Marketing Communication Lectures blok 2.2 Flashcards
What is a product?
A combination of tangible and intangible characteristics that enable an object or a service to satisfy a customer need.’
A product can also be a bundle of benefits -> Media markt, Amazon, Apple etc.
What are the Product levels?
- Core product
- Actual product
- Augmented product
What is a Core product?
What need does the product fulfil?
Example car:
Core product = transportation
What is an actual product?
What is it?
Example car:
Actual product = the car
What is an Augmented product?
core product + augmented product + everything you get and CAN separate
Example car:
Augmented product = free winter tiers
what are the two classifications of products?
- Consumer goods
- Business products
there is a difference in decision making process
what are consumer goods?
Consumer goods are products bought for consumption by the average consumer. Alternatively called final goods, consumer goods are the end result of production and manufacturing and are what a consumer will see on the store shelf. Sold to individuals and families (ultimate consumers/end users)
what are business products?
Sold to organisation (who use or resell it).
What are the 4 types of consumer goods?
- Convenience products
- Shopping products
- Specialty products
- Unsought products
what are convenience products?
products or service we buy without thinking, with minimum effort, we want it to be available everywhere (staples, impulse goods, emergency goods)
-> fast food, magazines, sugar, umbrella. toothpaste,
buying behaviour: frequent purchase, little effort
price: low price
distribution: widespread
promotion: mass promotion
what are shopping products?
Products we go and shop for (several stores), we compare them (example: clothes), we want information so someone present at the point of sale can be useful.
-> furniture, clothing, used cars, airline services, television etc
Homogeneous products: Products that vie with each other in a market but which (from the consumer’s viewpoint) have little or no differentiation in terms of features, benefits, or quality and are, therefore, forced to compete on price or availability.
Heterogeneous products: products with attributes that are significantly different from each other, which makes it difficult to substitute one product for another. An example of a heterogeneous product is a computer. You really can’t substitute a PC for a Mac, because each computer platform is too different.
buying behaviour: less frequent purchase, much effort
price: higher price
distribution: selective
promotion: advertising and personal selling.
what are speciality products?
- Specialty products: products with a big preference, we put a lot of effort in these products, but we usually compare them less then shopping products, should create consumer loyalty. (are consumer products and services with unique characteristics or brand identification for which a significant group of consumers is willing to make a special purchase effort.)
High involvement, high brand loyalty
-> Starbucks (convenience good turned in to specialty product), specific cars (Lamborghini), festivals, luxury goods, designer clothing
buying behaviour: strong brand preference, loyalty
price: high price
distribution: exclusive distribution
promotion: carefully targeted promotion
what are unsought products?
- Unsought products: these are products which we do not know we want/need/consider them.
As a consequence of their nature, unsought products require much more advertising, selling and marketing efforts than other types of consumer products but more specific?
-> iPad, wedding dress, funeral services, new products, life insurance (before advertising)
buying behaviour: little product awareness, knowledge or little interest
price: varies
distribution: varies
promotion: aggressive advertising and personal selling
what is the the impact for a communication strategy?
- Information needs differ hugely between different categories
- Objectives range from TOM awareness to POS to loyalty to “findability”
product life cycle
- Introduction
- Rapid growth
- Turbulence
- Maturity
- Decline
- Evaluate position of product in product life cycle
- Special opportunities and challenges for each phase