01 - Product Decisions Flashcards
Definition: Product
Anything that can be offered to a market to satisfy a want or need
Product Forms (5)
1) Goods
2) Services
3) Ideas
4) Consumer Products
5) Business Products
Product Levels (3)
1) Core Product
2) Actual Product
3) Augmented Product
Definition: Core Product (Product Levels)
What the customer needs/wants i.e. the desired benefit
Definition: Actual Product (Product Levels)
What the customer gets (e.g. quality, color, style or branding)
Definition: Augmented Product (Product Levels)
Services or secondary products for the actual product (e.g. warranty, install, deliver, finance, service)
Product Classification (4)
1) Tangible Product
2) Intangible Product
3) Durable Products
4) Nondurable Products
Consumer Goods Classification (4)
1) Convenience
2) Shopping
3) Speciality
4) Unsought
Types of Product Differentiation (9)
1) Form
2) Features
3) Performance Quality
4) Conformance Quality
5) Durability
6) Reliability
7) Style
8) Customization
Types of Service Differentiation (7)
1) Ordering Ease
2) Delivery
3) Installation
4) Customer Training
5) Customer Consulting
6) Maintenance and Repair
7) Returns
Definition: Product Design
The totality of features that affect the way a product looks, feels, and functions to a consumer
Product Design Characteristics (7)
1) Emotionally Powerful
2) Transmits brand meaning/positioning
3) Is important for durable goods
4) Makes brand experiences rewarding
5) Can transform an entire enterprise
6) Facilitates manufacturing/distribution
7) Can take on various approaches
Product-Related Strategy Decisions (3)
1) Modifying the Product Mix
2) Positioning Products
3) Branding Products
2 Factors influencing an organization’s profitability
1) Product or service offering(s)
2) Strength of its brand(s)
Definition: Product Portfolio
The totality of an organization’s product/service offerings
Definition: Product Lines
Groups of products similar in terms of usage, buyers marketed to, or technical characteristics
Definition: Product Items
A specific product or service noted by a brand, size, or price
Definition: Portfolio Width
The number of product lines
Definition: Portfolio Depth
The number of items in each line
Definition: Portfolio Consistency
The extent to which offerings satisfy similar needs, appeal to similar buyer groups, or use similar technologies
Product Portfolio Decisions Based on (3)
1) Organizational Resources
2) Marketing Strategy
3) Competitive Situation
Product Portfolio Decisions (4)
1) Adding to the Product Portfolio
2) Modifying the Product
3) Harvesting the Product
4) Eliminating the Product
Questions when adding to the product portfolio (3)
1) How consistent is the new product with existing offerings?
2) Does the organization have the resources to introduce and sustain the product?
3) Is there a viable market for the product?
