Marketing Flashcards
consist of both goods and services
Product
package of benefits both physical and psychological that a marketer wants to present, or pack of expectations that consumers desire to realize
Product
The fundamental benefit or value
that a customer seeks when purchasing a product. — It
answers the question: What is the customer really buying?
CORE CUSTOMER VALUE
The tangible or physical product that
delivers the core benefit. This includes the product’s features,
design, brand, quality, and packaging.
ACTUAL PRODUCT
Additional services and benefits
that enhance the value of the actual product and differentiate it
from competitors. — These are not essential but improve
customer satisfaction and loyalty.
Augmented product
Items which are used by ultimate consumers
or households, and they can be used without further commercial and
engineering processes.
CONSUMER PRODUCTS:
Items that do not need much effort of planning from customers. They are used in day-to-day
life and are frequently required and can be easily purchased.
CONVENIENCE PRODUCTS:
These products require special time and shopping efforts. They are purchased purposefully from
special shops or markets.
SHOPPING PRODUCTS
Can be used for an extended time and can be repetitively made used by one or more persons.
DURABLE PRODUCTS
have
a short span of life. They should be used within a small time
once they are manufactured.
NON-DURABLE PRODUCTS
Unique or high-end products for which consumers are willing to make a special effort to
purchase
SPECIALTY PRODUCTS
These are items customers are not
aware of or do not often think about. — New products that have no brand recognition fall under this classification.
UNSOUGHT PRODUCT
Refers to intangible offerings provided by
businesses to fulfill customer needs and wants
SERVICES
Used as the inputs by manufacturing
companies for further processes on the products or manufacturing other
products.
INDUSTRIAL PRODUCTS
Natural resources or unprocessed
materials that are used in manufacturing or production
processes
RAW MATERIALS
(Wheat, livestocks, fruits, vegetables)
FARM PRODUCTS
(fish, lumber, crude, petroleum, iron
ore)
NATURAL PRODUCTS
Products that become part of the
finished product during the manufacturing process.
Examples
are engine parts, screws, circuit boards, and glass forwindows
COMPONENTS & PARTS
Durable goods used in the production
process but not part of the final product.
Examples are machinery, tools, buildings, and vehicles.
CAPITAL GOODS
Products used in the daily
operations of a business but not part of the final product.
Examples are lubricants, cleaning supplies, office stationery and protective gear.
SUPPLIES & CONSUMABLES
refers to the complete
range of goods and services that a company offers to its customers. It
represents the diversity of offerings within a company’s portfolio and is
analyzed through its four dimensions:
PRODUCT MIX OR PRODUCT ASSORTMENT
The number of product
lines the company has to offer and sell to customers
WIDTH
The total number of
products in all the product lines
LENGTH
The variety of versions or
options for each product in a product line
DEPTH
describe how
closely related the product lines are
in terms of use, production, and distribution channels.
CONSISTENCY
:Distinctive product a company offers.
:Is a group of products that are closely related to each other by function,
customer group, market or price range.
PRODUCT LINE
:Is a marketing strategy of making product inimitable, distinctive and
uniquely valuable to be noticeable compared with competitors.
PRODUCT DIFFERENTIATION
Product can be differentiated on the basis
of product form such as physical structure, size and shape
PRODUCT FORM
Specific characteristics or
functionalities that a product offers beyond its basic purpose.
Enhances usability and value for customers.
PRODUCT FEATURES
The product’s ability to perform
its core function effectively and meet customer expectations.
Differentiate products based on superior functionality or
efficiency.
PERFORMANCE QUALITY
The ability of a product to withstand
wear and tear or last over time. Attracts customers seeking
long-lasting products.
PRODUCT DURABILITY
The consistency of a product in
delivering promised performance without failure.
PRODUCT RELIABILITY
The visual appearance, design, or
aesthetic appeal of the product. Differentiates products based on looks and sensory appeal
PRODUCT STYLE
The support, convenience, and additional value
offered with the product. Differentiates products based on
pre-sale, during-sale, or after-sale services.
SERVICE
the identity and perception of a product or company,
expressed through elements such as names, symbols, designs, or
values. It creates emotional and psychological connections with customers
BRAND
:Is the unique and long lasting personification of a brand. It includes
personality features/characteristics.
BRAND PERSONALITY
She defines the associated personality of a brand as a
set of:
JENNIFER AAKER
the total value of the brand as a distinct asset.
Brand equity
:The extent to which consumers recognize or recall a brand under
different conditions.
Brand awareness
Once the product category is cited, the
customers recognize the brand from the lists of brands made
known.
Aided awareness
On citing the product category, that first brand that
comes first on the mind of customers is the brand.
TOP OF MIND AWARENESS OR IMMEDIATE BRAND
RECALL
:The mental links that consumers form between a brand and its
attributes, benefits, or emotions
Brand association
:The printed or written information on the product or its packaging. It
provides essential details about the product and helps consumers make
informed decisions.
