1. Obj. 2.06 Apply Quality Assurances to Enhance Product/Service Offerings.

2. Why learn about Standards and Grades? How do Standards and Grades effect YOU? Grades and Standards

3. What did you eat for Breakfast or Lunch? Grades and Standards

4. How did Grades and Standards effect your food? Milk Inspected Eggs Quality Fresh Fruit Appearance and Condition Grades and Standards

5. Other Examples of How Companies Use Grades and Standards Specific tire sizes to fit our specific cars ALL children’s fever- reducing medicine contains: same ingredients same doses (regardless of what brand it is)

6. Other Examples of How Companies Use Grades and Standards Movies: – Ratings Rated: R Restaurants: –Ratings Andy’s Rated: 97.5

7. What Are Grades and Standards? Grades: Ratings assigned to products that tell to what extent standards were met Standards: Specifications that are used as a basis for comparing or judging goods or services

8. Grades and Standards What are some standards being used in your classes? A = Excellent! What do you have to do to earn a good grade?

9. Grades and Standards These requirements now become your standards that the teacher uses as her evaluation tool Your work compared to standards = GRADE

10. Grades and Standards How do Businesses use Grades and Standards? – Standards are set – Products are rated against standards and assigned a grade

11. Grades and Standards What do businesses do with products that fail to meet lowest standards? – Products are thrown away, revamped or sold at discounted prices

12. Grades and Standards Why do we use grades and standards? – To make sure products are reliable – How to use a product correctly and safely – Where certain products can be sold

13. Grades and Standards Do you think the GAP will offer low grade clothes at their store? NO! What would the GAP do with these clothes? Sell at Outlet or Old Navy

14. Grades and Standards How do Grades and Standards aid in the buying and selling process? Speeds things up! Consumers do not have to inspect. We know what products rank higher than others.

15. Grades and Standards How are grades and standards important in a Global Market? –By using certain requirements, products are known safe to use internationally. –The standard is known as 1S0 9000

16. Grades and Standards What groups develop grades and standards? – Government Agencies: ex. food, medicines, fair advertising – Professional Organizations: ex. Triple A, Rate Hotels – Businesses

17. Grades and Standards What are 4 types of standards that businesses use? 2. Quality 1. Quantity - ex. how much will be produced in 1 day 3. Time 4. Cost

18. Grades and Standards Examples of Graded Products 1.Agricultural raw materials- like cotton 2.Food Products: a.USDA- Meat b.Dairy c.Fresh Produce d.Fish 3. Oil- Graded according to its thickness 4. Fuel- Graded according to its octane rating 5. Coal- Graded according to its carbon and sulphur content 6. Lumber- Hardwoods are graded according to size, quality, and type of wood

19. Sources Marketing Essentials MBA-LAPS-PM-008-CS