CH6- The 4P's

Question 1

Why is the 4P’s important?

Answer 1

To be able to develop a strategy where you can satisfy your consumer and make your business successful.

Question 2

What are the product classification ?

Answer 2

Convenience
Shopping
Specialty
Unsought

Question 3

What is a convenience product?

Give examples

Answer 3

Used frequently, requires little buying effort or thought into the brand

Ex: gum, milk

Question 4

What is a shopping product?

Give example

Answer 4

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

Question 5

What is a specialty?

Give examples

Answer 5

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

Question 6

What is a unsought product?

Give examples

Answer 6

Little awareness and knowledge of existence, people aren’t generally excited to buy these products

Ex: insurance companies

Question 7

What can product category be influenced by?

Answer 7

The type of person you are: financial..

Question 8

What is intangibility for services?

Give ex

Answer 8

You cannot see, hear, smell, taste or touch a service before you buy it

Ex: a haircut

Question 9

What does intangibility creates with consumers for services?

Answer 9

Uncertainty

Question 10

What is inseparability for services?

Give ex

Answer 10

You cannot separate the buyer of a service and the person that provides it

Ex: doctor’s visit

Question 11

What is inconsistency for services ?

Answer 11

This applies when there is a difference among providers, you can’t guarantee that you will receive the same quality of service everytime

Question 12

What is an inventory issue for services?

Give and ex

Answer 12

Marketers cannot store a services and deliver it at the peak periods

Ex: a restaurant only have a X number of seats

Question 13

What is a product service sontinuum?

Answer 13

Some services and goods are linked

Question 14

What are the stages of a product life cycle?

Answer 14

Product development
Introduction
Growth
Maturity
Decline

Question 15

What is product development (PLC)?

Answer 15

Not making any money because the product is not sold yet

Question 16

What is introduction of PLC?

Give an ex

Answer 16

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

Question 17

What is the growth of PLC?

Answer 17

Sales continue to rise, profits usually peaks. Competitors begin to notice emerging categories during the growth phase. Increase in competition

Ex: electric cars

Question 18

What is the maturity in PLC?

Answer 18

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

Question 19

What is decline in PLC?

Give an ex

Answer 19

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

Question 20

What are the three product layers?

Answer 20

Actual product
Associated services
Core customer value

Question 21

What is an actual product in product layers?

Answer 21

Affects the way the product is viewed and who is going to purchase the product.
Brand name+ quality level+ packaging+ features/design

Question 22

What are associated services in product layers?

Give ex

Answer 22

Additional elements that might convince you to purchase
Financing+ product warranty+ product support

Ex: warranty, drive threw

Question 23

What are product differentiations?

Answer 23

Quality
Features
Style and design

Question 24

What is product quality?

Answer 24

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

Question 25

What are product features?

Answer 25

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.

Question 26

What are style and design?

Give an ex

Answer 26

The appearance and usefulness of the product

Ex: iPhones