M5 Flashcards
an item offered for sale
Product
total number of product lines a company offers to its customers
Product mix
a group of related products all marketed under a single brand name that is sold by the same company
Product line
process of developing a unique name and identity for a product or business
Branding
Also known as product assortment or product portfolio.
Product Mix
Product mix is also known as
product assortment or product portfolio
It is a combination of products manufactured or sold by the same organization.
Product Mix
set of controllable marketing variables that the firm blends to produce the response it wants in the target market
Marketing Mix
4 P’s of the Marketing Mix
Product, Price, Promotion, and Place
In giant corporations like United Laboratories, Inc. a fifth “P” is included, which means
People
7 P’s of Marketing
Product
Place
Price
Promotion
People
Process
Physical environment
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
Product
Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership in anything.
Service
Services that cannot be seen,tasted, felt, heard, or smelled before purchase.
Intangibility
Services that cannot be separated from their providers.
Inseparability
Quality of services depends on who provides them and when, where, and how.
Variability
Services that cannot be stored for later sale or use.
Perishability
Characteristics of services
Intangibility
Inseparability
Variability
Perishability
Classifications of product
Consumer goods & Industrial goods
Consumer Goods
○ Convenience Product
○ Shopping Product
○ Specialty Product
○ Unwholesome or Unsought Product
Industrial Goods
○ Installation
○ Accessory Equipment
○ Component Parts and Materials
○ Raw Materials
○ MRO Items
Brought frequently and immediately
Convenience products
Convenience products
○ Brought frequently and immediately
○ Low price
○ Mass advertising
○ Many purchase locations
Consumer evaluates alternative products on the basis of suitability, quality, style, and price
Shopping Products
Shopping Products
○ Bought less
○ Higher price
○ Fewer purchase locations
○ Comparison shop
○ Consumer evaluates alternative products on the basis of suitability, quality, style, and price
Specialty Products
○ Special Purchase efforts
○ High price
○ Unique characteristics
○ Brand identification
○ Few purchase locations
Require a lot of advertising and personal selling
Unsought products
Unsought products
○ New innovations
○ Consumers seldom go out looking for
○ Require a lot of advertising and personal selling
Product mix decisions
Width, Length, Depth, Consistency
The number of different product lines the company carries.
Width
The number of items within a product line.
Length
The number of versions offered of each product in the line.
Depth
How closely related various lines are in end use
Consistency
group of products that a company creates under a single brand
Product Line
The products are similar and focus on the same market sector. Maybe their function or channel distribution are the same or similar.
Product Line
The process a product goes through from when it is first introduced into the market until it declines or is removed from the market.
Product Lifecycle
Stages of Product Lifecycle
▷Introduction
▷Growth Stage
▷Saturation Stage
▷Maturity Stage
▷Decline Stage
Stages of Product Lifecycle
The product is developed, keeping in view particular needs of a set of consumers and introduced in the market by initiating its commercial production.
▷Introduction
At this stage, the product is new in the market. Consequently, its demand is low and requires vigorous sales efforts.
▷Introduction
The promotional costs are, therefore, high at this stage, and the production costs are also not fully recovered due to the low volume of sales.
▷Introduction
Stages of Product Lifecycle
There is a rapid expansion in sales as the cumulative impact of the promotional expenditure helps in the market acceptance of the product as well as the reputation of the product gains around.
▷Growth Stage
In the Growth stage, this rapid expansion can be sustained only by the _______________
maintenance of product
Stages of Product Lifecycle
The sales volume of the product ceases to grow.
▷Saturation Stage
Stages of Product Lifecycle
The only additional demand for the product happens to be its replacement demand.
▷Saturation Stage
Stages of Product Lifecycle
The rate of growth of its sales decline, though the volume of sales keeps on increasing.
▷Maturity Stage
Stages of Product Lifecycle
The firm has to spend a relatively increasing amount of sales promotion.
▷Maturity Stage
Stages of Product Lifecycle
Its sales volume starts shifting down.
▷Decline Stage
Stages of Product Lifecycle
The competitors have by then entered the market with substitutes and imitations, and the product distinctiveness starts diminishing.
▷Decline Stage
the compilation of products and services offered by the company to the target market
Product portfolio
It comprises all the set of products offered right from the ones that were launched and offered during the inception of the brand to the ones that are launched currently along with ones that are in the pipeline.
Product portfolio
Importance of product portfolio to business
● Innovation
● Tax benefits
● Aligns projects with the business strategy
● Visualize the entire portfolio
● Effective allocation of resources
● Data for the key members of the management
● Cash flow management
● Synergy within the internal team
● Proper selection of the target market
can provide nuanced views on a stock type, company growth prospects, profit margin drivers, income contributions, market leadership, and operational risk
Product Portfolio Analysis
used to assist in planning product development and strategy
Product Portfolio Analysis
Used to assist in planning product development and strategy by:
○ analyzing an existing portfolio to decide which products should receive more or less investment
○ adding new products to the portfolio or deciding which products and businesses should be eliminated
When a company markets a range of different products or services, it is required to conduct portfolio analysis ________.
periodically
Portfolio analysis means to analyze each product separately in terms of _________, __________, and ___________.
profitability, contribution to the company’s income, and growth potential
This analysis facilitates the identification of products that are _____________ at all or play poorly within the group.
not profitable
It might also indicate that the company must increase its investments and efforts to some star products that have a higher potential.
Portfolio analysis
The products are categorized by pre-defined criteria such as sales value, market share, gross profitability, contribution margin, and life cycle.
Portfolio analysis
consumers’ perceptions of a product’s attributes, uses, quality, and advantages and disadvantages relative to competing brands
Product Positioning
a marketing technique intended to present products in the best possible light to different target audiences
Product Positioning
The process marketers use to determine how to best communicate their products’ attributes to their target customers.
Product Positioning
T/F: Effective product positioning ensures that marketing messages resonate with target consumers and compel them to take action.
TRUE
Decisions regarding the product, price, promotion, and distribution channels are decisions on the elements of the “marketing mix”.
Product Decision
Probably the most crucial as the product is the very epitome of marketing planning.
Product Decision
Errors in product decisions are ______
legion
Elements of Product Decisions
▷Production process
▷Specifications
▷Culture
▷The physical product
▷Packaging
▷Labelling
▷Branding
▷Warranty
▷Service
A symbol or design that identifies and differentiates a product from other products.
Product branding
T/F: A strong brand creates a personality for the product and differentiates a product from competitors.
TRUE
The wrapping material around a consumer item that serves to contain, identify, describe, protect, display, promote, and otherwise make the product marketable and keep it clean.
Packaging
is more than just your product’s pretty face
Packaging
T/F: Package design may affect everything from breakage rates in shipment to whether stores will be willing to stock it.
TRUE
Display of information about a product on its container, packaging, or the product itself.
Labeling
Importance of labeling
▷Provides identification
▷To exaggerate the product
▷To grab the attention of the audience
▷To encourage potential buyers to purchase the product
▷Used for convenience and information transmission
▷Makes product grading easy
▷Provides information as per law
▷Protects customers from getting cheated
▷Helps in marketing
This analysis facilitates the identification of products that are not profitable at all or play poorly within the group.
Portfolio analysis
