AI Flashcards
What are the three main categories of products?
- Non-durable goods
- Durable goods
- Services
Give an example of a non-durable good.
Food products
What is a durable good?
A product that lasts for an extended period of time, such as appliances or automobiles
What is a service?
An intangible activity, benefit, or satisfaction, such as banking or visiting a doctor
What is the difference between primary service and supplementary services?
Companies offer supplementary services in addition to their primary service
What are hybrid products?
Combination of goods and services to offer a more competitive product to consumers
What is the service continuum?
A range from tangible to intangible, or goods-dominant to service-dominant
What are the four unique elements of services?
- Intangibility
- Inconsistency
- Inseparability
- Inventory
Why is it challenging to deliver services?
Quality can vary due to the capabilities, experience, and motivation of the people providing the service
What is inseparability in services?
The consumer cannot separate the deliverer of the service from the service itself
What is idle production capacity in services?
A situation when the supply of a service exceeds its demand
What are the three levels of value that a product can provide?
- Core product
- Actual product
- Augmented product
What is a product line?
A group of similar products that are closely related and satisfy a similar need
What does the product mix width refer to?
The number of different product lines offered by a company
What does the product line length refer to?
The number of products or brands in a product line
What does the product line depth refer to?
The number of different versions of each product
What is derived demand in business products?
Sales of business products result from the sale of consumer products
What are production goods and services?
Items used in the manufacturing process that become part of the final product
What are support goods and services?
Items used to assist in producing other goods and services
What are the most influential brands in Canada for 2020?
- Amazon
- YouTube
- Apple
- Netflix
- Visa
- Microsoft
- Walmart
- PC Optimum
What are some characteristics of brands?
- Have status and value
- Have personality
- Evoke emotions
- Signify quality
- Provide legal protection
What is an individual brand?
When a company uses a brand name solely for a specific product category
What is a family brand?
When a company uses a brand name to cover a number of different product categories
What is a brand extension?
When the use of the brand name is used to market other products
What is a sub-brand?
When a brand uses both the family brand name and its own brand name
This is a common strategy in the automobile industry.
What is the advantage of using an established family brand name for new goods or services?
Brand equity is quickly transferred from flagship brand to the new product, thus saving the company marketing funds needed to build up this brand equity from scratch
What is a disadvantage of using a family branding approach?
If the new approach does not live up to the image of the flagship brand or does not share in its values, then the brand equity built up over time can be eroded for all products under this family brand name
What is brand equity?
The result of considerable marketing investment; needs to be protected
How are patents used to protect products, brands, and processes?
Patents are used to legally protect new technologies or improvements on products or processes. They provide a time-limited, legally protected, exclusive right to make, use and sell an invention
Patents serve as a reward for ingenuity. In Canada, patents currently protect owners for a period of 20 years after the patent is filed, providing that maintenance fees are paid during this time. After 20 years, the patent then becomes available to the market.
What do copyrights protect?
Original written works, sound recordings, or forms of communication from being copied by others
It covers music, literature, and performances. In Canada, a copyright is protected for a lifetime plus 50 years.
What do trademarks protect?
Brand images, names, slogans, and designs from usage by others
Trademarks are limited to a period of ten years from the date of registration but can be renewed by their owners to maintain their investment. A trademark legally protects a brand name and its related logo, colors, fonts, and various combinations that exist for use in a particular category and in part of the world. If trademarks are to be used in foreign countries, the owner is wise to register an international application.
What is brand loyalty?
Favorable attitudes that a consumer has over time toward a brand that result in varying levels of purchase insistence and commitment to the brand
Brand loyalty varies by product and from person to person. Marketers strive to have highly committed, brand-loyal consumers as this helps insulate their brand from competitive marketing practices.
What do successful brands have?
A brand personality - a set of human characteristics associated with the brand
Research shows that consumers often associate particular human personality traits with certain brands and prefer those whose personalities are most appealing.
What are some key points to consider when determining a good brand name?
- The name should suggest the product benefits
- The name should be memorable, distinctive, and positive
- The name should fit the company or product image
- The name should have the ability to be legally protected
- The name should be simple
What are the three types of brands?
