CHAPTER EIGHT Flashcards
What does the marketing process include? [5]
- Understand
- Design
- Construct
- Build
- Capture
What is an integrated marketing program?
An integrated marketing program details how value will be delivered to the target customers. It turns marketing strategies into marketing tactics (actions).
When should a product be developed in the marketing mix?
A product strategy should be developed BEFORE the other elements of the marketing mix (price, place and promotion)
What is a product strategy?
The product strategy is the core of the marketing mix and largely dictates the nature of the pricing, marketing communication and the distribution strategy that follow
What is a product? [2]
A product is anything a consumer receives in exchange for (usually) money
A product is the manifestation of an organisation’s physical attempt to satisfy the needs of consumer
‘Product’ is the _____-satisfying element of the ______________ mix and it is therefore essential for organisations to develop an appropriate product __________ to satisfy the needs of their target market(s)
need
marketing
strategy
Busineesses offer what types of offerings to consumers? [3]
Product
Service
Experiences
Define PRODUCT
Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want
Define SERVICE
Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything
Define EXPERIENCES
Creating and managing unique customer experiences using products and services, in an attempt to improve customer engagement
What are the three product levels? [3]
- Core benefit: What is the customer buying?
- Actual product: Developing the product features
- Augmented product: Additional benefits related to the product that creates a positive post purchase experience
How do we classify pruducts? [2]
Consumer products
Industrial products
What are Consumer products?
BOUGHT BY THE FINAL CONSUMER FOR PERSONAL CONSUMPTION.
What are Industrial products?
BOUGHT BY INDIVIDUALS AND ORGANISATIONS FOR FURTHER PROCESSING OR FOR USE IN CONDUCTING BUSINESS.
What is CONVENIENCE products?
Convenience products are products the consumer buys with the least amount of effort
i.e immediately and with low purchase decision
What are types of convenience products?
- Staple products E.G Milk, bread
- Impulse products E.G Sweets, soft drinks
- Emergency products E.G medical services, towing
- Shopping products: Less frequent, information required E.G Tv, stoves, computers, furniture
- Speciality products: Unique, exclusive, high level of differentiation E.G Fine jewelry, designer clothes
- Unsought products: Little interest in buying E.G Life insurance
What are product decisions?
Once a marketing strategy has been considered, there are some product-related tactics that can be implemented in order to further the consumer marketer’s strategic goals
At what levels can product decisions be made? [3]
- Individual product decisions
- Product line decisions
- Product mix decisions
Individual product decisions? [5]
What are the three main product attributes?
- Product quality
- Product features
- Product style and design
Why is Product QUALITY one of the best positioning tools?
Product quality is one of the best positioning tools as it directly affects the product’s performance which has an impact on customer satisfaction
What are product FEATURES?
Product features are the qualities of the product that set it apart from the competitor’s products or other products in a company’s range.
What is product STYLE and DESIGN?
This is the outward appearance of the product and can be used as a way to differentiate the product from its competitors
What is branding?
Branding is a name, term, sign, symbol or design, or a combination of these, which tells us who the maker or seller of a product is, and thus differentiates it from competitor offerings
The most ___________ skill of a marketer is to build and manage brands
distinctive
What does the packaging involve?
Packaging involves designing and producing a container or wrapper for a product
True or false, The main function of a package is to encase and protect the product
False, The main function of a package is to encase and protect the product however it is also used to attract attention and describe the product
What are the key requirements for good packaging? [5]
- It should be distinctive, so it is easily recognised and helps the product stand out on the shelves
- It needs to be able to fit on retail shelving
- It should allow consumers to best use the product
- It needs to follow strict measures of safety
- It is preferable to have environmentally safe packaging
What involves labelling?
Labels range from simple product tags to complex graphics which forms part of the overall packaging
What are the three main objectives of labeling? [3]
- Identify the product
- Provide information on the product
- Promote the product
What are Product support services?
Product support services are additional services that a marketer can use to make a product offering more attractive
What are examples of support services?
- Delivery or installation
- Credit facilities or lay-buy purchasing
- Customer support or consultation
- Product returns and replacement
- Warranteesandfreerepairs
What is the difference between product mix versus line? [2]
Product Mix: the set of all product lines and items that a particular seller offers for sale.
Product Line: a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.
What is a product line?
A product line is a group of related products all marketed under a single brand name that is sold by the same company
What are product mix decisions?
An organisation with several product lines has a product mix which consists of all the product’s lines and items that are offered for sale
What FOUR dimensions does a product mix have?
- Width
- Length
- Depth
- Consistency
What is product line STRETCHING?
adding additional products to your product lines (increase product length and width) to fill market gaps, create competitive advantage, increase profits. It also creates opportunities to cross-sell or up-sell.
What is product line SHRINKING?
removing products from your product lines when they no longer add profit, or you need to reduce costs. Can also be used to specialize in certain product lines (to niche market and become a market leader).
What is product line FILLING?
removing products from your product lines when they no longer add profit, or you need to reduce costs. Can also be used to specialize in certain product lines (to niche market and become a market leader).
What is a BRAND?
A brand is an identifying symbol, mark, logo, name, word or sentence that companies use to distinguish their products from others.
The legal protection given to a brand name is called a ___________
Trademark
Branding is a process that entails crafting a _________ name and image for the product in the consumer’s mind, mainly by means of ________________
unique
advertising
What does the value of branding include? [3]
- The brand can signal quality
- The brand helps shoppers to identify their
preferred product - Brands decrease the effort in making a purchase decision
What is the value of a brand for marketers? [4]
- The brand differentiates the products of the organisation
from competing products sold by other organisations - If the brand of the organisation is strong, it can sell its products at a premium
- The organisation can add additional product lines under the same brand (brand extensions)
- Long established brands enjoy customer loyalty
What are the THREE types of brands? [3]
- Manufacturer brands: these brands are developed by manufacturers. E.g Coca-Cola
- Distributer brands: these are referred to as private label brands or store brands and are created by organisations that are members of a distribution channel. E.g Pick’n’Pay no name brand
- Generic brands: these are products without any branding (brand name, logos, unique colours) or any other means of identifying the organisation
What is brand equity?
the positive differential effect that knowing the brand name has on customer response to the product or service.
What can high brand equity grant a business? [4]
- Higher levels of consumer brand awareness and loyalty.
- Greater credibility.
- More bargaining power with resellers.
- Greater competitive advantage
How do you build a strong brand?
- Brand positioning
- Brand Name selection
- Brand sponsorship
- Brand development
