MARK 3000 Chapter 11 Flashcards
what is a product?
anything that is of value to a customer an can be offered through a voluntary marketing exchange
what are specialty products?
consumers have strong preference and will expend considerable effort to search (ex. wedding gowns)
what are shopping products?
consumers will spend a fair amount of time comparing alternatives (ex. shoes, fragrances)
what are convenience products?
consumer is willing to spend minimum effort to evaluate pre purchase (ex. shampoo, canned goods)
what are unsought products?
consumers do not normally think of buying or do not know about it (ex. fire extinguisher, life insurance)
what are the two types of product mix and product line decisions?
breadth and depth
what is breadth?
number of product lines in a product mix
what are examples of breadth?
feminine care, family care, baby care, etc
what is the issue with breadth?
may be too costly to maintain too many times
how can you increase breadth?
ADD new product lines to capture new or evolving markets (ex. vacuum co. created a face mask line during pandemic)
what can you decrease breadth?
DROP line of goods that are no longer competitive or performing well (ex. P&G sold off pet care lines o focus on home/personal care)
what is depth?
number of categories within a product line
what are examples of depth?
tide pods, liquid detergent, powder
what is the issue with depth?
may cannibalize products
how can you increase depth example?
large range of band aid products
how can you decrease depth example?
mccormick eliminates dozens of spices each year
what is branding?
increases awareness and provides a way to differentiate from competitors
what aspects make up a brand?
- brand name
- logo
- characters
- slogans
- jingles
- URLS
- distinctive packaging
what are some values of branding for both the customer and firm?
- facilitates purchasing
- establishes loyalty
- protects from competition
- reduces marketing costs
- are assets
- impacts market value
what are some aspects of brand equity?
- brand awareness
- perceived value
- brand association
- brand loyalty
what is brand awareness?
measures how many consumers in a market are familiar with the brand and what is stands for (ex. Forbes list of most valuable brands)
what is perceived value?
relationship between a products/ services benefits and its costs (ex. how retailers like target, tj max and h&M create value for customers)
what is brand association?
mental and emotional links that consumers make between a brand and its key attributes
what does brand association typically result from?
advertising and promotional efforts (like a good neighbor, State Farm is there)
