Chapter 7 Flashcards
Product
Anything that can be offered to market for attention, acquisition, use, or consumption that might satisfy a want or need
Service
Activity, benefit, or satisfaction offered for sale; intangible and does not result in ownership of anything
Market offerings
Includes both tangible goods and services
Differentiate offers from competitors
Firms create and manage customer experiences with their brands or companies
Three Levels of Product
Level 1: core customer value- what is the customer really buying?
Level 2: actual product- need to develop product and service features, design, quality level, brand name, and packaging
Level 3: augmented product- offering additional customer services and benefits (ex. warranties, repair services)
Consumer products
Bought by final consumers for personal consumption
Industrial products
Bought by individuals and organizations for further processing or for use in conducting business
Ex. materials and parts, capital items, supplies and services
Convenience products
Low price, frequent purchase, little customer involvement, widespread distribution, mass promotion by producer
Shopping products
Less frequent purchase, much planning and effort, higher price, selective distribution in fewer outlets, advertising and personal selling by producer and resellers
Specialty products
Strong brand preference and loyalty, special purchase effort, little comparison of brands, low price sensibility, high price, exclusive distribution, carefully targeted promotion
Unsought products
Little product awareness, price and distribution varies, aggressive advertising and personal selling by producer and resellers
Organization marketing
Activities to “sell” your organization
Person marketing
Turn a person’s name into a brand
Place marketing
Cities, states, regions, nations for tourism, conventions, new residents
Ideas can be marketed- social ideas —> social marketing
Using traditional business marketing concepts and tools to create behaviors that will create individual and societal well-being
Individual products decisions
- Product attributes/quality- characteristics of product/service that bear on its ability to satisfy stated or implied customer needs
- Branding- name, term, sign, symbol, or design or a combination of these that identifies the maker or seller of a product or service
- Packaging- designing the container or wrapper for product
- Labeling and logos- help identify products or brand as well as promote and engages customers
- Product support services- survey customers periodically
Product line decisions
Involves product line length, which is the number of items in the product line
Product line
Group of products that are closely related because they function in similar matter, sold to same customer groups, and marketed through same types of outlets, or fall winging given price ranges
Line stretching
Occurs when a company lengthens the product line beyond its current range
Line filling
Involves adding more items within the present range of the line
Product mix (product portfolio)
All the product lines that a company has for sale
Product mix decisions
- Width- number of differ product lines the company carries
- Length- total number of items a company carries within its product lines
- Depth- number of versions offered for each priding in the line
- Consistency- how closely related the various product lines are in end use, product requirements, distribution channels, or some other products
Four service characteristics
- Service intangibility- services can not be seen, tasted, felt, heard, or smelled before they are bought.
- Service inseparability- services can not be separated from their providers
- Service variability- quality of the services depends on who provides them as well as when where and how they are provided
- Service perishability- services can not be stored for later sale or use
Brand equity
Differential effect that knowing the brand name has on customer response to the product and its marketing
Brand value
Total financial value of a brand
Consumer perception dimensions
- Differentiation - what makes the brand stand out
- Relevance - how consumers feel brand meets their needs
- Knowledge - how much consumers know about the brand
- Esteem - how highly consumers regard and respect the brand
National/manufacturer’s brands
Marketed under the manufacturer’s own name
Store brands
Private brands by retailers and wholesalers
Licensing
Created and owned by reseller of a product or service
Co-branding
Two established brand names of two different companies are used on the same product
Major brand strategy decisions
Brand positioning, brand name selection, brand sponsorship, brand development
Line extensions
Company extends an existing brand names to new forms, colors, sizes, ingredients, or flavors of an existing product category
Brand extension
Extends an existing brand name to new or modified products in a new category
Multi branding
Offers way to establish differ features that appeal to differ customer segments, lock up more reseller shelf space and captures a larger market share
New brands
When company believes power of its existing brand name is waning; may create new brand name when it enters new product category
