Exam #3 Flashcards
Product
Anything offered for sale for the purpose of satisfying a want or a need on both sides
of the exchange process.
Core Product
The good or service itself.
Tangible Product
The elements of design, color packaging, and any other physical dimensions that provide benefits to the customer.
Augmented Product
Enhancements such as guarantees, warranty and service benefits, producer/seller reputation,
and the psychological benefits
conveyed by the product.
Durable Goods
Goods that are
used or consumed
over a long period of time.
Nondurable Goods
Goods that are
used or consumed
over a short period of time.
Consumer Goods (4)
- Convenience Goods
- Shopping Goods
- Specialty Products
- Unsought Products
`Convenience Goods
- Staples
- Impulse goods
- Emergency products
Shopping Goods
- homogeneous
- heterogeneous
Organizational Goods (3)
- Capital
- Production
- Operational
Organizational Goods
- Installations
- Accessories
- Raw Materials
- Components
- Professional Services
- Supplies
Raw Materials
- Farm Products
- Natural Products
Components
- Parts
- Materials
Supplies
- Maintenance
- Repair
- Operating
Brand
A name, term, phrase, design, symbol, or any combination chosen to distinguish a product from competing products.
Brand Name
Portion of brand that can be expressed verbally.
Brandmark
Portion of brand that CANNOT be expressed verbally.
Trade Name
The business name under which an organization operates.
Trade Mark
Portion of brand that is legally registered with the US government for exclusive use by the owner.
Brand Equity
Overall strength of a brand in the marketplace and its value to the company that owns it.
Logo
A unique symbol that represents a specific firm or organization.
Service Mark
A trademark
that represents a service.
Branding Issues (4)
- Selection
- Protection
- Extension
- Cannibalization
Brand Awareness
Measure of the percentage
of the target market that is aware of a brand name.
Brand Loyalty
The level of commitment that customers feel toward a given brand as represented by continuing purchase.
Brand Extension
Assigning an existing brand name to a new product.
Types of Brands (6)
- Generic
- Individual
- Family
- Manufacturer
- Private
- Hybrid
Generic
No brand name is used.
(lower cost, commodity position)
(Ex, vegetables, ground beef)
Individual
Unique brand name for each major product or line.
(dissimilar products, products matched to segments)
(Ex, Tide, Bold, Gain, Cheer, Dreft, Ivory)
Family
Umbrella name covers all products in the line. (economical brand identity, increased market presence) (Ex, Dole, Sara Lee, Progresso, Sony, DeWalt)
Manufacturer (National)
Brand name synonymous with the firm.
(ties corporate reputation to product)
(Ex, McDonald’s, Kodak, Fisher-Price, Johnson& Johnson, GE)
Private (Label)
Brand name applied to product by wholesaler or retailer. (lower cost, builds on firm reputation) (Ex, A&P; Aunt Jane Sears; Kenmore, Craftsman; Wal-Mart; Sam’s Choice; Best Value)
Hybrid
No brand name is used.
(merger and acquisition)
(Ex, Kraft-Oscar Meyer, Post-Nabisco)
Favorable Conditions for Branding (7)
- Easy to identify
- Product quality best value for price
- Dependable and widespread availability
- Demand for product class is large
- Demand strong enough to support price high enough to brand
- Economies of scale present
- Favorable shelf locations or display
Characteristics of a Good Brand Name (12)
- Short and simple
- Easy to spell and read
- Easy to recognize and remember
- Easy to pronounce
- Can be pronounced only one way
- Can be pronounced in all languages
- Suggestive of product benefits
- Adaptable to packaging/labeling needs
- Not offensive, obscene, or negative
- Always timely
- Adaptable to any advertising medium
- Legally available for use
Product Cannibalization
A firm’s new brand takes business from its established brand.
Cannibalization Scenarios (4)
- Worst Product
- Firm Product
- Shared Product
- Best Product
Worst Product
The new brand provides no competitive advantages and simply shares sales with the firm’s existing brand.
Firm Product
The firm has expanded its total marketand increased market share, but it shares some sales with its current brand.
Shared Product
The new brand shares some sales with its current brand, but it has attracted some sales from the competitor.The new brand has also expanded the firm’s total market and increased its market share.
