Chapter 5 Flashcards
PRODUCT STRATEGY
one of the significant elements of marketing mix (4P’s)
PRODUCT
consist of both goods and services
PRODUCT
a package of benefits both physical and psychological that a marketer wants to present, or pack of expectations that consumers desire to realize
PRODUCT
THREE LEVES OF PRODUCT
- CORE CUSTOMER VALUE
- ACTUAL PRODUCT
- AUGMENTED PRODUCT
The fundamental benefit or value that a customer seeks when purchasing a product.
CORE CUSTOMER VALUE
It answers the question: What is the customer really buying?
CORE CUSTOMER VALUE
The tangible or physical product that delivers the core benefit. This includes the product’s features, design, brand, quality, and packaging.
ACTUAL PRODUCT
Additional services and benefits that enhance the value of the actual product and differentiate it from competitors.
AUGMENTED PRODUCT
These are not essential but improve customer satisfaction and loyalty.
AUGMENTED PRODUCT
2 TYPES OF PRODUCT
CONSUMER PRODUCTS
INDUSTRIAL PRODUCTS
TYPES OF CONSUMER PRODUCTS
Convenience Products
Shopping Products
Durable Products
Non-Durable Products
Specialty Products
Unsought Products
Services
TYPES OF INDUSTRIAL PRODUCTS
Material Parts
Manufactured Materials & Parts
Capital Items
Supplies & Business Services
Items which are used by ultimate consumers or households, and they can be used without further commercial and engineering processes.
CONSUMER PRODUCTS
Items that do not need much effort of planning from customers. They are used in day-to-day life and are frequently required and can be easily purchased.
CONVENIENCE PRODUCTS
These products require special time and shopping efforts. They are purchased purposefully from special shops or markets. Quality, price, brand, style and others are essential standards to be considered.
SHOPPING PRODUCTS
Can be used for an extended time and can be repetitively made used by one or more persons. Televisions, computers, refrigerator, and vehicles are few examples.
DURABLE PRODUCTS
The products that have a short span of life. They should be used within a small time once they are manufactured.
NON-DURABLE PRODUCTS
Unique or high-end products for which consumers are willing to make a special effort to purchase
SPECIALTY PRODUCTS
These are items customers are not aware of or do not often think about.
UNSOUGHT PRODUCTS
New products that have no brand recognition fall under this classification.
UNSOUGHT PRODUCTS
Refers to intangible offerings provided by businesses to fulfill customer needs and wants.
SERVICES
Unlike physical products, they cannot be touched, stored, or owned, but they still deliver value. They are often part of a company’s core offering or complement its tangible goods.
SERVICES
Used as the inputs by manufacturing companies for further processes on the products or manufacturing other products.
INDUSTRIAL PRODUCTS
Natural resources or unprocessed materials that are used in manufacturing or production processes
RAW MATERIALS
2 TYPES OF RAW MATERIALS
- FARM PRODUCTS
- NATURAL PRODUCTS
Products that become part of the finished product during the manufacturing process. Examples are engine parts, screws, circuit boards, and glass for windows.
COMPONENTS & PARTS
Durable goods used in the production process but not part of the final product. Examples are machinery, tools, buildings, and vehicles.
CAPITAL GOODS
Products used in the daily operations of a business but not part of the final product. Examples are lubricants, cleaning supplies, office stationery and protective gear.
SUPPLIES & CONSUMABLES
Intangible offerings that aid in the operation or maintenance of a business. Examples are equipment repair, IT support, logistics services, and consulting.
INDUSTRIAL SERVICES
Product mix is also called as?
PRODUCT ASSORTMENT
refers to the complete range of goods and services that a company offers to its customers.
PRODUCT MIX
It represents the diversity of offerings within a company’s portfolio and is analyzed through its four dimensions
PRODUCT MIX
FOUR DIMENSIONS OF PRODUCT MIX
WIDTH
LENGTH
DEPTH
CONSISTENCY
The number of product lines the company has to offer and sell to customers
WIDTH
he total number of products in all the product lines
LENGTH
The variety of versions or options for each product in a product line
DEPTH
describe how closely related the product lines are in terms of use, production, and distribution channels.
CONSISTENCY
Distinctive product a company offers.
PRODUCT LINE
Is a group of products that are closely related to each other by function, customer group, market or price range.
PRODUCT LINE
Is a marketing strategy of making product inimitable, distinctive and uniquely valuable to be noticeable compared with competitors.
PRODUCT DIFFERENTIATION
TYPES OF PRODUCT DIFFERENTIATION
- PRODUCT FORM
- PRODUCT FEATURES
- PERFORMANCE QUALITY
- PRODUCT DURABILITY
- PRODUCT RELIABILITY
- PRODUCT STYLE
- SERVICE
Product can be differentiated on the basis of product form such as physical structure, size and shape
PRODUCT FORM
Specific characteristics or functionalities that a product offers beyond its basic purpose. Enhances usability and value for customers.
PRODUCT FEATURES
The product’s ability to perform its core function effectively and meet customer expectations. Differentiate products based on superior functionality or efficiency.
PERFORMANCE QUALITY
The ability of a product to withstand wear and tear or last over time. Attracts customers seeking long-lasting products.
PRODUCT DURABILITY
The consistency of a product in delivering promised performance without failure.
