Chapter 7 Flashcards
What is a Product?
Anything that may be offered to a market for attention, acquisition, use or consumption. Tangible objects + services, events, persons, places, organizations, ideas, or mixes of these.
What is a tangible dominant good? Give an example.
A good which may be physically touched and used. e.g. A car.
What is an Intangible Dominant good? Give an example.
A service that provides intangible benefits. e.g. teaching. Some goods are lees tangible than others. e.g. An airline ticket is less tangible than teaching, but still would not be considered tangible.
Core Customer Value
- most basic level
- What is buyer really buying
- First thing to identify
Actual Product
- 2nd level
- Physical device with features, brand name and packaging
- Design real product
Augmented Product
Additional services and benefits, finding ways to augment it.
What are the product and service classifications of Consumer Products?
1) Convenience
2) Shopping
3) Specialty
4) Unsought
Classifications of Industrial Products?
- Materials & Parts
- Capital Items
- Supplies & Services
Person marketing
create, maintain or change behaviours toward particular people (politicians, celebrities, etc.)
Place Marketing
create, maintain or change behaviours toward particular places, (Canada, Montreal, community centres, etc.)
Organization marketing
create, maintain, or change behaviours towards particular organizations (JMSB, clubs, sports team)
Social (Ideas) Marketing
using traditional business marketing concepts and tools to create behaviours that will create individual and societal well-being (anti-smoking, drunk driving, etc)
3 Levels of Product & Service decisions
1) Individual Product Decisions
2) Product Line Decisions
3) Product Mix Decisions
Individual Product and Service Decisions
1) Product Attributes
2) Branding
3) Packaging
4) Labelling and logos
5) Product support services
Product Attributes
Quality, Features, Style & Design
Packaging
concerns over sustainable packaging
Labeling and Logos
help identify, describe and promote the product. crucial to build customer relationships.
Product Support Services
aim to augment actual products, part of overall brand experience.
Product Line
closely related products with similar functions and customer groups. they are sold through similar means (outlets, price ranges, etc)
Product Line Length
number if items in the product line
- Product Line Filling: adding more items to existing products (different designs of same product)
- Product Line Stretching: lengthens a product line beyond its current range
Product Mix (Portfolio)
set of all product lines and items that a particular seller offers
4 Key Product Mix Decisions
1) Width (# of product lines)
2) Length
3) Depth (# of variations of each product)
4) Consistency (how closely related product lines are)
4 Characteristics of Services
1) Intangibility
2) Variability
3) Inseparability (services cannot be separated from their providers)
4) Perishability
Service profit chain
links service firm profits with employee and customer satisfaction
5 Links of Service Profit Chain
1) Internal Service Quality: employee selection and training, work environment, support
2) Satisfied and productive service employees
3) Greater service value: effective and efficient customer value creation
4) Satisfied and loyal customers: repeat purchase, + WOM
5) Healthy service profits and growth: service firm performance
3 types of services marketing
Internal Marketing (orienting customer-contact employees and supporting service employees to work as a team)
Interactive Marketing (train employees to interact w/ customers)
External Marketing (4 Ps)
Brand Equity
differential effect that knowing the brand name has on customer response to product or marketing
Negative Equity
Negative associations, PR crisis
Positive Equity
Loyalty, Positive attitude, awareness
Measures (consumer perceptions) of brand equity
Differentiation
Relevance
Knowledge
Esteem
4 Major brand strategy decisions
1) Brand Positioning
2) Brand name Selection
3) Brand Sponsorship
4) Brand Development
Brand Positioning
- Attributes (what marketers bring and highlight)
- Benefits (what consumers are more interested in)
- Values & beliefs (emotional attachment, strongest brands)
Brand Name Selection
- Based on its benefits and qualities
- Simple and recognizable
- Distinctive and extendable
- Easily translatable
- Capable of registration and legal protection
Brand Sponsorship
A) National (Manufacturer’s) Brands: brand created by manufacturer of product
B) Private (Store) Brands: brand names applied by marketer to products manufactured for them under contract
C) Licensing
D) Co-Branding