Labeling
Can be peeled away or removed from
the product container or package
DRY PEEL LABELS
Provide additional content
FOLD-OUT LABELS
Able to reseal the packaging or container
RESEAL LABELS:
Can be foldout and reseal
EXPANDABLE RESEAL BOOKLET
Have a unique shape of
outline
SPECIALTY DIE-CUT LABELS
Use thicker board stock as the
printing material
TAG & BOARD PACKAGING
Primary label on a container or packaging
PRIME LABELS
a promise made by a manufacturer or seller regarding the quality or
performance of a product.
GUARANTEES
a written guarantee from the manufacturer or seller to repair or
replace a product if necessary within a certain period.
WARRANTIES
is a process of producing a goods or services from idea to bringing
it to the market
NEW PRODUCT MANAGEMENT
amount of money exchanged
for something of value
PRICE
ACT PROVIDING PROTECTION TO CONSUMERS BY
STABILIZING THE PRICES OF BASIC NECESSITIES AND PRIME
COMMODITIES
REPUBLIC ACT NO.7581
REPUBLIC ACT NO.7581
also know as
PRICE ACT
KAILAN PINASA ANG PRICE ACT
May 27, 1992
IMPLEMENTING AGENCY
- Department of Agriculture
- Department of Health
- Department of Environment and Natural Resources
- Department of Trade and Industry
which is the undue accumulation by a person or combination of persons of any basic commodity beyond his or their normal inventory levels
HOARDING
which is the sale or offering for sale of any basic necessity or prime
commodity at a price grossly in excess of its true worth.
PROFITEERING
any agreement between competing firms in the same industry to
coordinate their actions to manipulate market outcomes such as prices, production
levels, or market shares.
CARTEL
used when the goods and services are positioned to
luxurious and elegant
PRESTIGE PRICING
El Nido Resort caters a class A market, they have a Villa at
₱30,500 per night for maximum of 3 person
PRESTIGE PRICING
Employs when the market price is insensitive. This is an effective
short-term policy since competition can easily come in and provide more supply.
MARKET SKIMMING PRICING
Before: ₱125.00, Now: ₱100.00
MARKET SKIMMING PRICING
used when setting a low initial selling
price to penetrate the market quickly and attract many buyers for a
large market share.
MARKET PENETRATION PRICING
Tagaytay Country Hotel maintains relatively lower rates compared to
the more expensive Twin Lakes Hotel, which is also in Tagaytay. This
is a strategy to attract a wider segment of the market.
MARKET PENETRATION PRICING
strategy used to attract buyers to purchase
because of the reduced rate of the bundle compared to the total cost of the items if purchased individually.
PRODUCT BUNDLING PRICING
3 for ₱100
Burger, fries and drinks for ₱150
PRODUCT BUNDLING PRICING
rates given to frequent or high-
volume users to attract them to purchase the products.
VOLUME DISCOUNTS
booking 10 rooms to earn one free
Special rates for long-staying guests
VOLUME DISCOUNTS
This strategy addresses the seasonality aspect of the tourism
product. A price reduction is given to buyers who purchase services out of season when the demand is lower or way ahead of time.
DISCOUNT BASED ON TIME OF PURCHASE
Piso fare
Merienda buffet for only ₱250.00 (2:00-5:00 PM)
DISCOUNT BASED ON TIME OF PURCHASE
The company sells a product at two or more prices. The
difference in the price is not based on differences in cost
but instead tries to maximize the amount that each
customer pays.
DISCRIMINATORY PRICING
Sold to a foreigner at $100.00, sold to a local resident
for only ₱2,000.00 only
DISCRIMINATORY PRICING
₱1,999
₱499
PSYCHOLOGICAL PRICING
offers discounts and short-term incentives especially during the introductory stage of the
product or during special activities such as anniversaries or festivals
PROMOTIONAL PRICING
Buy one, Take one
PROMOTIONAL PRICING
offering the price below competitors
permanently, unlike promotional pricing where the price is
lowered temporarily.
VALUE PRICING
the process of bringing
the goods produced or services rendered by the company to the ultimate
consumer.
DISTRIBUTION
refer to the pathways or
routes through which goods or services flow
from producers to consumers
DISTRIBUTION CHANNEL
Regarded as the input
to customer service
satisfaction. It consists
of receiving, recording,
filling, and assembling
of products for
shipping.
ORDER PROCESSING
An essential function to
do in supply chain
management. It shields products from breakages,
helps in well-organized
distribution, & conveys
messages about
products to the
customers.
PACKAGING
is holding & preserving
products from the time of their
production until their sale.
STORAGE
is a much broader
concept that includes storage & other
functions like assembling, breaking
the volume, shipping based on need,
arranging product for reshipping,
logistics and so on.
WAREHOUSING
The movement of goods,
people, or services from
one place to another usingvarious modes such as
land, sea, air, or rail
TRANSPORTATION
are those
companies that offer
transportation facilities to
others.
