Ch. 7 Products, Services, Brands: building Customer Value Flashcards
Product
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
service
An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything.
define augmented
having been made greater in size or value:
What defines an augmented product?
delivery and credit, after sale service, warranty, product support
Consumer product
A product bought by final consumers for personal consumption.
Convenience product
A consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort.
EX: laundry detergent, candy, magazines, newspapers
shopping product
A consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style.
EX: Liam Nieson
specialty product
A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
EX: lambo, specific brands of cars, high-priced photography equipment, de- signer clothes, gourmet foods, and the services of medical or legal specialists.
unsought product
A consumer product that the consumer either does not know about or knows about but does not normally consider buying.
EX: life insurance, preplanned funeral services, and blood donations to the Red Cross
industrial product
A product bought by individuals and organizations for further processing or for use in conducting a business.
What are the three kinds of industrial products?
Materials and parts, Capital items, supplies and services.
Materials and parts include
raw materials as well as manufactured materials and parts
Capital items are
industrial products that aid in the buyer’s production or operations, including installations and accessory equipment.
Supplies and services.
Supplies include operating supplies (lubricants, coal, paper, pencils) and repair and maintenance items (paint, nails, brooms). Business services include maintenance and repair services (window cleaning, computer repair) and business advisory services (legal, management consulting, advertising).
Organization marketing consists of
activities 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.
Person marketing consists of
activities undertaken to create, maintain, or change attitudes or behavior toward particular people. People ranging from presidents, entertainers, and sports figures to professionals such as doctors, lawyers, and architects use person marketing to build their reputations. For example, P&G’s Cover Girl brand is represented by well-known celebrities such as Ellen DeGeneres, P!NK, and Sofia Vergara.
Place marketing involves
activities undertaken to create, maintain, or change attitudes or behavior toward particular places. Cities, states, regions, and even entire nations com- pete to attract tourists, new residents, conventions, and company offices and factories
social marketing(not related to social media)
The use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society.
What is the flow of individual Product Decisions
Product attributes Branding Packaging Labeling Product support services
Product quality
The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.
(TQM)
Total quality management is an approach in which all of the company’s people are involved in constantly improving the quality of products, services, and business processes.
return-on-quality approach
performance quality
—the product’s ability to perform its functions
conformance quality
—freedom from defects and consistency in delivering a targeted level of performance
whats the difference between product design and style?
design goes beneath the surface while style is just on the outside
Brand
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.
Packaging
The activities of designing and producing the container or wrapper for a product.
Product line
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.
EX: nike has several lines of shoes and marriot has different lines of hotels
Product line filling involves
adding more items within the present range of the line.
Product line stretching occurs
when a company lengthens its product line beyond its current range
Product mix (or product portfolio)
The set of all product lines and items that a particular seller offers for sale.
What are the four special characteristics of Services to consider when designing marketing programs?
intangibility, inseparability, variability, and perishability
service intangibility
Services cannot be seen, tasted, felt, heard, or smelled before they are bought.
service inseparability
Services are produced and consumed at the same time and cannot be separated from their providers.
service variability
The quality of services may vary greatly depending on who provides them and when, where, and how they are provided.
service perishability
Services cannot be stored for later sale or use.
service profit chain
The chain that links service firm profits with employee and customer satisfaction.
What are the five links in the service profit chain?
Internal service quality: Satisfied and productive service employees: Greater service value: Satisfied and loyal customers: Healthy service profits and growth:
Internal service quality
Internal service quality: superior employee selection and training, a quality work en- vironment, and strong support for those dealing with customers, which results in . . .
Satisfied and productive service employees:
Satisfied and productive service employees: more satisfied, loyal, and hardworking employees, which results in . . .
Greater service value:
Greater service value: more effective and efficient customer value creation and service delivery, which results in . . .
Satisfied and loyal customers:
Satisfied and loyal customers: satisfied customers who remain loyal, make repeat purchases, and refer other customers, which results in . . .
Healthy service profits and growth:
Healthy service profits and growth: superior service firm performance.
internal marketing
Orienting and motivating customer- contact employees and supporting service employees to work as a team to provide customer satisfaction.
interactive marketing
Training service employees in the fine art of interacting with customers to satisfy their needs
What are the 3 typical marketing tasks companies face?
They want to increase their service differentiation, service quality, and service productivity.
Brand equity
The differential effect that knowing the brand name has on customer response to the product or its marketing
What is a Breakway Brand
survey identifies the brands with the greatest percentage gains in brand health and business value as a result of superb brand strategy and execution over the previous three-year period.
What are the 4 major major brand strategy decisions?
brand positioning, brand name selection, brand sponsor- ship, and brand development.
Brand positioning:
there are three level:
product attributes
Benefits
Beliefs and values
Brand name selection:
Selection
Protection
Brand sponsorship:
Manufacturer’s brand
Private brand
Licensing
Co-branding
Brand development
Line extensions
Brand extensions
Multibrands
New brands
What 6 qualities should a brand name have?
Desirable qualities for a brand name include the following: (1) It should suggest some- thing about the product’s benefits and qualities: Beautyrest, Lean Cuisine, Mop & Glo. (2) It should be easy to pronounce, recognize, and remember: iPad, Tide, Jelly Belly, Face- book, JetBlue. (3) The brand name should be distinctive: Panera, Flickr, Swiffer, Zappos. (4) It should be extendable—Amazon.com began as an online bookseller but chose a name that would allow expansion into other categories. (5) The name should translate easily into foreign languages. Before changing its name to Exxon, Standard Oil of New Jersey rejected the name Enco, which it learned meant a stalled engine when pronounced in Japanese. (6) It should be capable of registration and legal protection. A brand name cannot be registered if it infringes on existing brand names.
Private brand is the same as what?
Store Brand
Manufacturer brand is the same as what?
National Brand
licensing
selling the rights to use an image or other feature that has already been claimed in order to create a brand for something else
EX: Shrek on a t shirt
Co-branding
The practice of using the established brand names of two different companies on the same product.
EX: crunch girl scout cookies
What are the four choices when it comes to developing brands?
line extensions, brand extensions, multibrands, or new brands.
line extension
Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category.
EX: cheerios making new flavors
Brand extension
Extending an existing brand name to new product categories.
EX: Kellogs starting to se;; crackers, granola bars, etc.
Multibrands
Companies often market many different brands in a given product category.
EX: PepsiCo making Pepsi, Sierra Mist, Slice, Mountain Dew, and Mug root beer)
New Brands
Toyota created the separate Lexus brand aimed at luxury car consumers and the Scion brand, targeted toward Millennial consumers.
