Chapter 10: Product Concept Flashcards
Define Products
Anything both favourable and unfavourable received by a person in exchange for possession, consumption, attention or short term use
- Tangible and Intangible
Define Consumer Product
Bought to satisfy an individual’s personal wants. Sometimes the same item can be both a business good and a consumer good, depending on how it can be used
- Bought solely for the purpose of liking it
- Personal or Business related reasons
Define Convenience Goods as a Consumer Product
Inexpensive products that take little to no effort to shop found and can be found everywhere
(At your convenience to buy; easy to find and access)
- Like a basic need
- Deodorant, Razors
Define a Shopping Good as a Consumer Product
A higher end product bought by consumers that are usually compared with same products from other stores; to see if they are better quality, cheaper, etc.
- More effort to purchase these (more expensive)
- Gucci
Define a Homogenous Good as a Consumer Product
Products that are perceived as similar, and that are looked for at the lowest price
- Knockoffs, Walmart, Winners
Define a Homogenous Good as a Consumer Product
Products perceived as different, in terms of features, quality, and performance.
- Apple Products
(Expensive, Effort to find)
Define Unsought Goods as a Consumer Product
Unknown to consumers. These are known products but not commonly looked for. (hard to sell and don’t want to buy)
- These products require aggressive advertising
Define Speciality Goods as a Consumer Product
Can be inexpensive or expensive. They are products with unique qualities, and unique brand attributes. Distribution is often limited to one or very few
- Consumers search extensively, unwilling to accept substitutes
Define Product Items
Having distinct offerings
Define Product Line
Groups of closely related product items
Define Product Mix
All products that one company sells
Define Product Mix Width
Firms increase the width or their product mixes to diversify risk, to generate sales, and boost profits. They have widened their product mix to capitalize on established reputations
Define Product Line Length
Number of product items in a product Line
- Shirts, Pants, Skirts, etc.
Define Product Line Depth
Number of types and sizes offered for each product
- Clothing Sizes
- Flavours of Ice Cream
Why do companies often sell more than one single product
Variety Sells. More options, gives more preference
Define Adjusting
Over time, firms change product items, and mixes, to take advantage of new technical or product developments.
- Adjusting a product due to the new trends
Define Product Modification as a Type of Adjustment in Product
Changing one or more of a products characteristic (when consumer demands change, and competitive demands)
Define Quality Modification as a Type of Adjustment in Product
The quality of a product being changes
Define Functional Modification as a Type of Adjustment in Product
New advanced technical changes, or functions
Define Style Modification as a Type of Adjustment in Product
The presentation being changes
Define Planned Obsolescence as a Type of Adjustment in Product
Process of modifying products so that those products become “out of date”/”old”, new ones are made and wanted more.
- Iphone
Define Repositioning as a Type of Adjustment in Product
Changing consumers’ perceptions of a brand. Like changing demographics, declining sales, competition, etc.
Define Product Line Extensions as a Type of Adjustment in Product
Adding products to an existing product line to compete more broadly
- Ex. Adding new flavours to something
Define Product Line Contraction as a Type of Adjustment in Product
Reducing the number of items in a line
- Allocated to the more important products, less waste, etc.
Define Brand Naming
The part of a brand that can be spoken in letters or numbers to represent the business
Define Brand Mark
The elements that cannot be spoken such as: Reputation, Expectations, etc.
Define Product Identification as a Benefit to Branding
Able to distinguish a product from competition
Define Repeat Sales as a Benefit to Branding
Identifying brands that consumers want to buy at again
Define Brand Loyalty as a Benefit to Branding
Consistent preference for one brand over others
Define Generic vs Branded Products as a Branding Strategy
Generic: Low Cost Appeal (No Frills)
Brand: High Quality and Cost (Whole Foods)
Define Brand Name of a Manufacturer
Sometimes referred to as a national, or international brand
- Apple
What are the advantages of carrying Manufacturer Brands
- Heavy Advertising
- Can attract new customers
- Rapid Delivery
Define a Private Brand
Owned by a wholesaler or retailer (i.e Presidents Choice)
What are the advantages of carrying Private Brands
- Earn Higher profits on its own brand
- Exclusive
Define Individual vs. Family Brands
Different Brands for different people; when products vary greatly in use or performance; several different products under the same brand name (i.e Apple)
Define Cobranding
Two or more brand names on a product or package
- Can enhance the prestige or perceived value of a product
Define a Trademark
The exclusive right to use a brand or part of a brand (service mark)
- Can last for 15 years
- Ex. Catchy Phrases: Nike “Just do It”
Define Trademark Protection
Aggressively enforcing the firms trademarks
Define Packaging
Containing and protecting obvious liquids, gels or fluids.
As well as other functions like:
- Hold contents together
- Protect goods through distribution channel
- Today: used for promoting the product as well (presentation)
- Safer and Easier to use also
- Ex. Ketchup
- Different ways it is packages
- Squeezable, or Shelf Like
Define Persuasive Labelling
Focusing on a promotional theme or logo and consumer information is secondary
Define Informational Labelling
Designed to help the consumer make proper product selections and to lower cognitive dissonance after purchase
Define the Consumer Packaging and Labelling Act
Mandated detailed nutritional information on most food packages and standards for health claims on food packaging.
- Low Fat, light, reduced cholesterol, Low calories, etc.