PRODUCT RELIABILITY
The visual appearance, design, or aesthetic appeal of the product. Differentiates products based on looks and sensory appeal
PRODUCT STYLE
The support, convenience, and additional value offered with the product. Differentiates products based on pre-sale, during-sale, or after-sale services.
SERVICE
prepared by a company and can be bought by a consumer in return for money
PRODUCT
identity and perception of a product or company, expressed through elements such as names, symbols, designs, or values.
It creates emotional and psychological connections with customers
BRAND
Is the unique and long lasting personification of a brand. It includes personality features/characteristics.
BRAND PERSONALITY
Who defines the associated personality of a brand as a set of:
Human Demographic Characteristics
Human Lifestyle Characteristics
Human Personality Traits
JENNIFER AAKER
WHAT ARE THE BRAND PERSONALITIES
PURIST
PIONEER
SOURCE
CONQUEROR
REBEL
WIZARD
STRAIGHT SHOOTER
SEDUCER
PROTECTOR
IMAGINEER
EMPEROR
Wholesomeness, honest, ethical, values-driven
PURIST
Innovative, trailblazing, visionary
PIONEER
Values such as truth, objectivity, education, discipline and commitment.
SOURCE
associated with resilience, ambitious, competitive
CONQUEROR
Independence, controversy, freedom and nonconformity
REBEL
Values such as imagination, surprise and curiosity. Specialize in transforming ordinary into extraordinary.
WIZARD
Brands value authenticity, honesty, and frankness
STRAIGHT SHOOTER
Values such as beauty, pleasure, passion, desire
SEDUCER
Embody compassion, kindness, care, love
PROTECTOR
Original thinking, vision, artistry, and creativit
IMAGINEER
Leadership, determination, respect, dominance
EMPEROR
Is the total value of the brand as a distinct asset.
BRAND EQUITY
The extent to which consumers recognize or recall a brand under different conditions.
BRAND AWARENESS
Once the product category is cited, the customers recognize the brand from the lists of brands made known.
AIDED AWARENESS
On citing the product category, that first brand that comes first on the mind of customers is the brand.
TOP OF MIND AWARENESS OR IMMEDIATE BRAND RECALL
The mental links that consumers form between a brand and its attributes, benefits, or emotions.
BRAND ASSOCIATION
TYPES OF BRAND ASSOCIATION
ATTRIBUTES
BENEFITS
ATTITUDE
Physical features, quality, and functionality of the product, price, packaging or distribution.
ATTRIBUTES
Practical benefits of using the product
BENEFITS
Overall perceptions or beliefs about the brand
ATTITUDE
One of the chief basics of building strong brand equity it the realization of the brand promise
PERCEIVED QUALITY
Customers evaluate the brand by contrasting its offering against the offerings of the competitors based on assured qualitative and quantitative factors.
PERCEIVED QUALITY
The holistic impression formed by a customer based on all interactions with the brand.
BRAND EXPERIENCE
Customers with excellent brand experience will surely consider the brand superior over others and will preferred it over other brands.
BRAND EXPERIENCE
The degree to which consumers favor one brand over its competitors when making purchasing decisions.
BRAND PREFERENCE
The degree of commitment customers show toward a brand, often reflected in repeat purchases
BRAND LOYALTY
constantly selects one brand over the others offering identical products. Even if the other brands are obtainable at lesser price or premium quality.
BRAND LOYAL PERSON
Consists of all the activities of designing and producing the container for a product. It plays a critical role in attractive customers, providing necessary information, and ensuring the safety of the product.
PACKAGING
BENEFITS OF PACKAGING
PROTECT PRODUCTS
ATTRACT CONSUMERS
PROVIDE INFORMATION
REINFORCE BRANDING AND LOGO
The printed or written information on the product or its packaging
LABELING
It provides essential details about the product and helps consumers make informed decisions.
LABELING
TYPES OF LABELING
DRY PEEL LABELS
FOLD-OUT LABELS
RESEAL LABELS
EXPANDABLE RESEAL BOOKLET
SPECIALTY DIE-CUT LABELS
TAG&BOARD PACKAGING
PRIME LABELS
Can be peeled away or removed from the product container or package
DRY PEEL LABELS
Provide additional content
FOLD-OUT LABELS
Able to reseal the packaging or container
RESEAL LABELS
Can be foldout and reseal
EXPANDABLE RESEAL BOOKLET
Have a unique shape of outline
SPECIALTY DIE-CUT LABELS
Use thicker board stock as the printing material
TAG & BOARD PACKAGING
Primary label on a container or packaging
PRIME LABELS
Is a promise made by a manufacturer or seller regarding the quality or performance of a product.
GUARANTEES
It assures customers that the product will meet certain standards, and if not, the company will offer compensation or a replacement.
GUARANTEES
Is a written guarantee from the manufacturer or seller to repair or replace a product if necessary within a certain period.
WARRANTIES
typically cover defects in materials, workmanship, or functionality.
WARRANTIES
is a process of producing a goods or services from idea to bringing it to the market
NEW PRODUCT MANAGEMENT
NEW PRODUCT MANAGEMENT (6 ENUMERATION)
New-to-the-world products
New product lines
Additions to existing product lines
Improvement and revisions to existing products
Repositioned products
Lower-priced products
