CH6- The 4P's Flashcards
Why is the 4P’s important?
To be able to develop a strategy where you can satisfy your consumer and make your business successful.
What are the product classification ?
Convenience
Shopping
Specialty
Unsought
What is a convenience product?
Give examples
Used frequently, requires little buying effort or thought into the brand
Ex: gum, milk
What is a shopping product?
Give example
Less frequent used, higher price and requires more effort.
It’s important to demonstrate how your product differs from the competition(advertising)
Consumers are more selective with their products and search for the best value (comparaison)
Clothes
What is a specialty?
Give examples
Unique that people are willing to make special purchasing effort for. The “only” product of its kind on the market. Brand loyalty is important
Ex: iPhones
What is a unsought product?
Give examples
Little awareness and knowledge of existence, people aren’t generally excited to buy these products
Ex: insurance companies
What can product category be influenced by?
The type of person you are: financial..
What is intangibility for services?
Give ex
You cannot see, hear, smell, taste or touch a service before you buy it
Ex: a haircut
What does intangibility creates with consumers for services?
Uncertainty
What is inseparability for services?
Give ex
You cannot separate the buyer of a service and the person that provides it
Ex: doctor’s visit
What is inconsistency for services ?
This applies when there is a difference among providers, you can’t guarantee that you will receive the same quality of service everytime
What is an inventory issue for services?
Give and ex
Marketers cannot store a services and deliver it at the peak periods
Ex: a restaurant only have a X number of seats
What is a product service sontinuum?
Some services and goods are linked
What are the stages of a product life cycle?
Product development Introduction Growth Maturity Decline
What is product development (PLC)?
Not making any money because the product is not sold yet
What is introduction of PLC?
Give an ex
Low sales and non existent profit, the company invest to raise awareness about the product or the product category, the product gets to know about the product
Ex: self driving cars
What is the growth of PLC?
Sales continue to rise, profits usually peaks. Competitors begin to notice emerging categories during the growth phase. Increase in competition
Ex: electric cars
What is the maturity in PLC?
Sales usually peak, profit declines as competition intensifies. Once the market is mature, the only way to gain more customers is to steal them from the competitors.
Weak player drop out of the category
Ex: Coca Cola
What is decline in PLC?
Give an ex
Both sales and profit are in decline, sometimes quite rapidly. It’s usually caused by technological change or change in consumer needs.
Ex: DVD players
What are the three product layers?
Actual product
Associated services
Core customer value
What is an actual product in product layers?
Affects the way the product is viewed and who is going to purchase the product.
Brand name+ quality level+ packaging+ features/design
What are associated services in product layers?
Give ex
Additional elements that might convince you to purchase
Financing+ product warranty+ product support
Ex: warranty, drive threw
What are product differentiations?
Quality
Features
Style and design
What is product quality?
ability to satisfy customer needs. Product quality is directly related to product value, which comes from understanding what the customer needs.
We look a the the quality level and it’s consistency
What are product features?
The specific features of a product, this increases it’s value. This concludes in customer benefit, the advantage that a customer gains from specific features of a product.
What are style and design?
Give an ex
The appearance and usefulness of the product
Ex: iPhones