Best Product
The new brand attracts customers from the competitor and expands the market.
Product Life Cycle
Distinct stages in the sales history of a product.
Product Life Cycle Assumptions (4)
- products have limited life
- sales pass through stages
- profits rise and fall at different stages
- different value chain activities are required in each stage
Common Cycles (6)
- Growth-Slump-Maturity
- Cycle-Recycle
- Scalloped
- Idealized/styles
- Fashion
- Fad
PLC Objectives by Stage (4)
- Awareness
- Maximize Market Share
- Maximize Profit
- Milk
Product Life Cycle Stages (4)
- Introduction
- Growth
- Maturity
- Saturation/Decline
Introduction Stage
slow sales growth, heavy expenses
Growth Stage
rapid market acceptance
Maturity Stage
acceptance by most potential buyers
Saturation/Decline Stage
sales drift downward, profits erode
IDEO Design Steps (5)
- Observation
- Brainstorming
- Rapid Prototyping
- Refining
- Implementation
Observation (7)
- Shadowing
- Behavioral Mapping
- Consumer Journey
- Camera Journals
- Extreme User Interviews
- Storytelling
- Unfocus Groups
Shadowing
Observing people using products: shopping, going to hospitals, taking the train, using their cell phones.
Behavioral Mapping
Photographing people within a space, such as a hospital waiting room, over two or three days.
Camera Journals
Asking consumers to keep visual diaries of their activities and impressions relating to a product.
Extreme User Interviews
Talking to people who really know, or know nothing, about a product or service, and evaluating their experience using it.
Storytelling
Prompting people to tell personal stories about their consumer experiences.
Unfocus Groups
Interviewing a diverse group of people.
Brainstorming
An intense, idea-generating session analyzing data gathered by observing people. Each lasts no more than an hour. Rules of brainstorming are strict and stenciled on the walls.
Brainstorming (7)
- Defer Judgment
- Build on the Ideas of Others
- Encourage Wild Ideas
- Go for Quantity
- Be Visual
- Stay Focused on the Topic
- One Conversation at a Time
Observation
IDEO’s cognitive psychologists,
anthropologists, and sociologists team up with corporate clients to understand the consumer experience.
Defer Judgment
Don’t dismiss any ideas.
Build on the Ideas of Others
No “buts,” Only “ands.”
Encourage Wild Ideas
Embrace the most out-of-the-box notions because they can be the key to solutions.
Go for Quantity
Aim for as many new ideas as possible. In a good session,
up to 100 ideas are generated
in 60 minutes.
Be Visual
Use yellow, red, blue markers to write on big 30-inch by 25-inch Post-Its that are put on a wall.
Stay Focused on the Topic
Always keep the discussion on target.
One Conversation at a Time
No interrupting, no dismissing,
no disrespect, no rudeness.
Rapid Prototyping
Mocking up working models
helps everyone visualize possible solutions and speeds up decision-making and innovation.
Rapid Prototyping (6)
- Mock up Everything
- Use Videography
- Go Fast
- No Frills
- Create Scenarios
- Bodystorm
Mock up Everything
It is possible to create models not only of products but also of services such as health care and spaces such as museum lobbies.
Use Videography
Make short movies to depict the consumer experience.
Go Fast
Build mock-ups quickly and cheaply. Never waste time on complicated concepts.
No Frills
Make prototypes that demonstrate a design idea without sweating over the details.
Create Scenarios
Show how a variety of people
use a service in different ways and how various designs can meet their individual needs.
Bodystorm
Delineate different types of consumers and act out their roles.
Refining
At this stage, IDEO narrows down the choices to a few possibilities.
Refining (6)
- Brainstorm
- Focus Prototyping
- Engage the Client
- Be Disciplined
- Focus
- Get Agreement
Brainstorm
Brainstorm in rapid fashion
to weed out ideas and focus on the remaining best options.
Focus Prototyping
Focus prototyping on a few key ideas to arrive at an optimal solution to a problem.
Engage the Client
Engage the client actively in the process of narrowing the choices.
Be Disciplined
Be disciplined and ruthless in making decisions.
Focus
Focus on the outcome of the process, reaching the best possible solution.
