Chapter 4: Product Flashcards
What does attributes does a product have
Tangible
Intangible
What is a product?
Good
Service
Idea
The attributes can
Deliver benefits
Satisfy consumers want
For something to be considered a product,
A form of exchange made
Money or unit of value
What are the tangible benefits?
Function
Features
Design
What is function?
What you can do with the product
What is feature?
The characteristics of product in tangible form
Supports functions
What is design?
Aesthetic characteristics
Intangible benefits are
Brand
Education
A product has how many levels?
3
What are the levels of product?
Core
Actual
Augmented
What is the core product?
It is the benefit of the product that meets consumers needs
What is the actual product?
It is the physical and tangible aspects of the product (features)
What is augmented product?
Additional benefits not tied directly to the main product
What are the variations of product?
Product range Product line Product breadth Product width Product item
What is product range also known as?
Product mix
What is product range?
Full set of products offered for sale
What is product line?
Group of products
Similar physical characteristics
Similar purpose
What is a product breadth
The number of product lines marketed in a firm
What is product breadth also known as?
Product width
What is product depth
Variety of
Sizes
Colors
Models
What is product item
Individual version of product
How do you classify products? What is the basis?
Frequency
Relative cost
Time and effort
The 3 classifications are?
Convenience
Shopping
Specialty
Different classes of products are affect differently by
Fad or fashion
Distribution
Substitute
Convenience goods’ characteristics are
Not usually affected by fad or fashion
Marketers usually provide wide distribution (make it convenient to purchase)
Consumers are generally willing to accept substitutes if choice is not available
Shopping goods are
relatively higher priced
Purchased not as frequently
Time and effort on comparing several alternatives on criteria
Characteristics of shopping goods are
Usually affected by fad or fashion
Selective distribution in retail outlets (relative convenient)
Several substitutes for comparison
Specialty goods are items that
Consumer have strong brand preference
Very specific need
They will spend a lot of time and effort to buy
Characteristics of a specialty good are
Exclusive distribution: ensure control of presentation
Consumers will give up more accessible substitutes
Brand is of utmost importance
Unsought goods are
New products consumers not aware of
Products that consumer are aware of, but do not immediately want
New products are necessary because
Technological advances make products obsolete
Competitors can copy successful products
New products to better meet needs are demanded all the time
The classifications of new product are
True innovation
Innovative replacements
Imitative products
True innovations are products that
Have dramatic improvement
Create a new product class
Exceed how current product can meet needs
Innovative replacements are products that
Have significant improvement
To better meet needs of consumers
Imitative products have
A small improvement
New to the company
Not new to the market
What to consider when adding a new product?
Sufficient demand
Financial fitness
Regulations
Marketing support
New products take time to be adopted? How are they adopted?
Yes. Different groups of people
What are the adopters?
Innovators Early adopters Early majority Late majority Laggards
How many % of adopters are innovators?
3%
The characteristics of innovators are
Young
Adventurous
Trendsetters
Enjoy taking risks
How many % of adopters are early adopters?
13%
What are the characteristics of early adopters?
Young
Alert and sensitive to trends
Adopt for recognition
How many % of adopters are early majority?
34%
What are the characteristics of the early majority?
Deliberate
Cautious
Adopt only after certain degree of success
How many % of adopters fall into late majority?
34%
What are the characteristics of late adopters?
Older Less exposed to outside influences Lower income Skeptical: More resistant to change Wait until most people have switched over
What is the % of adopters who are laggards?
16%
What are the characteristics of laggards?
Traditional bound
Little media exposure
Live in suburban or rural areas
Avoid change unless they have no other choice
What do you call the process in which an individual adopts a product
Consumer adoption process
What are the stages of the consumer adoption process?
Awareness stage Interest stage Evaluation stage Trial stage Adoption stage Post adoption confirmation stage
In the awareness stage, adopters
Get exposed to the product through promotional messages
In the interest stage, adopters
Are aroused enough to start looking for information
In the evaluation stage, consumers
Start comparing the product with competitive products
In the trial stage, consumers
Try a sample
Purchase product for the first time
In adoption stage, consumers start to
Use the product on a regular basis
In post adoption confirmation stage,
Consumers assess the product
On a continual basis
Talk to others about it
‘How long does it take for people to go through the adoption process’ What is it called
Rate of adoption
The rate of adoption is affected by
Relative advantage Compatibility Complexity Ability to trial Observability
Convenience goods are
Purchased frequently
Relatively low cost
Little time and effort to purchase
What is relative advantage?
Degree of innovation superiority
What is compatibility?
Degree of innovation consistency with values and experience of adopter
What is complexity??
How user friendly
What is ability to trial?
Degree new idea can be sampled on limited basis
What is observability?
Innovation seen to work
What are the four stages in PLC?
Introduction
Growth
Maturity
Decline
What are the respective objectives for each stage?
Gain awareness
Stress differentiation
Maintain brand loyalty
Harvesting or deletion
What are the criterias to analyze in each stage?
4Ps
Competition
Sales and profit
Aim/action
Why are sales and profits are low in introduction stage
Low awareness
R&D cost
Why are places limited in introduction stage?
High risks of new products
May not sell well
In growth stage, what rises rapidly?
Sales and profits
Why is there a large increase in competitors?
Profit outlook attractive
At what stage are prices dropped? Why?
Growth
Economies of scale, COP drop, drop prices
Thwart competition
Primary and secondary demand are met in what stages?
Introduction
Growth
When do profits begin to fall? Who experiences this?
Maturity
Producer and retailer
How do producers act in maturity?
Broaden product line
New models
Extra services
When do sales begin to fall?
Decline
How to keep profits afloat in decline stage?
Cost control
Why are there smaller number of competitors in decline?
They withdraw from market
What is deletion?
Dropping product out of product line
What is harvesting?
Continue to offer product
Reduce costs of marketing
More profits earned
Deletion is a drastic strategy that affects
Residual core of loyal customers
What type of products affect PLC?
Fad product
High/low amount of learning
Fashion
What is a fad product?
Novelty product
Rapid sales, short season
PLC short
What is a product with high learning?
Large amount of education
Extended introductory period
What are products that require low amounts of learning?
Benefits are understood
Competitors can imitate
Introduction and growth short
What is a fashion product?
Comeback
Gets popular, declines, popular after some time
How to extend PLC?
Modify the:
Product
Market
Reposition product
How to modify the product?
Change Features Functions Design Appearance Quality Performance
Increase value
Increase appeal
How to modify the market?
Find new users:
Those in target segment haven’t bought
Who are buying from direct competitors
Find new segments
Target consumers in new market niches/segments
Increase the usage:
Promote frequent consumption
Creating new use situation:
Identify new applications
What is repositioning a product?
Changing the perception of brand occupied in consumers mind relative to competitive products
What does repositioning move away from
Strong competitor
What does repositioning move closer to?
New market
Move closer to what consumer perceive a brand that meets needs
Products are repositioned when there is a change in
Consumer trend
Products can be repositioned by changing
Value offered
What does changing value offered involve?
Trading up: adding value through additional features, higher quality materials
Trading down: reduce no. of features, quality, price or down sizing
