Chapter 8: Products, Services, and Brands: Building Customer Value

Question 1

What are the three levels of Product?

Answer 1

1. Core Benefit - For example for footwear covering feet
2. Tangible Benefit - The actual product, the trainer/shoe
3. Intangible Benefit (Augmented) - Sense of fashion style, personal pride

Question 2

What are the different classifications of Products?

Answer 2

Convenience - (Frequent, low involvement, low price, mass distribution, mass promotion), Examples Toothpaste magazines, detergent

Shopping - (less frequent, planning and comparison, higher price, advertising personal selling by producer and retailer)

Specialty - Strong Brand Preference and loyalty, little comparison, high price, exclusive distribution, high end promotion from producer and retailer

Unsought - Low product awareness, or if aware sometimes negative, aggressive personal selling, direct marketing, aggressive advertising by producer and resellers, Example Life insurance, Senior Leadership Programme

Question 3

What are the stages of the product lifecycle?

Answer 3

Introduction
Growth
Maturity
Decline