Marketing Mix: Product Flashcards
What are the four classifications of consumer goods?
1) Convenience goods
2) Shopping goods
3) Specialty goods
4) Unsought goods
What are convenience goods?
Convenience goods are bought frequently, immediately, and with minimal effort (such as, dishwasher liquid or batteries).
- These products are associated with limited problem solving.
What are shopping goods?
Shopping goods are those the consumer characteristically compares on such bases as suitability, price, quality, and style (such as, shoes).
- These goods are purchased frequently, and the consumer will put in some effort to compare available options based on multiple parameters.
What are specialty goods?
Special goods have unique characteristics or brand identification for which enough buyers are willing to make a special purchasing effort (such as, cars).
- These are normally high involvement products that are not purchased frequently, and are associated with extended problem solving as a decision making process.
What are unsought goods?
Unsought goods are those the consumer does not know about or normally think of buying (such as smoke detectors or emergency repair kits).
- These are purchased infrequently, as consumers don’t plan on buying them. Is often something they have to buy to comply with regulations or is an emergency purchase.
What are propositions?
Propositions are a set of tangible and intangible attributes not just related to physical goods, but also services, ideas, people, places, experiences, or a mic of these elements.
What are the three product propositions?
1) Core proposition
2) Embodies proposition
3) Augmented proposition
What is core (generic) proposition?
Core (generic) proposition refers to the real (utilitarian) benefit of a product or service.
This may be a functional benefit (what it does) or an emotional benefit (how it makes people feel).
- Is typically a commodity (a useful or valuable thing)
- It meets the buyers basic needs (e.g., a car satisfying a transportation need)
- Is easy to copy
What is embodied (expected) proposition?
Consumers often expect other features that are typical for most providers in the industry.
The embodied (expected) proposition refers to the physical good or service that provides expected benefits, including factors such as product feature, design, packaging, etc.
What is augmented proposition?
Augmented proposition consists of embodied product plus all those other factors that distinguish it from similar products offered by the competition.
- Added values satisfying non-functional (e.g., emotional / hedonic benefits) and functional need.
The add ons do not change the actually product, and they have a minimal impact on the cost of producing it.
- However, an augmented product may have a perceived value that gives the consumer a reason to buy it. E.g., installation guarantees the overall perception of customer service.
What are the stages of product lifecycle?
1) Development
2) Introduction
3) Growth
4) Maturity
5) Decline
What happens at the DEVELOPMENT stage of the product lifecycle?
1) Development
- Company invests in research and development.
- Has significant expenses.
(If successful, the product is launched.)
What happens at the INTRODUCTION stage of the product lifecycle?
2) Introduction
- The product is heavily advertised.
- In most cases, the revenues from the sales will not be enough to cover the costs of advertising, and net profits will still be negative.
What happens at the GROWTH stage of the product lifecycle?
3) Growth
- If the product is successful, profits will grow to cover expenses as the level of advertising decreases during the growth stage.
What happens at the MATURITY stage of the product lifecycle?
4) Maturity
- Positive profits attract more competition to the industry.
- As a result, during the maturity stage, companies need to increase advertising efforts to fight their competition, or reduce prices to gain market share (which often means lower profits than when in the growth stage).
