Ch 7&8 Flashcards
Define product
Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need
Define service
An activity, benefit or satisfact offered for sale that is essentially intangible and does not result in ownership of anything
What are the 3 levels of products and service
Core customer value
Actual product : brand name etc
Augmented product: deliver, product support
What are the four types of consumer products
Convenience: frequent, low price, mass promotion
Shopping: less frequent may compare, higher price, selective distribution,
Specialty: strong brand preference and loyalty, high price, exclusive, targeted
Unsought: unaware
What are the 4 OTHER types of products
Organisation
Person
Place
Idea
What the the 5 elements in individual product decsions
Product attributes Branding Packaging Labelling Product support services
What are the 3 product attributes
Quality: ability to satisfy customer needs
Features: differentiating company product from competitors
Style and design: appearance and usefulness
Define branding
A name, term or symbol design or combination that identifies product or service and differentiates it from competitors
Define packaging
Involves designing and producing the container or wrapper for a product
Define labelling
Range from simple gaged to complex graphics ons package
Define product support services
Some form of supper service which can be a major part of total offering
What is a product line
A group of products that are closely linked because they function similarly, sold to same customer groups or fall within the se given price
What are the 3 product line decisions
Lengthening
- profits line length: nunber of products in the line
Explaining the line
- product line filling: adding more within the current line
- product line stretching: lengthening the line beyond current range
What is stretching downward
Offering new low quality low price products to plus market hole and respond to competitors attack
What is stretching upward
Offering new products at a high quality and high price to add prestige
What is stretching both ways
Adding new high and low quality and prices product to broaden appeal and boost growth
What is a product mix
A product portfolio which consists of all the product lines and items in that particular seller offers for sale
What are the four product mix dimensions
Product mix width: number of different product lines
Product depth: versions offered of each product
Product length: total number of items a company carries
Product consistency: how closely related they are in terms of end use
What are the 4 characteristics of services
Intangibility: cannot he touched before they are bought
Inseparability: can not be separated from providers
Variability: quality depends on who when where and how they are provided
Perishabikity : can not be stored for later use
Define brand equity
The differential effect that knowing the brand name has on customer response to the product and its marketing
What are the four ways to measure brand equity
Differentiation
Knowledge
Relevance
Esteem
What are the 4 brand strategy decisions
Brand positioning: attributes, benefits, beliefs and values
Brand name
Brand name sponsorship: national brand, private brand, licenced, co-branding (2 or more companies)
Brand development: line extensions, brand extensions, multi-brand, new brand
What are the 8 steps in the product development process
Idea generation: internal and external sources
Idea screening: spot good and bad ideas
Concept development and testing: detailed wetsuit of idea in meaningful consumer terms
Strategy development: target market, products planned price and distribution, planned long run sales
Business analysis: fonaincial attractiveness
Product dev: physical
Test marketing: product dev. Is out in more realising market setting
Commercialisation: full scale
What are the 5 stages in the product life cycle
Development Introduction: awareness Growth: maximise market share Maturity: maximise profit Decline: reduce expenditure
