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Principles of Marketing > 8. Products, Services, and Brands: Building Customer Value > Flashcards

8. Products, Services, and Brands: Building Customer Value Flashcards

1
Q

Product (offered to a market for attention, acquisition, use or consumption)

A

Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need

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2
Q

Service (intangible and “not result in the ownership”)

A

An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything

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3
Q

Consumer product (bought by final consumer, personal consumption) (4 types - CSSU)

A

A product bought by final consumers for personal consumption.

  1. Convenience products
  2. Shopping products
  3. Specialty products
  4. Unsought products
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4
Q

Convenience product (buy frequently, minimal comparison and buying effort)

A

A consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort. (Newspapers, Candy, Fast food)

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5
Q

Shopping product (process of selecting and purchasing, usually compare)

A

A consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style. (Furniture, Cars, Appliances)

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6
Q

Specialty product (unique characteristics or brand identification, significant group of buyers, special purchase effort)

A

A consumer product with “unique” characteristics or brand identification for which a “significant group” of buyers is willing to make a “special purchase effort”.
(specific brands of cars, high-priced photography equipment, designer clothes, gourmet foods, and the services of medical or legal specialists.)

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7
Q

unsought product ( either does not know about or knows about but does not normally consider buying)

A

A consumer product that the consumer “either does not know about or knows about but does not normally consider buying”. (Life insurance, Funeral (tang lễ) services, Blood donations)

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8
Q

Industrial product (for further processing or for use in conducting a business)

A

A product bought by individuals and organizations “for further processing or for use in conducting a business”.
+ Materials and parts
+ Capital items
+ Supplies and services

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9
Q

Materials and parts (raw, manufactured)

A

raw materials and manufactured materials and parts.

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10
Q

Capital (cơ bản) items (aid in production/operation)

A

industrial products that aid in the buyer’s production or operations.

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11
Q

Supplies and services (3 types - operating, repair and maintain, business)

A
  1. operating supplies,
  2. repair and maintenance items,
  3. business services.
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12
Q

“Organization” marketing is activities… (change the attitudes and behavior of target consumers toward an “organization”)

A

undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization.
(Business firms sponsor public relations or corporate image marketing campaigns to market themselves and polish their images. GE’s long-running “Imagination at Work” campaign markets the industrial giant as a company whose imaginative products and technologies are making a difference in the world.)

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13
Q

Person marketing

A

activities undertaken to create, maintain, or change the attitudes or behavior of target consumers toward particular people.
(Businesses, charities, and other organizations use well-known personalities to help sell their products or causes.)

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14
Q

Place marketing

A

activities undertaken to create, maintain, or change attitudes and behavior toward particular places.
(a DiscoverAmerica.com web site that features destinations, U.S. travel information and tips, and travel planning tools.)

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15
Q

Social marketing (influence individuals’ behavior to improve their well-being and that of society)

A

uses commercial marketing concepts to “influence individuals’ behavior to improve their well-being and that of society.”
(Ideas can also be marketed. In one sense, all marketing is the marketing of an idea, whether it is the general idea of brushing your teeth or the specific idea that Crest toothpastes create “healthy, beautiful smiles for life.” Here, however, we narrow our focus to the marketing of social ideas. This area has been called social marketing.)

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16
Q

Product quality (characteristics - bear on its ability to satisfy)

A

The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.

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17
Q

Total quality management (TQM) (all of the company’s people are involved in constantly improving the quality)

A

an approach in which all of the company’s people are involved in constantly improving the quality of products, services, and business processes.

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18
Q

a return-on-quality approach (quality = investment, quality efforts for bottom-line results)

A

viewing quality as an investment and holding quality efforts accountable for bottom-line results.

