Chapter 10 Flashcards
What is a product?
Everything, both favorable and unfavorable, a person receives in exchange
What are the 4 types of products?
Convenience products
Shopping products
Specialty products
Unsought products
What is a convenience product?
Goods and services consumers want to purchase frequently, immediately, and with minimal effort
What are shopping products?
Consumers purchase these only after comparing competing products’ price, quality, style, and color
Typically cost more than convenience products
What are specialty products?
Offer unique characteristics that compel buyers to purchase particular brands
Ex. fashionable clothing brands or professional services
What are unsought products?
Products unknown to the potential buyer or a known product the buyer doesn’t actively seek
What is a product item?
A specific version of a product that can be designated as a distinct offering among an organization’s products
What is a product line?
A group of related product items sold under the same brand
What is a product mix?
A company’s assortment of product lines and individual product offerings
What are 5 benefits of organizing related items into product lines?
Advertising economies
Package uniformity
Standardized components
Efficient sales and distributions
Equivalent equality
What is product mix width?
Refers to the number of different product lines the firm offers
What is product line depth?
Refers to the number of variations in each product line
What is product modification and what are the 3 main forms?
Changing the characteristics of an existing product
Quality modifications
Functional modifications
Style modifications
What are quality modifications?
Intended to improve dependability and durability of a product
What are functional modifications?
Product is altered to change its versatility, effectiveness, convenience, or safety
What are style modifications?
Alter sensory appeal of a product by changing its taste, texture, sound, smell, or appearance
What is planned obsolescence?
The practice of modifying products in a way that renders previous versions of the product obsolete
What is a product line extension?
Occurs when a company adds additional products to an existing product line in order to compete more broadly in the industry
What is a brand?
A name, term, sign, symbol, design, or some combination that identifies the products of one firm while differentiating these products from competitors
What is a brand name?
The part of a brand that can be spoken, including letters, words, and numbers
What are brand marks?
The elements of a brand that cannot be spoken
What are the 3 main purposes of branding?
Product identification
Repeat sales
New product sales
What is brand equity?
Refers to the added value the brand gives to a product in a marketplace
What is brand loyalty?
A consistent preference for one brand over all others and is the best generator of repeat sales
What is a trademark?
A brand for which the owner claims exclusive legal protection
What is a service mark?
A trademark for a service
What are some popular branding strategies?
Manufacturer’s brand
Private brand
Captive brand
Family branding
Individual branding
Co-branding
What is manufacturer’s branding?
A brand name owned by a manufacturer
What is a private brand?
Brands offered by retailers and wholesalers
What are captive brands?
A brand manufactured by a 3rd party for an exclusive retailer, without evidence of that retailer’s affiliation
What is family branding?
Using a single brand name that identifies several related products
What is individual branding?
Uses a single brand that uniquely identifies a product, rather than promoting under the name of the company or an umbrella name covering similar items
Ex. Frito Lay produces Lays and Doritos
What is co-branding?
Puts two or more brand names on a product or package
What are 3 types of co-branding?
Ingredient branding
Cooperative branding
Complementary branding
What is ingredient branding?
Identifying the part of the brand that makes up the product
What is cooperative branding?
2 brands receiving equal treatment borrow from each other’s brand equity
What is complementary branding?
Products are marketed together to suggest usage
What are the 4 major objectives of packaging?
Contain and protect products
Promote products
Facilitate storage, use, and convenience of products
Facilitate recycling and reduce environmental damage
What is labeling?
Carries an item’s brand name or symbol, name, and address of manufacturer or distributor, information about product’s composition and size, and recommended uses
What are Universal Product Codes (UPCs)?
Allow retailers to organize products and track inventory
