chapter 7 - class notes march 14th Flashcards
Product Mix
The complete set of all products offered by a firm
Product Lines
Groups of associated items, such as those that consumers use together or think of as part of a group of similar products.
Product Category
an assortment of items that the customers sees as reasonable substitutes for one another
Brands
Names, terms, designs, symbols or any other features that identify that one seller’s good or service as distinct from those of other sellers.
what does it mean to increase breadth?
Add new product lines
what does it mean to decrease breadth?
Delete entire product lines
the value of a promise consistently kept
branding
- Names
- Logos
- Symbols
- Characters
- Slogans
- Jingles
- Distinctive packages
branding examples
- Measures how many consumers in a market are framilar with a brand
- What the brand stands for as well as an opinion on the brand
Brand Equity - Awareness
what are the 4 types of products sold to consumers?
- speciality
- shopping
- convenience
- unsought
the products benefit to the consumer, OG purpose
core product
extra service of benefit that the consumer may enjoy when they purchase product/service
augmented product
*Use of the same brandname for new products.
*Well established name
*Perception of high quality carries over
*Lower marketing costs
*Synergy among complementary products
*Boost sales of the core brand
brand extension benefits
when a company uses one of its established brand names on a new product or new product category
brand extension
*Too many extensions results in brand dilution
*Ensure the brands can be distanced from one another if need be
*Core brand & new extension may not ‘fit’ well together
*Brand associations between the two may not be similar
brand extension negative consequences
Loyalty is a deeply held commitment to re-buy or repatronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.
brand loyalty
2 ways that companies use packaging to create value?
- labeling:
- new product development
why do firms create new products?
- New market offerings provide value to both firms & customers
- Firms MUST innovate in order to stay in business and current
- Innovation – transformation of ideas into new products and services
- refers to adding new products to allow firms to create & deliver value by satisfying changing needs of
current & new customers - Sometimes firms take a well-known product, such as a vacuum, & make it much more interesting such as Dyson
- For example fashion cycles and trends in the fashion industry
changing customer need
- New products do not always target end consumers; sometimes they function to improve relationships with suppliers.
– i.e. - Walmart
improving business relationships
the process by which the use of an innovation, whether a product or as
service, spreads throughout a market group over time and over various categories of adopters.
diffusion of innovation
types of adoption of innovation:
- diffusion of innovation
- pioneers
- ## first movers
New product introductions that
establish a completely new market or radically change both the rules
of competition and consumer preferences in a market…aka
breakthroughs.
pioneers
what are the 4 factors effecting product diffusion?
- compatability
- observability
- relative advantage
- complexity and trialability
- If a product is perceived to be
better than substitutes, then
the diffusion will be relatively
quick
relative advantage
- To make the product more compatible with the needs of people in different cultures, it is made in various sizes
compatability
- When products are easily observed, their benefits or uses are easily communicated to others, which enhances the diffusion process
observability
The more complex the product the longer it takes to diffuse.
Products that can be sampled will diffuse faster
complexity and trialability
the product like cycle
- introduction
- growth
- maturity
- decline
- develop new uses
- Modify product
- Increase frequency of use
- increase # of users
- Find new users
- Reposition product
- Tweak marketing strategy
Strategies for Extending the Product Life Cycle