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19
Q

Product quality has two dimensions (level and consistency)

  • level -> performance quality (ability to perform its functions)
  • consistency -> conformance quality (freedom from defects (lỗi) and consistency in delivering a targeted level of performance)
A
  1. level
  2. consistency
    - In developing a product, the marketer must first choose a quality level that will support the product’s positioning. Here, product quality means “performance quality—the product’s ability to perform its functions”.
    - Beyond quality level, high quality also can mean high levels of quality consistency. Here, product quality means “conformance quality—freedom from defects (lỗi) and consistency in delivering a targeted level of performance”. All companies should strive for high levels of conformance quality.
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20
Q

Actual product (5 - BQPDF)

A
  1. Brand name
  2. Quality level
  3. Packaging
  4. Design
  5. Features
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21
Q

Augmented product

A
  1. Delivery and credit
  2. Product support
  3. Warranty (giấy bảo hành)
  4. After-sale service
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22
Q

Individual product decisions (5 stages)

attribute -> brand -> package -> label, logo -> product support

A

Product attributes -> Branding -> Packaging -> Labeling and logos -> Product support services

23
Q

Product attributes (3 factors - QFS)

A
  1. Quality
  2. Features: Competitive tool for differentiating a product from competitors’ products/Assessed based on the value to the customer versus its cost to the company
  3. Style (describes the appearance of the product) and design (contributes to a product’s usefulness as well as to its looks)
24
Q

Brand (name, term, sign, symbol, or design -> identifies/differentiates)

A

A name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors.

25
Q

Packaging

A

The activities of designing and producing the container or wrapper for a product.

26
Q

Labels (3 purposes)

A

identify the product or brand, describe attributes, and provide promotion.

Labels and logos range from simple tags attached to products to complex graphics that are part of the packaging. They perform several functions. At the very least, the label “identifies” the product or brand, such as the name Sunkist stamped on oranges. The label might also “describe” several things about the product—who made it, where it was made, when it was made, its contents, how it is to be used, and how to use it safely. Finally, the label might help to “promote the brand and engage customers”. For many companies, labels have become an important element in broader marketing campaigns.

27
Q

Product support services augment actual products. (T/F)

A

T

28
Q

Product line

A

A group of products that are closely related because they function in a “similar manner”, are sold to the “same customer groups”, are marketed through the “same types of outlets”, or fall “within given price ranges”.

29
Q

Product line filling

A

adding more items within the present range of the line
(Eg. Maruti Suzuki had “launched Alto” in the year 2000 which was a product “between two other models” of Maruti- Maruti 800 and Maruti Zen.)
Reasons for product line filling: reaching for extra profits, satisfying dealers, using excess capacity, being the leading full-line company, and plugging holes to keep out competitors. However, line filling is overdone if it results in cannibalization (eating up sales of the company’s own existing products) and customer confusion. The company should ensure that new items are noticeably different from existing ones.

30
Q

Product line stretching (3 types)

A

a company lengthens its product line beyond its current range.
The company can stretch its line downward, upward, or both ways.
Downward: Companies located at the upper end of the market. For example, Mercedes has stretched downward with the CLA line to draw in younger, first-time buyers -> attract a new competitor/respond to a competitor’s attack on the upper end/finds faster growth taking place in the low-end segments.
+ Upward: to add prestige (uy tín) to their current products/to reap higher margins. Eg. adding “Platinum” versions at higher price points.

31
Q

Product mix (or product portfolio) (4 types)
(width -> #line - ngang, dài nhất)
(length -> #item with line - ngang, ngắn hơn)
(depth -> #version/product - dọc)

A

The set of all product lines and items that a particular seller offers for sale.

  1. Product mix width: number of different “product lines” the company carries.
  2. Product mix length: total number of “items” the company carries “within its product lines”.
  3. Product mix depth is the number of “versions offered of each product in the line”. (depth - versions - dọc)
  4. Consistency is how closely the various product lines are in end use, production requirements, or distribution channels.
32
Q

Service intangibility

A

Services cannot be seen, tasted, felt, heard, or smelled before they are bought

33
Q

Service Inseparability

A

services cannot be separated from their providers.

34
Q

Service Variability (service quality depends - who, when, where, how - be provided)

A

service quality depends on who provides the services as well as when, where, and how the services are provided.

35
Q

Service Perishability (cannot be stored for later sale/use)

A

services cannot be stored for later sale or use.

For example, because of rush-hour demand, public transportation companies own much more equipment than they would if demand were even throughout the day. Better match between demand and supply. Eg. Hotels and resorts charge lower prices in the off-season to attract more guests. And restaurants hire part-time employees to serve during peak periods.

36
Q

In addition to traditional marketing strategies, service firms often require additional strategies. (3)

A

Service-profit chain
Internal marketing
Interactive marketing

37
Q

Service profit chain (5 links)

A

The chain that links service firm profits with employee and customer satisfaction.