- Manufacturer’s brands
- Private-label brands
- Generic brands
Define a manufacturer’s brand.
A brand that is owned and produced by the manufacturer.
What is a private-label brand?
A brand owned by a retailer that contracts manufacturing to major suppliers and sells the product under its own store-brand name.
What is a generic brand?
A brand with no branding, often a cheap alternative to manufacturer’s and private-label brands. It is typically named using the main product ingredient and is common in the pharmaceutical industry.
Generic products can also be found at retail outlets like dollar stores.
What are the stages in the product life cycle?
- Development
- Introduction
- Growth
- Maturity
- Decline
What happens in the introduction stage of the product life cycle?
The product is introduced to the market. There are high product development costs, promotion efforts, and low sales. There is little competition and consumer awareness.
Many new products fail and there is a museum in Sweden dedicated to these failed products.
What happens in the growth stage of the product life cycle?
Sales rapidly increase, new competitors enter the market, and pricing becomes more affordable due to economies of scale.
What happens in the maturity stage of the product life cycle?
Competitors are well established, fewer new consumers enter the market, and sales growth and profits slow down.
Coca-Cola is an example of a product that has remained in the maturity stage for many years.
What happens in the decline stage of the product life cycle?
Sales and profits steadily decline over time.
How does the length of a product life cycle vary?
Some products take years to move through the cycle, while others move through quickly. High tech products tend to move quickly, while others move slowly.
Does the shape of the product life cycle apply to all products?
No, the shape of the product life cycle does not apply to all products.
The shape mentioned earlier is just a general representation and not applicable to all products.
What are the four types of products based on their learning curve?
- High-learning products
- Low-learning products
- Fashion products
- Fad products
What are the two pricing strategies when a product is first introduced to the market?
- Skimming
- Penetration
What happens to the distribution of a new product as it progresses through the product life cycle?
Distribution increases in the growth stage and decreases in the decline stage
What are the three strategies that can be used to extend the product life cycle?
- Modifying the Product (Product Improvements, Line Extensions)
- Modifying the Market (Finding New Customers, Increasing a Product’s Use, Creating a New Use Situation)
- Repositioning a Product
What are the three main categories of products?
- Non-durable goods
- Durable goods
- Services
Give an example of a non-durable good.
Food products
What is a durable good?
A product that lasts for an extended period of time, such as appliances or automobiles
What is a service?
An intangible activity, benefit, or satisfaction, such as banking or visiting a doctor
What is the difference between primary service and supplementary services?
Companies offer supplementary services in addition to their primary service
What are hybrid products?
Combination of goods and services to offer a more competitive product to consumers
What is the service continuum?
A range from tangible to intangible, or goods-dominant to service-dominant
What are the four unique elements of services?
- Intangibility
- Inconsistency
- Inseparability
- Inventory
Why is it challenging to deliver services?
Quality can vary due to the capabilities, experience, and motivation of the people providing the service
What is inseparability in services?
The consumer cannot separate the deliverer of the service from the service itself
What is idle production capacity in services?
A situation when the supply of a service exceeds its demand
What are the three levels of value that a product can provide?
- Core product
- Actual product
- Augmented product
What is a product line?
A group of similar products that are closely related and satisfy a similar need
What does the product mix width refer to?
The number of different product lines offered by a company
What does the product line length refer to?
The number of products or brands in a product line
What does the product line depth refer to?
The number of different versions of each product
What is derived demand in business products?
Sales of business products result from the sale of consumer products
What are production goods and services?
Items used in the manufacturing process that become part of the final product
What are support goods and services?
Items used to assist in producing other goods and services
What are the most influential brands in Canada for 2020?
- Amazon
- YouTube
- Apple
- Netflix
- Visa
- Microsoft
- Walmart
- PC Optimum
What are some characteristics of brands?
- Have status and value
- Have personality
- Evoke emotions
- Signify quality
- Provide legal protection
What is an individual brand?
When a company uses a brand name solely for a specific product category
What is a family brand?
When a company uses a brand name to cover a number of different product categories
What is a brand extension?
When the use of the brand name is used to market other products
What is a sub-brand?
When a brand uses both the family brand name and its own brand name
This is a common strategy in the automobile industry.
