Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

MKTG210 > Chapter 8: Products, services and brands: building customer value > Flashcards

Chapter 8: Products, services and brands: building customer value Flashcards

1
Q

What is a product

A

It’s anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What do products include other than tangible objects.

A

Can include services, events, persons, places, organizations and ideas.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are services?

A

They are a form of product that consists of activities, benefits, or satisfactions offered.

they are essentially intangible and do not result in a customer’s ownership of anything.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are products a key element in?

A

In the overall market offering.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What does marketing mix planning begin with

A

It begins with building an offering that brings value to target customers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are customer experiences

A

Market offerings with a strong sensory or emotional component that play out over time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Product planners need to think about products and services on 3 levels. what are they

A
  • the core customer value
  • actual product
  • augmented product
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What does the second level of thinking about products (Actual product) consist of

A
  • Develop the product and service features
  • a design
  • a quality level
  • a brand name
  • packaging
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What question does the core customer value (level) address

A

What is the buyer really buying

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What does the third level of product that planners need to build (Augmented Product) consist of

A
  • Delivery and credit
  • After-sale service
  • Warranty
  • Product support
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What two broad classes do products and service fall into (based on the type of consumers who use them

A
  • Consumer products
  • Industrial products
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are consumer products

A

Products and services bought by final consumers for personal consumption

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What do consumer products include

A
  • Convenience products
  • Shopping products
  • Specialty products
  • unsought products
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are convenience products

A

Frequent purchases, little planning, little comparison or shopping effort, low customer involvement.

usually low price
Widespread distribution
There’s also Mass promotion by the producer

e.g toothpaste and laundry detergent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what are shopping products

A

less frequent purchases, much planning and shopping effort, comparison of brand on price, quality and style

usually higher price
Selective distribution
There’s advertising and personal selling by both the producer and resellers

e.g: major appliances, televisions, furniture and clothing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what are Specialty products

A

Strong brand preference and loyalty, special purchase effort, little comparison, low price sensitivity

usually highest price
Exclusive distribution
Promotion is more targeted

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are unsought products

A

Little product awareness or knowledge

or if aware, little or even negative interest

Price varies
Distribution varies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What are industrial products

A

Products purchased for further processing or use in conducting a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What distinguishes a consumer product and an industrial product

A

The purpose for which the product is purchased

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are the three groups of industrial products

A
  • Materials and parts
  • Capital items (aid in production or operations) (used for many years)
  • Supplies and services (operating supplies and repairs and maintenance etc)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is Organization marketing

A

Activities undertaken to create, maintain or change the attitudes and behavior target customers have towards an organization.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is Person marketing

A

Activities undertaken to create, maintain or change attitudes or behavior toward particular people.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is social marketing

A

It consists of using traditional business marketing concepts and tools to encourage behavior that will individual and societal well-being

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What are three levels marketers make product and service decisions

A
  • Individual product decisions
  • product line decisions
  • product mix decisions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What does individual P and S decisions consist of

A

Product attributes -> Branding -> Packaging -> Labeling and logos -> Product support services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is TQM

A

Total quality management = approach in which all the company’s people are involved in constantly improving the quality of products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What’s the return-on-quality approach ?

A

Viewing quality as an investment and holding quality efforts accountable for bottom-line results.

28
Q

What are the 2 dimensions of product quality ?

A

Level and consistency

29
Q

How can a company identify new features and decide which ones to add?

A

It should periodically survey buyers who have used the product and ask three questions:

  • How do you like the product
  • Which features could we add to improve the product?
  • What specific features of the product do you like the most.

then the company can assess each features value to customers versus its cost to the company.

30
Q

What’s a persistent challenge with asking customers what attributes they want?

A

It’s that they typically want a lot of everything, all at a low price.

31
Q

What do company’s do because they can’t satisfy the demand that customers want a lot of features at a low price (it doesn’t make financial sense)

A

they often employ market research tools such as conjoint analysis to reveal what trade-offs customers are willing to make in terms of sacrificing some of one attribute for more of another and their willingness to pay more for higher performance on an attribute.

32
Q

What is the style of a product

A

= describes the appearance of the product

but it doesn’t necessary make the product perform better

33
Q

How does good design start

A

With observing customers, understanding their needs, and shaping their product-use experience.

Should focus on how customers will use and benefit from the product

34
Q

What is a brand

A

A name, term, sign, symbol, or design or a combination that identifies the maker or seller

It’s the company’s promise to deliver a specific set of features, benefits, services, and experiences consistently to buyers.

