

• Help the Salesperson• People pay more for higher quality• Recommend products based on grade

• Indicate product safety

Industrial or Residential Grade?

GRADES AND STANDARDS AID BUYING AND SELLING

• Their use speeds up the process because consumers can buy products without having to inspect

• Consumers rely on grades and standards for product information

GRADES AND STANDARDS IN GLOBAL TRADE

• The ISO 9000 are international standards for quality

• This standard guarantees that manufacturers have met certain requirements for producing and shipping their products

• Important in international trade.

WHO SETS GRADES AND STANDARDS?

• Government agencies• FDA – food and drugs• FCC – communication• County Health Dept. - restaurants

• Trade and professional organizations• AAA – American Automobile Association• Rates highways and hotels

• BBB – Better Business Bureau • Rates businesses and services

• Businesses• McDonalds buns have an exact size and color.• Auto manufacturers must have parts made to very specific

standards.