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Marketing (MKC1200) > Chapter 7 - Done > Flashcards

Chapter 7 - Done Flashcards

1
Q

What is a product?

A

A good, service or idea that is offered to the market for exchange

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2
Q

What are goods?

A

Physical, tangible offerings that are capable of being delivered to a customer

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3
Q

What is a service?

A

Intangible offerings to the market

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4
Q

What is an idea?

A

Something that is offered to the market in the form of a concept, idea or philosophy

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5
Q

What is the total product concept?

A

The total product concept is a way of viewing a product as the totality of value and benefits it provides to the customer
It describes the product in terms of its 4 levels: core product, expected product, augmented product and potential product

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6
Q

What is the core product?

A

The core product comprises the fundamental benefit that responds to the customer’s problem of an unsatisfied need or want

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7
Q

What is the expected product?

A

The expected product describes those attributes that actually deliver the benefit that forms the core product

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8
Q

What is the augmented product?

A

At the augmented product level, the product delivers a bundle of benefits that the buyer may not require as part of the basic fulfillment of their needs

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9
Q

What is the potential product?

A

The potential product comprises all possibilities that could become part of the expected or augmented product

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10
Q

What is a product item?

A

A particular version of a product that can be differentiated from the organisation’s other product items by characteristics such as brand, ingredients, style or price

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11
Q

What is a product line?

A

a set of closely related product items. The close relationship is usually in terms of end use, target market, technology or raw materials

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12
Q

What is the product mix?

A

The set of all products that an organisation makes available to customers

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13
Q

What are consumer products?

A

Those products that are purchased by households and individuals for their own private consumption
Can be classified into Shopping, Convenience, Specialty and Unsought products

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14
Q

What are shopping products?

A

Irregularly purchased items that involve moderate to high engagement with the decision‐making process

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15
Q

What are convenience products?

A

Also known as fast moving consumer goods, are inexpensive, frequently purchased consumer products that are bought with little engagement in the decision‐making process
Can be divided into Staple products, Impulse products, and Emergency products

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16
Q

What are staple products?

A

Products that are bought and used by consumers regularly, such as milk, bread, rice and soap

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17
Q

What are impulse products?

A

Products that are bought with little planning, often purchased only after seeing the item at the retail store

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18
Q

What are emergency products?

A

Products that are bought when the product is needed in an ‘emergency’

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19
Q

What are specialty products?

A

Products that have unique characteristics that are highly desired by their buyers
The main characteristics of these products are
* They are pre-selected by the customer
* There are no close substitutes or alternatives
* They are available in a limited number of outlets
* They are purchased infrequently
* They sell in low volumes
* They usually have high profit margins

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20
Q

What are unsought products?

A

Products which a consumers either

  • Knows about but doesn’t normally consider purchasing
  • Doesn’t even know about
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21
Q

What is a business-to-business product?

A

The intention to use the product as part of business operations
Can be classified into Part & Materials, Equipment and Services & Supplies

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22
Q

What are raw materials?

A

Unprocessed natural materials that are used in the production process to form part of the business’s products

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23
Q

What are components?

A

Processed items that form part of a business’s product

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24
Q

What is equipment?

A

Refers to those business‐to‐business products that are used in the production of the business’s products

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25
Q

What is capital equipment?

A

Installations such as buildings (e.g. offices, factories and warehouses) and machinery (e.g. generators, furnaces and conveyor belts)

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26
Q

What is accessory equipment?

A

Smaller items that support the production of a product but that do not form part of the product (e.g. forklifts, drills, computers and filing cabinets)

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27
Q

What are services and supplies?

A

Refers to the business‐to‐business products that are essential to business operations, but that do not directly form part of the production process

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28
Q

What are business services?

A

Specialized services, such as financial, legal, market research and office cleaning services, that support the company’s operations and are often provided by external suppliers, such as banks and solicitors

29
Q

What are maintenance, repair and operating supplies

A

Items that assist in the company’s production and operations but do not form part of the product, including engine oil (for maintenance), rivets (for repair) and paper (for operations)

30
Q

What are the five steps in the product lifecycle?

