4 P's - product Flashcards
What are the three product levels
Core benefit / product
Basic product
Augmented product
What is the core benefit / product level
The basic need served by the generic product
What is the basic product level
Styling
Quality
Brand name
What is the augmented product level
The add ons that are extrinsic to the product itself but which influence the decision to purchase
What are the two types of product
Consumer and B2B
What are the different consumer product types
Durable goods Non durable goods Services Convenience goods (impulse buys, staples(everyday products), emergencies) Shopping goods Specialty goods
What are the different B2B product types
Capital goods Accessories Raw materials Sub assemblies / components Supplies Service
What is a brand
Brands are the culmination of a users total experience with the product over many years. That experience is made of a multitude of good, neutral, and bad encounters such as the way a product performs, an advertising message, a press report, a telephone call, or a rapport with a sales assistant
Chartered institute of marketing
How does branding add value
Differentiation
Premium pricing
Perceived product
What is the purpose of a brand personality
It helps distinguish the brand from competitors
What is brand equity
The value of the brand to the customer and the additional cash flow achieved by associating a brand with the underlying product or service
Rosen sun Elliot et al (2015,p89)
Advantages of a strong brand
Ability to charge a premium price
New products have better chance of success
Competitive edge
Why are new products important
Appeal to different market segments
Increase or defend market share by offering more choice within the range
What are the types of new product
Innovative Replacement Variant Me too eg own brand cola Re launched
What are the stages of product developmental
Idea generation Idea screening Concept development and testing Marketing strategy development Business analysis Product development Test marketing Commercialisation
What are the stages of a product life cycle
Introduction Growth Maturity Decline Deletion (Extension strategy’s can be used as a product enters decline in order to lift the peak of sales back up for example a new flavour of crisps)
What is the Boston matrix
The Boston Consulting group’s product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products.
The Matrix is divided into 4 quadrants based on an analysis of market growth and relative market share, as shown in the diagram below.
What are the four quadrants of the Boston matrix
Stars
Cash cows
Question marks
Dogs
What is a star
A product that has high market share and high market growth
Eg iPhone
More likely to peak quickly
What is a cash cow
They have high market growth but low market share.
Something that sells consistently eg bread milk
What are question marks
Products with high market growth but low market share
Business is missing out on a potential opportunity
What are dogs
Products that have low market growth and low market share
What are important areas to consider for product
Industry attractiveness
Competitive strength
Summary of product
More than just the basic product
Competitive edge usually comes from augmented or perceived product
Brands are valuable and must be carefully managed
Companies need innovation to stay alive but new product delvopment is risky
Product portfolios should be balanced
