Ch. 7 - Product and Brands Flashcards
Product
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
What are the 3 product levels?
- Core Product (Core customer value)
- Actual Product
- Augmented Product
Core Product (Core customer value)
The need a product satisfies (why consumers buy a product)
Actual Product
The features of the product itself (physical product)
True or False: Consumers always buy products for the actual product.
False. The actual product is not necessarily what consumers buy.
Augmented Product
The additional benefits or service supporting the main product.
Give an example of an augmented product
Examples include: warranties, customer service, packaging, installation
Give an example of an actual product
Consider a smartphone. Examples include: the phone itself, camera, screen, charger
Give an example of a core product
Examples include: hunger/thirst, entertainment, making phone calls, saving time
Services
An activity or benefit that one party offers to another that is intangible and does not result in ownership of anything. One can’t know exactly what they will receive until the service is provided (e.g. haircut, car wash).
What are the characteristics of services?
- Intangible
- Inseparable
- Variable
- Perishable
Intangible (Service Characteristic)
Cannot be seen, tasted, felt, or smelled before purchasing
Inseparable (Service Characteristic)
Consumed when it is provided and cannot be separated from the provider
Variable (Service Characteristic)
Quality depends on who provides
Perishable (Service Characteristic)
Cannot be stored or resold
What are the different types of products?
- Convenience Products
- Shopping Products
- Specialty Products
- Unsought Goods
Convenience Products
Frequent and/or immediate purchases (generally low-involvement products). Includes impulse purchases, staples, and emergency products.
Shopping Products
Products which require more involved decision-making before purchasing, more expensive, and less frequently purchased. Can be homogeneous or heterogeneous.
Homogeneous Products
Heterogeneous Products
Specialty Products
Products that have unique characteristics that a consumer values. The buyer makes a special effort to obtain the product.
Unsought Goods
Goods and services marketed to consumers who may not yet recognize the need or do not wish to recognize the need. Consumers need lots of convincing to purchase these products.
Give an example of a specialty product
Examples include: luxury cars (Bugatti), limited edition fashion products (Louis Vuitton), art
Give an example of an unsought good
Examples include: fire insurance (may not recognize need), life insurance (do not wish to recognize need)
Product-Level Decisions
- Product Attributes
- Packaging and labelling
- Product support services
- Branding
Product Attributes
- Quality (product’s ability to perform its functions)
- Features (differentiates product from alternatives)
- Design (form and function)
Packaging
Protects the product against damage and spoilage, lowers distribution costs, and assists in marketing the product.
How can packaging enhance product quality?
- Makes product easier to use
- Packaging is re-usable (more consistent quality)
- Safety
Labelling
Identifies, describes, and promotes a product
Support Services
Augment products (e.g. instructions, delivery, assembly, warranties)
Branding
Name, term, sign, symbol, design that identifies the product of a seller and differentiates it from competitors’ products
True or False: We would be better off without brands as a brand’s only purpose is to charge a premium based on its reputation
False. Brands help us identify products and signify who we are.
How do brands help companies?
- Legal protection for unique features (trademark)
- Endow products with associations
- Segments market
- Protection from competition
- Bargaining power with retailers
How do brands help consumers?
- Help consumers identify products
- Holds company accountable to consistently provide a high quality product
- Helps us signify who we are (symbolic device)
What 4 areas do decisions about branding strategy stretch across?
- Brand Positioning
- Brand Features
- Brand Sponsorship
- Brand Development
Trademark
Legal protection which confers the exclusive right to use brand name, trade mark, and any slogan or product name abbreviation
Licensing
Selling the rights to apply a brand name, logo, or image to a manufactured product
Co-branding
Using the established brand names of two companies on the same product. The goal is to tap into a different target market that you had no foothold in before
Line Extension
Leverage existing brand and product to create a new variation of your product
Brand Extension
Application of an existing, popular brand name to a new product in an unrelated product category (name only)
Multibrands
Many brands in the same product category under the same company. This can be quite expensive and brand equity/awareness is needed for each brand to ensure each brand is profitable
New Brands
New brand name and new product category (for your company)
Product Mix
Set of all product lines and items that a particular seller offers for sale
Product Line
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 outlets, or fall within a given price range
Product Width
Number of product lines
Product Length
Number of different products in a product line
Product Depth
Variations in each product that a firm markets in its mix