A 
New product development (Loss)
Introduction (Loss)
Growth (Profit)
Maturity (Profit) (Maximum sales revenue)
Decline (Profit)
31
Q

What is the new product development?

A

The first stage of a product’s life cycle occurs when the organisation develops the idea, undertakes research, prepares prototypes, pre‐tests the product, and makes modifications before the product launch

32
Q

What are the steps in new product development?

A

Idea generation
Screening - Process to eliminate those ideas that are not feasible, and to help identify the most promising of those that are
Concept evaluation - This process is designed to determine whether the product could satisfy a customer need or want and to identify those attributes which offer the most value
Marketing strategy
Business analysis - A business analysis reviews how the new product will affect the organisation’s costs, sales and profit projections
Product development - The next stage is to convert the product concept into an actual product
Test marketing - Test marketing activities enable a ‘real world’ assessment of the entire marketing mix that supports the product
Commercialisation - If all has gone well for the previous phases, it is time to launch the new product into the market

33
Q

What is in the introduction stage?

A

This stage marks the first appearance of the product in the marketplace
The market is likely to know little or nothing about the product, and so the organisation must often make a considerable investment in promotional activities in order to build awareness

34
Q

What is the growth stage?

A

The growth stage sees increasing popularity, sales and profits. It depends, of course, on the product being welcomed by the marketplace and potential customers deciding to actually purchase the product

35
Q

What occurs in the maturation stage?

A

As competitors enter the market with similar products, the novelty of the product wears off, alternative — potentially superior — products become available, and the product’s sales and profitability peak and start to fall
* It is at this point where the organisation/marketer needs to decide whether to change things up or abandon ship

36
Q

What is the decline stage?

A

The decline stage of a product’s life cycle sees sales and profits fall

37
Q

What is the product adoption process

A 
Awareness - Consumer becomes aware of the product
Product Interest 
Product Evaluation
Product Trial
Product Purchase
INSERT THE IMAGE FROM THE NOTES
38
Q

What is the theory of diffusion of innovation?

A

Describes how innovations are adopted by the market over time and suggests that the influence of social groups on the decisions made by individuals determines the way in which new products and ideas are adopted

39
Q

What are innovators?

A

Are the first adopters of new products

40
Q

What are early adopters?

A
  • Are the next group to adopt
  • They are likely to be careful choosers of new products and are often opinion leaders, respected by peers and people in the other categories
41
Q

Who are the early majority?

A

Tend to be more deliberate in their choice of new product and try to avoid taking risks

42
Q

Who are the late majority?

A

They are more cautious and skeptical about new products and technologies but will eventually adopt the new product after most people have purchased it, and due to economic necessity or social pressure

43
Q

Who are the laggards?

A
  • They are the last adopters

* They are often wary of new products and ideas, and generally prefer products that are familiar

44
Q

What is a low-context and high-context society?

A

A low‐context society is one that desires explicit information; whereas a high‐context society relies more heavily on implicit and observed information from the environment

45
Q

What is product differentiation?

A

The creation of products and product attributes that distinguish one product from another

46
Q

What is a Brand?

A

Refers to a collection of symbols, such as the name, logo, slogan and design, intended to create an image in the customer’s mind that differentiates a product from competitors’ products

47
Q

What are some of the advantages of a brand?

A
  • A brand can identify one item, a family of items, or all the items of a seller
  • A customer will prefer a well-known or more familiar brand
  • The brand can provide a form of self‐expression and status, as well as denote product quality
48
Q

What is brand equity?

A

The added value that a brand gives a product

49
Q

When does brand loyalty occur?

A

When the customer:

  • Shows a highly favorable attitude towards a specific brand
  • Would prefer to buy a specific brand over any other brand in the market
50
Q

What are the different branding strategies?

