M3 Part 1: Product Definition Flashcards
What is Product?
- Anything offered to a market to satisfy a want or need
What are the Product Classifications?
- Durable: one time buy, lasts a long time before being replaced (tv, car, etc.)
- Non-Durable: bought frequently, lasts a relatively short time before replacement (food, water, shampoo, cleaning product, etc.)
- Service: intangible product, often activities associated with company offerings
What are the elements of the 5 Product Levels?
- Core Product: basic product and its intended purpose (warm coat will protect from the cold and rain)
- Generic Product: qualities of the product (fit, material, rain repellent ability of the warm coat)
- Expected Product: the aspects or the product consumers expect to get (warm coat should be really warm and comfortable)
- Augmented Product: additional factors such as brand identity and image which set it apart from the competition (is the coat trendy, well-made, is the warranty and service for repair good?)
- Potential Product: the future augmentations and upgrade that will be made to the product (warm coat has received a fabric that will make it lighter)
What is the Product Concept?
- The evolution of a product to satisfy customers
What are the Product and Service Attributes?
Product Quality - characteristics of a product or service and its performance to satisfy customer needs
Product Features - characteristics, that differentiate your product from competitors, such as components and capabilities
Product Style - appearance of your product
Product Design - heart of your product, its usefulness
What are the two types of Marketing Orientation?
- Production Orientation: business develops products based on its strengths
- Marketing Orientation: business responds to customer needs and wants
What are the types of Consumer Products?
- Convenience, Shopping, Specialty and Unsought Produxt
What are convenience products?
- Products purchased quickly, little effort, inexpensive, bought often, and by habit.
- Staples: bought often, routinely and without much thought.
- Impulse: bought quickly and unplanned because of a strong need
- Emergency: purchased immediately when the need is great
- Ex. Food and drinks, newspaper, medicine, toiletries, etc
What are shopping products?
- Products compared with competing products
- Homogenous shopping: products that the customer sees as the same and prefers at the lowest price
- Heterogeneous shopping: seen as different in quality and or suitability
- Ex. TV, Household appliance, doctor visit, clothing, Smartphone, etc
What are specialty products?
- Products that the consumer wants with no acceptable substitutes, determined by the consumer willingness to search
- Luxury car, movies, special edition items, expensive house, etc
What are Unsought Products?
- Products that don’t need promotion, things that customers don’t want yet or don’t know they can buy
- New unsought: ideas customers are unaware of yet
- Regularly unsought: products that don’t motivate customer to seek them, even though they may need them
What is a Product Item, Line and Mix?
- Product Item: a distinct offering among an organization’s products (Food and refreshment: Ice cream)
- Product Line: a group of closely related product items
(Ice cream, soda, pizza, microwavable meals) - Product Mix: all product that an organization sells (Food and refreshment, Beauty and Personal Care, Home Care)
What are the various Business Product Classes?
Installations: facilities or equipment directly involved in business operation or production
Accessory Equipment: products or equipment indirectly involved in production process (hand tools, office table, chairs, computers)
- Raw Materials: raw resources used to produce business products
- Component Parts and Materials: items placed in the final product without final processing; component part of the final product (Engine, batteries, windshield, etc)
- Maintenance, Repair and Operation Supplies: required for the maintenance and sustenance of business operations (light bulb, cleaning supplies, paper, lubrication oil, etc)
- Professional Services: services that a business may avail of to assist in business operations (legal, accounting, security, etc)