CARRIERS
The processes and
techniques used to manage
and regulate the stock of goods in a business, ensuring
the right amount of inventory is
available at the right time and
place. It focuses on minimizing
costs while meeting customer
demand and avoiding
overstock or stockouts
INVENTORY CONTROL
The support and assistance
provided by a business to its
customers before, during, and
after purchasing its products or
services. It directly impacts
customer satisfaction, loyalty,
and overall business success
CUSTOMER SERVICE
TYPESOF DISTRIBUTION
INTERMEDIARIES
- AGENTS OR BROKER
- DISTRIBUTORS
- WHOLESALER
- RETAILERS
These are individuals or companies that act as representatives for
businesses. They help in connecting buyers and sellers or facilitate deals.
AGENTS OR BROKERS
responsible for buying goods and services on behalf of a
business or organization. They act as the organization’s representative in
procurement activities.
PURCHASING AGENTS
a third-party intermediary that assists in making a
transaction but does not take ownership of goods or directly negotiate
purchases. Example: customs broker assisting with import/export compliance.
FACILITATING AGENTS
is selling pf commodities to everyone either to a person or
an organization but not to the final consumers of those goods.
WHOLESALING
is a business or individual that purchases goods in bulk
directly from manufacturers or distributors and resells them, usually in
smaller quantities, to retailers, other businesses, or institution
WHOLESALER
Purchases goods from manufacturers or suppliers and sells them to
retailers, businesses, or directly to consumers, often with exclusive rights in a region.
DISTRIBUTORS
business or individual that sells goods or services
directly to end consumers for personal use.
RETALERS
They are the final step in the supply chain before the
product reaches the consumer.
RETAILER
ZERO-LEVEL CHANNEL
Producer → Consumer
ONE-LEVEL CHANNEL
Producer → Retailer → Consumer
TWO-LEVEL CHANNEL
Producer → Wholesaler → Retailer → Consumer
THREE-LEVEL CHANNEL
Producer → Agent/Broker → Wholesaler → Retailer → Consumer
Also known as intensive distribution. Products are made available
through as many outlets as possible to maximize exposure and sales.
MASS COVERAGE
Products are distributed through a limited number of carefully chosen
outlets to maintain a balance between market coverage and brand
control
SELECTIVE COVERAGE
Products are distributed through a single or very few
exclusive outlets in a specific geographic area.
EXCLUSIVE COVERAGE
Products are distributed through a single or very few
exclusive outlets in a specific geographic area.
EXCLUSIVE REVIEW
refers to
managing the flow of physical goods and
related information from initial souring to
final consumption to satisfy customers at
a profit.
SUPPLY CHAIN MANAGEMENT
The process of sourcing and acquiring raw
materials, components, or services required for
production.
PROCUREMENT
Transforming raw materials into finished goods using labor,
machinery, and processes.
PRODUCTION & MANUFACTURING
Monitoring and controlling stock levels to meet
demand without overstocking or understocking.
INVENTORY MANAGEMENT
Storing goods at various stages of the supply chain
until they are needed for production or delivery.
WAREHOUSING AND STORAGE
Managing the movement of goods across the supply chain,
from suppliers to customers.
TRANSPORTATION AND LOGISTICS
Anticipating customer demand to align supply chain activities with
market needs.
DEMAND PLANNING AND FORECASTING
Managing the process from receiving customer orders to
delivering the products.
ORDER FULFILLMENT
Building and maintaining strong relationships with
customers through service and support.
CUSTOMER RELATIONSHIP MANAGEMENT(CRM)
Managing the return flow of goods from customers
back to the company.
REVERSE LOGISTICS
refer to the
techniques and tactics businesses use
to increase awareness, interest, and sales
of their products or services.
PROMOTION STRATEGIES
Paid promotion with a known sponsor that can get
to many people at one time and can be done in
many times.
ADVERTISING
Short-term incentives or offers aimed at encouraging immediate sales or
customer action.
Sales promotion
Strategies to manage the brand’s reputation and create positive
relationships with the public, media, and other stakeholders.
Public relationship
Direct interaction between a sales representative and a potential
buyer to persuade them to purchase a product or service.
Personal selling
Using platforms like Facebook, Instagram, Twitter, or LinkedIn to
engage with consumers, promote products, and build brand
presence.
Social media marketing
Creating and sharing valuable content that attracts and
retains customers, often leading to conversion and loyalty
Content marketing
Directly communicating with potential customers through
non-personalized means to encourage immediate
responses or sales.
Direct marketing
Rewarding customers for repeat business or engagement,
fostering long-term customer relationships.
Loyalty program
Unconventional, low-cost marketing tactics that aim to
surprise and engage customers in creative ways.
Guerilla marketing
Partnering with influencers (individuals with large
followings) to promote products or services.
Infkuencer marketing
Using events or sponsorships to increase brand visibility and
interact directly with potential customers.
Event marketing and sponsorship
Encouraging customers to share positive experiences
with their network, often organically.
Word of mouth
Encouraging customers to share positive experiences
with their network, often organically.
Word of mouth