  1. Internal service quality requires “superior employee selection and training, a quality work environment, and strong support” for those dealing with customers.
  2. Satisfied and productive service employees are more “satisfied, loyal, and hardworking” employees.
  3. Greater service value relates to “more effective and efficient customer value creation and service delivery”.
  4. Satisfied and loyal customers make “repeat purchases and refer other customers”.
  5. Healthy service profits and growth relate to “superior service firm performance.”
38
Q

Internal marketing (company - employee)

A

Orienting and motivating “customer-contact employees” and “supporting service employees to work as a team” to provide customer satisfaction.

39
Q

Interactive marketing (employee - customer)

A

Training service employees in the fine art of interacting with customers to satisfy their needs.

40
Q

competition and costs increase and productivity and quality decrease -> more services marketing sophistication. Service companies face three major marketing tasks: increase their…

A

service differentiation,
service quality,
service productivity.

41
Q

competition and costs increase and productivity and quality decrease -> more services marketing sophistication. Service companies face three major marketing tasks: increase their…

A
  1. “service differentiation” creates a competitive advantage through
    + Offer
    + Delivery
    + Image
  2. “service quality” enables a service firm to differentiate itself by delivering consistently higher quality than its competitors provide
  3. “service productivity” refers to the cost side of marketing strategies for service firms.
    + Employee hiring and training
    + Service quantity and quality
42
Q

Brand equity

A

The differential effect that knowing the brand name has on customer response to the product or its marketing.

43
Q

Brand value

A

Total financial value

44
Q

Major Brand Strategies Decisions

A

Brand Positioning -> Brand Name Selection -> Brand Sponsorship -> Brand Development

45
Q

Brand Positioning: Marketers can position brands at any of three levels.

A
  1. Attributes
    At the lowest level, they can position the brand on product attributes. For example, P&G’s Pampers’ early marketing focused on attributes such as fluid absorption, fit, and disposability. Attributes are the least desirable level for brand positioning because competitors can easily copy attributes. Customers are not interested in what the attributes are—they are interested in what the attributes will do for them.
  2. Benefits
    A brand can be better positioned by associating its name with a desirable benefit. Thus, Pampers can go beyond technical product attributes and talk about the resulting containment and skin-health benefits from dryness.
  3. Beliefs and values
    The strongest brands are positioned on strong beliefs and values, engaging customers on a deep, emotional level. For example, Pampers is positioned as a “love, sleep, and play brand where we grow together” that’s concerned about happy babies, parent-child relationships, and total baby care.
46
Q

Brand Name Selection

A
  1. Suggests benefits and qualities
  2. Easy to pronounce, recognize, and remember
  3. Distinctive
  4. Extendable
  5. Translatable for the global economy
  6. Capable of registration and legal protection
47
Q

Store brand (or private brand)

A

A brand created and owned by a reseller of a product or service.

National brands (or manufacturers’ brands)
have long dominated the retail scene. In recent times, however, increasing numbers of retailers and wholesalers have created their own store brands (or private brands). Store brands have been gaining strength for more than two decades, but recent tighter economic times have created a store-brand boom.
48
Q

Brand Sponsorship (4 options)

A

Manufacturer’s brand
Private brand
Licensed brand
Co-brand

49
Q

Licensing

A

Some companies license names or symbols previously created by other manufacturers, names of well-known celebrities, or characters from popular movies and books. For a fee, any of these can provide an instant and proven brand name.

50
Q

Co-branding

A

The practice of using the established brand names of two different companies on the same product.

many advantages -> each brand operates in a different category, the combined brands create broader consumer appeal and greater brand equity

take advantage of the complementary strengths of two brands: allows a company to expand its existing brand into a category it might otherwise have difficulty entering alone

“has limitations and usually involves complex legal contracts and licenses” -> Co-branding partners must carefully coordinate their marketing mix, and each partner must trust that the other will take good care of its brand. If something damages the reputation of one brand, it can tarnish the co-brand as well.

51
Q

Line extensions

A

extending existing brand names to new forms, colors, sizes, ingredients, or flavors of an existing product category.

52
Q

Brand extension

A

Extending an existing brand name to new product categories.

53
Q

Multi-brands

A

marketing many different brands in a given product category.

54
Q

New brands

A

A company might believe that the power of its existing brand name is waning (suy yếu), so a new brand name is needed.

Principles of Marketing (16 decks)

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