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
