Chapter 12 Flashcards
Product
Everything one receives in an exchange, including all tangible and intangible attributes and expected benefits
- A good, service, or idea
Consumer product
A product purchased to satisfy personal and family needs
Business/industrial product
A product bought for resale, for making other products, or for use in a firm’s operations
Convenience product
A relatively inexpensive, frequently purchased item for which buyers want to exert only minimum effort
- bread
Shopping product
An item for which buyers are willing to expend considerable effort on planning and making the purchase
- Buyers allocate time for comparing prices/products
- smart phone
Specialty product
An items that possesses one or more unique characteristics for which a significant group of buyers is willing to expend considerable purchasing effort
- no substitute
Raw material
A basic material that becomes part of a physical product; usually comes from mines, forests, oceans, or recycled solid wastes
Major equipment
Large tools and machines used for production purposes
Accessory equipment
Standardized equipment used in a firm’s production or office activities
- photocopier
Component part
An item that becomes a part of a physical product and is either a finished item ready for assembly or a product that needs little processing before assembly
Process material
A material that is used directly in the production of another product but is not readily identifiable in the finished product
Supply
An item that facilitates production and operations but does not become part of the finished product
Business service
An intangible product that an organization uses in its operations
- financial service
PLC
A series of stages in which a product’s sales revenue and profit increase, reach a peak, then decline
=> Introduction
Customer awareness and acceptance are low
=> Growth
Sales increase rapidly as the product becomes well known
=> Maturity
Sales are still increasing but at a slower rate; later in this stage, sales and profits begin to slowly decline
=> Decline stage
Sales volume decreases sharply and profits continue to fall
Product line
A group of similar products that differs only in relatively minor characteristics
- Coke variations
Product mix
- All of the products that a firm offers for sale
- Width of the mix
> The number of product lines the mix contains - Depth of the mix
> The average number of individual products within each line
Managing the product mix
Marketers must adjust, develop, and maintain an effective marketing mix
- Managing existing products
> Product modification: the process of changing one or more of a product’s characteristics such as quality, function, aesthetics
> Line extensions: development of a product closely related to one or more products in the existing product line but designed specifically to meet somewhat different customer needs (ie: different chip flavours) - Deleting products
>weak and unprofitable
>negatively impacts customer perception and sales
> delete when Financial burden
> systematic review of product effectiveness - marketing mix - Developing new products
> Imitations, adaptations, or innovations
> Consists of seven phases
> expensive, time consuming and risky
>
Why Do Products Fail
The product and its marketing program are not planned and tested as completely as they should be
- For example, a firm tries to save product development costs and only market-tests a product and not its entire marketing mix
The firm markets a new product before all the “bugs” are worked out
When problems show up in testing, a firm tries to recover its costs by pushing ahead anyway
A firm tries to market a product with inadequate financing
What is a brand?
A name, term, symbol, design, or any combination of these that identifies a seller’s products as distinct from those of other sellers
Brand name
The part of a brand that can be spoken
Brand mark
The part of a brand that is a symbol or distinctive design
Trademark
A brand name or brand mark that is registered with the U.S. Patent and Trademark Office and is legally protected from use by anyone else
Trade name
The complete and legal name of an organization
Benefits of branding
- easily recognizable, they reduce the amount of time buyers must spend shopping
- help consumers judge quality
- helps a firm introduce a new product
- aids in promotional efforts because promotion of each branded product indirectly promotes others with the same brand