Get Agreement
Get agreement from all stakeholders. The more top-level executives who sign off on the solution, the better the chances off success.
Implementation
Bring IDEO’s strong engineering, design, and social science capabilities to bear when actually creating a product or service.
Implementation (2)
- Tap All Resources
- Diverse Workforce
Four Attributes Distinguish Services
- Intangibility
- Inseparability
- Perishability
- Heterogeneity
Intangibility
Services cannot be touched, seen, tasted, heard or felt in the same manner as goods can be sensed.
Inseparability
Services are typically produced and consumed simultaneously.
Perishability
Services typically cannot be stored, warehoused, or inventoried.
Heterogeneity
Services are typically less standardized and less uniform
than goods. (customer cooperation, employee morale, company workload)
Classification of Services (5)
- Profit
- Customer
- Labor and equipment needs
- Customer contact
- Provider skill level
Packaging Functions (2)
- facilitating promotion
- facilitating distribution
Promotion (4)
- get attention
- creating/supporting an image
- in-store promotion
- packaging sizes/features
Distribution (4)
- provide protection of product
- provide protection for customers
- materials cost/distribution costs
- aseptic packaging
Types of Non-For-Profit Marketing (5)
- Person
- Place
- Cause
- Event
- Organization
Physical Distribution
involves planning, implementing, and controlling the physical flows of materials and final goods from points of origin to points of use to meet customer requirements at a profit
Physical Distribution Objectives (4)
- getting the right goods,
- to the right places,
- at the right time,
- for the least cost
Four Major Decision Issues
- How should orders be handled? (order processing)
- Where should stocks be located? (warehousing)
- How much stock should be held? (inventory)
- How should goods be shipped? (transportation)
Order Processing (3)
- Receiving the order
- Routing it to the proper supplying department
- Billing the customer
Warehousing Purposes (6)
- Storage
- Sorting
- Breaking bulk
- Consolidation
- Unitization
- Containerization
Materials Management (5)
-Automated sorters based on size or other attributes
-Bar-code scanners UPC codes to catalog, sort, and store
-Automatic guided vehicles predetermined path
-Radio-linked inventory systems provides up-to-date information
-Computer-controlled shelving
brings parts to operator.
Transport Modes (5)
- Truck
- Rail
- Water
- Air
- Pipeline
Transport Features (6)
- Cost
- Speed
- Number of locations ( access )
- Ability to handle variety ( load flexibility )
- Frequency of shipments
- Dependability
Retailing
The end link in the marketing channel that moves products from manufacturers to consumers
Retailing Categories (6)
- Ownership
- Product lines
- Pricing
- Size of store
- Location
- Method of operation
Ownership (2)
- Independent
- Chain
Pricing (3)
- Full-price
- Off-price
- Discount
Size of Store (4)
- Hypermarkets
- Superstores (200,000 sq. ft.)
- Supermarkets/mass (60,000 sq. ft.)
- Boutique
Dimensions of Atmospherics (8)
- Architecture
- Layout
- Lighting
- Color Scheme
- Sounds
- Odors
- Merchandise Display
- Employee Appearance
Architecture
Imposing room heights; elegant details; period look; small or large rooms
Lighting
Bright or dim; purely functional or attention getting
Color Scheme
Warm colors to draw in customers and stimulate quick decisions; cool colors to relax customers
Layout
Basic grid or straight aisles; boutique clustering; main aisle as a loop
Odors
Pleasant smells such as chocolate, cinnamon, leather, cologne, fresh produce, popcorn
Sounds
High or low noise level; music (loud or soft, fast or slow)
Merchandise Display
Huge volumes of merchandise stacked high on displays; few product items well-spaced in store
Employee Appearance
Well-dressed and well-groomed for upscale personnel; uniforms or costumes for theme businesses
Wheel of Retailing (3)
A regular pattern in retailing evolution.
- Entry
- Trade-up
- Vulnerability
Entry (3)
- low prices
- low profit margins
- limited product lines
Trade-up (3)
- more services
- expanding product lines
- fancier stores
Vulnerability
new opportunity to start
PLC Characteristics (5)
- Sales
- Costs
- Profits
- Customers
- Competitors