35
Q

Why do brands have meaning well beyond a product’s physical attributes

A

Because customers attach meanings to brands and develop brand relationships

36
Q

Why is branding important

A

Helps consumers identify products that might benefit them.

Say something about product quality and consistency

Provides legal protection for unique product features

Helps seller segment markets

37
Q

What is a product line

A

Group of products that are closely related because:

  • function in a similar manner
  • sold to similar customer groups
  • serve similar customer needs
  • marketed through same type of outlets
  • fall within given price ranges
38
Q

What does the major product line decision involve

A

It involve product line length (the number of items in the product line)

39
Q

When is the product line too short

A

If the manager can increase total profits by adding items

40
Q

When is the product line too long

A

If the manager can increase total profits by dropping items.

41
Q

What are 2 ways a company can expand its product line

A
  • Line filling
  • Line stretching
42
Q

What does product line filling involve

A

It involves adding more items within the present range of the line.

43
Q

Give several reasons for line filling

A
  • extra profits
  • satisfying dealers
  • using excess capacity
  • being the leading full-line company
  • plugging holes to keep out competitors (leave competitors from offering something the company doesn’t offer)
44
Q

What are 2 situations where line filling can go wrong

A
  • Cannibalization
    = New products steals from existing products instead of attracting new customers => total sales don’t grow
  • Customer confusion
    = Adding too many similar products can confuse customers
45
Q

What is line stretching

A

It’s when a company lengthens its product line beyond its current range.

Can stretch it downward, upward, or both ways.

46
Q

What is stretching upward

A

When a company adds a product to its line that is more expensive, to appeal to wealthier customers.

It’s usually done by budget-friendly brands

47
Q

What is stretching downward

A

When a company adds cheaper options to attract more money cautious customers.

It’s usually done by companies located at the upper end of the market (expensive)

48
Q

An organization with several product lines = …?

A

Has a Product mix (or a product portfolio)

49
Q

What does a product mix/portfolio consist of

A

It consists of all the product lines and items that a particular seller offers for sale.

50
Q

What are the 4 important dimensions of a product mix

A

Width, length, depth, consistency

51
Q

What is streamlining the product mix?

A

Reducing or adjusting a company’s range of products to better match the market demand, customer preferences, or strategic goals.

52
Q

What are the 4 things a company has to consider when designing marketing program for a service

A

intangibility
inseparability
variability
perishability

53
Q

What is intangibility (service)

A

= Services can’t be seen, tasted, felt, heard, or smelled before they are bought

=> to reduce uncertainty, buyers look for signals of services

54
Q

What is inseparability (service)

A

Services cannot be separated from their providers.
Services are sold, produced and used at the same time.

<-> customer-provider relationship affects the services quality and outcome.

55
Q

What is variability (service)

A

The quality of the service depends on who provides it, when, where and how they are provided

56
Q

What is perishability (service)

A

Services cannot be stored for later sale or use

p.s: it’s not usually a problem when the demand is steady

57
Q

What is yield management

A

Adjusting prices or strategies to better match demand.

e.g lower prices in off seasons or more staff during busy times

58
Q

What are the 3 types of services marketing

A
  • External marketing
  • Internal marketing
  • Interactive marketing
59
Q

What is internal marketing

A

Firm orient and motivates its customer-contact employees and support service people to work as a team to provide customer satisfaction.

60
Q

What is brand equity

A

It’s a value assigned to a brand based on how much consumers like it, trust, and recognize it.

It’s how much extra value the brand gives to the company

61
Q

In brand positioning, what are the levels of positioning

A
  • lowest level: product or service attributes.
  • then there’s associating its name with a desirable benefit
  • The strongest: Position themselves on strong beliefs, values and feelings. (= engaging customers on a deep, emotional level)
62
Q

What does it mean if a brand has a a ‘cold side’ and a ‘hot side’

A

The cold side targets the mind of the customer and emphasizes the rational aspects of the brand.

The hot side targets the heart of the customer and emphasizes the emotional aspects of the brand.

63
Q

What are desirable qualities for a brand name

A
  1. Should suggest something about the product’s benefits and qualities
  2. Should be easy to pronounce, recognize and remember
  3. should be distinctive
  4. should be extendable
  5. should be translated easily into foreign languages
  6. should be capable of registration and legal protection (can’t infringe on existing brand names)
64
Q

What are the four brand sponsorship options

A

National brands
Store brands
Co-brands
Licensed brands

65
Q

What are the advantages of co-branding

A
  • it can help a company expand its existing brand into markets it might otherwise have difficulty entering alone
66
Q

Give one special type of co-branding

A

Brand swap
= each company shares its product to be integrated into

MKTG210 (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions