CHAPTER 5 Flashcards
is one of the significant
elements of marketing mix (4P’s).
PRODUCT
THREE LEVELS OF A PRODUCT
Core Customer Value
Actual Product
Augmented Product
the tangible or physical
product that delivers the core benefit. This includes the product’s features, design, brand, quality, and packaging.
Actual Product
the fundamental benefit or value that a customer seeks when purchasing a product. It answers the question: What is the customer really
buying?
Core Customer Value
Additional services and benefits that enhance the value of the actual product and differentiate it from competitors. These are not essential but improve customer satisfaction and loyalty.
Augmented Product
7 TYPES OF PRODUCTS
- Convenience Products
- Shopping ProductsProduct
- Durable Products
- Non-durable Products
- Specialty Products
- Unsought Products
- 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 a 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 of by one or more persons. Televisions, computer, refrigerator, and
vehicles are few examples of ____
Durable Products
have short span of life. They should be used within 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. 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
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. It falls into two major groups which include farm products
Raw Materials
Natural resources or unprocessed materials that are used in manufacturing or production processes. It falls into two major groups which include farm products
Raw Materials
Products that become part of the finished product during the manufacturing process. Example 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.
Industrial Services
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:
❖ Width
❖ Length
❖ Depth
❖ Consistency
describe how closely related the product lines are in terms of use, production, and distribution channels.
Consistency
the variety of versions or options for each product in a product line.
Depth
the total number of products in all the product lines.
Length
the number of product lines the
company has to offer and sell to
customers.
Width
— is the distinctive product a
company offers.
— 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
7 Types of Product Differentiation
- PRODUCT FORM
- PRODUCT FEATURES
- PERFORMANCE QUALITY
- PRODUCT DURABILITY
- PRODUCT RELIABILITY
- PRODUCT STYLE
- SERVICE
specific characteristics or functionalities that a product offers beyond its basic purpose. Enhances usability and value
for customers.
PRODUCT FEATURES
product can be differentiated on the basis of ____ such as physical structure, size and shape.
PRODUCT FORM
the ability of a product to withstand wear and tear or last over time. Attracts customers seeking long-lasting products.
PRODUCT DURABILITY
The product’s ability to perform its core function effectively and meet customer expectations. Differentiates products based on superior functionality or
efficiency.
PERFORMANCE QUALITY
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
is prepared by a company and can be bought by a consumer in return for money while brand is the 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.
product
is the unique and long
lasting personification of a brand. It includes
personality features/characteristics.
BRAND PERSONALITY
she defines the associated
personality of a brand
Jennifer Aaker
Jennifer Aaker defines the associated
personality of a brand as a set of:
1.Human Demographic Characteristics
2.Human Lifestyle Characteristics
3.Human Personality Traits
is the total value of the brand
as a distinct asset. A brand may have a brand
equity that could either be positive and
negative.
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
One of the chief basics of building
strong brand equity is the realization of
the brand promise.
PERCEIVED QUALITY
The holistic impression formed by a
customer based on all interactions
with the brand.
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 purchase.
BRAND LOYALTY
consists of all the activities of
designing and producing the container for a product. It plays a critical role in attracting
customers, providing necessary information, and ensuring the safety of the product.
PACKAGING
the printed or written information
on the product or its packaging. It provides essential details about the product and helps consumers make informed decisions.
LABELING
is a promise made by a manufacturer or seller regarding the quality or performance of a product. 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 (NPM)