A

Individual branding
Family branding
Brand extension

51
Q

What is individual branding?

A

Using a different brand on each product, giving each its own specific identity
For example, Smith’s Snackfood Company has a number of brands in addition to Smith’s in its product mix, including Doritos, Twisties, Parker’s, Nobby’s, Grain Waves, Cheetos and Burger Rings, yet these are all known by their individual brand

52
Q

What is family branding?

A

Using the same brand on several of the organisation’s products
Ford - Each different type of car has a different name

53
Q

What is brand extension?

A

Giving an existing brand name to a new product in a different category
* For example, Redheads, a company that was only known for making matches, relaunched itself with an expansion into a range of BBQ products including firelighters, fuel, cleaners and scourers

54
Q

What are manufacturer brands?

A

Brands that are owned by producers and are the most common type of brand
* The Murray Goulburn Co‐operative Co. Ltd, for example, manufactures cheese, butter and other dairy products branded as ‘Devondale’ in both consumer and business markets

55
Q

What are private label brands?

A

They are owned by resellers, such as wholesalers or retailers, and are not identified with the manufacturer
* Woolworths has been expanding its private label brands (Woolworths Fresh, Woolworths Select, Woolworths HomeBrand and Macro Wholefoods Market) and substantially reducing the shelf space given to manufacturer brands

56
Q

What are generic brands?

A

Are products that only indicate the product category.

They do not promote a specific brand name, but state what the product is

57
Q

What is licensing?

A

It is an agreement to use the names and symbols of other brands for a fee
* For example, a toy manufacturer can become the licensee in a licensing agreement with the owners of the ‘Star Wars’ or ‘The Simpsons’ brand names and thus sell merchandise such as plush toys, figurines, clothes or school stationery branded with the licensor’s brand

58
Q

What is franchising?

A

In a franchise agreement, the franchisor permits the franchisee to use its business model, including products, brands, processes and suppliers, and to benefit from coordinated promotional activities
Gloria Jeans is an example

59
Q

What is co-branding?

A

It is the use of two or more brand names on the same product
* Domino’s Pizza and The Biggest Loser is an example, forming an unlikely co‐branding alliance in recent times to launch a ‘Good Choice Range’ of individual meals

60
Q

What should packaging do?

A

In summary, effective packaging should be designed to ‘protect what it sells and to sell what it protects’

61
Q

What are the 3 main types of packaging and what do they do?

A

Primary Package: Holds the actual product, such as the curve‐shaped plastic bottle for S.C. Johnson’s Toilet Duck cleaning product
Secondary Package: The material used to hold or protect the product. It can be removed and discarded after purchase. For example, the seal on the Toilet Duck bottle that prevents the product leaking
Shipping Package: The packaging used to carry the product out of the factory, and through the channel of distribution (e.g. wholesalers and transporters), to the retailer

62
Q

What is labelling?

A

It usually forms part of the package and provides identifying, promotional, legal and other information

63
Q

What is the Ansoff matrix?

A

A management planning tool that can help a business determine its growth strategy

64
Q

What are the 4 different growth strategies presented in the Ansoff matrix?

A

Market penetration - Occurs when a business increases market share within the existing marketplace - Current market/current customer
Product development - Involves developing new products for the current markets - New product/current market
Market development - When a business finds new markets for its existing products - New market/current product
Diversification - When a business introduces new products into new markets - New product/new market

65
Q

What is a line extension?

A

A variation or derivative of an existing product can be added to the product line, rather than superseding the original product

66
Q

What is product obsolescence?

A

A planned or unplanned removal of a product from the product line
Planned - done by the organisation
Unplanned - Due to social/technological change rendering the product no longer wanted

67
Q

What is product deletion?

A

The process of eliminating a product from the product mix

68
Q

How to make a brand name?

A

Product’s benefits and qualities
Easily recognisable and sayable
Should be distinct
Should easily translate to other languages
Should be capable of registration and legal protection

Marketing (MKC1200) (13 decks)

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