Marketing Mix: Product Flashcards
Product
Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want.
Service
Service is a product that consists of activities, benefits, or satisfaction and that is essentially intangible and does not result in the ownership of anything.
Consumer products
Consumer products are products and services bought by final consumers for personal consumption.
* Convenience products
* Shopping products
* Specialty products
* Unsought products
Convenience products
Convenience products are consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort.
Shopping products
Shopping products are less frequently purchased consumer products and
services that the customer compares carefully on suitability, quality, price, and style. (Furniture, Cars, Household appliances)
Specialty products
Specialty products are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort (medical services, Designer clothes, High-end electronics)
Unsought products
Unsought products are consumer products that the consumer does not know about or knows about but does not normally think of buying. (Life insurance, Funeral services, Blood donations)
Industrial products
Industrial products are those products purchased for further processing or for use in conducting a business.
Materials and parts: raw materials and manufactured materials and parts.
Capital items: industrial products that aid in the buyer’s production or operations.
Supplies and services: operating supplies, repair and maintenance items, and
business services.
Organization marketing
Organization marketing consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization.
Person marketing
Person marketing consists of activities undertaken to create, maintain, or change the attitudes or behavior of target consumers toward
particular people.
Place marketing
Place marketing consists of activities undertaken to create, maintain, or change attitudes and behavior toward particular places.
Social marketing
Social marketing uses commercial marketing concepts to influence individuals’ behavior to improve their well-being and that of society.
Purpose-driven marketing
Purpose-driven content marketing is a way for a business or brand to bond with a target audience based on their shared needs and interests – including interest in supporting a worthy cause. But while most organizations recognize the importance of, ‘giving back,’ they aren’t always accustomed to creating content around their efforts in a way that will both engage their audience and drive them to participate.
Product and Service Decisions
Individual Product Decisions * Product attributes
* Branding
* Packaging
* Labeling and logos
* Product support service
Product Line Decisions
* Product line length
(Line stretching, Line filling)
Product Mix Decisions
* Product mix width, lenght, depth, consistency
Product quality
Product quality refers to the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.
* Total quality management
* Return-on-quality / profit!!!
* Quality level
* Performance quality
* Conformance quality
Product Features, style, design
Competitive tool for differentiating a product from competitors’ products. Assessed based on the value to the customer versus its cost to the company
- Style describes the appearance of the product.
- Design contributes to a product’s usefulness as well as to its looks.
Brand, logos, labels
Brand is the name, term, sign, or design or a combination of these, that identifies the maker or seller of a product or service.
Logos and labels – ranges from simple tag to complex graphics – are part of the packaging. Can support the brand positioning and add personality to a brand.
Labels identify the product or brand, describe attributes, and provide promotion.
Expected /required / regulated information e.g.:
* Unit pricing (stating the price per unit of standard measure)
* Open dating (stating the expected shelf life of the product)
* Nutritional labeling (stating the nutritional values in the product
Product line
Product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.
Product line length
Product line length is the number of items in the product line.
- Line stretching - a company
lengthens its product line beyond its current range − downward, upward, or both ways. - Line filling -adding more items within the present range of the line
Product Mix Decisions
- Product mix width is the number of different product lines the company carries.
- Product mix length is the total number of items the company carries within its product lines.
- Product mix depth is the number of versions offered of each product in the line.
- Consistency is how closely the various product lines are in end use, production requirements, or distribution channels
4 ways for company to increase its business
1.It can add new product lines, widening its product mix.
2.It can lengthen its existing product lines.
3.It can add more versions of each product, deepening its product mix.
4.It can pursue more product line consistency.
Product Life-Cycle Strategies
Product development, Introduction Stage, Growth Stage, Maturity Stage, Decline Stage
Introduction Stage
- Slow sales growth
- Little, no or negative profit
- High distribution and promotion expenses
Strategies:
* Consumers must be informed about the
product
* Encourage product trials
* Ensure the availability of the product
* Timing of market entry - the advantage of pioneers
Growth stage
Characteristics:
* Sales increase
* New competitors enter the market
* Profits increase
* Economies of scale
* Consumer education
* Lowering prices to
attract more buyers
Strategies:
* Improving product quality
* Adding new product features and models
* Entering new market segments and new distribution channels
* Shifting some advertising from awareness to building product conviction and purchase
* Lowering prices at the right time to attract more
buyers
Maturity Stage
- Slowdown in sales
- Many suppliers
- Substitute products
- Overcapacity leads to competition
- Increased promotion and R&D to support sales and profits
Modification Strategies
* Modify the market
* Modify the product
* Modify the marketing mix
Decline Stage
- Sales may plunge to zero
- Many hidden costs
Strategies
* Maintain the product
* Harvest the product: progressively reduce product and business costs while maintaining turnover
* Product liquidation (sale), withdrawal (= drop the product)
4 Service Characteristics
Intangibility: services cannot be seen, tasted, felt, heard, or smelled before purchase.
Inseparability: services cannot be separated from their providers.
Variability: quality of services depends on who provides them and when, where, and how.
Perishability: services cannot be stored for later sale or use
Services 7P
- Product
- Price
- Place
- Promotion
- People
- Physical evidence
- Process
The product acceptance process
The product acceptance process refers to the conceptual steps that take the customer from the moment they become aware of the innovation to its final acceptance
New product
adoption process
Classification of consumers according to the time it takes to adopt novelties:
* Innovators
* Early adopters
* Early mainstream
* Late mainstream
* Lagging adopters
