Lesson 7 Duplicate Flashcards
What is a product?
Anything that can be offered in a market for attention, purchase, use, or consumption that might satisfy a need or want.
What does the definition of ‘product’ include beyond tangible objects?
Services, events, persons, places, organizations, ideas, or a mixture of these.
What is a service?
A form of product that consists of activities, benefits, or satisfactions and that is essentially intangible and does not result in the ownership of anything.
Give examples of services.
Banking, hotel services, airline travel, retail, wireless communication, and home-repair services.
What do products and services provide?
Offerings that bring value to target customers (including both tangible (i.e., goods) and intangible things (i.e., services)).
What is the definition of a ‘pure tangible good’?
A product where no services accompany the product.
Give an example of a ‘pure tangible good’.
Soap.
What is the definition of ‘pure services’?
Offerings that consist primarily of a service.
Give an example of ‘pure services’.
Doctor’s exam and financial services.
What possible offering exists beyond ‘pure tangible good’ and ‘pure services’?
Goods-and-services combinations.
Give an example of goods-and-services combinations.
Airline: in-flight purchase, restaurant selling food products.
What are companies increasingly creating and managing with their brands?
Customer experiences.
What are the three levels of product and services that product planners need to consider?
Core customer value, actual product, augmented product.
What question is asked at the ‘core customer value’ level of product planning?
What is the customer really buying?
What elements combine to make up the ‘actual product’ level?
Features, design, packaging, quality level, brand name.
What elements constitute the ‘augmented product’ level?
Delivery and credit, product support, warranty, after-sale service.
What are the two broad classifications of products and services?
Consumer products, industrial products.
What are consumer products?
Products and services bought by final consumers for personal consumption.
What are the four types of consumer products?
Convenience products, shopping products, specialty products, unsought products.
What are convenience products?
Consumer products and services that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.
Give an example of convenience products.
Newspapers, candy.
What are shopping products?
Less frequently purchased consumer products and services that the customer compares carefully on suitability, quality, price, and style.
Give an example of shopping products.
Furniture, cars, appliances.
What are specialty products?
Consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
Give an example of specialty products.
Medical services, designer clothes, high-end electronics.
What are unsought products?
Consumer products that the consumer does not know about or knows about but does not normally think of buying.
Give an example of unsought products.
Life insurance, funeral services, blood donations.
What do unsought products require due to their nature?
A lot of advertising, personal selling, and other marketing efforts.
What are industrial products?
Products purchased for further processing or for use in conducting a business.
What are the three groups of industrial products?
Materials and parts, capital items, supplies and services.
What do materials and parts include?
Raw materials and manufactured materials and parts.
What are capital items?
Industrial products that aid in the buyer’s production or operations.
Give an example of capital items.
Machines.
What do supplies and services (industrial products) include?
Operating supplies, repair and maintenance items, and business advisory services.
Give an example of supplies and services (industrial products).
Consumable materials used by the business such as hotel on an ongoing basis, repair and maintenance, business advisory services.
How can the same product be classified as both consumer and industrial product?
Depending on its usage.
What are the major decisions companies make regarding individual products and services, in order?
Product attributes, branding, packaging, labeling, product support services.
Developing a product or service involves defining what?
The benefits that it will offer by communicating about its product and service attributes.
What are the key product attributes involved in product and service decisions?
Quality, features, style and design.
What is product quality?
It links to service performance, thus can be defined as creating customer value and satisfaction.
What are product features?
A competitive tool for differentiating the product from competitors’ products.
What is style, as a product attribute?
The appearance of a product.
What is design, as a product attribute?
It contributes to a product’s usefulness as well as to its looks.
What is a brand?
A name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.
Why is branding important?
Branding can add value to a consumer’s purchase, customers attach meanings to brands and develop brand relationships, brand names help consumers remember the benefits, quality and consistency of products.
What is packaging?
Designing and producing the container or wrapper for a product.
What are labels, in the context of product decisions?
Simple tags attached to products to complex graphics that are part of the packaging.
What do labels do?
Identify the product or brand, describe attributes, and provide promotion.
What are product support services?
Services that augment actual products and increase the value of actual product.
What are the three broad categories of service industries?
Government, private not-for-profit organizations, business organizations.
Give an example of service industries of Government.
Courts, employment services, hospitals, military services, police and fire departments, the postal service, and schools.
Give an example of service industries of Private not-for-profit organizations.
Museums, charities, churches, colleges, foundations, and hospitals.
Give an example of service industries of Business organizations.
Airlines, banks, hotels, insurance companies, consulting firms, medical and legal practices, entertainment and telecommunications companies, real estate firms, retailers, and others.
What are the four major service characteristics that affect the marketing of services?
Intangibility, inseparability, variability, perishability.
What is service intangibility?
Services cannot be seen, tasted, felt, heard, or smelled before they are bought.
What is service inseparability?
Services cannot be separated from their providers.
What is service variability?
The quality of services depends on who provides them as well as when, where, and how they are provided.
What is service perishability?
Services cannot be stored for later sale or use.
