Chapter 8 Flashcards
Product
Anything that can be offered to a marketer for attention, acquisition, use, or consumption that might satisfy a want or need
Services
Activities, benefits, or satisfaction offered for sale that is essentially intangible and does not results in the ownership of anything
What are the 3 levels that product planners need to think about products and services
The core customer value, what is the buyer really buying?
Actual product
Augmented product
What are the 2 broad classes based on the types of consumer who use them?
Consumer product
Industrial product
Consumer product
A product bought by final consumer for personal consumption
What do consumer products include?
Convenience product
Shopping product
Speciality product
Unsought product
Convenience product
A consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort
Shopping product
A customer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style
Specialty product
A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort
Unsought product
A consumer product that the consumer either does not know about or knows about but does not normally consider buying
Industrial product
A product bought by individuals and organisations for further processing or for use in conducting a business
What are the types of industrial products?
Material part
Capital items
Supplies and services
Material part
Include raw materials as well as manufactured materials and parts
Capital items
Industrial products that aid in the buyer’s production or operations, including installations and accessory equipment
Supplies and services
Where supplies include operating supplies and repair and maintenance items, and services include maintenance and repair services and business advisory services
Organisational marketing
Consists of activities undertaken to create, maintain, or change the attitudes and behaviour of target consumer toward an organisation
Corporate image marketing
Campaigns to market themselves and polish companies’ images
Person marketing
Consists of activities undertaken to create, maintain, or change attitudes or behaviour toward particular people
Place marketing
Involves activities undertaken to create, maintain, or change attitudes or behaviour toward particular places
Idea marketing
Involves the marketing of an idea
Social idea marketing
Consists of using traditional business marketing concepts and tools to encourage behaviours that will create individual and societal well being
What are the 3 levels that marketers make product and service decisions?
Individual product decisions
Products ten decisions
Product mix decisions
What are the important decisions in the development and marketing of and individual product decision?
Attributes of the product (quality, features, design)
Branding
Packaging
Labeling and logos
Product support services
Product line length
The number of items in the product line
How can a company expand its product line?
By line filling
Product line stretching
Line filling
Involves adding more items within the present range of the line
Product line stretching
Occurs when a company lengthens its product line beyond its current range
Product line
A group of products that are closely related because they function in a similar manner
Sold to the same customer groups
Marketed through the same types of outlets
Fall within given price ranges
What do companies with several product lines have?
A production mix
What are the 4 dimensions of the product mix?
Width
Length
Depth
Consistency
A company must consider 4 special service characteristics when designing marketing programs. What are they?
Service intangibility
Service inseparability
Service variability
Service perishability
Service intangibility
Entails that services cannot be seen, tasted, felt, heard, or smelled, before they are bought
Service inseparability
Means that services are produced and consumer at the same time and cannot be separated from their providers
Service variability
Entails that the quality of services may vary greatly depending on who provides them and when, where, and how they are provided
Service perishability
Means services cannot be stored for later sale or use
Service profit chain
The chain that links service firm profits with employee and customer satisfaction
What are the five links that consist in service profit chain
Internal service quality
Satisfied and productive service employees
Greater service value
Satisfied and loyal customers
Healthy service profits and growth
What does service marketing also include?
Internal marketing
Interactive marketing
Internal marketing
Involves orienting and motivating customer contact employees and supporting service employees to work as a team to provide customer satisfaction
Interactive marketing
Involves training service employees in the fine art of interacting with customers to satisfy their needs
What are the 3 marketing tasks that service companies face?
Managing service differentiation
Managing service quality
Managing service productivity
Brand equity
The differential effect that knowing the brand name has on customer response to the product or its marketing
Brand strength is measured along 4 consumer perception dimensions. What are they?
Differentiation
Relevance
Knowledge
Esteem
Brand value
The total financial value of a brand
What are the major brand strategy decisions involve:
Brand positioning
Brand name selection
Brand sponsorship
Brand development