What is the advantage of using an established family brand name for new goods or services?
Brand equity is quickly transferred from flagship brand to the new product, thus saving the company marketing funds needed to build up this brand equity from scratch
What is a disadvantage of using a family branding approach?
If the new approach does not live up to the image of the flagship brand or does not share in its values, then the brand equity built up over time can be eroded for all products under this family brand name
What is brand equity?
The result of considerable marketing investment; needs to be protected
How are patents used to protect products, brands, and processes?
Patents are used to legally protect new technologies or improvements on products or processes. They provide a time-limited, legally protected, exclusive right to make, use and sell an invention
Patents serve as a reward for ingenuity. In Canada, patents currently protect owners for a period of 20 years after the patent is filed, providing that maintenance fees are paid during this time. After 20 years, the patent then becomes available to the market.
What do copyrights protect?
Original written works, sound recordings, or forms of communication from being copied by others
It covers music, literature, and performances. In Canada, a copyright is protected for a lifetime plus 50 years.
What do trademarks protect?
Brand images, names, slogans, and designs from usage by others
Trademarks are limited to a period of ten years from the date of registration but can be renewed by their owners to maintain their investment. A trademark legally protects a brand name and its related logo, colors, fonts, and various combinations that exist for use in a particular category and in part of the world. If trademarks are to be used in foreign countries, the owner is wise to register an international application.
What is brand loyalty?
Favorable attitudes that a consumer has over time toward a brand that result in varying levels of purchase insistence and commitment to the brand
Brand loyalty varies by product and from person to person. Marketers strive to have highly committed, brand-loyal consumers as this helps insulate their brand from competitive marketing practices.
What do successful brands have?
A brand personality - a set of human characteristics associated with the brand
Research shows that consumers often associate particular human personality traits with certain brands and prefer those whose personalities are most appealing.
What are some key points to consider when determining a good brand name?
- The name should suggest the product benefits
- The name should be memorable, distinctive, and positive
- The name should fit the company or product image
- The name should have the ability to be legally protected
- The name should be simple
What are the three types of brands?
- Manufacturer’s brands
- Private-label brands
- Generic brands
Define a manufacturer’s brand.
A brand that is owned and produced by the manufacturer.
What is a private-label brand?
A brand owned by a retailer that contracts manufacturing to major suppliers and sells the product under its own store-brand name.
What is a generic brand?
A brand with no branding, often a cheap alternative to manufacturer’s and private-label brands. It is typically named using the main product ingredient and is common in the pharmaceutical industry.
Generic products can also be found at retail outlets like dollar stores.
What are the stages in the product life cycle?
- Development
- Introduction
- Growth
- Maturity
- Decline
What happens in the introduction stage of the product life cycle?
The product is introduced to the market. There are high product development costs, promotion efforts, and low sales. There is little competition and consumer awareness.
Many new products fail and there is a museum in Sweden dedicated to these failed products.
What happens in the growth stage of the product life cycle?
Sales rapidly increase, new competitors enter the market, and pricing becomes more affordable due to economies of scale.
What happens in the maturity stage of the product life cycle?
Competitors are well established, fewer new consumers enter the market, and sales growth and profits slow down.
Coca-Cola is an example of a product that has remained in the maturity stage for many years.
What happens in the decline stage of the product life cycle?
Sales and profits steadily decline over time.
How does the length of a product life cycle vary?
Some products take years to move through the cycle, while others move through quickly. High tech products tend to move quickly, while others move slowly.
Does the shape of the product life cycle apply to all products?
No, the shape of the product life cycle does not apply to all products.
The shape mentioned earlier is just a general representation and not applicable to all products.
What are the four types of products based on their learning curve?
- High-learning products
- Low-learning products
- Fashion products
- Fad products
What are the two pricing strategies when a product is first introduced to the market?
- Skimming
- Penetration
What happens to the distribution of a new product as it progresses through the product life cycle?
Distribution increases in the growth stage and decreases in the decline stage
What are the three strategies that can be used to extend the product life cycle?
- Modifying the Product (Product Improvements, Line Extensions)
- Modifying the Market (Finding New Customers, Increasing a Product’s Use, Creating a New Use Situation)
- Repositioning a Product
